ivari life insurance rating and review

ivari is an 80-year old insurance company with multiple individual coverage products. It was once the Canadian branch of Transamerica Life. Term life insurance from ivari is available on its own for temporary protection needs, or it can be layered with different terms or with universal life or critical illness protection to create personalized coverage that spans a longer length of time. It is available in 10-, 20- or 30-year terms.

Most term life insurance policies come with an expiry date, upon which the policy matures and your coverage ends. Generally, one can only own a term policy for a set period time; which can last anywhere between 5 and 30 years depending on your policy. While the policy is in force, you must pay a monthly premium to guarantee the death benefit to your beneficiaries if you die.

But people don’t purchase term life insurance policies in the hopes of a big payout. The entire point is to provide a financial safety net for your loved ones to fall back on if you happen to pass away unexpectedly.

So what happens if you outlive your policy? What if your plan expires while you’re still alive and kicking?

A term life insurance policy is usually bought only for short term obligation – to provide for dependents until they start earning and pay off pending loans and mortgages. It’s possible you won’t need the insurance coverage once your term period is up.

But this doesn’t always apply to everyone’s situation. People often end up requiring extended insurance coverage due to unforeseen circumstances. Fortunately, for those who need life insurance upon the expiration of their initial term policy, there are multiple options.

What to do when your term life insurance expires

As we mentioned, people sign up for a term life insurance policy with the hope that they never need to use it. But many feel it is a necessary investment to make to keep your family’s financial future secure. This same frame of mind is required when exploring your options when your coverage has ended.

You need to assess your latest financial situation. Do you still have dependents? Is your estate sufficient enough to sustain them into adulthood? Is your mortgage still pending? Does your partner depend on your income to main their quality of life? Only an honest introspection into your finances can help you understand these future needs.

If you determine that you’ll need continued coverage then broach this conversation with your insurance advisor or broker 6 months before the maturity date. Any later and you risk getting caught in a coverage gap. This gives you enough time to study all the available options and choose the one that is best for you.

What if I decide against life insurance coverage if I outlive my current policy? 

If you’re fortunate enough to not require any more insurance coverage, then all you need to do is pay the last premium and wait out the policy. Once the plan ends, you won’t be covered and nor will your beneficiaries receive any payout upon your death. Of course, that means you no longer need to pay your monthly premium as well.

If your children are well on their way to providing for themselves, you’re completely debt-free, and your partner is capable of maintaining their expenses without your income it doesn’t make much sense to continue paying for a term policy you may not need.

But letting your coverage lapse entirely is not the advised course of action for most policyholders if you still have obligations – including those listed above – and have not saved up the cash to cover them at that time.

What do I do if I still need life insurance after the expiry of my term?

Over the years, your net worth might have risen or you may have fewer financial obligations. In many cases, your coverage requirements will have changed from the time you bought your first term policy.

Doing a financial assessment with a life insurance needs calculator is an important step in understanding your pending coverage needs.

If you find you’re still in the market for life insurance once your policy ends then you have 3 options.

1. Renew your term with your current insurance provider.
2. Convert your current policy into whole life insurance.
3. Buy a completely new term life insurance policy.

Below is a detailed explanation of each option with its pros and cons to help you make the right choice.

Renew current term life insurance

Many term life insurance companies offer the choice to extend the policy term beyond the initially agreed date. This is referred to as a renewability rider and may have been touted as a feature of your policy when you first purchased it. This extension is usually valid until you reach a certain age (generally 75 years), though it varies from company to company.

How do I renew my term life insurance policy?

If you like your current coverage and don’t mind paying more expensive premiums, then renewing your term life insurance policy is an easy choice.

You are saved from the hassle of shopping for a new policy and you don’t need to spend time researching and discussing with your loved ones about a new term policy. All that is required of you is to continue paying the newly set premiums.

Another positive part of a renewable policy is that you’re exempt from displaying proof of insurability. Simply put, you won’t need to undergo an extensive medical exam to qualify for the insurance policy again. This is ideal for those who have experienced drastic declines in health during the term of the first policy. Having a permanent medical condition or just generally poor health is seen as a potential risk by most leading insurance companies that can possibly disqualify you from purchasing a new policy.

As mentioned, the benefits of renewing a policy come at a much higher cost. The revised premium to be paid with a policy renewal can be 5-10 times more expensive than your previous coverage. This is to cover the lack of proof of insurability. The insurance provider has no way of knowing how healthy you are without a medical examination. There is an assumption that your health deteriorates during the previous term.

If you’re in relatively good health with no long term medical issues, then you should consider foregoing renewal. Instead, you could opt for a brand new policy which we’ll explain later.

Convert current term life insurance into permanent life insurance

Convertibility is another rider that some insurance companies offer as part of a base term life insurance policy. Once the term is up, you have the choice to convert your term policy into a whole life insurance plan.

The biggest difference between term life and whole life insurance is the added cash value it brings. Whole life insurance can be treated like an investment or financial vehicle to reduce your tax burden. All the cash that you put into your converted whole life insurance coverage accrues value over time and provides a guaranteed death benefit for your entire life.

How do I convert my term life insurance policy to permanent coverage?

If you choose to convert your policy, you will not only retain your coverage but also provide your beneficiaries with a large death benefit after you pass.

As with renewability, this rider does not require proof of insurability. No medical examinations, check-ups, or intrusive questions are asked. This policy is perfect for those with permanent medical conditions or diseases which prevent them from qualifying for a new policy.

But – similar to renewability – with these benefits come higher premiums. You can expect your premiums to go up substantially when you convert to whole life insurance.

Another possible downside is that converted policies are only eligible for selected permanent policies. That means you might not get to choose a specific policy provided by the company. Instead, your range of choices is limited to the ones the company included in your rider.

