Ask the Insurance Expert
May 2012 Article
Life Insurance: Financial Safety Net
You might be wondering if life insurance is worth purchasing for you and your family. A general rule of thumb is that once you have a family relying on your income, its time to buy life insurance. I think the only question that needs to be answered is “Will my death cause my family a financial burden? “ If you think it will, it’s probably a good idea to start thinking about your financial safety net. Life insurance policies are able to offer you security in knowing your families debts, future income, future education, and other obligations will be taken care of in the event of your premature death. Because life insurance death benefits are exempt from federal taxes, many people also use life insurance proceeds to pay off estate taxes generated upon the death of a loved one.
First, you will need to see if you qualify for life insurance. Most insurance companies will require that you complete a medical interview, you may also be asked to complete a blood/urine sample. The insurance company is interested in your current health, hobbies, medical history, and many other factors to be sure that they are comfortable insuring you. The premium is based off of your age, gender, smoking status, and current health/lifestyle. So with that information you can see that the younger and healthier you are, the cheaper the insurance coverage will be.
When trying to determine how much life insurance is necessary, you should complete a ‘life insurance needs analysis’ with your insurance broker. This will run through your current financial position, as well as put some effort into determining future amounts of coverage that may be required. Having this discussion is essential to make sure that no stone is unturned and that you are buying an amount that is adequate.
When you purchase life insurance, you’re betting that you’ll live, but also building a safety net in case you’re wrong. Don’t leave your family unprotected in the sudden event of your death – after all, they are your most important assets.
Landon Halmrast
Financial Services Representative
Life & Health Insurance Broker
Western Financial Group (MHD)
459 2nd Street SE Medicine Hat AB T1A0C4
Phone: (403) 526-2885 or 1-800-661-2885 Fax: (403) 527-9291
E-Mail: landon.halmrast@westernfg.ca
April 2012 Article
This television program focused on a handful of travel insurance claims which were denied on the basis of incomplete medical health histories. The insurance policies in question were sold through travel agents. The report showed hidden camera footage of some travel agents encouraging customers to complete the medical history forms without an appropriate and professional eye for detail, understanding and accuracy.
Q: Marketplace recently said you have to be careful with travel insurance because it may not pay out in the end if you have an emergency. How can I know the same won’t happen to me?
A: Marketplace looked at a handful of examples where travel insurance claims were denied. According to the Travel Health insurance Association, they represent rare and unusual situations. Millions of travel insurance policies are written each year in Canada and the vast majority of claims are paid with out adjustment.
Every Western Financial Group office has people who are trained specifically to sell travel insurance products. Like all insurance products, travel insurance policies are written based on the disclosure of complete and accurate information on the application.
When purchasing travel insurance, it’s very important to complete accurately the entire application, including the medical health history (if required). We work with our clients to make sure that every ‘i’ is dotted and every ‘t’ is crossed.
Q: Why do I have to fill out a medical health history? How can I be sure all the answers are right?
A: If you are 60 or older, you will probably have to fill out a medical health history. Our brokers will work with you to ensure the form is filled out accurately. If you are unsure of any question on the application regarding your medical health history, we encourage you to ask your doctor for assistance. In general, it is better to over-report than under-report. You may end up paying higher premiums, but you will feel assured that a claim won’t be denied on the basis of incorrect or incomplete information.
We always do our best to ensure our customers have read through and understood all the terms and conditions relating to their travel health insurance. It is also important that our customers fully understand any exclusions in their travel insurance. Exclusions refer to circumstances that will not be covered by the insurance. For example, accidents or injuries suffered while intoxicated are not covered under many travel insurance policies.
For more information please feel welcome to contact me at:
Landon Halmrast
Financial Services Representative
Life & Health Insurance Broker
Western Financial Group (MHD)
459 2nd Street SE Medicine Hat AB T1A0C4
Phone: (403) 526-2885 or 1-800-661-2885
Fax: (403) 527-9291
March 2012 Article
Critical Illness, Protect yourself
Nobody ever expects to become critically ill. But it does happen. Thanks to numerous medical advancements, there is a good chance you will recover from your illness and get back on track with your life. However, treating a critical illness can become a huge financial burden on both yourself and your loved ones.
