Frequently asked questions

There are two main types. Term life insurance covers you for a set period, such as 10, 20 or 30 years. Permanent life insurance covers you for life, and comes in three main kinds: participating whole life and universal life, which build cash value, and term to 100, which doesn’t.

Add up what your family would need if you died: your debts, including the mortgage, the support they’d need until your children are independent, future costs such as education, and final expenses. Then subtract what you already have, such as savings and workplace life insurance, and any income your family would still receive. The difference is the coverage to aim for. The term life insurance page works through an example.

Not for a policy you own personally: the premiums are a personal expense. A business can deduct premiums only in limited cases, for example when a policy is assigned as collateral for a business loan from a bank or other qualifying lender, and even then usually only part of the premium. Speak with us or your accountant about your situation. See also What are the tax implications of business-owned life insurance?

Often, yes. The insurer looks at the condition, how well it’s managed and how recently you’ve been treated, then offers coverage at standard rates, offers it at a higher premium, postpones a decision or declines. If you can’t get coverage that way, guaranteed issue life insurance asks no health questions, but it offers smaller amounts at a higher cost, and usually pays the full benefit for a death from illness only after a waiting period.

Your premium is based on your age when the policy starts: the older you are, the higher it is, because the chance of dying during the coverage rises with age. On term insurance, the premium then stays the same for the term and goes up if you renew. On most permanent insurance, it stays the same for as long as you pay.

Yes. A secondary, or contingent, beneficiary receives the death benefit if your primary beneficiary dies before you or can’t receive it. You can name more than one beneficiary at each level and set each person’s share. To add one, you send the insurer a signed beneficiary change, unless your current beneficiary is irrevocable, in which case you’ll need their consent too.

If you are an owner of an individual Manulife life insurance policy, please follow these steps to register and access your policy online. This guide will help you set up your Manulife ID, register your policy details, and navigate the secure site to view and manage your insurance information.

1. Accessing the secure site

• Visit the site:
  Please navigate to the Manulife Customer Secure Site using one of these URLs:
  • https://www.manulife.ca/personal.html (opens in a new tab)
  • https://portal.insurance.manulife.ca/ (opens in a new tab)
• Initial choice:
  • If you do not have a Manulife ID, click on “Set up a Manulife ID” to begin the registration process.
  • If you already have a Manulife ID, click on “Sign In”.

2. Creating or using your Manulife ID

• One ID for all products:
  Remember, you only need one Manulife ID to access all your Manulife products or accounts.
• Set-up details:
  • During registration, you will choose a unique username and password that is personal to you.
  • Keep your credentials secure.

3. Registering your insurance policy

• Entering required information:
  Once logged in (or immediately after creating your Manulife ID), please enter the following details exactly as they appear on your policy documents:
  • Personal insurance policy number:
    Enter your policy number as shown on your contract, statement, or billing notice.
  • Policy owner name(s):
    • If the policy owner’s names appear on separate lines, enter each name (for example, “JOHN DOE”).
    • If the names appear on one line (for example, “JOHN DOE & JANE DOE”), enter them exactly as shown.
  • Postal or ZIP code:
    Use the postal code exactly as it appears on your policy documents.
  • Date of birth:
    • If you are both the policy owner and the insured, enter your date of birth.
    • If you are not the insured, enter the date of birth of the person insured under the policy.
• Connect products:
  After filling in these fields, click the “Connect my products” button at the bottom of the registration screen.

4. Post-registration steps and viewing your policy details

• Terms and conditions:
  After connecting your products, you will be presented with the terms and conditions. Please review and agree to these terms (by checking the appropriate box) to continue.
• Accessing your policy information:
  Once you agree, you will see a summary of your insurance details, including:
  • Coverage: Your coverage types and amounts.
  • Beneficiary information: Details of your designated beneficiaries.
  • Policy values: Current policy values and cash surrender values.
  • Billing details: Payment amounts, frequency, and bank information (if applicable).
  • Policy owner information: Your names and mailing addresses on file.
  • eDocuments: Digital copies of your statements, notices, and other policy documents (kept online for three years).
• Updating your personal details:
  You can update your mailing address (each owner must update their own address) and bank details (if you pay by pre-authorized debit and you are the bank account owner) directly on the site.

5. Support and additional resources

• Additional guidance:
  Manulife’s help pages explain how to change your address, bank details and document preferences.
• More information:
  You can also visit the dedicated support page on Manulife.ca (opens in a new tab) or the advisor portal for additional tools and resources.

6. Important notices

• Policy availability:
  Please note that corporately owned policies are not available on the secure site at this time.
• Digital communications:
  Once you select paperless delivery by agreeing to the terms and conditions, all future statements, notices, and documents will be delivered digitally to the email address associated with your Manulife ID. It is your responsibility to keep your email address up to date.

Term life insurance covers you for a set period, such as 10, 20 or 30 years. If you die during that time, it pays a tax-free lump sum to the people you name. It costs less than permanent coverage, and the premium usually stays the same for the whole term.

Choose a term that lasts as long as your biggest obligations, such as the mortgage and the years until your children are independent. Common terms are 10, 20 or 30 years, or to age 65 or 85. We can help you match the term to your situation.

Yes. Most term policies renew automatically at the end of the term, without health questions, up to a maximum age set in the policy. The premium goes up at each renewal, based on your age at the time. If you’re still healthy, a new policy usually costs less than renewing, though you’ll answer health questions again.

When your term ends, you have four choices. You can apply for a new policy, which usually costs less than renewing if you’re still healthy. You can renew, without health questions but at a higher premium. You can convert to permanent coverage without health questions, before the deadline in your policy. Or you can let it end: coverage stops, and there’s no payout and no cash value.

