As part of a mini-series, we challenge you to test your understanding of the myriad of life insurance and financial services products on the market today. You can be the master of your own financial planning … with a bit of advice and guidance from Safeway’s advisors provided at no charge to you. Our Life Insurance & Financial Services specialists await your call!
Life Insurance seems to be the most widely-accepted financial services product to buy – usually bought when a life event of some kind occurs, such as getting married, buying a house with a mortgage, establishing a new business, having kids and planning for their education, and, of course, when one addresses the back end of life for Estate Planning purposes. The challenge is often to keep the premium affordable both in the short- and long-term. Rest assured that we can always match your budget, so let’s take that off the table. Test your knowledge now, and call Safeway if you’d like more details.
ANSWER:When you`re young. Also, parents should consider setting their kids’ life insurance up as early as possible to give them a head start. You never know which way life will take you, so it’s best to plan for the worst, and if your good fortune holds, end up with the best. Safeway surveys all independent insurance companies and provides the most competitive life insurance pricing.
Sample pricing (as of May 31, 2016) for a female aged 25, Non-Smoker, best health:
$100,000 of Term 10, where the premiums increase each 10 years and coverage eventually runs out, with no money back at expiry or on cancellation — $6.97 per month
$100,000 of Term 20, where the premiums increase each 20 years and coverage eventually runs out, with no money back at expiry or on cancellation — $8.78 per month
$100,000 of Term to age 100, where the premium remain level until age 100, with some cash values built in — $43.11 per month
You may find that some combination of long- and short-term coverage makes sense to cover off family rearing years and mortgages, as well as final expenses of death at any age.
When should I open a plan?
ANSWER:Again — when you`re young. If your parents haven’t started this ball rolling, you should do so as soon as you start earning income to get the lowest premiums. Premiums rise with age and adverse health history. The general rule of thumb is to sock away 10% into savings accounts (such as RRSP, TFSA), and buy your first life insurance as soon as you’re settled into a full-time job.
Does it matter if I am single or married?
ANSWER: Really the answer is no, but perhaps the more relevant question is: Will the loss of my earnings or savings matter to anyone? You may be a single parent, or a single child with a dependent relative. What matters is the loss of your financial support to those who depend on you, and then life insurance to replace those finances when you’re gone does matter. So single people should think ahead, and again, buy life insurance when you’re young and it’s inexpensive. If you`re married, likely you rely on both incomes to support your lifestyle and therefore you will want to insure the loss of both incomes.
Do I have to buy Mortgage Insurance?
ANSWER:No, unless the Mortgagor insists as part of your loan. Still, if you care to ensure your family has a roof over their head when one of you passes away prematurely, Life Mortgage Insurance is a Must. Just be sure to buy it through an independent broker like Safeway, not a bank, for the best product and premium selection short- and long-term. Just a few advantages of your Safeway plan over that of any bank:
+Protects your family – you can name your family members as recipients of the proceeds instead of the bank and they may continue the mortgage payments instead of being forced to renegotiate a new more expensive mortgage.
+ Gives you control – you own the policy, choose the beneficiary, and select the type of coverage you want – usually at a much improved premium!
+ Is fully portable – your plan will continue when you move to a new home and/or new mortgage, and you don’t necessarily have to buy a more expensive policy (if you are older).
+ Provides flexibility – upon death, your family has the option of paying off the mortgage or investing the funds if the economic conditions warrant it.
+ Allows shopping for interest rates – upon renewal, you are not tied to one lending institution and can shop around for a better mortgage rate.
+ Offers you a choice of plans and benefits – you choose the type of policy and benefits you want.Term plans can be converted to a permanent plan, usually without a medical.
+ Gives you a choice of amount of coverage – you choose the amount of coverage you require and the amount of coverage you require and the coverage does not decrease as the mortgage is reduced.
+ Provides stable coverage – your customized plan has a built-in grace period from 30-90 days for missed premiums.
