In addition to term life, universal life, and critical illness insurance, there are many options on the market that can answer other needs.
For each insurance product you take out, it's important to verify what options you're eligible for, at what age they're available, and how much of a premium surcharge you'll pay.
Here are several options available from Desjardins Financial Security. These benefits, available as add-on protection or by themselves, are also offered by other insurance companies under other names and with slight differences. To help, we've identified the main features to look for in them all.
What to Look For in Additional Benefits
Disability
Disability income
If the insured person becomes disabled, the insurance company pays a monthly benefit. Here are some questions to ask:
- What is the maximum amount of insurance you can take out? For example, is it based on your work income or the amount of your insurance?
- Before what age must the disability occur for benefits to be paid?
- If you become disabled, up to what age can you expect to receive benefits?
- What is the definition of disability? Often two definitions are given, namely incapacity to occupy your current job and incapacity to occupy any job. Check how long each applies.
- Is there a waiting period before you can receive benefits? If so, are benefits retroactive?
- Can your benefits be cut if you are also receiving benefits from a private or public health plan, or any other source, for the same disability?
- Do the premiums vary according to line of work?
Monthly deposit in an accumulation fund in case of disability
Offered exclusively with universal life, this benefit is similar to the disability income described above, except that benefits aren't paid to the insured person, but into a universal life accumulation fund to cover any deductions from it.
Disability waiver
In case of disability, the insurance company will waive the premiums. Here are questions to ask:
- By what age must disability occur for the company to waive your premiums?
- If you become disabled, up to what age are your premiums waived?
- What is the definition of disability?
- Is there a waiting period before premiums can be waived? If so, are premiums waived retroactively?
- Will all the premiums under the contract be waived?
If you take out coverage on others, such as members of your family, some companies offer an option to have the premiums on this additional coverage completely waived in the event of your death.
Guaranteed insurability
This option allows the insured person to take out additional coverage without having to prove his or her state of health. Here are some questions to ask:
- What are the minimum and maximum amounts of insurance you can take out when you exercise this option?
- May you exercise this privilege at any time, or only when a predetermined event, birthday, or date comes up?
- What types of coverage are available and at what price?
Accident
Accidental fracture
With this option, the insured person will receive a lump sum if he or she suffers a fracture. Be sure to ask the following questions:
- What amount of insurance may you take out?
- Does the amount vary depending on which bone is broken?
- By what age must the fracture occur for this benefit to be paid?
- What happens if you suffer several fractures in the same accident?
- Can the amount paid increase in certain circumstances?
Accidental death or dismemberment
In case of accidental death or mutilation, a lump sum is awarded. The main questions to ask for this type of coverage are the following:
- By what age must the accident occur for the indemnity to be paid?
- What is the definition of an accident?
- What is the definition of dismemberment?
- Are there any circumstances in which the company will award a higher amount than it usually does?
- Will a benefit be paid each time a mutilation occurs?
Accidental dismemberment
This benefit is similar to the coverage described in Accidental death or dismemberment above, except that accidental death is not covered.
Children's insurance
This type of insurance normally provides coverage until the age of majority or the children are financially independent. Check the following:
- Are the children insured under a single policy or must individual coverage be taken out for each?
- Up to what age is the child insured?
- Can the amount of insurance be increased without having to prove the child's state of health?
- Can this insurance be converted into another type of coverage without having to prove the insured person's state of health?
With this insurance, you can obtain other options like Accidental Fracture and Accidental Dismemberment similar to those defined above.
Also in your Insurance Shopping Guide