Yes, to start with. For the same coverage, term costs much less than permanent, because it covers a set period and builds no cash value. If you need coverage for life, though, renewing term into your later years gets expensive, because each renewal is priced at your age then. Many people combine the two: permanent coverage for needs that last, and term for the years when the need is highest.

Permanent life insurance covers you for your whole life, as long as premiums are paid, and pays a tax-free lump sum to the people you name whenever you die. On most plans, part of each premium pays for the coverage and the rest builds cash value you can borrow against or withdraw. You choose whether to pay for a set number of years or for life.

A child can be insured from shortly after birth, with an adult, such as a parent or grandparent, owning the policy. In most provinces, a young person can own a policy on their own life from age 16.

Permanent life insurance lasts your whole life, while term insurance lasts a set period, such as 10, 20 or 30 years, or to age 65 or 85. Both pay a death benefit, but term insurance pays only if you die during the term.

On participating whole life, cash value grows through guaranteed values plus any dividends. On universal life, it grows with the investments you choose. Term to 100 builds none. You can borrow against the cash value or withdraw from it, though either can reduce the death benefit. You can also cancel the policy and take its cash surrender value, but your coverage ends. Using your cash value may be taxable, so speak with us before you decide.

No. Permanent life insurance covers you for your whole life, as long as premiums are paid. With universal life, coverage lasts as long as the account inside the policy can cover the monthly cost of insurance and fees.

It depends on the plan. You can pay for life, or for a set period, such as 10, 15 or 20 years or to age 65, after which the policy is paid up and your coverage continues for life. With universal life, you can adjust what you pay, within limits, as long as the account covers the monthly cost. On participating plans, dividends may eventually cover the premiums, but that isn’t guaranteed.

Usually not. On most permanent life insurance, the premium is set when you buy the policy and stays the same for as long as you pay it. The exception is universal life with a yearly increasing cost of insurance: the monthly cost rises as you age, so your account, or what you pay in, has to keep up.

Yes, for most plans. You answer questions about your health and lifestyle, and for larger amounts the insurer may also ask for a medical exam, blood tests or a report from your doctor. This is called underwriting, and it decides whether you’re offered coverage and at what premium. Guaranteed issue plans ask no health questions, but they offer smaller amounts at a higher cost.

It’s whole life insurance that shares in the results of the insurer’s participating fund. You get lifetime coverage with guaranteed values set in your contract, and you may also receive dividends when the fund’s results are better than expected. Dividends aren’t guaranteed, and how they’re calculated and paid varies by insurer and policy.

Dividends reflect how the insurer’s participating fund performs compared with what it assumed when it priced the policies. The biggest factor is investment returns, but claims, lapses, expenses and taxes also play a part. The insurer smooths results over many years, so dividends tend to change gradually. They aren’t guaranteed, and the details vary by insurer and policy.

Yes. As cash value builds, there are three ways to use it without giving up your coverage: a policy loan from the insurer, a loan from a bank or other lender with your policy as collateral, or a withdrawal, usually by cashing in paid-up additions or dividends left on deposit. Any loan still owing when you die is paid from the death benefit, and a withdrawal lowers your cash value and death benefit. Using your cash value may be taxable, so we’ll walk you through it before you decide.

If dividends are paid, you usually choose how they’re used: buying paid-up additions, leaving them on deposit to earn interest, reducing your premium, or taking them in cash. The options available depend on the insurer and the policy. Once a dividend is credited to your policy, it’s yours, even if the dividend scale goes down later.

Participating life insurance is life insurance first. Some people use it as part of a long-term financial plan, because it builds cash value and may earn dividends. Whether it fits depends on your goals, your time horizon and the policy, and it’s best weighed against other options with advice.

Both cover you for life and build cash value. With universal life, you choose how your account is invested and can adjust what you pay, but you carry the investment risk, and the account has to keep up with the monthly cost of insurance. With participating life, your premiums and guaranteed values are set in your contract, the insurer manages the investments, and you may also earn dividends, which aren’t guaranteed.

Lifelong coverage with guaranteed values, cash value that grows tax-deferred within limits, and the chance of dividends, which you can use to buy more coverage, lower your premium, leave on deposit or take as cash. People often use it to cover taxes on their estate, leave a legacy, or add to long-term savings once their RRSP and TFSA are full. The trade-offs: premiums are much higher than term insurance, cash value grows slowly in the early years, and dividends aren’t guaranteed.

Participating policies can earn dividends from the insurer’s participating fund. Dividends aren’t guaranteed, but once one is credited to your policy, it’s yours. Non-participating policies don’t pay dividends: the premiums and benefits are set in the contract. Term life, term to 100 and universal life insurance are non-participating.

It’s permanent life insurance with an account inside the policy. Your premiums go into the account, the cost of insurance and fees come out each month, and the rest is invested in options you choose. You can adjust what you pay, within limits, and your coverage lasts as long as the account can cover the monthly cost.

You choose how the money in your account is invested, and you can change the mix over time. Most plans offer three kinds of options: guaranteed interest, which earns a set rate for a set term; index-linked options, which follow a fund or market index and can rise or fall; and ready-made portfolios of index-linked options. Only guaranteed interest options have guaranteed returns. Management fees apply, and the options vary by insurer and policy.

Yes. You can take money out of your account, borrow from the insurer with a policy loan, or use the policy as collateral for a loan from a bank or other lender. A withdrawal lowers your account value, may lower your death benefit, and leaves less to cover the monthly cost. Any loan still owing when you die is paid from the death benefit. Using your cash value may be taxable, so we’ll walk you through it before you decide.

Usually not. Most universal life policies have no option to convert to whole life. To switch, you’d apply for a new policy and answer health questions again, and cancelling your universal life policy may be taxable if its cash value is more than what you’ve paid in. Keep your current policy until the new one is in place.