+ Expert advice – deal with a professional financial services representative. All your insurance and financial services matters can be processed through one broker.
Sample Mortgage Insurance for male age 30 Non-Smoker, best health for $100,000 — $10.08 per month (as of May 31, 2016)
What happens when I have kids?
ANSWER:Aside from more expenses and less sleep … kids mean more responsibilities. Ensure they are protected if you and/or your partner are not around during their growing years by properly life-insuring yourselves – and don’t forget to include computations for University or College tuition in the event of your premature passing.
I have Group Benefits at work; isn’t that enough?
ANSWER:Maybe Yes, Maybe No. Maybe Yes, if you’re single and have no dependents. Maybe No if you have a spouse, family, larger income, larger debts (including a mortgage, bank loan or line of credit). Group Life Insurance is often for a limited amount and is not portable to your next job. Be proactive instead of reactive for preferred pricing by talking to our Financial Services Advisors as soon as possible. Take control of your family’s financial future out of the hands of your employer and into your own hands. Remember, you might change jobs and/or lose benefits over time, but your private insurance is always in your control.
I don’t have Group Benefits at work; what should I consider?
ANSWER: The short answer is: Call Safeway now. We can build a Full Benefits Plan which includes the same elements offered in traditional Group Benefits at work: Life Insurance, Disability Insurance, Critical Illness Insurance, Healthcare, Dental Care and more!
I’m self-employed or in a partnership; what should I consider?
ANSWER:If you have the initiative and know-how to be self-employed, don’t overlook insuring your earning power, your overhead, your financial obligations, and your Key People should something happen to affect your bottom line. We can tailor a package to suit your financial objectives. We can certainly provide Group Benefits to your staff so you can hold onto those important assets.
I’m old; what do I need life insurance for?
ANSWER: Estate planning happens at all ages, if you care about what you leave behind to your chosen beneficiaries. Death brings Estate Taxes at the highest marginal tax rate. Don’t force your beneficiaries to sell your assets at a loss just to pay the Tax Man. Proper planning can reduce your estate’s financial burden and preserve the value of your Estate. You didn’t think about this when you were young, but it may not be too late. Call Safeway now.
STEP 1
Stop. If your vehicle is involved in an accident and you don’t stop, you may be subject to criminal prosecution.
STEP 2
If anyone is injured, if the total damage to all the vehicles involved appears to be MORE than $2,000, or if you suspect that any of the other drivers involved are guilty of a Criminal Code offence (such as driving under the influence of drugs or alcohol), call 911 and follow the instructions given to you by the emergency operator. Police will arrive as soon as possible.
Do not try to move anyone injured in the accident — you may aggravate their injuries!
If no one is injured and total damage to all the vehicles involved appears to be LESS than $2,000, call your local police for instructions. Police units may or may not be dispatched to the scene. If local police do not attend the scene of the accident, they will instruct you to report to a Collision Reporting Centre within 24 hours.
Collision Reporting Centres are police facilities created to assist motorists in reporting motor vehicle accidents. At the reporting centre you will be assisted in completing a police report, and damage to the vehicle will be photographed.
Collision Reporting Centres are currently available in a number of jurisdictions across the province. Visit: www.accsupport.com or call: (416) 745-3301 to locate the Collision Reporting Centre nearest to you.
If there isn’t a Collision Reporting Centre in the area of the accident, the police will ask you to go to the nearest police station to file a report.
STEP 3
If it is safe to do so, move your vehicle to the side of the road, out of traffic. If your vehicle cannot be driven, turn on your hazard lights or use cones, warning triangles or flares, as appropriate.
If you have access to a digital camera or a cell phone, you should use it to take pictures of the scene; preferably before the vehicles are moved. You should also use your cell phone to audio record as much information as possible.
STEP 4
Write down the names, addresses, and telephone and driver’s licence numbers of all of the other drivers, the licence plate numbers of the other vehicles, as well as the names and addresses of the registered owners of the vehicles, and the insurance information for each of the other vehicles.
