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Group / Association Insurance vs. Individual Insurance
Mortgage Insurance vs. Individual Insurance
Disabilty Insurance

Group / Association Insurance vs. Individual Insurance

Who should have control of your insurance contract, YOU or the insurance company? What are the chances that you will remain employed by one company your entire career? Who decides whether or not a claim should be paid?

With an individual contract YOU have control. Through a group or association, the insurance company has all of the control. With an individual contract YOU determine the coverage, the premium, the duration.


  GROUP / ASSOCIATION INSURANCE INDIVIDUAL INSURANCE
Definition Group or Association Coverage Personal
Ownership & Control Insurance Company Controls the Contract You Own and Control the Contract
Coverage Amount Can Be Adjusted Yearly The Full Amount from the Date of Issue is Covered
Suicide Does not cover Covers after two years
Duration Coverage May be Cancelled at Any Time at the Discretion of the Insurance Company Lifetime if Needed
Portability Restricted by Insurance Company; Limited Conversion Options Fully Convertible; More Liberal Conversion Privileges
Underwriting At Claim Time Underwriting Prior to Issue
Termination 31 Days After Last Day of Employment
31 Days Notice by Insurance Company		 Age 85 or Death
Copy of Contract Not Provided Provided
Conversion Options Very Limited Flexible
Premiums Not Guaranteed; Controlled by Insurance Company Guaranteed (in Contract)


Mortgage Insurance vs. Individual Insurance

Consider these important points before purchasing mortgage insurance.


  MORTGAGE INSURANCE INDIVIDUAL INSURANCE
Definition Group Creditor Personal
Ownership & Control Financial Institution Owns and Controls the Insurance You Own and Control the Contract
Coverage Only the Outstanding Mortgage Balance is Covered Even Though Premiums Remain Level The Full Amount from the Date of Issue is Covered
Duration Typically Age 65 or 70 Lifetime if Needed
Portability You Must Re-apply When Changing Financial Institutions Your Insurance Remains with You Always
Flexibility Financial Institution Receives Proceeds Upon Death Beneficiary Decides What to do with Proceeds
Premiums Premiums are GST Taxable No Additional Taxes Payable
Continuation Ends When Your Mortgage Ends Lasts as Long as You Wish


DISIBILITY INSURANCE

Individual vs Group / Association


  INDIVIDUAL GROUP/ASSOCIATION
Ownership & Control Full / Total None / None
Guaranteed Premium Yes No (Change annualy)
Can be Cancelled No Yes
Portable Yes No
Underwriting At issue At time of claim
Offsets by CPP, etc. No Yes
Return of Premium Option Yes No
Definition of Insurability Fixed in Contract Yes No
Cost of Living Option Yes No
Residual Benefits Yes No
Partial Disability Yes No
Presumptive Disability Yes No
Future Increase Guaranteed Insurability Yes No