Frequently Asked Questions

A contract covers payment of the insured amount up to its maturity date, for specified dates at periodic intervals, or for an unfortunate death, if it occurs earlier.

There are two main hazards of life that specific life insurance policies protect against, namely the risks of dying prematurely and leaving a dependent family to care for themselves as well as the risks of living into old age without financial security.

There are two main types of life insurance: Temporary Life Insurance for short-term needs and Permanent Life insurance for long-term needs.

There are many benefits to life insurance, including security for the future of your children, your financial security after retirement, and your family’s security in the event of an untimely death. You can also redesign your tax structure to benefit your family, and repay your mortgage with ease.

For single people, life insurance is necessary to cover any sort of financial obligations such as loans or outstanding credit card payments so that in the case of any untoward incident, their parents remain free from any financial burden.

Yes, absolutely. The purpose of life insurance is to provide financial security for your family in the wake of your death.

It actually makes financial sense to buy life insurance if you are

• it helps you lock in lower rates (premium) with guaranteed coverage,
• later in life, you may develop health issues and may no longer be eligible for insurance or may have to pay a heavy price for it.

young as:

Purchasing life insurance will secure your spouse’s comfortable lifestyle even if you do not have children and will provide a stable financial future for your spouse in your absence. In view of the fact that your spouse will still have to pay for the loan’s monthly installments, life insurance will help her/him cope and move forward.

Yes, certainly. It’s very important to get your insurance policy reviewed by an expert advisor at regular intervals.

Your requirements coverage may have changed as a result of:

• Increased income
• A new baby in the family
• You need to insure a key employee who is vital to your company’s success
• Financial safety for aging parents
• New features/new policies are better suited to your needs than what you purchased six years ago

Life insurance is a valuable financial tool that you need until you accumulate sufficient liquid assets and/or decrease your dependence. You cannot speculate on the time of your death.

Your loved ones may not have other means of income if you die prematurely without insurance coverage or after your current assets have depleted.

As such, you should never put this decision off and you should consider purchasing insurance as a priority.

Compared to the valuable financial security that life insurance offers, the price holds relatively little significance, as it depends on how much coverage you need, how much you can save for it, and which insurance company you choose.

Nowadays, online tools are available at your fingertips for you to shop, compare, save, and buy plans that offer you a guaranteed return on your investment.

For life insurance, the answer is “no.” The insurer assesses your health only at the time the contract is issued.

The insurer must pay out the insurance within 30 days following receipt of the required supporting documents, which may include:

• Proof of death of the insured
• Proof of the insured’s age
• Proof that the person claiming the insured amount is entitled to it

If the person convicted of the homicide is the beneficiary, they will lose the right to the benefit. If there are other beneficiaries, and they had nothing to do with the insured’s death, they will be entitled to the insurance amount.

An insured can disappear in a number of circumstances. For example:

• A plane they are on crashes
• A ship they are on capsizes at sea
• Missing person: They disappear for an unknown reason, never to be seen again

If there is proof the insured has died—as in the case of a plane crash, for example—a court may declare the insured officially dead even if the body has not been recovered. The insurer will then pay the death benefit to the beneficiary designated in the contract.

However, if there’s no proof the insured has died, the beneficiary must wait seven years for the insured to be declared officially dead (declaratory judgment of death) and for the insurer to pay out the benefit. Note: The premiums must continue to be paid during that time.

A rider is an add-on to a standard policy that offers additional benefits or amends the terms of the policy. Common riders include additional insurance including term or critical illness, hospitalization, waiver or return of premium, supplemental income, and accidental death benefit.

For any specific inquiries regarding riders, please book a meeting with us.

Buying life insurance when you’re younger and healthier, opting for term life insurance over permanent policies, living a healthy lifestyle, and accurately comparing different policies and providers can help reduce costs.

Policies typically come with a grace period, allowing you some time to pay the premium without losing coverage. If payment is not made within the grace period, the policy might lapse, and you could lose coverage.

Yes, in many cases, you can adjust your life insurance policy. Term life policies may offer conversion options to a permanent policy, while permanent policies might allow changes to your death benefit and premium payments. Be sure to consult your insurer for specifics.

A beneficiary is someone you designate to receive the death benefit from your policy. You can choose anyone, such as a family member, friend, trust, or charity. It’s important to consider who would be most impacted financially by your death and to update your beneficiary designation as life circumstances change.

Yes, you can have more than one life insurance policy. Having multiple policies can help you cater to different financial needs and goals, or simply add additional coverage as your situation changes over time.

In most cases, life insurance premiums are not tax-deductible. However, the death benefit paid to beneficiaries is generally income-tax-free.

You’ll likely need to provide personal information, health history, and possibly undergo a medical exam.

Yes, many companies offer the option to apply and even be approved for life insurance online.

An agent works for a specific insurance company and sells their products, while a broker represents the client and can sell policies from multiple companies.

Yes, policies can be contested for reasons such as fraud or misrepresentation within a certain period after issuance.

Whole life insurance provides lifetime coverage, includes a death benefit, and accumulates cash value over time.