Another way to lower the premiums when converting to a whole life policy is by reducing your death benefit. If you feel a lower coverage will suit your needs just as well, then you can select a partial conversion wherein you retain some form of coverage with lower premiums.

Choosing to convert your term life insurance policy into a permanent policy can be the best alternative if your health has worsened during your initial term. But if your financial situation has dramatically altered, then a brand new policy with coverage that suits your new requirements may suit you better.

Buy a brand new life insurance policy

Only you can decide whether buying a brand new insurance policy is the right decision. If your financial needs have stayed level or increased, then considering a new policy with the right amount of coverage can be a smart option.

As with other choices, discuss your insurance needs with an experienced insurance advisor well before your policy expiry date. They can help you determine whether applying for new coverage is financially prudent. Even if you are rejected by an insurance provider for health-related reasons, the buffer time can be used to apply for a renewal with your current provider.

How do I buy a brand new life insurance policy?

Shopping for a new policy requires work. But there are many advantages to choosing new coverage.

Firstly, there are several types of policies available to choose from such as a term life insurance, no medical and guaranteed policies, whole life insurance, and universal life insurance among many others. When renewing or converting existing coverage you are limited to the types of policies and coverage your current provider offers.

Secondly, if you are in relatively good health, applying for fully medically underwritten coverage will generally have a much lower monthly premium compared to similar coverage that was renewed or converted. Because the insurance provider is setting the rates based on your health, you no longer have to pay for the risk involved in their uncertainty about your health.

Lastly, you can get as much or little coverage as you need at this time. Instead of being bound by the coverage amounts that are tied to your previous coverage you can take on a smaller policy to save money, or get more coverage for new obligations in your life (such as a new home or taking care of children or grandchildren).

Weighing your insurance options

Outliving your term life insurance can be considered good news. We want to live for as long as comfortably possible.

But it also brings forth the dilemma of considering whether to forego life insurance or not. If your dependents are now self-sufficient and your own retirement plans are in place, then you can simply let your policy expire upon maturity.

But if this is not the case, you need to consider new coverage. The best option for a relatively healthy person is buying a brand new policy to keep the cost of premiums as low as possible. If a medical condition makes a new policy difficult or unaffordable, then take advantage of the guaranteed riders in your initial policy. Most importantly, speak with an experienced insurance advisor to explore all your option and see where you can save money while maintaining the coverage you need.

The information above is intended for informational purposes only and is based on PolicyAdvisor’s own views, which are subject to change without notice. This content is not intended and should not be construed to constitute financial or legal advice. PolicyAdvisor accepts no responsibility for the outcome of people choosing to act on the information contained on this website. PolicyAdvisor makes every effort to include updated, accurate information. The above content may not include all terms, conditions, limitations, exclusions, termination, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details. In case of any discrepancy, the language in the actual policy documents will prevail.  All rights reserved.

If something in this article needs to be corrected, updated, or removed, let us know. Email editorial@policyadvisor.com.

Our Foresters Finanical life insurance rating and review

Foresters Financial’s Term Life Insurance is a pure term life insurance product – as its name suggests. It is renewable and convertible to their permanent life insurance products, without having to go through additional medical underwriting. It is also exchangeable for another term insurance policy with a longer term, if it is offered by Foresters at the time of exchange. This is an excellent product for meeting changing financial needs, with the added advantage of these optional riders:

• Children’s Term Rider: This rider provides term insurance for the insured person’s children in the age group of 15 days to 25 years. The premium is guaranteed and payable only for 20 years. Each insured child has the option of converting this coverage to a new permanent life insurance policy without evidence of insurability.
• Accidental Death Benefit: This rider provides an additional death benefit when the person insured dies as a result of an accident. The maximum benefit amount has to be the lesser of $300,000 or the death benefit of the base policy.
• Waiver of Premium: This rider waives the premium payable in the event of the total disability of the person insured under the rider.
• Term Riders: Term riders are available on the life of the individual insured under the base policy, or their spouse. These riders also have conversion and exchange privileges and can be useful for building laddered coverage. 

Foresters Term Life products also offer some unique benefits that reflect the company’s desire to positively enhance the lives of its client-members and their communities. Once you purchase an insurance policy from Foresters, you become eligible to participate in their community offerings that assist in personal development, social interaction and voluntary service. 

A unique feature of Foresters Term Life offerings is that they come with the Foresters Charity Benefit. What this means is that when a claim is paid to the policyholder’s beneficiary, Foresters will pay an additional 1% (up to a maximum of $100,000) of the benefit amount to a registered charitable organization, as designated by the owner. The payment is made as a donation in the name of the insured. The Charity Benefit provision is automatically included; it does not increase premiums, nor does it lower the value of the death benefit.

The insured under a Foresters Term policy are also eligible for Foresters membership plan – members enjoy unique benefits, including competitive academic scholarships, financial counselling, discounted legal services, emergency and disaster relief, as well as grants to support local volunteer opportunities.

Foresters term life insurance also comes with a built-in Bereavement Assistance benefit, which provides reimbursement of up to $1,000 for counselling services to beneficiaries to help them deal with their loss.

Life insurance companies take many factors into consideration when deciding whether to approve an insurance application. These factors include your age, job, lifestyle, general health, and mental health status. With 1 in 4 Canadians receiving a diagnosis for depression, anxiety, or PTSD, mental health affects us all. 

As we understand more about mental health’s impact, insurance carriers are adjusting their underwriting guidelines. Mental health status can affect your eligibility for life insurance and your insurance premiums, so it’s important to understand what life insurance underwriters are looking for on your life insurance application and the information you have to provide. 

Does seeing a psychiatrist affect life insurance?