STEP 5
Also obtain the names, addresses, and telephone numbers of passengers and witnesses.
STEP 6
Jot down specific details about the scene of the accident, using the accident report form below.
STEP 7
Give us a call at (905) 886-4913 or visit our claims page to report the accident as soon as possible after the accident.
Remember…
As difficult as it may seem, it is important that you remain calm.
Do not argue with other drivers and passengers. Save your story for the police.
Do not voluntarily assume liability or take responsibility, sign statements regarding fault, or promise to pay for damage at the scene of the accident.
Be careful of unauthorized tow truck operators pressuring you to have your vehicle towed, demanding immediate payment for the tow, or attempting to take your vehicle to a garage or body shop of their choice. They may try to use the confusion of the moment to intimidate you into allowing your vehicle to be towed. If you feel you are being pressured, ask the police for the name of an authorized tow truck operator and have your vehicle towed to a Collision Reporting Centre or a police compound until you can talk to your insurance company.
Are you a handyman, painter, cleaning service or licensed contractor (electrician, carpenter, plumber etc)? Have you thought of becoming an entrepreneur and starting your own business? If so there are a few things you should consider, starting with the proper insurance coverage to fully protect your new endeavor.
As a contractor you know how important it is to create the proper fit, leaving no gaps behind. We look at your insurance policy the same way. A policy should be customized to fit your needs. The trusted expects at Safeway Insurance can show you how, at a very affordable cost.
Coverages to Consider:
Commercial General Liability is a must, and the starting point for most packages. A typical limit starts at $1,000,000. But can go much higher. Picture these situations: A plumber after soldering pipes leaves the premised too early and starts a fire. Or a pipe is not properly fitted and a flood ensues. A carpenter leaves his saw out and the child of a client hurts themselves. A lawn cutter accidentally runs over a piece of metal and it discharges into a client automobile. All of these instances provide the client the right to chase the contractor for financial reimbursement. Make sure you are protected.
A “Contractors Package” policy can also include an assortment of coverages that would apply to most contractors such as:
Tool Floater – to cover hand tools that you would carry to your projects
Installation floater – to cover the items that are at a job site (or in transit) for which you don’t own but are legally liability ie. Doors, windows, drywall and other materials
Business contents – the usual things that you need to run a business – desk, filing cabinet, fax/photo copy machines etc
Crime – to cover loss of money (theft, burglary, robbery) and also can include Third Party Bonding.
Contractors Equipment – larger items that you need for your work ie. Machinery like back hoe, excavator or items of higher value. You can even get “Loss of Use” coverage for this that would pay for you to rent a replacement if your is damaged/destroyed in a claim
Remember, It doesn’t have to be expensive as minimum premiums can start as low as $60 per month.
To get a quote to suit your individual contracting business insurance needs contact Safeway Insurance for a customized package.
Effective June 1, 2016, to help make insurance premiums more affordable, the benefits and coverages you receive in a standard auto insurance policy are changing – some have been reduced, and some options for increased coverage have been eliminated or changed.
When it’s time to renew or purchase auto insurance on or after June 1, 2016, the standard auto insurance policy you receive from your insurance company will have the new lower benefits – unless you contact us to purchase increased optional coverages.
The following chart is a summary of the most significant changes to auto insurance:
Benefit
Current Policy
New Policy
Buy-up Option
Rehabilitation and Attendant Care Benefit for Non-Catastrophic injuries
$50,000
$65,000 (new combined total)
Increase the benefit to $130,000
Attendant Care
$36,000
Increase to $2,000,000 (for catastrophic injuries)
Non-Catastrophic injuries (Minor injuries i.e. sprains, whiplash and serious injuries i.e. broken bones severe strains).
