Affiliated with Sentinel Life & Sentinel Financial Management Corp.
July/August - 2000
Commentary - Hans H. Mathisen
Group insurance a Rip-Off? Please read the July LIFE LETTER, and
If you receive our newsletter
via the post office, then, in addition to the information contained
in LIFE LETTER for August, you'll find a pamplet that gives you additional
information about a specific Critical Illness Recovery Plan.
Many Canadian insurance companies offer this type of coverage. The material enclosed in our posted newsletter comes from UNUM, which is the world leader in this kind of insurance. For further information about the Critical illness Recovery Plan, please phone me at (306) 242-7042, or on the toll free line: 1-877-531-1847.
(NOTE: The fact that Mathisen Financial, Inc. sends you information published by UNUM means that we have researched the industry and found that UNUM is the best insurer through which to get Critical Illness insurance).
THE STOCK MARKETS
The markets have been choppy during the past few months, to put
it mildly. But the key to the long term growth of your portfolio is
to choose value from the outset. And to have your
investments as diversified as possible. Remember: Canada only constitutes
1.8% of the worlds equity markets. That leaves another 98.2% of
opportunities for you to diversify your investment,
As Gordon Pape says, "the broader the base ofyour investment
portfolio, the lower the risk". In other
words: Diversify your portfolio and reduce the risk,while
increasing your profits.
Thats what he gets with group insurance. A group insurance policy is a contract with an employer, union, or association to provide coverage to a specific group of employees, or members. The insured individuals are not parties to the contract so have no rights under the policy other than naming their beneficiaries. Their principal evidence that they are insured will be the deductions from their paychecks, or extra union dues.
The policy can be changed at any time without Grants approval. The employer, union, or association executive may decide to switch insurance companies. Or reduce the coverage. Or cancel it completely. Even though he is the insured individual, Grant has no voice in such decisions.
As group insurance is just year-to-year coverage, the insurance company can change the deal on any anniversary. It can increase the premiums, reduce the coverage or even refuse to renew.
Group insurance is cheap because it covers us when we are least likely to die, while we are still able to work. The main reason employer group seems cheap is the boss pays part of the premium, but its taxable to you.
If you quit, get fired, or retire, most group insurance stops. Some firms may continue some of it for a few years after retirement. You usually get a chance to convert it to higher premium permanent life insurance when your employment ceases. But if youve just lost your job, its unlikely that youll feel you can afford it.
The answer is to view group insurance as a temporary job-associated perk, and get personal life insurance now. Then you will have a policy that YOU control; one YOU can convert, assign, change the plan or amount, or cancel, when and if YOU choose.
Want life insurance that you control?
Call Hans Mathisen today at (306)242-7042.
Besides the trauma to her and her family, the financial costs were enormous. $4,500 for a wheelchair, $8,000 to $10,000 for a communication device, $3,000 for a computer, costly renovations to their home to enable Glenda in her wheelchair to move about, a customized vehicle for her transportation, are just the beginning.
Disability income insurance doesnt cover such expenses. It is there to provide the income needed to pay for day to day expenses, not the heavy costs of a critical illness such as Glendas. Most of us have it in some form, a group plan, a personal plan, or a combination of the two. But only if an injury or sickness prevents you from working will such insurance provide an income. And then, only for as long as you are unable to work.
So Glenda was forced to rely on the charity of her neighbors. The residents of Leduc, Alberta organized a "Walk, Run or Wheel" fundraiser to help pay for the special tools she needed just to be able to function.
There didnt used to be, but now there is a better answer. An answer that allows you to maintain your dignity, and not rely on the charity of strangers. Its called Critical Illness Insurance. Here are just some of the reasons its needed:
People are living longer now, often with a life-altering illness. Modern medicine can save the patient but can cause a huge financial drain on family resources.
If you contract one of the diseases or injuries specified in a Critical Illness Insurance policy, you receive between $25,000 and $2,000,000 tax-free. The exact amount depends on the policy and the insurer. But, unlike your disability income policy, Critical Illness Insurance pays a benefit even if you are still able to work.
There are no restrictions placed on the use of the insurance money. You decide how to spend it. If you dont need it for new or unexpected expenses, maybe a cruise or other vacation will help you recover from your ordeal quicker. Or you may decide to invest the money for your future use.
There are a number of plan choices you can make - basic or comprehensive protection; premiums on a 10 year renewable or level basis; additional benefits like Waiver of Premium or Return of Premium.
Want to avoid relying
on charity should a critical illness strike you? Call today:
Mutual confidence is the power that binds together all harmonious human relationships.