If you’ve been referred to a psychiatrist or other professional in the course of treating a mental illness, you need to disclose it to your life insurance company. While this information will not exclude you from receiving life insurance coverage, it may influence the premium rate class for which you are eligible. 

Psychiatrists—not to be confused with psychologists—are medical doctors that specialize in mental health. Most who suffer from mild clinical depression remain under the care of a primary physician. If the patient’s depression becomes less manageable and is disrupting their day-to-day life, they will often be referred to a psychiatrist for specialist care. 

In the eyes of a life insurance underwriter, seeing a psychiatrist can therefore be indicative of a more serious case of depression, anxiety, or bipolar disorder, which could exclude you from a preferred rate category. You may still, however, be eligible for a standard rate.

Antidepressants and life insurance

Taking anti-depressants does not automatically disqualify you from life insurance coverage. When you fill out a life insurance application, you will be asked about any existing medical conditions you may have as well as any medications you may be on. This includes any anti-anxiety or anti-depressant medication such as:

• fluoxetine (Prozac)
• paroxetine (Paxil)
• fluvoxamine (Luvox)
• citalopram (Celexa)
• escitalopram (Cipralex)
• sertraline (Zoloft)

Like other pre-existing conditions, your insurance provider will want to know about the stability and treatment of your condition. If you are actively treating your depression with medication or seeking help from a mental health professional, you may have to provide further details.

How is depression defined by life insurance companies?

Most people feel depressed at some point in their lives, but there is a difference between feeling down and having a mood disorder, such as depression. Life insurance companies, therefore, consider depression a pre-existing health condition if and only if you’ve been diagnosed by a medical professional prior to your application.

Like many physical health conditions, depression can be diagnosed in many forms, including seasonal defective disorder, persistent depressive disorder, and major depression. Life insurance companies differentiate between people with depression into the following three categories and consider how they rate you according to your depression type:

• Mild depression– up to one type of medication and no history of hospitalizations
• Moderate depression– those who take more than one medication and consult a psychiatrist
• Severe depression– those who have suicidal ideation or attempted suicide in the past

Postpartum depression

Postpartum depression commonly occurs within the first three months of having a baby. It eventually dissipates. However, some insurers still treat it like clinical depression, which can mean a higher insurance premium. This is especially notable because many parents purchase life insurance immediately after the birth of their first child.

How is anxiety defined by life insurance companies? 

Life insurance companies take anxiety into account in the underwriting process if someone has been professionally diagnosed with an anxiety disorder. As with depression, it is important to distinguish between the feeling of anxiety and anxiety disorders. 

Anxiety disorders are among the most common mental health conditions in Canada affecting an estimated one in ten people. Depending on the severity of the diagnosis and the course of treatment you follow, an anxiety disorder can also impact your eligibility for life insurance and the premium rates you will pay.

Most people feel anxious throughout their lives at particularly stressful times or in certain situations. Anxiety disorders, on the other hand, cause anxiety in people even in situations that may not warrant it. Put another way, people with anxiety disorders often have stress responses that are out of proportion with their setting.

There are a range of different anxiety disorders that can be diagnosed, including panic disorder, phobias, post-traumatic stress disorder, obsessive-compulsive disorder, and generalized anxiety disorder. Often, many of these can be managed and treated using medication and therapy. 

Life insurance companies also typically take the following into account when considering an applicant with anxiety: 

• how many medications have been prescribed
• whether the applicant has ever been hospitalized
• whether the applicant has taken significant time off work due to an anxiety disorder

Does having depression or anxiety disqualify you from life insurance?

Being diagnosed with clinical depression or anxiety will not automatically disqualify you from obtaining life insurance. In some cases, it may not even affect the premium rates you are eligible for. Depending on the nature of the diagnosis and the treatment followed, it is very likely that you will be approved for a life insurance policy with certain exclusions and/or a higher premium rate.

It is not, however, unheard of for life insurance providers to deny life insurance coverage due to a mental illness disclosure. Applications are treated on a case-by-case basis, and if your particular health record is deemed too risky to insure, your application could be rejected. 

For the insurance companies, someone who dies of a pre-mature death isn’t a good financial choice for them to insure as they have less time to collect premiums. For example, a life insurance company is more likely to deny a person who has been hospitalized or has made a previous suicide attempt. 

Life insurance companies may also choose to postpone a life insurance application. This is not an outright denial and indicates that you may become eligible for coverage in the near future—for instance, if you find an effective course of treatment for your depression or anxiety.

What to expect when applying for life insurance coverage when you have anxiety or depression

Life insurance applications can get pretty personal, so it’s a good idea to know what kind of information you will be asked to reveal. In addition to the general information about your identity, you will have to answer a series of questions about your lifestyle and health. In the former category, you may be required to provide information about your hobbies and travel history, as well as about your smoking status, driving record, drug and alcohol use, and criminal offenses.

A depression diagnosis will come up in the health portion of your life insurance application. In the medical questionnaire, you will need to provide up-to-date information about your personal health history, including all physical and mental health diagnoses, what medications you currently take, and any procedures you’ve undergone. Many life insurance companies will also ask about your family health history to understand any possible predispositions to certain conditions. 

Underwriting factors and requirements for those with mental health conditions

If you suffer from a mental health condition, an insurer may focus on the following to determine your risk:

• Age
• Recent improvements or worsening of symptoms
• Drug and/or alcohol consumption levels
• Whether your condition affects daily activities
• Medication and/or hospitalizations related to mental health conditions
• Severity and regularity of symptoms
• Prior suicide attempt

If you do disclose a mental health diagnosis such as depression, life insurance companies will usually follow up with a series of questions to understand the extent of your diagnosis. You will be asked to provide details about your treatment, such as medication and whether you see a psychiatrist. Based on your responses, you may be required to answer additional questions and provide an Attending Physician’s Statement from your doctor.