Yes, if you have a cash value life insurance policy, you can borrow against the cash value.

This varies based on individual circumstances, including income, debts, lifestyle, and dependents. A common rule of thumb is 10-15 times your annual income, but specific needs may vary.

Life insurance is a contract where an insurer pays a death benefit to beneficiaries upon the policyholder’s death. This helps loved ones cover expenses or replace lost income after the policyholder passes.

Life insurance is ideal for anyone with dependents or financial obligations, such as mortgages or debts, who wants to ensure loved ones are financially secure after they’re gone.

Cash value is a savings-like feature that grows within a permanent policy. It can be borrowed against, withdrawn, or left to accumulate for later use.

Universal life is a type of permanent insurance offering flexible premiums and adjustable death benefits. It includes a cash value that can grow based on interest rates.

The death benefit is the sum of money paid to beneficiaries upon the insured’s death. This amount is typically tax-free and can be used for any financial need.

Accelerated underwriting uses data from health records and credit scores to speed up approval, often eliminating the need for a medical exam.

Riders are add-ons that enhance coverage. They can include options like critical illness, waiver of premium, or accidental death coverage, adding flexibility to policies.

Yes, you can change your beneficiary at any time unless the policy states they are irrevocable. This gives you control over who receives the payout.

Death benefits are generally tax-free. However, if the benefit becomes part of a taxable estate, estate taxes may apply.

Term conversion allows you to change a term policy to a permanent one without new underwriting. This is helpful as you age or if your health declines.

Cash surrender value is the amount you’d receive if you cancel a permanent policy. It’s the cash value minus surrender fees, which vary by policy and company.

Yes, you can hold multiple policies to meet your financial goals. Just ensure you can afford the premiums, as non-payment may cause lapses.

No-medical policies don’t require a medical exam and use data analysis for approval. They’re convenient but may have higher premiums due to limited health data.

• Fixed policies offer stable growth in cash value, while variable policies let you invest cash in sub-accounts, which can lead to higher gains or losses.

Yes, many permanent policies allow withdrawals from cash value, though this may reduce the death benefit or incur fees, depending on the policy.

Living benefits allow policyholders to access a portion of the death benefit if diagnosed with a terminal, chronic, or critical illness, providing financial relief during illness.

A policy loan lets you borrow against the cash value of a permanent policy, usually with low interest. Unpaid loans reduce the death benefit if not repaid.

Group life is provided by an employer and may be limited in coverage, while individual policies are bought personally and customized to your specific needs.

Underwriting assesses risk factors like age, health, lifestyle, and occupation to determine eligibility, premium rates, and coverage limits.

It’s usually a two-year period during which insurers can review and deny claims for misstatements. After this period, they typically can’t contest a claim.

This clause prevents insurers from denying claims due to errors or omissions on the application after the contestability period, as long as premiums were paid.

AD&D is an add-on that pays an additional benefit if the insured dies or suffers severe injury due to an accident, offering extra financial protection.

The free look period (10-30 days) allows policyholders to review the policy after purchase and cancel it for a full refund if dissatisfied.

Premiums are based on factors like age, health, occupation, lifestyle, and the policy type and coverage amount. Riskier profiles may result in higher premiums.

Yes, life insurance benefits can be used for any purpose, including funeral costs, helping families manage these expenses without additional financial strain.

Disability insurance provides monthly income replacement if you’re unable to work due to illness or injury.

Anyone who relies on their paycheck—especially self-employed individuals, sole providers, and high-risk workers.

If you become disabled and can’t work, the policy pays monthly benefits to cover lost income.

It covers physical injuries, chronic illnesses, and mental health conditions that prevent you from working.

Coverage varies, but einsured.ca offers up to $3,500/month or $5,000/month when combined with loan protection.

If you pay for the policy yourself, benefits are tax-free. If your employer pays, benefits may be taxed.

Benefit periods range from 2 years to age 65, depending on your policy.

• Short-term: Covers 3 to 6 months of lost income.
• Long-term: Covers years or until retirement if you remain disabled.

It varies but typically ranges from 30 to 90 days after the disability occurs.

If you’re self-employed or don’t qualify for Workers’ Compensation, disability insurance ensures you’re protected.

Yes, but pre-existing conditions may have waiting periods or limited coverage.

Absolutely! It’s especially important for self-employed individuals who don’t have employer benefits.

Yes! Many policies cover anxiety, depression, and other mental health-related disabilities.

It depends on age, job type, coverage amount, and health status, but plans can be customized to fit your budget.

Yes! Options include premium refunds, extended coverage, and enhanced benefits for accident-related injuries.

With einsured.ca, you can get 50% of your premiums back after 10 years if claims are less than 20% of premiums paid.

Yes! Employer disability plans are often limited, so having personal coverage ensures better financial security.

Simply submit medical proof of disability and complete the insurer’s claim process. einsured.ca helps guide you through it.

Yes, many policies allow you to adjust coverage as your income grows.

Get a FREE quote today at einsured.ca or book a quick consultation to find the best plan for you!

Critical illness insurance provides a lump sum payout if you’re diagnosed with a serious illness like cancer, heart attack, or stroke.