Few of us want to contemplate the reality of being told we have a serious illness. Even fewer of us have thought of how we could bear the financial burden of the medical bills and change in lifestyle.
You can’t assume the government will pay all the costs to treat your illness. During your recovery you may end up having to pay healthcare services, special drugs, homecare costs , loss of income of a spouse, or home modifications that are not covered by your group health or provincial health care. Add these costs to what you normally have to afford and your debts may add up very quickly.
With simple, and affordable protection offered by Western Financial Group, you will have the security of knowing that as early as 30 days following a diagnosis of one of 25 conditions covered, ranging from cancer, heart attack or stroke, you will qualify to receive a one time, tax free lump sum benefit – paid directly to you, to spend however you see fit. Policies range in size from about $25,000 – $1,000,000.
By taking out a critical illness protection plan you may choose to place the protection on yourself and/or a loved one to help maintain financial security. When you are coping with a critical illness, the last thing you want to worry about is money. I would be happy to help you and your loved ones set up a plan that will give you peace of mind that should you become diagnosed with a critical illness you can focus on what is important – your health.
Landon Halmrast
Financial Services Representative
Life & Health Insurance Broker
Western Financial Group (MHD)
459 2nd Street SE Medicine Hat AB T1A0C4
Phone: (403) 526-2885 or 1-800-661-2885 Fax: (403) 527-9291
E-Mail: landon.halmrast@westernfg.ca
www.westernfinancialgroup.ca
February 2012 Article
For most of us, becoming disabled from an illness or injury would cause financial tragedy. Anyone who has been through the process without the right insurance protection will tell you their horror stories. Workers compensation, unemployment insurance, and your group health benefits are often relied on to help with an unexpected disability. We all rely on these sources of disability income to be there for us when we need it most. The problem is that most of us do not understand what is covered / for how long / and under what circumstances it will pay you. Realistically, if your fortunate enough to be covered your often shocked by the limits in benefit amounts. Considering a disability income insurance policy from your insurance agent is an alternative to consider for people who realize the risk of becoming disabled and want to protect their current income and standard of living.
There are many different moving parts that make up a disability insurance policy so it is vital to understand when and how one will receive the disability income if the need arises. Below is a list of some key questions you may want to ask when looking for the right disability insurance policy for you:
1. What is the definition of disability in my policy?
2. How long will I receive my benefits?
3. How much will I receive? (usually a % of one’s current salary)
4. Will my benefit amount adjust for inflation?
5. Is there a waiting period before my benefits kick-in?
6. Can I get partial benefits if I can still work part- time?
7. How will my benefits affect my Social Security, workmen’s compensation, or unemployment benefits?
8. What are the exclusions of the policy?
9. Is the issuing company strong financially?
Like any insurance policy, disability income insurance has many different coverage’s that need to be understood and it is especially important that you know what you are getting and when, since this will be the income you and your family may be depending on in the future.
January 2012 Article
When you first purchased you home you went to a lawyer, an insurance broker, probably met with a home inspector, real estate agent, and of course a bank or mortgage broker. Your bank explained mortgage insurance to you: buy mortgage insurance so that should you, or your spouse, pass away during the course of the loan the bank will assume that debt and leave the surviving spouse to live mortgage free. Realizing the importance of this, you had it added to your mortgage every month by signing a waiver of some sort.
The truth is that your purchase did not have to be with that bank. You had the option to look for better rates elsewhere and do some research on your own. And did you read what you were signing? CBC did a Marketplace Investigation in which they interviewed two families that assumed they had protection only to discover that their claim was denied when there loved ones got ill or passed on. In each case, the bank/insurer claimed that the applicant had lied on their application form. A routine examination from your family doctor could very well be the reason for the denied claim if you didn’t mention it. Simply put, I urge people to read what they are buying and look seriously at the options they have available to them.
Here is a helpful comparison of what a real life insurance policy will do to protect your family versus your mortgage insurance:
CREDIT MORTGAGE INSURANCE
Post-Claim Underwriting: Unlike individual life insurance, credit insurance sold through the bank is usually not underwritten until a claim is made. The insurance company may determine you are not eligible for a payout even though you have been paying premiums. For instance, a claim may be denied because an investigation of your medical records indicates you once had high blood pressure or high cholesterol that you did not disclose.