If a mental health diagnosis is raising questions about your eligibility for life insurance, critical illness insurance, or disability insurance, reach out to one of our expert advisors. We can explain how your situation will influence an insurance application and help you find the best life insurance providers to meet your specific needs. 

How do I get the best life insurance if I have a mental health concern?

There are multiple ways to reduce your insurance premiums despite mental health concerns. First, if you can show that your condition is stable and its severity and regularity are improving, insurers may consider this favourably and reduce your rates.

If you previously faced mental health-related hospitalizations or attempted suicide, the passage of time can reduce how severely this affects your premiums. Additionally, waiting until your body has adjusted to any medications can also result in lower premiums, as your symptoms or side effects become more consistent and stable.

Second, seeking mental health help can improve your chance at a lower premium. A mental health professional can create a treatment plan that ultimately improves your symptoms and possibly bring your cost back to the standard rate.

Lastly, you can shop around for a different insurer. Every insurer considers mental health factors differently. As a result, you could see vastly different premiums between providers. Even if one company rejects your life insurance application, others may still approve it.

What happens if you conceal your mental health diagnoses?

When submitting a life insurance application, it is imperative that all questions are answered truthfully and any physical and mental health diagnoses are disclosed. If you lie or omit a critical piece of information like a depression diagnosis, you risk invalidating your policy and your beneficiaries may ultimately be denied your policy’s death benefit.

No-medical policies, which do not require you to disclose as much medical information or go through a medical exam, may also be an option, though they have significantly higher premiums than fully underwritten policies.

Will life insurance pay for a suicidal death?

Across the board, it is common for life insurance policies to include a suicide provision or clause. This clause specifies that a life insurance provider will not pay the policy’s death benefit if the insured dies by suicide within the first two years of the policy’s coverage period. The reason for the suicide clause is logical from the perspective of the insurance company: it is designed to stop applicants from having a financial incentive to commit suicide. In cases where an insured person commits suicide after the exclusion period, their beneficiaries are entitled to the whole death benefit.

That being said, if a person disclosed a depression diagnosis in their life insurance application and was approved for coverage with certain exclusions (such as suicide), death by suicide would automatically void their coverage and death benefit.

Read more about whether life insurance will pay out for suicide. 

Being self-employed has a lot of upsides. You get to be your own boss, set your own hours, and plan your professional life on your own terms. The downside? No group health insurance. 

When you’re your own boss, it’s up to you to figure out your finances—you write your own paycheck. But having to pay for health care expenses out-of-pocket for both emergency and preventative care can cause that paycheck to dwindle. This is where extended health care insurance comes in. Read on to find out how to choose the best health insurance plan for your budget when you’re self-employed. 

What is private health and dental insurance?

Private or extended health insurance provides coverage for medical, dental, and vision care expenses. Health insurance plans can vary in terms of coverage amounts and benefits. The insurance company requires individuals to pay regular premiums, which can be monthly, quarterly, or annual payments in exchange for the coverage. The cost of these premiums varies depending on factors such as age, health status, the extent of coverage, and the insurance provider.

Private vs. government healthcare

Private health insurance in Canada works alongside the publicly funded healthcare system to provide additional coverage for services not covered by the government. As someone who is self-employed, you are entitled to provincial health insurance, but it may not be enough. The provincial health insurance is designed to provide basic and emergency healthcare only. In short, public health insurance handles the immediate care needed to treat injury and illness while private health insurance covers the cost that may be required to recover fully from that illness.

What kind of health insurance can I get if I’m self employed?

Health insurance comes in a variety of tiered plans, depending on the level of coverage that you’re looking for. In general, these health insurance packages come in basic, standard, or enhanced, each with ascending levels of coverage and premiums—in other words, the more the plan covers, the more it will cost. 

Coverage tiers and costs may look like*…

*Quote for a 35-year-old person in Ontario with no pre-existing health conditions.

🦷 Dental insurance for self employed

One of the most common types of insurance coverage that self-employed individuals search for is for dental care. It’s hard to ignore tooth pain, but getting it fixed can come at a significant cost. To get dental costs covered, self-employed people can get private health benefits. Most health insurance plans have dental built right into the plan cost, but some may only have it for standard or enhanced tiers of coverage.

👁 Vision care insurance for self-employed

Are you squinting as you read this? You might need new glasses. Individual health coverage also often has vision care coverage built into their packages, similar to dental coverage. Usually, basic packages include an eye exam at least once every two years and some coverage for glasses, but plans can include other services too. 

Can you deduct health insurance on your taxes if you’re self employed?

Yes. Self-employed Canadians can deduct their health insurance on their yearly income tax return under the Medical Expense Tax Credit. In order to qualify for this tax deduction, you have to be the sole proprietor of your business and your business’s income must be your primary source of income. 

To claim your health insurance on your taxes if you’re self-employed, you will need to: 

• Fill out line 330 on your tax return
• Provide supporting documents such as receipts for your premiums
• List prescriptions for items and services to prove they were medically necessary

You may also claim medical expenses on behalf of your dependents as well. In order to make sure you’re filing property, always consult a tax professional.

What kind of health plan should I choose if I’m self-employed? 

There are a lot of options out there for health insurance—it can be overwhelming to pick the “right” one. The thing is, there truly isn’t one true “right” health insurance for every Canadian. It all depends on your individual circumstances and your family’s needs. 

But, to get you started in choosing your plan, we’d like you to meet some of our friends who are all self-employed.

Best health and dental insurance for the self-employed

At PolicyAdvisor.com, we work with over 30 insurance providers to bring you the best insurance coverage at the best price. For health and dental insurance, we have fantastic health insurance partners that can help you make the best health coverage choice for your family.

