Questions & Answers

 

 WHY DO I HAVE LIFE INSURANCE?

 

Every person in this country has liabilities in connection with certain things;  family, mortgage, loan, business or taxes. Life insurance could be the only safe solution for all these liabilities.

 

 

 

 WHAT TYPE OF LIFE INSURANCE should I GET?

 

People are different in their situations and in their needs. There are many insurance needs that people like to buy the coverage for, such as: family protection, loan or mortgage protection, capital gains protection, taxes and estate planning protection. What is good for one person might not be good for others. The type of life insurance for each person will be decided based on the purpose of buying the insurance for.

 

 

 

 WHAT IS A “CASH VALUE” POLICY?

 

It is a permanent type of insurance that accumulates some cash, based on the monthly payment. This accumulated cash can be used by the insured person for any reason in the future.

 

 

 

 WHAT IS A “TERM POLICY” ?

 

It is a type of (rental insurance) where premiums increase at the end of each term, and insurance amount stays the same, or decreases based on the client’s needs. There are many types of term insurance all of which work in the same way.

 

 

 

 IS MY MONEY SECURED WITH THE INSURANCE CO. ?

 

Money is always secured with insurance companies, because of the frequent and continuous supervision from all levels of governments in Canada.

 

 

 

 DO LIFE INSURANCE COMPANIES WORK LIKE CAR INSURANCE COMPANIES?

 

Both are insurance companies, but it is completely different on the life side. Anyone can dispute the results of a car accident, but no one can dispute the results of death.

 

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 WHAT IS REQUIRED TO OBTAIN LIFE INSURANCE?

 

Call or e-mail us at Madinah Financial Group and we will guide you through the whole process.

 

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 IS “DEATH BENEFIT” TAXABLE?

 

NO, it is not taxable so far. Tax rules and regulations might change at any time if the Government of Canada decides to do so.

 

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 WHAT HAPPENS TO MY MONEY IF THE LIFE INSURANCE CO. DECLARES BANKRUPTCY?

 

This is not possible in the life insurance business in Canada. If any life insurance company goes under because of financial troubles, other life insurance companies will assume the business and honors the clients’ policies the way they were, subject to certain limits and amounts.

 

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 WHAT IS “CRITICAL ILLNESS” INSURANCE?

 

It is a living benefit where the amount of insurance will be paid out, as a lump sum, in case the insured person was diagnosed with one or more of the listed diseases in the policy contract. There is a 30 days waiting period before the money is paid.

 

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 WHAT IS “LONG TERM CARE” INSURANCE?

 

“Long Term Care” insurance is the type of living benefits that provides daily benefit if the insured person:

  • Loses the ability to care for him/herself due to conditions that result in the inability to perform two (2) or more activities of daily living
  • Requires the services of a long term care facility or professional assistance at home.

 

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 WHAT IS “MORTGAGE INSURANCE” and do I have to buy it?

 

Mortgage insurance is the coverage that protects the family in case of unexpected death of the person insured, and protects the property against power of sale or to be recaptured by the mortgage provider.

 

 

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