INDIVIDUAL LIFE INSURANCE
Underwriting: When you apply for individual insurance through a licensed insurance broker your medical history will be examined before a policy is issued and you start paying premiums. The insurance broker will ask detailed questions and may arrange for a nurse to conduct a physical. You will know upfront whether or not you are covered.
Individual premiums: With an individual life insurance policy, the premiums you pay are based on your individual risk. Your health history and exam will help to determine how high or low your premiums are. Non-smokers and women pay a lower premium. The face amount of the coverage remains level.
Fixed payout: When you purchase an individual insurance policy you pay premiums for a pre-determined amount of coverage. Therefore, if you pay premiums for $100,000 of coverage your beneficiary will receive $100,000.
You choose who gets the payout: With an individual policy you are free to choose the beneficiary or beneficiaries. If something happens to you, it is up to your beneficiaries to decide what to do with the insurance proceeds.
Standard premiums: The mortgage insurance policy sold at the bank is a one size fits all policy. This means everyone who qualifies is considered to be of equal risk. The premiums you pay on mortgage insurance are a fixed amount based on your age and the amount of your mortgage. There is no discount for non-smokers or for women. The premium does not reduce as the mortgage is paid down.
Decreasing payout: The Mortgage insurance sold at the bank covers a decreasing amount. While your premiums remain the same the amount left on your mortgage decreases. Mortgage insurance will only pay off the balance of your mortgage when you make a claim.
The bank gets the payout: Mortgage insurance is designed to pay off the bank if anything happens to you. Therefore the insurance payout will be made directly to the bank.
-From website: http://www.cbc.ca/marketplace/in_denial/
I am pleased that we can provide you with a product that has some distinct advantages to you. I encourage you to carefully read this article and you will notice the differences between buying life insurance to cover your major debts versus mortgage insurance offered at most banks.
December 2011 Article
Half of Canadian men and one-third of Canadian women will experience cancer, heart attack, or a stroke during their lifetime!
Luckily survival rates are high. But the costs of living following a critical illness can quickly add up over the course of one’s recovery. Critical Illness Insurance provides protection from the costs associated with surviving a major illness:
• Lost income while recovering
• Prescription drugs & treatments
• Travel expenses & home modifications
• Loan Payments & debt accumulation
Critical Illness Insurance can provide you and your family with peace of mind to preserve your quality of life following a major illness. These plans provide a lump sum, tax-free, payment to you shortly after the diagnoses of a major illness.
Should you not survive the major illness, many policies, will return your premium payments back into your estate. Heart attack, stroke, blindness, alzheimer’s, multiple sclerosis, organ transplants, kidney failure, and paralysis are the most common illness covered by a critical illness policy. Protect yourself and your family from the financial impact of a critical illness.
For more information on critical illness, life, disability, and health insurance, feel welcome to contact me at
403-526-2885.
October 2011 Article
Life insurance is not an easy subject to talk about. It makes people uneasy thinking about the potential of losing a loved one early in life. However, life insurance is a fundamental product built for families to be able to survive financial hardship. In today’s uncertain economy the first thing people should be thinking about is protecting themselves.
I was raised in a family where my father was the main breadwinner. My mother worked two jobs, one for the provincial government, and the other to keep our house from total chaos! My brothers and I relied on both of their incomes to maintain our standard of living. We were involved in every sport known to man, and had big dreams which involved everything from hockey to competitive boxing. Our parents fronted the bill throughout those years and worked extremely hard so that we could enjoy our childhoods to the fullest.
Thinking back to it, I cannot imagine what would have happened had we lost one of our parents during that time. I am not speaking from an emotional standpoint (that goes without saying) I am speaking from a purely financial security perspective. How on earth we would have been able to maintain summer vacations, mortgage payments and everything in between is beyond me. The one thing I do know is that during that hectic time, a person has trouble contemplating the worst case scenarios. It’s scary enough just thinking “What if I got layed off?” rather than “What happens if I don’t make it home for supper tonight?”
Life insurance is a morbid subject, but it does provide some serious peace of mind. Life coverage is often much cheaper than people would expect for the benefits that it has to offer. Many policies today include critical illness so that if you were to develop a terminal illness, the insurance company will pay out a lump sum, helping you and your family cope with the costs involved in any treatment required. It’s horrible to have to think about life insurance, but it is wise to have it in place so that those left behind are not burdened with financial worries as well as emotional ones, should the worst happen.