Get a quote for health insurance if you’re self-employed

If you’re self-employed, contact our licensed insurance advisors to get the best quote for health insurance. Our insurance experts will ask questions about your family’s health and lifestyle to find a supplemental health insurance package that has a great price and comprehensive coverage.

Disability insurance is essential to protecting you and your family. It can replace a major loss of income if you are injured or ill and can’t work. However, as important as this protection is, nearly half of Canadians still don’t have any disability insurance. 

Some employers provide short- and long-term disability insurance as a workplace benefit. However, the number of Canadians with disability coverage from their workplace declined from 57% in 2015 to 48% in 2018, as employers tighten their belts. Without this employer coverage, Canadians can be left struggling to pay their bills and survive off savings — but this is where private disability insurance comes in. 

If employers do offer coverage, they likely offer short-term coverage, so most already know the basics of this short-term disability. This article discusses long-term disability insurance in-depth—a coverage that most often benefits from buying independently owned policies. Read on to learn about what long-term disability is, how it works, the difference between employer individual plans, and what disabilities commonly qualify for coverage.

What is long-term disability insurance?

Long-term disability insurance protects against major losses of income from persistent, ongoing health issues by providing a partial income replacement—typically, this benefit replaces 50 to 70% of your regular income. Coverage for long-term disability benefits usually begins right after a short-term disability period is over and can last for two to five years. However, some policies cover individuals until they’re 65. 

Long-term disability insurance provides peace of mind. You know if an accident or circumstance could leave you unable to earn an income, the policy can replace most of your earnings. This way, you can recover or manage your situation without worrying about your and your family’s financial needs. Common disabilities that trigger the need for a disability payout include cancer, mental health issues, musculoskeletal problems, and other physical disabilities resulting from accidents. 

So, suppose you get into a car accident, and you’re permanently unable to return to your full-time job. The benefits of a long-term disability insurance plan could provide a percentage of your income for a pre-determined number of years, usually two to five years or possibly up to age 65. 

Individuals typically use a private long-term disability policy to supplement employer-provided disability insurance. However, in most cases it’s usually more beneficial to take a stand-alone individual plan as the coordination of benefits may cause you to pay double the premium for minimal coverage. 

For example, your employer policy may cover 50% of your income for two years and your individual plan may cover 60% for up to 5 years. This doesn’t mean you’ll get 110% income coverage in the first two years. The employer plan will take precedence covering 50% of your income, then when the two years are up, the individual plan will cover the final three (making sure you get coverage for 50% of your income for a total of five years. In other words, you can’t stack your coverage, you can only coordinate.

There are also options outside of private long-term disability insurance. Federal and provincial governments provide programs like Employment Insurance (EI) and Canada Pension Plan (CPP). Workers Safety Insurance Board (WSIB) also provides supplemental income if you suffer a long-term disability due to a workplace incident. Lastly, your workplace may have group benefits that offer long-term disability insurance. 

These other options aren’t perfect, however, and many use individual long-term disability insurance to make up for the shortfalls. For example, EI can provide some income relief, but applicants must fall into specific criteria to receive payments. WSIB, on the other hand, only provides a benefit if you’re injured in the workplace on the job. This is why individual long-term disability insurance is vital. Individual policies let you customize your coverage, so you can choose how much income you want to cover, the length of coverage, the waiting period before coverage starts, and the company you want to pay premiums to.

How does long-term disability insurance work?

You get long-term income coverage in exchange for the premiums you paid while you could work. This usually costs between one to three percent of your annual income. You are no longer required to make premium payments once your benefit period starts.

Learn more about the cost of disability insurance.

It’s important to note that long-term disability policies have a waiting period, also known as an elimination period. This is the time between the start of your disability and the beginning of your payment period. Waiting periods can be 4, 8, 12, 16, 20, or 52 weeks — the longer the waiting period, the lower your premiums. This is because your disability might recover before the end of the waiting period. If so, you can return to work, and there’s no longer a need for long-term disability payouts.

During the waiting period before your long-term coverage begins, you may have short-term disability benefits kick in. The significant distinction between short- and long-term disability insurance is that short-term disability insurance considers a benefit payout period in weeks. In contrast, long-term disability insurance considers the benefit period in years. 

It’s important to remember that, due to the customizability of long-term disability policies, each plan differs in scope. For example, some policies may not cover mental health problems, despite it being a common long-term disability. Every policy will include its defined category of what a “disability” is. 

Any occupation vs regular/own occupation plans

Long-term disability insurance is categorized into “any occupation” and “regular or own occupation” plans. Any occupation plans only allow you to receive disability benefits if you’re entirely unable to work — i.e., your illness or injury means you can’t perform the duties of any job you’re reasonably suited for. 

For example, suppose you work as a cashier at a grocery store. You suddenly can’t perform cashier tasks, which require long periods of standing, due to an injury. In this case, you might still qualify to work as a store greeter, which can be done sitting down. You then wouldn’t be eligible for your policy’s disability benefits because you’re able to work another reasonably suited job despite your injury. 

A regular or own occupation plan means that an inability to perform the primary duties of your role qualifies you for disability benefits. So even if you could still work another job, you would receive benefits if you’re unable to perform the role you had before the injury or illness. 

Some insurers will end or reduce benefits, however, if they discover you begin working another role. We recommend own occupation plans for individuals with specialized professions that would require a significant pay cut if they chose to work in another field.

How long can you get long-term disability benefits from work?

Long-term disability insurance administered through your employer functions similarly to individual long-term disability insurance. A plan might provide two to five years of payouts or provide the benefit until your retirement age. 

However, you might not have the option to choose the benefit period for an employer-sponsored plan. An employer is typically selecting the benefit period instead. If the selected period doesn’t work for your circumstance, it might be beneficial to look into private insurance.

