Most clients can be considered for at least $150,000 of Critical Illness (CI) insurance to cover the extraordinary expenses associated with a critical illness.

The maximum amount of CI insurance available on any one life is $2.5 million. This includes all personal and business insurance combinations in force, pending and applied for with all companies.

• Personal insurance
• Business insurance

Personal insurance

Income replacement

Maximum amount of personal insurance available based on age and earned income:

Note: Sources of earned income generally will include salary, draw and/or bonus. 

Non-income earning spouse

For amounts in excess of $150,000, we will consider 1/2 of the amount available to the working spouse (as income replacement coverage), plus mortgage balance.  Unless uninsurable, the working spouse should have at least the same amount of coverage in force, if not more.

University or college students and recent graduates

They may apply for $250,000, regardless of their earned income.  Certain professional studies for occupations where the insured person is expected to earn a substantial income (for example a doctor or engineer) can be considered for amounts up to $500,000.

Children

We would generally only consider up to $150,000, regardless of the amount of coverage on their parents. Higher amounts will be considered if both parents have some individual or group Critical Illness, Disability or Long Term Care insurance coverage in force or applied for (unless uninsurable), subject to the following maximums:

Maximum amount of personal insurance coverage available on children:

• 30 days to 5 years: $500,000
• 6 to 10 years: $750,000
• Over age 10:  $1,000,000

Unless uninsurable, siblings should be equally insured, subject to maximums for their ages.

To run an illustration for a face amount over $250,000, please contact the SmartTeam.

Retired applicants

Maximum amount of personal insurance coverage available on a retired proposed insured is the lesser of:

• $250,000, and
• 4 x the combined unearned income of the two spouses

High Net Worth applicants

We will consider the base amount available as income replacement; and any mortgage balance on any real estate property; and 25% of their home’s value to a maximum of $250,000.

Employed applicants whose bankruptcies have not been discharged

They may apply for amounts up to $100,000. Benefits are acceptable. This includes all personal and business insurance combinations in force, pending and applied for with all companies. Once the bankruptcy is discharged, we will consider as per our regular income guidelines.

Temporary residents

Live-in Caregivers who have resided in Canada for at least 3 months will be considered for amounts of up to $100,000 (in-force, pending and applied for with all companies).

Doctors, Professionals, Investors, Entrepreneurs and other self employed persons who have resided in Canada for at least 3 months may apply for amounts up to $500,000 (in-force, pending and applied for with all companies).

Coverage can be considered on spouses and children for up to 50% of the amount on the primary life insured, provided they too have resided in Canada for at least 3 months.

Others with temporary resident status - Critical Illness is not available

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Business Insurance

Key person insurance 

• A proposed insured aged 60 years or less will be considered for an amount equal to 7 x their annual salary and bonus.
• For ages 61 and over, we will use a factor that corresponds with the number of years remaining until the usual retirement age.    

Unless uninsurable all key persons of the business should be insured.  

Business loan insurance

Business loan coverage can be considered for the proposed insured’s share of the loan amount. Unless uninsurable, all owners should be insured for the appropriate share of the loan amount.   
   
Buy-sell insurance

Buy-sell coverage can be considered for an amount equal to the proposed insured’s share of the business value of the company. Unless uninsurable, all owners with more than 10% ownership should be insured for their appropriate share. 

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