Most universal life policies don’t mature: they cover you for life. Paying at least the minimum premium your policy sets keeps your coverage in force. If you pay less, the account inside the policy has to cover the monthly cost of insurance and fees, and if it runs short, you’ll need to pay more to keep your coverage.

Not under those names. Indexed universal life (IUL) and variable universal life (VUL) are US products. In Canada, universal life insurance offers similar choices: index-linked options that follow a fund or market index and can rise or fall, alongside guaranteed interest options. See How does the investment component of universal life insurance work?

If your account can’t cover the monthly cost of insurance and fees, you’ll need to pay more into the policy, or it can lapse. There’s usually a grace period, and the insurer will let you know before that happens. Regular reviews, especially with a yearly increasing cost, help you spot a shortfall early.

You’re accepted with no health questions, at any time, and conditions you already have are covered. The trade-off is less coverage for each dollar: lower limits, less drug coverage, and waiting periods before some benefits start. It suits people who can’t qualify for a medically underwritten plan and have missed the guaranteed issue window.

It usually gives you the most coverage for your money, and you can apply at any time. The trade-off is that you answer health questions, and the insurer can decline you or exclude a condition you already have. It suits people who are generally healthy, or comfortable with an existing condition being excluded.

If your group plan through work is ending, apply before it ends or within 60 days after. Most insurers offer a guaranteed issue plan, with no health questions, within 60 days of group coverage ending, and some allow up to 90, so applying within 60 days keeps the most options open. If you have no group plan to leave, you can apply at any time, and a medically underwritten plan is easier to qualify for while you’re healthy.

You need to live in Canada and be covered by your provincial or territorial health plan, and plans set age limits. Beyond that, each type has its own rule:

• a medically underwritten plan asks health questions;
• a guaranteed issue plan needs you to apply within the window after your group coverage ends;
• a guaranteed acceptance plan only needs you to meet the basic rules.

If you apply within the window after your group coverage through work ends, usually 60 days and sometimes up to 90, you’re accepted with no health questions, and conditions you already have are covered. It costs more than a medically underwritten plan for the same coverage, so if you’re healthy, it’s worth checking both before your window closes.

There are three. A medically underwritten plan asks health questions: it usually gives you the most coverage for your money, but the insurer can decline you or exclude a condition you already have. A guaranteed issue plan asks no health questions if you apply within the window after your group coverage through work ends, usually 60 days and sometimes up to 90. A guaranteed acceptance plan asks no health questions and you can apply at any time, but it gives you the least coverage for each dollar. See how the three plans differ.

It depends on the type of plan. A medically underwritten plan usually takes about three weeks, mostly waiting for records from your doctors. Guaranteed issue and guaranteed acceptance plans ask no health questions, so they usually start on the first of the month after your application is approved.

Usually not. Most individual health and dental plans don’t need a medical exam. A medically underwritten plan asks health questions, and the insurer may also ask your doctor for your records. Guaranteed issue and guaranteed acceptance plans ask no health questions at all.

Some, but it’s limited, and it isn’t built to replace your income:

• EI sickness benefits pay just over half your earnings, up to a weekly maximum, for up to 26 weeks, if you’ve worked enough insured hours. Self-employed people are covered only if they registered for EI special benefits at least 12 months before claiming.
• The CPP disability benefit is only for a long-term condition that stops you working at any job on a regular basis, and only if you contributed in enough recent years.
• The Canada Disability Benefit and provincial disability programs are for people with low incomes.

Most workplace disability plans also subtract CPP disability from what they pay.

Any illness or injury that stops you working, including a mental health condition. Whether a claim is paid depends on two things in your policy:

• its definition of disability, such as own occupation or any occupation;
• its exclusions: the insurer may exclude a condition you already had when you applied.

Your income sets how much you can get. Insurers cover a share of it, roughly two-thirds at moderate incomes, falling to about half at higher incomes, up to a monthly maximum, and any workplace coverage counts toward that limit. Without earned income, there’s nothing to insure. Your age mainly affects the price, which is higher the older you are when you buy.

Not always. You answer health questions, and for larger amounts or at older ages the insurer may also ask for a medical exam, blood tests or a report from your doctor. If you can’t qualify for a fully underwritten policy, simplified issue and accident-only plans ask fewer or no health questions, with lower limits or narrower coverage.

A workplace plan usually pays a set share of your salary, up to a monthly cap. Its benefit is taxable if your employer pays any of the premium, and it usually ends when you leave the job. An individual policy is chosen to fit your income, within the insurer’s limits. It stays with you if you change jobs, and its benefit is generally tax-free when you pay the premiums personally. If your workplace plan leaves a gap between what it pays and what you earn, an individual policy can top it up.

With group insurance, coverage typically ends when you leave your employer, unless your plan lets you convert to individual coverage. If it does, you usually have to apply within a short window after you leave, so check the deadline in your plan. Individual disability insurance is not tied to your job, so it continues regardless of your employment status.

They’re two ways a policy can define being disabled. Own occupation pays if you can’t do the main duties of your own job, even if you could work in another one. Any occupation pays only if you can’t do any job you’re reasonably suited to by education, training or experience, which is harder to qualify for.

Some policies use own occupation for the first two years of a claim, then switch to any occupation. Own occupation coverage usually costs more, and it isn’t available for every job. We’ll explain which definition a policy uses and what it would mean for your work.

Yes. Insurers usually look at your earned income over your recent years, often as an average, using your tax returns or financial statements, so a strong year and a slow one can balance out.

If you’re incorporated, they look at the salary and dividends you take, and some also consider earnings you leave in the business. If you’ve only recently started, or your income has dropped, the amount you qualify for may be lower. Some plans ask fewer questions about income, in exchange for lower limits.

We’ll go through your income history with you before you apply, so you know what to expect.

