What is life insurance?

There are so many different decisions to make in life and many of them are financial. While we try to budget and save money wherever we can, there are investments that we should make that will benefit us and the lives of those that we love in case something happens to us. Life insurance is one of these investments.
 
Paying premiums towards your policy will take into account any unforeseen instances that could present themselves during your lifetime. It’s nice to know that an insurance company is going to provide money to your loved ones when you’re gone. You don’t have to worry that they’re going to struggle financially without your support and guidance.
 
We know that there are a lot of different policy types to consider, whether it be temporary or permanent provisions. We’re here to help explain these different options to you so that you can make the most educated decision possible. Paying off debt, replacing lost income and covering the cost of a funeral are just some of the benefits that come from insurance.

Why do you need life insurance?

Insurance policies protect your family from financial loss when you pass away, but there are other types of insurance that can be used when you are alive. Critical illness insurance and disability insurance can provide you with monetary assistance if you’re unable to work. These are very important additions to your financial protection plan.
 
If you’re in the process of shopping around for life insurance, consider asking us about adding on these other coverage options. It’s not complicated, but the benefits are worth the investment of time and money. 

Critical Illness Insurance

Critical illness insurance policies cover both long-term illness and serious medical issues end up costing you a large sum of money for treatment. If you have a comprehensive health insurance plan, there may be illness insurance included. If you don’t have this coverage, we can provide you with access to a number of different policy options.

Coverage

Illness coverage covers a long list of health issues including things like cancer, tumors, kidney failure, heart conditions and much more. Once you provide the necessary medical documentation that proves your current health condition, you are eligible for a lump sum payment that can be used to cover your expenses. Many policies allow you to use some of the money as a replacement for lost income due to you not working.

Example of Benefits

Life can take some unexpected turns. After experiencing a series of headaches over the course of many weeks that have only become more severe, you head to the emergency room for treatment. While you are there, the doctor orders an MRI. It is determined that you have a brain tumor that must be taken care of as soon as possible. Only an existing critical insurance policy before your diagnosis will pay out , but the coverage sure would be beneficial based on the recovery period that you are facing.

Due to the severity of your situation, you are not able to work leading up to your surgery and post surgery. If you already have critical illness insurance in place and your policy covers brain tumors, you would receive a lump sum payment to put towards medical and household expenses. 

Short-Term Disability versus Long-Term Disability

Most disability coverage plans will require you to set parameters for both short and long-term disability coverage. Short-term coverage will usually provide you with assistance for a few weeks to a 24 months. This is most commonly used when you have a minor injury that is expected to heal quickly without the need for ongoing medical care of therapy. Long-term disability situations can be paid out for years, often up until the point of retirement. This coverage would be used for more serious and long-term health situations that you aren’t expected to recover from in a short amount of time.
 
The amount of money that you receive from these two policies will vary. Usually, short-term coverage will only be a portion of your average paycheck. Long-term coverage may provide you with additional benefits.

Disability Insurance

Disability insurance is income protection that will provide you with financial support if you are unable to work because of an illness or injury. The type of policy that you have will determine how much money you get and for how long. Your company may offer your disability insurance, but it may be minimal coverage. Purchasing private insurance can ensure you will have enough money to fill in any gaps that are left behind. You can accept both policies to combine them for optimal coverage. 

An Example of Disability Benefits

If you are driving to work one morning and are involved in a serious car accident that leaves you in the hospital, you are unable to go into work for the time being. You may require time to heal as well as go through the process of physical therapy. You were on your way to work, but the accident did not occur while you were at work. Because of that, you are not eligible for worker’s compensation. However, your disability coverage would kick in.

How Does Disability Coverage Differ from Worker’s Compensation?

If you are injured on the job, your company will provide you with worker’s compensation. You don’t have to contribute any of your paycheck towards this benefit. However, you can still secure additional coverage. Disability coverage will allow you to tap into your benefits regardless of where or how the injury occurred.

How Does it Work?

Disability insurance will replace any income that is lost during a disability. You pay a monthly premium towards your coverage in order to keep your policy active. If something unexpected happens that prevents you from getting to work, you’ll get a monthly payment that can be used towards your medical expenses or cost of living.

What Conditions Determine if a Disability is Present?

Each policy that we draw up here at Comox Valley Life Insurance includes a definition of what a disability is. These conditions must be met in order for you to qualify for your compensation. A large majority of injuries or illness will qualify, as long as you are unable to perform your job duties. You can reach back out to us after a medical event takes place to see if you qualify for your benefits.
 
If you have pre-existing health issues prior to signing up for your policy, this would be an exclusion for your benefits. You will not be able to receive disability benefits if your inability to work is because of these issues.