Employers may also give employees the option to upgrade their work policy. But doing so can come at an additional cost. For example, suppose your employer-sponsored long-term disability plan pays 50% of your income for five years after a 120-day waiting period. The plan might have an upgrade option, where, in exchange for a $50 bi-weekly paycheque deduction, your employer’s long-term disability insurance now offers a benefit of 65% of your income until you’re 65 after a 120-day waiting period. 

Again, each long-term disability insurance plan is unique. It’s critical to comb through the terms of your workplace insurance policy to understand how long benefits would remain if you could no longer work. You should also consider whether the benefit is enough to pay your usual expenses. At PolicyAdvisor, we’re happy to look at your existing policy to ensure you’re adequately covered. 

If you need additional coverage, we can help you look into an individual long-term disability policy. Having an individual plan lets you go outside of your workplace plan’s limitations. You can choose your own waiting period, coverage period, and benefit amount with an individual plan. 

Group plans vs individual plans

Below are some high-level differences between group and individual long-term disability plans:

It’s critical to highlight that the application process for the two plans can be substantially different. The application process for individual plans is similar to life insurance. There’s an underwriting process where the insurer evaluates your risks depending on medical history, questionnaires, and medical examinations. They also need to verify your income level and work credentials since your benefit amount is based on these factors. 

In contrast, group plans have a more accessible enrollment. Group plans might forego the whole underwriting process. However, insurers providing group plans are beginning to add employee health questionnaires to exclude risky individuals. Group plan insurers may also include exclusions for pre-existing conditions. 

This emphasizes the importance of understanding what’s included in your workplace insurance policy. You may discover your employer-sponsored long-term disability insurance is inadequate and buy an individual plan to supplement it.

Is life insurance the same as long-term disability insurance?

Long-term disability insurance and life insurance are quite different. Life insurance is a legal agreement with your life insurance company to pay a designated beneficiary a tax-free lump sum amount upon your death. 

Thus, the two main differences are: 

• Life insurance is paid in a lump sum to your designated beneficiary, while long-term disability insurance is a periodic benefit payment to you.
• Life insurance payouts trigger on your death, while long-term disability payouts trigger after the waiting period after you face a disability.

Overall, disability insurance aims to cover your daily expenses when you can no longer earn an income. In contrast, life insurance provides your beneficiary, often your spouse or children, with a lump sum payment to cover funeral costs, debts, and other expenses after your death. 

However, some life insurance policies offer a disability rider. This is essentially an add-on to life insurance coverage to accommodate the possibility of a disability. There are two key types of disability riders:

• Disability Waiver Rider: Eliminates life insurance premium payment requirements if you acquire a permanent disability
• Extreme Disability Rider: Pays out a portion of your life insurance benefit if you face a permanent disability

Although life insurance can accommodate disabilities through riders, it doesn’t replace a long-term disability policy. Riders don’t provide the flexibility and customizability that an individual long-term disability policy has. Riders also offer less protection, as it only pays out a portion of your life insurance benefits and doesn’t provide any ongoing income replacements.

What illnesses qualify for long-term disability?

Long-term disability insurance covers scenarios when you can’t work due to an illness or injury that remains after the policy’s waiting period. At this point, your short-term disability benefits are usually over. Such a disability might result from mental health complications, accidents, or illnesses such as cancer. 

The policy won’t cover work-related or on-the-job injuries. These are managed by WSIB. 

Examples of long-term disabilities that qualify for coverage

Suppose you’re at a dinner party. Your hand feels a sudden paralysis, and you accidentally drop a wine glass. You continue to feel muscular weakness and pains and finally visit the doctor. After numerous tests, you discover you have Multiple Sclerosis (MS). MS eventually leads to an inability to walk and adequately use your legs.

After the diagnosis, you may begin to use sick days from your job at a furniture warehouse where you constantly move heavy items. After a week, you run out of sick days and move to short-term disability benefits. You might also receive EI and CPP disability benefits at this point. After 16 weeks, you transition from short-term disability and EI benefits to long-term disability benefits, which replace most of your prior income. The benefits continue until you reach 65. 

Another example could involve mental health issues. If you suffer from severe depression and cannot work, you may go through similar motions as the previous example. However, suppose in this scenario, you recover and better manage your depression after three years. In this case, your long-term disability benefits would stop once you’re well enough to return to work. 

Other common illnesses and injuries include: 

• cardiovascular disease 
• stroke
• cancer
• major car accidents 
• arthritis 
• mood disorders, including bipolar, anxiety, or depression
• PTSD
• mental health problems
• back injuries
• fractures
• head or brain injuries (concussions)
• brain injuries
• arthritis, rheumatoid arthritis
• diabetes
• nervous system disorders and seizures
• multiple sclerosis
• lupus
• fibromyalgias and chronic fatigue syndrome
• infection
• gastrointestinal illness (Crohn’s, colitis, irritable bowel syndrome, diverticulitis)

Does anxiety or mental health issues qualify for long-term disability?

Anxiety and mental health issues are some of the top reasons that people claim their long-term disability policies. However, each insurer and their plans are unique. Some cover mental health illnesses while others don’t. 

As medical experts diagnose and recognize mental health issues on the same level as physical illnesses and injuries, more insurers are including conditions like anxiety in their disability coverage. There’s no guarantee that a policy covers mental health — some might require additional premiums to cover it or cite someone’s mental health history to exclude mental illnesses from the scope of the policy. 

A policy’s scope can also account for the severity of the mental illness. Severe depression involving a medical diagnosis and drug treatments might justify a long-term disability payout. However, long-term leave from work due to stress may not necessarily trigger a policy’s coverage.

Should you get a long-term disability plan?