Critical illness insurance pays you one lump sum when you’re diagnosed with a covered condition, whether or not you keep working. Disability insurance pays a monthly income, after a waiting period, while illness or injury stops you working. They pay for different things, so many people have both.

Yes, if you add a return of premium option, which adds to the cost. Depending on the option, you get some or all of your premiums back if you don’t make a full claim: on death, if you cancel after a set number of years, or when the policy ends.

Generally, no. When you own the policy personally, the lump sum is generally received tax-free. It can be different when a business owns the policy or pays the premiums, so get tax advice for those arrangements.

Usually, yes. You answer health questions, and for larger amounts or at older ages the insurer may also ask for a medical exam, blood tests or a report from your doctor. Your family history can also affect the price and what’s covered. If you can’t qualify, simplified issue plans ask fewer health questions, but usually cover fewer conditions or pay a lower maximum.

Life insurance pays the people you name when you die. Critical illness insurance pays you, while you’re alive: a lump sum once you’re diagnosed with a covered condition and the survival period, usually 30 days, has passed. You can buy critical illness insurance on its own, or add it to a life insurance policy as a rider.

Only partly. Provinces and territories fund the health care in publicly funded long-term care homes, but residents pay a monthly accommodation charge for their room and meals. How much help at home is publicly funded varies by province, and care in a private retirement residence is usually yours to pay.

Yes, though it’s generally no longer sold on its own. It’s mainly available as an option you add to a critical illness policy, and some critical illness policies let you convert your coverage to long-term care insurance later in life.

Because care can last for years, and public programs don’t pay all of it. If you can’t manage two or more activities of daily living, such as bathing or dressing, or you develop a cognitive impairment such as dementia, you may need help at home or in a care home. Planning ahead, with savings, insurance or both, keeps that cost from falling on your retirement savings or your family.

It’s generally a medical condition you had before your coverage started. Each policy defines it in its own words, often by whether you had symptoms, treatment or medication for it, and the definition decides which conditions the stability period applies to. Check the wording, or ask us.

It’s strongly recommended. Your provincial plan pays little or nothing toward care outside Canada, and nothing to bring you home. A student plan covers medical emergencies for your whole study period. Keep your provincial plan while you’re away: student plans pay after it, and many pay much less if you’re not covered by it when you claim. Check with your province before you go, since each sets its own rules for students who are away.

The most common exclusions on emergency medical coverage are:

• pre-existing conditions that weren’t stable before you left;
• routine or elective care, such as checkups, planned treatment or care you travelled to get;
• travel to a region under an ‘Avoid non-essential travel’ or ‘Avoid all travel’ advisory, if you left after it was issued;
• some sports and activities, unless you add coverage.

Trip cancellation coverage doesn’t pay for a reason you knew about when you bought it, or for changing your mind. Most medical plans also pay less if you don’t call the assistance line before treatment, or as soon as you can. Each policy lists its own exclusions and limits.

Visitors aren’t covered by any provincial health plan, so without insurance they pay the full bill. With visitors to Canada insurance, your visitor calls the assistance line on the policy before getting treatment, or as soon as they can. The assistance team directs them to a suitable facility and often pays the hospital directly. If they don’t call, many plans pay less.

It’s a reason your policy lists, and it has to be sudden and unexpected, and come up after you buy coverage. Typical covered reasons include illness, injury or death of you, a travel companion or family; a government travel advisory issued after you book; a travel visa that isn’t issued; and job loss. Not covered: anything you knew about or could have expected when you bought coverage, pre-existing conditions that weren’t stable, changing your mind (unless you added cancel for any reason), and, usually, a travel company going out of business. Each policy lists its own covered reasons.

Often, if the condition was stable before you left. Most plans cover a pre-existing condition only if it didn’t change during the stability period, which is often 90 or 180 days. If it changed, a claim related to it may be refused. Some plans offer an optional rider, at extra cost, with a shorter stability period, needed only if your health changed during the standard period.

Not for a regular visit, but it’s strongly recommended, because visitors aren’t covered by any provincial health plan. It is required for a Super Visa. Buy it before your visitor leaves home: if they buy after arriving, a waiting period usually applies.

Trip cancellation pays back your prepaid, non-refundable costs if a covered reason stops you going before you leave. Trip interruption applies after you leave: if a covered reason cuts your trip short or brings you home late, it pays your unused prepaid costs, plus extra costs such as a flight home or extra nights away. Many plans include both. Either way, tell your travel suppliers and the insurer right away.

Most plans cover you worldwide, but Government of Canada travel advisories can limit that. If the advisory for your destination is ‘Avoid non-essential travel’ or ‘Avoid all travel’ when you leave, you generally won’t be covered there, even for an emergency unrelated to the reason for the advisory. If an advisory is issued while you’re away, some plans keep covering you for a limited time so you can leave. If it’s issued after you book, trip cancellation insurance may refund your non-refundable costs if you decide not to go.

It’s visitors to Canada insurance that meets the Super Visa rules. The policy must:

• come from a Canadian insurance company, or a foreign insurer authorized to do insurance business in Canada;
• provide at least $100,000 of emergency coverage;
• cover health care, hospitalization and repatriation;
• be valid for at least a year from the date of entry, and for each entry;
• be paid in full, or in instalments with a deposit (a quote isn’t accepted).

Immigration, Refugees and Citizenship Canada sets these rules and can change them, so check the current requirements before applying.

Usually, if you ask before your coverage ends. On a single-trip plan, you can often extend for more days. On an annual plan, you add top-up days for a trip that runs longer than your plan’s trip length. The insurer may ask about your health first, so contact us as soon as you know you’ll be away longer.

Yes, for a covered reason. If you cancel before you leave, it pays back prepaid hotel costs you can’t recover. If your trip is interrupted, it can pay for the unused prepaid nights, and for extra nights away if you’re delayed coming home. Keep your receipts, and tell the hotel and the insurer right away.

