When purchasing insurance, your advisor can help you decide how much insurance you need. To do this, they perform a financial needs analysis that examines your current financial and personal situation, as well as your goals (e.g. caring for your dependents and repaying loans).
Participating insurance A type of insurance that pays the policyholder a portion
Assurance collective Type of insurance providing cover to a group of people (e.g. a group of employees or members of an association) under a single contract called a “master contract”, “collective plan” or ” collective police”.
Insurance against accidents and illness A type of insurance that provides benefits if you are sick or injured, or die in an accident. This type of product includes disability insurance and accidental death or dismemberment insurance.
Group credit insurance A type of insurance that allows you to partially or fully repay a loan or your credit card balance, or to honor your payments in certain situations (for example, if you become disabled or die). It may be provided by financial institutions, car dealerships, mortgage brokers, retailers or credit card companies when you incur debt.
Accidental death or dismemberment insurance Type of insurance providing payment if you die in an accident or lose partial or total use of a limb, hearing or sight. You can purchase this insurance alone, or in conjunction with life insurance.
Key person insurance Insurance on the life of a key employee of a company. In the event of the death of this person, the sums paid can be used to recruit and train their successor as well as to compensate for a loss of income and profits.
Dental insurance Type of insurance covering dental costs. This insurance is usually part of a group plan, but it can also be taken out individually.
Accidental death insurance Type of insurance providing for the payment of capital if you die in an accident. You can take out this insurance alone, or jointly with life insurance.
If you add it to a life insurance policy and you die following an accident, your insurer will pay the sum insured for the life insurance and that for the accidental death insurance.
If the capital provided under the accidental death insurance is equal to that provided by the life insurance, the sum paid is double the initial insured capital; we then speak of “doubling of capital”.
Hospital insurance Guarantee, attached to complementary health insurance, reimbursing hospital stay costs not covered by your provincial health insurance plan. It may reimburse, for example, the cost of a single or double room and other prescribed hospital services.
Individual insurance Insurance that you take out personally with an advisor or insurer. It is different from group insurance which may be provided to you by your employer.
Disability Insurance A type of insurance that pays benefits at regular intervals (usually monthly) to replace your income if you are unable to work due to disability. This insurance is usually part of a group plan but it can also be taken out individually.
For more information on the subject, consult the Guide to Disability Insurance .
Short-term disability insurance A type of insurance that provides income replacement for a short period of time when a person becomes disabled and is unable to work. If the disability is prolonged, the person may be eligible for long-term disability insurance, provided they have this coverage.
Long-term disability insurance A type of group insurance that replaces part of your income if you are unable to work due to disability. Long-term disability insurance often takes over from short-term disability insurance and usually pays benefits for two years or more.
Health Insurance A type of insurance that covers paramedical and medical expenses (such as medications, dental care, vision care) or loss of income if you are sick or injured.
Supplementary health insurance A type of insurance that covers hospital and medical expenses that are not covered by your provincial health insurance plan. Insurance can be part of a group plan or taken out individually.
For further details on the subject, consult the Guide to supplementary health insurance .
Critical illness insurance A type of insurance that provides a lump sum payment if you suffer from a life-altering illness such as cancer, multiple sclerosis and Parkinson’s disease, or if you have a heart attack or stroke . Your policy contains a precise list of covered illnesses. You can purchase this insurance alone or, in some cases, in conjunction with life insurance or as part of a group plan.
For more information on the subject, consult the Guide to long-term care insurance .
Renewable term insurance A type of term life insurance that can be renewed without proof of insurability when coverage ends, either automatically or at the policyholder’s discretion. The price of insurance (the premium ) is usually fixed and guaranteed for the duration of the insurance. The amount of the premium increases upon renewal and depends on your age.
For more information on the subject, consult the Guide to life insurance .
Level premium life insurance Type of life insurance whose premium remains the same throughout the duration of the contract.
Whole life insurance A type of permanent insurance that covers you for your life. It provides a fixed premium, the accumulation of a cash value and mechanisms that help you keep your coverage in force if you cannot pay the premiums.