You need to think about your unique personal and family situation when deciding whether to buy long-term disability insurance. Consider the following: 

• How much income will you need to replace if you can no longer earn a salary from your job?
• Could programs like EI or CPP or your workplace group disability insurance fully cover your expenses?
• Do you need to purchase additional coverage to make up the difference between what you currently earn and any income you’d receive if you faced an injury, accident, or disability?

These questions are challenging to answer. It might help to work with an insurance advisor to determine what type of long-term disability coverage you need. PolicyAdvisor’s expert advisors can suggest an individual long-term disability policy and match you to an insurer that fits your needs. 

Schedule a call with one of our experts today. We can ensure you and your family are protected if you ever face an illness, accident, or injury that leaves you unable to work.

Who sells disability insurance?

Many insurance companies also sell disability insurance products, and there’s one quick, simple marketplace that lets you compare them all.

As we age, the need for long-term care becomes a growing concern. As much as we’d like to think that our children will take care of everything (and they might!) the cost for long-term care can still be an issue. Who will pay for the care? Can you?

If this is a question you worry about, long-term care insurance may be a solution for you. Oftentimes, long-term care insurance is confused with life insurance, disability insurance, critical illness insurance, or other medical-related financial products. Long-term insurance is a separate product—though often sold together with other more common insurance policies. 

Read on to find out exactly what long-term insurance is, who needs it, and how it differs from other products on the market.

What is long-term care insurance?

Long-Term Care (LTC) insurance is a fixed income allotted to you if you can no longer support yourself. The money from this insurance is used to help people get the care they need when they can no longer complete Activities of Daily Living (ADLs) themselves. 

Activities of Daily Living include: 

• Feeding yourself
• Dressing yourself
• Bathing yourself 
• Toileting yourself
• Moving yourself 
• Maintaining continence

It can be difficult to imagine yourself in such a vulnerable place both physically and financially, and you may want to avoid thinking about it altogether. However, as we age the reality that we will require others to care for ourselves becomes unavoidable.

While we can’t stop many of these inevitabilities, we can protect ourselves financially. The best way to protect your future self and your family’s financial well-being is to create a plan now.

How does long-term care insurance work

Like other insurance policies, with long-term care insurance, you pay the insurance company your pre-determined premiums, and if you have to make a claim, the insurance company will pay out the predetermined benefit. With this policy, you essentially give yourself a payment plan for long-term care that’s spread out over the years, rather than having to foot the bill at once when you are most vulnerable.

Long-term care coverage generally covers care: 

• At your house
• At an adult day-care facility 
• At an assisted-living facility 
• At a long-term care facility

How to set up long-term care insurance

Step One: Pick your plan 

You can purchase a long-term care insurance policy directly through an insurance company, or it may be provided to you through your employer. When choosing your plan there are some factors to consider: 

• The price: How much can you afford to pay for premiums?
• The benefit amount: How much will you reasonably need to cover your care needs when you’ll need care? Will you want it to be a fixed monthly amount or coverage per service?
• The waiting period: Most policies have a waiting period (or elimination period) before you can make a claim. Sometimes this is 30, 60, or 90 days, but there are also policies with zero waiting periods. The shorter the waiting period, the more expensive the premiums will be. 
• Benefit timeline: Some policies offer benefits for a 2, 5, or 10-year period, or even for a lifetime. Longer coverage will have a higher premium, but it’s a good idea to plan for the worst-case scenario—you wouldn’t want your benefits to run out when you need them most. 
• Inflation protection: We already feel the impact of inflation, so if we can protect ourselves from the financial stress it causes, we should! When choosing benefit amounts and timelines, it’s important to consider that the cost of care will go up every year.

Our expert insurance advisors can connect you with one of our partner insurance companies to get you the best long-term care benefits for your needs. It starts with a simple phone call to discuss your insurance needs. Our empathetic and knowledgeable advisors can help you choose the plan that’s right for you!

Step Two: Submit a claim 

When the time comes, you’ll need to submit a claim to make sure your care costs are covered. Each policy will have its own criteria of what you can claim and when—as we mentioned, some policies have a waiting period before the long-term care insurance benefits kick in. You may have to pay out of pocket in the meantime. 

Who needs long-term care insurance?

Anyone who wants to ensure their care is covered if they are unable to perform daily activities should get a long-term care policy. But in particular, this type of insurance is important for:

• Those who do not want to or cannot depend on their family to cover their long-term care costs
• Those who have a family history of degenerative illness
• Those who don’t want to dip into their retirement savings to pay for extra care  

Like health insurance, this product helps spread the cost and alleviate some of the financial burdens of healthcare.

What are the pros and cons of long-term care insurance?

Every insurance policy has pros and cons depending on what your financial goals are.

You know those days when you’re really sick, but you just can’t bring yourself to get up and see a doctor?

Traditional doctor visits can be time-consuming and inconvenient, especially when you’re feeling under the weather. However, technological advancements have paved the way for virtual doctor visits, allowing patients to receive medical care from the comfort of their own homes using video calls or phone consultations.

Accessing a virtual doctor can provide numerous benefits, such as saving time, reducing travel expenses, and even potentially improving overall patient care. Whether you’re in need of a routine check-up or seeking medical advice for a non-emergency condition, understanding how to access a virtual doctor can greatly simplify your healthcare experience. 

Most insurance providers give you access to telehealth services for free, but not all providers are the same! This article will guide you through the various options available and provide you with the necessary information to access a virtual doctor with ease.

What is a telehealth doctor?

A telehealth doctor, often referred to as a virtual doctor or telemedicine physician, is a licensed medical professional who provides healthcare services remotely through digital communication channels.

Channels that virtual doctors use:

• Phone calls
• Video calls
• Secure messaging platforms

Telehealth services have gained immense popularity due to their ability to connect patients with qualified doctors regardless of geographic location. This is particularly beneficial for individuals in rural areas, those with limited mobility, or those seeking immediate medical advice.