Often, yes. Depending on the province, international students may not be covered by a provincial plan, or only after a waiting period, and many schools ask for proof of coverage that meets their criteria. A student plan can cover your full study period and meet your school’s requirements. It’s best to have it in place before you arrive, though there may be options after you arrive.

Often, yes. Provincial coverage for new residents, and for Canadians moving back, may not start right away, and waits vary: in British Columbia, for example, coverage starts after the rest of the month you arrive plus two months, while in Alberta it can start the day you become a resident, if you apply within three months. The same plans that cover visitors can cover your emergency medical costs while you wait for it to start. When it starts depends on your province or territory, so check with yours.

If you have a medical condition, a stability period is the time before you leave during which that condition must not have changed. Each policy defines this, but it usually means no new treatment or medication, no change in dose, no new or worse symptoms, no hospital stay or referral to a specialist, and no tests or results still pending. Some routine changes, such as switching to a generic version of the same drug, usually don’t count. On an annual plan, the stability period counts back from each departure, not from the day you bought the plan.

The period depends on your age, the length of your trip and your answers to the health questions. It’s often 90 or 180 days. If the condition changes inside that period, it may not be covered on your trip, even if the change seemed minor. Some plans offer an optional rider, at extra cost, with a shorter stability period. It’s only needed if your health changed during the standard period. If your health changes after you buy, tell us before you leave, so we can check your options.

Start with what your school requires: many schools ask for proof of coverage that meets their criteria. Then choose a plan for your full study period. Trips home at breaks are usually allowed, but care while you’re home isn’t covered. Check what the plan covers for things you may need, such as mental health care, which usually has limits. If you’re a Canadian student, keep your provincial plan. We can check a plan against your school’s requirements for you.

Often, yes. Your provincial plan covers most hospital and doctor care in other provinces and territories, but usually not ambulance, ground or air, or getting you home, and a doctor may ask you to pay up front, especially in Quebec. Travel medical insurance covers those gaps, and an annual plan covers trips within Canada too.

It covers emergency medical costs for people visiting Canada, such as family or friends from abroad, who aren’t covered by any provincial health plan. It can cover the whole stay, from a few days to a year, and can meet the Super Visa insurance requirements. Some plans cover stable pre-existing conditions, but if a condition changes during the stability period before the trip, it may not be covered.

Call the assistance number on your policy before you get treatment. The assistance team confirms your coverage, directs you to an appropriate clinic or hospital, and can often arrange for the insurer to pay the facility directly. In a serious emergency, go to the nearest hospital and have someone call for you as soon as possible. Many plans pay less if no one calls. Keep all original receipts and medical records for your claim.

Yes. Group benefits, credit cards and annual plans often cover only the first part of a trip, such as the first few weeks. A single trip plan can cover the rest, starting the day your other coverage ends. Check how many days your current coverage includes before you book, and buy the top-up before you leave, since a waiting period may apply if you buy it after.

Yes. The clock starts when you leave your home province, so a trip to another province counts the same way as a trip abroad. Your provincial plan covers most hospital and doctor care elsewhere in Canada, but usually not ambulance or transport home, which an annual plan can cover.

If you take one or two trips a year, a single trip plan usually costs less. If you travel more often, an annual plan can cost less overall, as long as each trip fits within its maximum trip length. For a trip longer than that, a single trip plan is usually the better fit. We can look at your travel for the year and suggest which makes sense.

Student plans are based on being enrolled. If you leave your program or stop attending, coverage usually ends after a set period, so let us know as soon as your plans change. You may need a different plan for the rest of your stay.

Buy top-up days for that trip before your trip length runs out, and the rest of the trip is covered. If you wait until after it runs out, a top-up may not be available, or a waiting period may apply. Your other trips that year aren’t affected.

It’s a yearly, in-depth look at your health, at an approved private clinic: a day with a physician and other health professionals, then a detailed report and a plan to act on. It can help find health concerns earlier. It’s an optional add-on on some plans, for an extra cost.

You generally need to live in Canada and stay covered by your provincial health plan. You apply before age 70 to 75, depending on the plan, and answer health questions. The insurer reviews each application, and conditions you already have may be excluded.

The deductible is the amount of covered costs you pay before the plan starts to pay. Plans offer a wide range of deductibles. A higher deductible lowers the premium, and a lower one raises it.

Yes. Each plan has a maximum it will pay, and some let you choose how much coverage you want. Some benefits, such as prescription drugs, have their own limits. The maximum is usually lower for people over 70.

Yes, most plans let you cover a spouse and children as well as yourself. Each person may need to answer health questions, and the premium depends on who’s covered. We’ll explain how family coverage works on the plans you’re considering.

No. You need to stay covered by your provincial plan, and any group benefits stay in place too. Your provincial plan pays first, and global medical care pays for what it doesn’t. It gives you another option when you need specialist care.

You send your medical records from home, and specialists review your diagnosis and treatment plan. It usually takes a few weeks, and you get a written report you can share with your own doctor. It’s for decisions that can wait, not emergencies.

Travel and accommodation are usually your cost, though some plans include a travel allowance. We’ll show you what each plan includes before you apply.

Contact your plan before any planned care, usually at least a few days ahead, and as soon as you can after an emergency. The plan confirms what’s covered and helps arrange treatment. If you don’t notify the plan, many plans pay less of your covered costs.

No. Canadian employers don’t have to offer group benefits. Many choose to, because a plan gives their team health, dental, income and life coverage, and premiums are generally a business expense.

It depends on how your plan defines an eligible employee. Most plans set a minimum number of hours worked each week, and part-time employees who meet it can join. Some plans also add a waiting period for new employees before coverage starts.