September 2011 Article
Your Income Supports Your Lifestyle
Ask any life insurance agent what risk is too often overlooked for many of their clients. In many cases the answer is disability insurance and income protection plans. We spend so much of our time thinking about our life insurance needs that we forget to ask ourselves other important questions. “If I couldn’t work tomorrow how long could I continue this lifestyle, and where will all the money come from to help me recover?” Whether you climb power poles for a living or you are an office worker, that fact is that we all need some level of protection to help safeguard our income. Disability insurance wouldn’t be as crucial if everyone had savings that could be drawn upon in the event of a sudden sickness or injury. All too often that isn’t the case as weddings, children’s education, retirement plans, etc tend to use up money that has been set aside.
As you have probably learned, insurance can be complicated and disability insurance is no exception. The basic principle is simple- finding a plan that will allow you to recover from your injury or sickness and keep all the bills paid. With the plans offered through Western Financial Group downtown on 2nd Street SE, it doesn’t matter if you draw yearly dividends or you are working more than one occupation, we can put together a plan that is specifically designed to protect you and your family’s income. Give me a call and let’s get the proper protection in place.
Landon Halmrast
Financial Services Representative
Life & Health Insurance Broker
Western Financial Group (MHD)
459 2nd Street SE Medicine Hat AB T1A0C4
Phone: (403) 526-2885 or 1-800-661-2885 Fax: (403) 527-9291
E-Mail: landon.halmrast@westernfg.ca
www.westernfinancialgroup.ca
Life / Disability / Business / Investments / Home / Auto / Farm
August 2011 Article
Are You Fully Protected? Disability, Critical Illness, and Death
We face risks every day – illness, injury, even dying suddenly. And let’s face it – life happens. If something happens to you and your income stops, are you and your family financially prepared? Do you have a plan in place to pay the mortgage and handle other household bills?
As an insurance advisor, it’s my job to make sure you have the right coverage to help protect you and your family against the financial impact of the typical, everyday risks you face: critical illness, disability and premature death.
Now there is a solution: Synergy from Manulife through Western Financial Group. Synergy includes a life insurance policy, disability insurance policy and critical illness insurance policy in one easy-to-understand, easy-to-manage and – best of all – affordable package.
| 1 Your disability benefit | 2 Your critical illness benefit | 3 Your life insurance benefit |
|---|---|---|
| Your monthly disability benefit amount is the lesser of | Your covered condition benefit amount is the lesser of | Your life insurance death benefit is 100% of your available amount of insurance |
| 1) 0.5% of your Synergy amount of insurance, and | 1) 25% of the Synergy amount of insurance, and | |
| 2) the available amount of insurance | 2) the available amount of insurance (less any Recovery Benefits) | |
| Your early Intervention Benefit is 6.25% of the Synergy amount of insurance | ||
| - First Early Intervention Benefit does not reduce future benefit amounts payable |
Example: $250,000 Synergy Benefits:
- $1,250 disability monthly benefit (Payable over and above your employee disability protection!)
- $62,500 critical illness benefit (For serious illness’s such as cancer, heart attacks, strokes and much more)
- $250,000 life insurance benefit
What will this cost me?
$250,000 Synergy amount of insurance
Renewable monthly premiums for male, non-smoker
| Age | Buying Each Separately | Synergy | Savings | Savings |
|---|---|---|---|---|
| 30 | $81.11 | $53.75 | $27.36 | 34% |
| 40 | $117.53 | $79.17 | $38.36 | 34% |
| 50 | $219.97 | $191.25 | $28.72 | 34% |
The Manulife stand-alone products used in this example are:
$250,000 Family Term, Term-10 with Total Disability Waiver Rider (TDW)
$62,500 Lifecheque, Renewable 10-year with Waiver of Premium (WP)
$1,250 Venture Series, 2A, 90 day EP, to age 65 Benefit Period (BP)
*Please keep in mind that as we get older, life insurance becomes more expensive and offers you fewer options. Locking in while you are young and healthy will ensure you receive top level coverage as well as an affordable price.
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