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There are many different types of Insurance in the market

Term Insurance

Term Insurance is the easiest type of insurance to understand. You pay a premium for a period of time and if you die during that term the insurance proceeds are paid to the person or persons you have designated as the beneficiaries. The most common type of term insurance is renewal and convertible term insurance. With proper planning, term life insurance can play a very important part in meeting your short term planning objectives. At Churchill Insurance Brokerage Services, we discuss in detail the merits of using term insurance for your short term asset and creditor protection.

Term Insurance provides coverage up to a certain age and then terminates. Premiums are usually level for a certain length of time as set out in the contract, usually 10, 20 or 30 years. After each period, the premiums will increase to a new amount and will remain level until the next renewal date.

Universal Life Insurance

Universal life insurance offers lifetime coverage - Universal Life insurance is characterized by its flexible premiums, flexible face and death benefit amounts. You can determine within limits the amount of premium you want to pay.

The Universal Life has 2 parts:

  • the insurance
  • and the savings

During your lifetime, the policy's cash value is accessible (after a stipulated number of years) for withdraw or collateral. Any growth on this money withdrawn will be taxed.

The Universal Life policy is used for many things:

  • Retirement Savings
  • Estate Planning
  • Business Planning
  • Educational Funding

Any amount of the premium that is over and above the cost of insurance and any fees is designated to your policy's cash value account. The money in this account is invested in segregated funds and will grow tax sheltered. Upon death your beneficiaries will receive the death benefit portion of the life policy tax free. Tax may apply to the savings portion.

Whole Life Insurance

Whole life insurance policies stretch the cost of insurance out over a long period of time, thereby minimizing the increasing insurance cost. The premiums can be spread out over your lifetime, or up until a certain age.

Earnings are tax-deferred, and the death benefit is level (never decreases).

Whole life insurance policies have the following features:

  • Permanent insurance with premiums that will never increase and coverage that will never decrease.
  • The death benefit is guaranteed, so you know exactly how much the policy will pay upon claim.
  • Perfect for people who think long-term and wish to have a plan that is not subject to investment gains or losses.
  • Has flexible cancellation options. You can surrender the policy at any time in the future and the current cash value of the policy will be returned to you.

There are various options you have on the policy, such as:

  • You can choose to pay premiums for the rest of your life, or for a set period of time (i.e.. purchase the policy in a set number of payments). You can even purchase the policy in one single payment. The shorter the payment period the larger the discount you will receive.
  • You can add "Term riders": temporary additional insurance to meet short-term needs (e.g.. if the whole life insurance policy is for $100 000, but you need $500 000 coverage now, you can add a $400 000 term rider).
  • You can add child or spousal riders: additional insurance coverage on a child or spouse on the same policy.
  • You can waiver the premium: a safeguard against losing your policy. If you have an accident and become disabled, you may no longer earn a high enough income to pay your insurance premiums. With the Waiver of Premium option selected, after 6 months of disability, the insurance company will waive all of your premiums so you do not lose your policy. They also refund the premiums you paid over the last 6 months.

If you decide to stop paying premiums at some point in the future, you have 3 cancellation options:

  • The current cash value of the policy can be exchanged to purchase "extended term insurance" for the same amount as the original whole life policy. From that point forward, your policy acts just like a regular term insurance policy (coverage ends when the term is over).
  • The cash value can be used to purchase "lifetime protection" with a smaller death benefit than the original policy. This benefit will stay in place for the rest your life.
  • You can totally surrender the policy, in which case the cash value is returned to you.

Whole Life Insurance has many uses:

  • Saving additional money for retirement.
  • Estate preservation: as soon as you die, any property that has gained value while you owned it (except for the family home) is deemed "disposed of" and your family must pay the taxes. An insurance policy can help pay these taxes.
  • Charitable giving: leaving the proceeds of the policy to charity to provide a large tax deduction for the final tax return, or; If you want the tax deductions while you are alive, you can transfer ownership of the policy to your chosen charity while you are alive. This makes the premiums tax deductible but not the pay-out at the end of the day.
  • Charitable giving: leaving the proceeds of the policy to charity.
  • Enhanced buy-sell agreements for business partners: the partners take out insurance on each other to continue the business in the event of one partner's death, while simultaneously providing a retirement plan in the process.
  • Pension Maximization: a smart way to provide a pension for your spouse after you die. Instead of taking a reduced pension income, you can take the full pension and purchase a life insurance policy with the difference. When you die, the payout from the insurance policy can be used to buy an annuity, providing a life-long income for your spouse.