A group plan can start with as few as two people covered, though many insurers are reluctant to quote groups that small, and larger groups usually cost less per person. If it’s just you, in your own corporation, a health spending account is often a better fit.

The same expenses that qualify for the medical expense tax credit, as set by the Canada Revenue Agency, such as prescriptions, dental and vision care, and treatment from licensed practitioners. Your plan’s own rules also apply.

You set an annual amount for each person, which should be reasonable for their role. When you or an employee has an eligible expense, the claim goes to the plan administrator with the receipt. Once it’s approved, the person is reimbursed tax-free, and your business is billed the claim plus an administration fee and any applicable provincial taxes, as a deductible business expense. An HSA works through an incorporated business: sole proprietors fall under different tax rules, with conditions, so speak with your accountant.

It depends on the carry-forward option you choose when the plan is set up: no carry forward, where unused credits are forfeited; a credit carry forward, where unused credits move to the next year; or an expense carry forward, where this year’s expenses can be claimed next year. Either kind of carry forward is limited to one year.

Owners, employees and their eligible dependants, in an incorporated business. Each person’s amount should be reasonable for their role, and amounts can differ by employee class, such as management and staff. Sole proprietors fall under different tax rules, with conditions, so speak with your accountant; we set up HSAs for incorporated businesses.

A traditional group plan is insurance: you pay premiums for set coverage, whether or not it’s used. An HSA reimburses eligible health and dental costs up to the amount you set, and you pay only for the claims that are made. A lifestyle spending account covers lifestyle and wellness costs in the categories you choose, and unlike an HSA, its reimbursements are taxable to the employee. Many employers offer an LSA alongside an HSA or a group plan, rather than on its own.

Providers differ in how they check claims: some spot-check them, some don’t check them, and some review every one. We prefer providers that review every claim against the Canada Revenue Agency’s rules, which helps protect the plan’s tax treatment. We’ll also walk you through each provider’s fees, either a percentage of claims or a flat annual fee.

It’s an employer-funded account that reimburses employees for lifestyle and wellness costs in the categories you choose, such as fitness, family activities or learning. You set the annual amount. LSAs are also called wellness spending accounts or personal spending accounts. Unlike a health spending account, reimbursements are taxable to the employee.

You choose which categories your plan covers. Common ones include fitness and recreation, family leisure, wellness, transportation, and learning and development. What qualifies in each category is set in your plan.

Yes. Reimbursements are a taxable benefit for the employee: each one is added to their income and goes through payroll like regular pay. For you, the employer, the cost is a deductible business expense, and you pay your share of CPP and EI on the reimbursements, as on regular pay.

There’s no typical amount. Every employer is different: you set an amount that fits your budget and goals, and it can differ by employee class, such as management and staff. We can help you decide what makes sense.

A group plan is set up through your employer. Your contributions come off your pay, your employer may add its own, and you choose from the investments the plan offers. A personal plan, such as your own RRSP, is one you open and fund yourself, with whatever investments your provider offers. Contributions to a group RRSP and a personal RRSP share the same RRSP contribution room.

No. Employers don’t have to contribute to a retirement plan anywhere in Canada. Outside Quebec, they don’t have to offer one either. In Quebec, an employer with enough eligible employees must offer a voluntary retirement savings plan (VRSP) or an allowed alternative, such as a group RRSP with payroll deductions, but doesn’t have to contribute to it. Many employers choose to contribute anyway, to attract and keep good people.

Yes, many plans offer a range of investment options and allow employees to choose how their contributions are invested, though the options are typically curated by the plan provider.

It depends on the type of plan:

• a group RRSP is the employee’s own savings, so it can usually move to a personal RRSP or a new employer’s plan, or be withdrawn, which is taxable;
• in a deferred profit sharing plan (DPSP), employer contributions vest within two years of joining. Vested amounts can be transferred or paid out, and amounts that haven’t vested are forfeited;
• in a registered pension plan, the money is locked in. It can stay in the plan or move to a locked-in account, but generally can’t be cashed out.

Your own contributions to a group RRSP or a registered pension plan are deducted from your taxable income, and through payroll the tax saving comes off each pay. Investment growth isn’t taxed until you withdraw it. Employer contributions to a group RRSP are a taxable benefit to you, offset by the RRSP deduction. Employer contributions to a DPSP aren’t taxed until you withdraw them. For the employer, contributions are a deductible business expense.

It depends on the type of plan. A group RRSP is the employee’s own savings, so withdrawals are usually allowed, though the plan may limit them while you work there, and they’re taxable. A deferred profit sharing plan may allow withdrawals of vested amounts while you’re employed, and pays out when you leave or retire. A registered pension plan is locked in until retirement, with limited exceptions such as a small balance or financial hardship.

A key person is someone whose skills, knowledge, reputation or relationships are important to the business’s success. This can include an owner, an executive, a department head, a top salesperson, or anyone whose absence would significantly affect the business’s revenue or operations. Key person insurance generally isn’t for a business where the owner is the only employee.

It helps a business manage the financial disruption if an essential employee or owner dies, falls ill or can’t work. Losing a key person can affect revenue, client relationships, lending arrangements and day-to-day operations. The benefit can support cash flow, keep the business steady through the transition, and help cover the cost of recruiting, training or restructuring while it adjusts.

It depends on the type of policy. Term life insurance covers a set period, which suits a need that will end. Permanent life insurance, such as universal life, can last for the key person’s lifetime, for a longer-term need. Coverage can be set for as long as the business needs it.

While the key person can’t work, the policy pays the business a monthly benefit for a set benefit period. The coverage itself usually ends when the key person stops working full time for the business, for a reason other than disability, or when it reaches the end date set in the policy. The policy sets out each of these terms, and we can explain them before you apply.