Telehealth appointments cover a wide range of medical issues, including routine check-ups, minor ailments, mental health consultations, and follow-up appointments. Patients can discuss symptoms, receive medical advice, and even get prescriptions without leaving the comfort of their homes.

Are virtual doctors covered by insurance? 

Yes! Many insurance companies have recognized the value of telehealth services and now offer coverage for virtual doctor consultations. As healthcare costs continue to rise, telehealth provides a cost-effective solution for both patients and insurers. It eliminates the need for unnecessary in-person visits, reduces travel time and expenses, and minimizes the burden on physical healthcare facilities.

Insurance companies understand that promoting telehealth can lead to early intervention and prevention, ultimately resulting in improved health outcomes for their policyholders. However, the extent of coverage may vary between insurance plans, so it’s essential to review your policy or contact your insurance provider to understand the specifics of your telehealth benefits.

Which insurance companies have virtual doctors? 

At PolicyAdvisor.com we work with dozens of Canada’s best health insurance providers that offer access to virtual health care.

How to access a virtual doctor

It’s easy to see a doctor online, but there are some set-up steps involved before your virtual care can begin.

1. Check your insurance coverage
2. Choose a telehealth provider
3. Register and set up an account
4. Schedule a virtual appointment
5. Attend the virtual consultation

Step One: Check Your Insurance Coverage

Before seeking a virtual doctor, review your health insurance policy to determine if telehealth services are covered. Many insurance companies now offer coverage for virtual doctor visits, but the extent of coverage may vary. Familiarize yourself with any deductibles or specific telehealth providers recommended by your insurance.

Step Two: Choose a Telehealth Provider

Select a reputable telehealth provider that is accepted by your insurance company. Some insurance companies have partnerships with specific telehealth platforms, while others may accept a range of options. Research different telehealth providers, read reviews, and ensure that the platform offers the medical services you need.

Step Three: Register and Set Up an Account

Once you’ve chosen a telehealth provider, you’ll need to create an account on their platform. This typically involves providing your basic personal and medical information. Make sure to use a secure password and keep your login credentials confidential.

Step Four: Schedule a Virtual Appointment

Log into your telehealth account and schedule a virtual appointment with a doctor. Depending on the platform, you might be able to choose a specific doctor or be matched with one based on your medical needs. Select a convenient time for the appointment and ensure you have a stable internet connection and a device with a camera and microphone.

Step Five: Attend the Virtual Consultation

On the scheduled day and time, log into your telehealth account and join the virtual appointment. The doctor will initiate the video call, and you’ll be able to see and talk to the doctor in real-time. During the consultation, discuss your symptoms, medical history, and any concerns you have. The doctor will provide medical advice, recommend treatments, and, if necessary, prescribe medication.

Keep in mind that telehealth appointments are similar to in-person appointments in terms of confidentiality and professionalism. Be prepared to provide accurate information to the doctor, and don’t hesitate to ask any questions you may have during the consultation. After the appointment, any prescriptions or medical advice provided will be documented in your telehealth account, allowing you to refer back to it as needed.

Have you ever seen the breakdown of your student fees? On that long list of books, tuition, gym membership, student building improvement fees, and more, you might find the premium for your student health insurance plan.

Compared to other costs, the premium for these group plans is usually pretty low. But still, costs add up and you might be looking for ways to save any way you can! This leads a lot of students to ask: Should I opt out of my student health insurance plan? 

The answer isn’t the same for everyone. You might be thinking that you’re young and healthy, so you don’t need health insurance…right? 

Well… That’s probably not the case!

Health insurance helps you not only recover from an injury or illness but also prevent them by accessing important health services and benefits. Read on to find out how to make the most of your health insurance, whether you’re still on your parents’ plan, on your school’s health plan, or looking to set up your own customized health plan to suit your needs.

How does student health insurance work?

If you’re Canadian, student health insurance works in tandem with your provincial health care plan.

Provincial Health Care

The provincial plan is that “free” Canadian healthcare that people talk about. It’s paid for by your tax dollars and administered by each provincial government. It covers basic medical and emergency care like hospitalizations, surgeries, and doctor’s visits. 

Private Health Insurance 

This insurance covers medical services and expenses needed to recover from an injury or illness, as well as prevent them. You pay either a monthly or yearly premium (bill) for this coverage. Private health insurance plans can vary in coverage and cost, depending on the provider, the specific policy, and your own health history (more on that below).

You might have access to private health insurance benefits through: 

• Your parent’s’ work/group plan
• Your parent’s’ individually-purchased extended health plan
• Your student (union) group health plan 
• You’ve purchased a private plan yourself

Whatever your provincial insurance doesn’t cover, your private health care plan will—up to certain coverage limits.

What does health insurance cover?

Private health insurance covers the expenses that government healthcare does not.

Health insurance for international students

If you’re an international student, you may or may not receive coverage through the province that your school is in—each province has its own rules. 

If you are not eligible for healthcare under this plan, you need to look into private health insurance options to cover your healthcare needs. Your university may offer a student group health insurance plan and you should look into purchasing an emergency travel medical plan if you haven’t done so already. 

Student group health care plan

Your university or college usually has a contract with a health insurance provider for group health insurance. The cost to participate in this program will be outlined in your student fees. If you are an international student, this program may be mandatory. 

Emergency travel medical plan 

Your student health plan may cover you during the semester, but it may have coverage restrictions if you travel outside of the province where your school is located or it may only cover you while classes are in session. To make sure you’re fully protected as an international student, you should purchase emergency travel medical insurance for students. This insurance will pay for emergency medical care as well as prescriptions while you are away from your home country.