Travel Insurance

Before you travel overseas we advise that you get travel insurance and check that the cover is appropriate.

Whilst you are travelling it is possible that things could go wrong, such as:

  • you could fall ill
  • have an accident
  • have money or luggage stolen
  • your travels might be cancelled or cut short through injury or illness.

All these risks and more can be covered by a travel insurance policy without this if anything happens, cost incurred could run into the hundreds and even thousands very quickly.

Churchill Insurance has many flexible options to cover you on your travels, whether you are travelling within the province or going over seas, we can help you get the peace of mind you need to relax and enjoy your time away.

Critical Illness Insurance

A Critical Illness Insurance plan is insurance protection that guarantees the payment of a tax-free lump-sum benefit when a critical illness is diagnosed. Although certain illness-related expenses may be covered by provincial and/or private health plans, these programmes do not cover many medical costs.

Unlike other forms of insurance, Critical Illness Insurance can provide a lump sum payment and allows people to use the funds in many ways, such as:

  • Enabling your spouse to take a leave of absence without pay
  • Allowing you to hire a caregiver
  • Helping you pay for specialized medical treatments
  • Helping you towards paying for the best possible care
  • Helping you reduce family obligations, helping towards your mortgage payments
  • Helping to pay for child care
  • Funding a trip to assist recovery

When you take out a critical illness policy, there are no restrictions when you are diagnosed with a covered illness.

Here are some of the features available when you start your policy:

  • Your plan will also assist you in finding the best medical professionals for your particular situation.
  • Most Critical Illness Insurance plans include a full refund of premiums to the family should death occur before the maturity of the plan (usually age 75) without reporting a claim.
  • Many plans offer a return of premium where you receive your premiums back at plan maturity if no claim or only a partial claim has been made.
  • With hospital and testing centers wait lists getting longer and longer, you will have the opportunity to take care of yourself more quickly and more efficiently with a Critical Illness Insurance plan.

The most common types of protection are:

  • 10-year term protection (renewable and convertible)
  • 20-year term protection (renewable and convertible)
  • Term protection to age 75
  • Term protection to age 100
  • Many life, disability and mortgage insurance policies now offer critical illness insurance as a rider to your policy.

Disability Insurance

Here are some important things to consider when purchasing disability insurance:

  • Some individual plans offer a choice of injury only or injury and sickness insurance.
  • Some individual plans also offer a return of premium that means you may receive premiums back if you have low or no claims.
  • The elimination period is the period between the first day of disability to the first day your benefits start.
  • The longer the elimination period, the least costly the monthly premium. If you don't normally have an emergency fund sufficient to cover long periods of time off work, then an elimination period of approximately one month is recommended.
  • Most companies offer a waiver of premium, meaning that during a disability you do not pay premiums (after 90 days from the time the disability period came into effect).
  • There are programmes available that offer term-like rates, where the premiums are lower at the beginning but increase as the policy owner gets older. With this type of programme, you would want to convert a policy like this to a permanent policy within five years, since it could become extremely costly in the future.

    There are many different options open to you with disability insurance. Workman's Compensation Board Wage Loss and Health Care Benefits75% of gross weekly salary/wagesnon taxable benefitswage loss benefits and health care costs begin the day after injury.


  • work related sickness/injuries only
  • there could be a drawn out investigation before benefits are received

Canada Pension Plan Disability Benefits

  • flat rate portion and 75% of CPP retirement pension to be received at age 65
  • payable to age 65 then converts to CPP benefit


  • disability defined as "severe and prolonged permanent and/or long term physical or mental disability"
  • taxable benefits

Company Group Benefit Plans

  • monthly benefit of a specific amount per month depending on annual income
  • payable to age 65
  • can receive up to 50% if you are able to work part-time with the assistance of an approved rehabilitation program


  • waiting period usually up to 120 days
  • benefits terminate if you become employed elsewhere or refuse rehabilitation programme
  • as second payer, the amount will be reduced by the amount of Canada Pension Plan benefits
  • benefits are taxable