The definition is set in the policy, and it can differ from one insurer to another. Generally, the key person is totally disabled if an injury or illness stops them from doing the essential duties of their regular occupation, and they’re under a doctor’s regular care. We’ll explain the definition in your policy before you apply.

It pays the business, not the key person, if someone the business depends on can’t work because of illness or injury. After a waiting period, it pays a monthly benefit for a set period, which the business can use to cover lost revenue or to hire and train a replacement. It suits businesses with more than one employee: if it’s just you, in your own corporation, look at business overhead expense insurance and your own disability coverage instead.

The owners sign a buy-sell agreement that says who buys an owner’s shares, and at what price, if they die or become disabled. Life insurance funds the purchase if an owner dies. Disability buy-out insurance funds it if an owner becomes disabled for the period the agreement sets. Either way, the remaining owners keep the business, and the owner or their family receives fair value in cash. Your lawyer drafts the agreement, and we work with them and your accountant so the coverage matches it.

It’s set in your buy-sell agreement, as a fixed value or a formula, which you agree with your accountant. Review it as the business grows, so the value and the coverage keep pace.

Generally, no, for both life and disability buy-out coverage. The benefits are generally received tax-free. When the policy is owned by and paid to the business, the death benefit, less the policy’s adjusted cost base, is generally credited to its capital dividend account and can be paid to the estate as a tax-free capital dividend. Get tax advice for your situation.

It gives the remaining owners the money to buy an owner’s shares if they die or become disabled, without using savings, loans or the business’s cash. The owner or their family receives fair value in cash, and the shares stay with the owners. It can also reassure employees, lenders and clients that the business will carry on.

Yes. Each owner is insured, and the agreement sets how an owner’s shares are divided among the remaining owners.

No, no law requires it. But if you own a business with others, it’s how the remaining owners can afford to buy out an owner who dies or becomes disabled, and how that owner or their family is paid fair value. Without it, the remaining owners may have to borrow or use the business’s cash, or end up in business with an owner’s estate.

It funds the purchase of an owner’s shares if they become disabled and can’t come back to the business, once they’ve been disabled for the period your agreement sets, often one or two years. Depending on the plan and your agreement, the buy-out is paid as a lump sum, in instalments, or both. The owner gets fair value for their shares, and the remaining owners keep the business.

It’s life insurance that the business owns, pays for and receives the benefit from, on the life of an owner or a key person. Businesses use it to replace a key person, fund a buy-sell agreement, repay a loan or pass on wealth, and a permanent policy can be used as collateral for a loan. It does a different job from life insurance you own personally, which protects your family.

Anyone whose death would significantly affect the business’s finances. This usually includes owners and founders, key executives, and employees whose skills or knowledge the business relies on.

Term covers a set period, so it suits business needs that end, such as a loan or a key person’s working years. Permanent coverage lasts for life and can build cash value. It suits needs that last, such as funding a buy-sell agreement or passing on wealth, and the policy is an asset of the business that can be used as collateral for a loan. Many businesses use both. See also What distinguishes permanent from term life insurance?

It depends on the jobs you want the policy to do, such as replacing a key person, funding a buy-sell agreement, repaying business debts or passing value to your family. The coverage amount is usually the total of those jobs, and we work through them with you.

Premiums generally aren’t tax-deductible, and the death benefit is generally received tax-free. When the corporation owns the policy and is its beneficiary, the benefit, less the policy’s adjusted cost base, is generally credited to its capital dividend account and can be paid to shareholders or the estate as a tax-free capital dividend. If the corporation pays the premiums but a shareholder owns the policy or is its beneficiary, the cost can be taxed as a shareholder benefit. Get tax advice for your situation.

The corporation can generally keep the policy, use it for a different purpose, transfer it, for example to the person it covers, or cancel it. A transfer can have tax consequences for the corporation and the new owner, so get tax advice before making one.

Yes. With permanent coverage, the business can generally use the cash value through a policy loan, a withdrawal or as collateral for a bank loan. Each one affects the death benefit, and a policy loan or withdrawal can be taxable. Growth inside the policy is generally tax-deferred, and in an exempt policy it doesn’t count as the business’s passive income each year.

Regularly, and whenever the business changes: it grows, takes on new debt, adds or loses an owner or key person, or the value of the shares changes. Coverage for a buy-sell agreement in particular needs to keep pace with the value of each owner’s shares.

Business owners, partners and key employees whose absence would significantly affect the business. A disability isn’t always an injury: illnesses, chronic pain and mental health conditions can also keep someone from working. Each insurer sets its own eligibility rules, and we’ll check them with you.

It depends on the type. For overhead expense insurance, premiums are generally tax-deductible and the benefits are taxable to the business. For key person disability and buy-sell disability insurance, premiums generally aren’t tax-deductible, and the benefits are generally received tax-free when the premiums aren’t deducted. Get tax advice for your situation.

The insured person’s age, sex, health history and occupation, the coverage amount, and the waiting and benefit periods you choose. A shorter wait or a longer benefit period costs more.

Yes. You choose the type of coverage, the benefit amount, the waiting period and the benefit period, within what the insurer offers and what the business can show it needs. We help you set them to fit the business.

Tell us as soon as an owner or key person can’t work, and we’ll help you start the claim with the insurer. The insurer asks for proof of the disability, and benefits start once the waiting period is met. Each step is set out in How a claim works.

It’s disability coverage that the business owns and is paid, to protect the business if an owner or key person can’t work because of illness or injury. There are three main types:

• business overhead expense insurance, which pays the business’s fixed monthly costs;
• key person disability insurance, which pays the business while a key person is away;
• buy-sell disability insurance, which funds the purchase of a disabled owner’s shares.

It doesn’t replace an owner’s own income: for that, the owner needs a personal disability policy. Some businesses also add critical illness coverage, which pays a lump sum after a covered serious illness.

