Canada’s aging population is going to have a significant impact on our health care needs and costs. According to The Sun Life Canadian Health Index, 90% of Canadians anticipate a financial impact if they were to experience a major or chronic illness. Yet only 58% are financially prepared to cover the cost of a serious illness. Are you prepared?
Once you’ve purchased insurance and the contract is in your hands, do you review it? Completing an insurance audit is a final and crucial step in securing coverage. It ensures you have a thorough understanding of the contract obligations and that they are actually in force.
An audit will:
- Check that any assignment was removed from the policies, if applicable
- Verify that you can use the cash value of your policy to pay for future premiums
- Check if the policy was properly drawn up: i.e. owner, beneficiary and premium payor. A taxable situation could be waiting around the corner.
- Disability contracts are tricky to evaluate; pay extra attention to the “definitions” under contractual obligations:
- Own/Regular/Any Occupation
- Residual/Partial coverage
- Waiting Period
- Accumulated days to satisfy waiting period, etc.