Disability insurance replaces lost income monthly, while critical illness insurance gives you a one-time payout to cover medical and personal expenses.

Anyone who wants financial protection against the high costs of treating serious illnesses, especially self-employed individuals and sole providers.

Coverage varies, but most policies include cancer, heart attack, stroke, organ failure, and major surgeries. Some cover up to 25+ conditions.

You receive a tax-free lump sum, typically ranging from $25,000 to $500,000, depending on your policy.

Yes! Use it for medical treatments, lost income, mortgage payments, travel for care, or any expenses you choose.

Some policies offer a premium refund if you stay healthy for a set period (e.g., 10 years or more).

Pre-existing conditions may be excluded or have a waiting period, depending on the insurer.

Most policies cover life-threatening cancers, but early-stage cancers may have limited benefits.

Yes! A family history may impact premiums, but you can still qualify for coverage.

No, your lump sum benefit is 100% tax-free.

Yes, because health insurance only covers medical bills, while critical illness insurance provides cash for any expenses.

Absolutely! It’s highly recommended for self-employed individuals who don’t have employer benefits.

• Term: Covers you for a set period (e.g., 10, 20, or 30 years).
• Permanent: Covers you for life and may include a refund of premiums if no claim is made.

Premiums depend on age, health, coverage amount, and policy type, but plans can be customized to fit your budget.

Yes! Many people combine both to ensure full financial protection in case of illness or injury.

Simply provide medical proof of diagnosis, and the insurer will process your claim. einsured.ca helps you through the process!

Some policies allow you to upgrade coverage as your needs change.

Yes, most policies have a 30 to 90-day waiting period after diagnosis before you can receive a payout.

Get a FREE quote at einsured.ca or book a quick consultation to find the best plan for you!

A Tax-Free Savings Account (TFSA) is a registered account where your savings and investments grow tax-free, and withdrawals are also tax-free.

For 2024, the contribution limit is $7,000. If you haven’t contributed before, your total limit could be higher due to unused room.

You’ll be charged a 1% monthly penalty on the excess amount until it’s withdrawn.

Yes! You can withdraw money tax-free at any time, and the withdrawn amount is added back to your contribution room the following year.

You can invest in stocks, bonds, mutual funds, ETFs, GICs, and cash savings inside a TFSA.

The HBP allows first-time homebuyers to withdraw up to $35,000 from their RRSPs tax-free to buy a home.

Yes, you must repay the full amount within 15 years, starting in the second year after withdrawal.

You may qualify again if you haven’t owned a home in the past 4 years before withdrawing.

Any unpaid amount for the year is added to your taxable income, and you’ll pay tax on it.

Yes! Each person can withdraw $35,000 from their RRSP, for a combined total of $70,000 toward a home.

A Registered Education Savings Plan (RESP) helps parents save for their child’s post-secondary education with government grants and tax-deferred growth.

There’s a lifetime limit of $50,000 per child, but no annual contribution limit.

The CESG matches 20% of your RESP contributions, up to $500 per year per child (max $7,200 lifetime).

You can transfer the RESP to another child, withdraw the money (with penalties on grants), or transfer up to $50,000 to your RRSP if you have room.

Only the investment growth and government grants are taxed when withdrawn. Your original contributions are tax-free.

A Registered Retirement Savings Plan (RRSP) is a tax-deferred account that helps Canadians save for retirement while reducing taxable income.

For 2024, the contribution limit is 18% of your previous year’s income, up to a max of $31,560, plus any unused contribution room.

It’s best to withdraw in retirement when your income is lower, as withdrawals are taxed as income.

You must convert it into a RRIF (Registered Retirement Income Fund) or buy an annuity before December 31 of the year you turn 71.

The FHSA is a tax-free account designed to help first-time homebuyers save up to $40,000 for their first home, with tax deductions on contributions and tax-free withdrawals for home purchases.

The FHSA is a tax-advantaged savings account designed to help first-time homebuyers save up to $40,000 for a home, with tax-deductible contributions and tax-free withdrawals for a qualifying home purchase.

You can contribute up to $8,000 per year, with a lifetime contribution limit of $40,000. Any unused contribution room carries forward.

FHSA contributions are tax-deductible (like an RRSP), and withdrawals for buying a home are tax-free (like a TFSA).

You must be a Canadian resident, at least 18 years old, and a first-time homebuyer (meaning you haven’t owned a home in the last 4 years).

You can invest in stocks, bonds, ETFs, mutual funds, GICs, and cash savings inside an FHSA.

Yes! You can combine both programs, allowing you to withdraw up to $40,000 from an FHSA and $35,000 from an RRSP tax-free for your first home.

You can transfer your FHSA savings tax-free into an RRSP or RRIF without affecting your RRSP contribution room.

You must use the FHSA funds within 15 years of opening the account or before you turn 71, whichever comes first.

Yes, but non-qualifying withdrawals are taxable, just like withdrawing from an RRSP.

Open an FHSA with a financial institution and start contributing. Get a FREE consultation at einsured.ca to find the best plan for you!