Owners whose business has salaried employees and other fixed costs, such as rent and leases, that would keep coming if the owner couldn’t work. It matters most where the business depends on the owner to bring in revenue.

Business overhead expense insurance pays your business’s fixed monthly costs, such as rent, utilities and staff wages, while you can’t work. Personal disability insurance replaces part of your own income. They’re taxed differently too: BOE premiums are generally deductible, and its benefits are taxable business income, usually offset by the expenses they pay, while personal disability benefits are generally tax-free when you pay the premiums yourself. Many owners have both.

When you apply, the monthly limit is set from your business’s regular fixed monthly expenses, less any overhead coverage you already have. If you claim, the plan reimburses the eligible expenses you actually incur each month, up to that limit.

For the benefit period set in the policy, usually up to two years. Because the plan reimburses the expenses you actually incur, up to the monthly limit, some plans carry unused benefit forward, and keep paying after the benefit period ends, while you’re still totally disabled, until the total benefit has been paid.

It reimburses your business’s fixed monthly expenses while you can’t work because of illness or injury, up to the plan’s monthly limit, so the business can keep running until you’re back. Eligible expenses usually include rent, utilities, staff wages and benefits, business insurance premiums, accounting fees, property taxes and leases, and on some plans the payments on equipment loans. It doesn’t pay your own income, or costs such as inventory: for your income, you need personal disability insurance. Other business loans can be covered by separate disability coverage that pays the loan if you’re disabled.

Planning how what you own passes on when you die, and the tax owed along the way. Your lawyer prepares your will and any trusts, and your accountant confirms the tax. We handle the insurance side: coverage to pay the tax at death, named beneficiaries that keep assets out of probate where it fits, and a fair share for each child.

Generally, no: Canada has no inheritance tax. Instead, the person who died is taxed on their final return as if they had sold their capital property, such as investments, a cottage or business shares, at fair market value. Their RRSPs and RRIFs are generally taxable too, unless they pass to a spouse or partner. The estate pays that tax before anything is distributed, so beneficiaries usually receive their inheritance tax-free. Life insurance can pay the tax, so nothing has to be sold.

Probate is the court process that confirms a will and the executor’s authority to settle the estate. Assets that pass through the will can take months to settle, may attract probate fees in some provinces, and become a public record. Life insurance and segregated funds with a named beneficiary pay out directly, outside the will and probate. Probate rules and fees vary by province.

Regularly, and whenever something changes: a marriage or separation, a new child or grandchild, buying or selling a property or business, a move to another province, or a change in your wishes. Check your beneficiary designations at the same time.

It works out what your estate will owe at death, and how that tax will be paid. Some can be deferred, for example by leaving assets to a spouse or partner, and some reduced, for example by giving to charity. Life insurance can pay what’s left, so your family doesn’t have to sell a cottage or a business to cover it. Your accountant estimates the tax, and we handle the insurance side.

Yes. You can generally withdraw at any time at the current market value. Keep in mind that withdrawals reduce your guarantees, and the maturity guarantee only applies if you hold the contract until the maturity date.

Inside a registered plan (an RRSP, RRIF or TFSA), the normal rules for that plan apply. In a non-registered contract, income and capital gains earned by the fund are allocated to you each year and reported on a tax slip, as with a mutual fund.

Unlike mutual funds, segregated funds can also allocate capital losses to you, which may be used to offset gains. If a guarantee tops up your value at maturity or on death, the top-up is generally taxable. We recommend confirming the tax implications with your accountant.

A segregated fund invests much like a mutual fund: your money goes into professionally managed funds of stocks, bonds or both, and its value rises and falls with markets. The difference is the wrapper. A segregated fund is an insurance contract, governed by insurance legislation rather than securities legislation, offered only by life insurance companies and sold only by licensed life insurance advisors.

That contract adds a maturity guarantee and a death benefit guarantee, and lets you name beneficiaries who are paid directly, outside your estate. The protection costs more: fees are usually higher than for a comparable mutual fund. Segregated funds can also allocate capital losses to you, which mutual funds can’t.

Yes. You can typically name several primary beneficiaries with set percentages, as well as contingent beneficiaries who would receive the benefit if a primary beneficiary has died.

You receive the greater of the market value or the guaranteed amount. Depending on the contract, you can then withdraw the money, renew into a new guarantee period, or move it elsewhere.

Life insurance and living benefits:

• for individuals and families: life, disability, critical illness, health and dental, travel, global medical care and long-term care insurance;
• for businesses: group benefits, health and lifestyle spending accounts, and insurance for owners and key people;
• tax and estate planning and segregated funds, which we provide ourselves, working with your accountant and lawyer as needed.

Yes. As an independent brokerage, we work with more than 30 insurers and can place business with any insurance company in Canada, so if a product is the right solution for you, we can get it for you. Most of our business goes to a select group of strategic carriers, chosen for the products, service and value they offer our clients.

Yes. We work with individuals and families, and with incorporated businesses, registered charities and non-profits, on group benefits, spending accounts and coverage for owners and key people. If you’re self-employed and not incorporated, we work with you as an individual client. Members of the professional associations we serve, such as engineering, geoscience and technology associations in Alberta, the Northwest Territories, Manitoba and New Brunswick, can also get their association’s insurance plans through us.

We’ve been doing this since 1966. Richard Garrett founded Garrett Agencies in Calgary on December 22, 1966, and the firm has stayed independent, and in the family, for three generations. Jack Garrett is President and Principal Advisor, and we serve more than 15,000 clients and businesses.

We start by understanding your circumstances: your family or business, your finances, and what you need the coverage to do. Then we match you to the most appropriate solution, from whichever insurer that is. As licensed advisors, we’re required to act in your best interests, and as an independent brokerage, we aren’t tied to any one insurer.