$1,000,000 (for catastrophic injuries)
$1,000,000 total for Medical, Rehabilitation and Attendant Care (for Catastrophic injuries)
Increase to $1,000,000 (for Non- Catastrophic injuries)
There are many other options available to purchase additional or increased benefits and coverages. The following chart lists some but not all of those and indicates if those options will change on June 1, 2016.
Benefit/Coverage
Current Policy
New Policy
Buy-up Option
Income Replacement benefit
70% of gross income up to $400 per week.
No change
To increase the weekly limit to $600, $800 or $1,000 per week.
Caregiver benefit
catastrophic injuries: Up to $250 per week for the first dependent plus $50 for each additional dependent.
No change
To make the same amounts available in current policy for catastrophic injuries available for all injuries.
Housekeeping and Home Maintenance expenses
Available only for catastrophic injuries: Up to $100 per week.
No change
To make the same amounts available in current policy for catastrophic injuries available for all injuries.
Death and Funeral benefits
$25,000 lump sum to an eligible spouse; $10,000 lump sum to each dependent; maximum $6,000 funeral benefits.
No change
$50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependent; maximum $8,000 funeral benefits.
Dependent Care benefit
Not provided
Not provided
To purchase this benefit and add up to $75 per week for the first dependent and $25 per week for each additional dependent to a maximum of $150 per week.
Indexation benefit
Not provided
Not provided
To add an annual adjustment for inflation for many benefits according to the Consumer.
Third Party Liability
$200,000 minimum for claims as a result of lawsuits against you.
No change
Options exist to increase the minimum amount.
Tort Deductible
$36,905.40 deductible for court awarded compensation for pain and suffering (Jan. 1-Dec. 31, 2016)
No change
Reduce deductible by $10,000 regardless of annual indexation percentage increases.
Please give us a call if you have any further questions or if you are interested in the increased limits.
Summer is just around the corner and before you know it, we will be celebrating the long weekend of May.
Barbecues, long rides on the motorcycle, top down driving, camping with friends and family, and weekends boating at the lake, these are just a few of the things to look forward to all winter long.
Now is a great time to talk to us at Safeway Insurance to ensure your summer toys are properly protected by insurance, at a cost you can afford.
Motorcycles
Ready to hit the road for a long ride? Any plans on attending the Friday the 13th ride to Port Dover? Remember to make sure your bike is ready for the road and you have brushed up on your safety skills. Motorcycles need the same coverage as your car, and today they have more accessories and options then ever before. With that in mind, consider purchasing physical damage coverage. Our experts can help you pick the right coverage for you, so give us a call.
RVs
Your motor home or travel trailer needs proper attention. Numerous packages are available covering you for liability, physical damage and emergency vacation expense in case the unthinkable happens. We will get you the right coverage at the right cost.
Boats
Boats and jet skis require special coverage. You have made a big investment and it is important to protect them properly. Liability coverage in case someone gets hurt, physical damage coverage for replacement costs and repairs, and additional emergency expenses – all at very affordable prices. Just call us and we can review what you have and make recommendations, as well as provide competitive prices.
Swimming Pools
Pools add additional liability hazards, and if someone is hurt while enjoying yours, you can be at an additional risk. Please make sure that we are aware if you have a pool and consider higher liability limits, in case you are sued.
Summer is more fun when you don’t have to worry, so call us now to ensure you are protected!
Nearly one in three Canadians don’t know what type of water coverage they have or need.
This means that, with water losses on the rise, many clients have been finding out—too late—that flooding is not covered by their insurance policies.
Your basic insurance policy covers only certain water damage, related to appliances or burst pipes.
Sewer backup (water that backs up into the home from the sewer line) is an optional coverage under most home insurance policies, but an exterior flood – from a storm or overflowing eaves, downspouts or drains – that flows into the house is generally not covered.
Until 2015, coverage for flood did not exist for personal insurance in Canada. Now a few insurance companies have started to offer flood coverage solutions to better protect their customers.
Contact us with any questions or to ensure you have the correct coverage to suit your needs.
