Understanding insurance coverage
What is insurance and how does it work?
From day to day and year to year, life brings opportunity and uncertainty. Whether you’re starting a family, buying a house, planning for retirement or securing your legacy, insurance is there to help you feel prepared for whatever comes next.
Insurance companies like Securian Canada design protection solutions to be fair and affordable. They balance factors like age, health and lifestyle against plan options, to estimate the likelihood of claims and set premiums. Buying a plan means that when you’re faced with a covered event, you’ll have the support and financial protection you need, right when it matters most.
What types of insurance coverage are available?
Life insurance: protection that outlives you
When you pass away, your family not only loses you, but also the security your income provides. Life insurance provides money your loved ones can use to manage daily expenses, resolve debts, pay for education and stay on top of other expenses that may come their way.
Critical illness insurance: keep your focus on recovery
Critical illnesses such as cancer, stroke or heart attack can affect a lot more than just your health, putting your lifestyle and savings at risk. Critical illness insurance gives you the flexibility to take time to recover, seek treatments your provincial health plan doesn’t cover and manage life without added financial pressure.
Health and dental insurance: everyday wellness
Between dentist visits, prescription eyeglasses, chiropractors and other practitioners, the costs of keeping up with your health can add up quickly. Health and dental insurance plans are designed to ease the burden, by helping pay for prescriptions, vision care, dentistry, physiotherapists and more.
Credit protection insurance: a financial safeguard
In case of disability, critical illness, job loss or accident, the last thing you want to worry about are your financial obligations. Credit protection insurance helps ensure financial debts don’t become an unbearable burden for you and your family during difficult times.
What insurance coverage do I need?
Everyone’s insurance needs are different. Whether you have a family, own a home, have existing health issues or have significant financial obligations, personal factors play a role in determining what sort of coverage you need.
For example, if you have children and a mortgage, a life insurance plan might be suitable. If you’re self-employed, a critical illness policy can help pay day-to-day expenses if you find yourself unable to work due to covered illness.
Common insurance terms explained
Premium
The amount you pay (monthly or yearly) to keep your insurance coverage active.
Deductible
The amount you pay out of pocket before insurance kicks in to help cover costs.
Claim
A request you make to access your benefits when a covered event happens.
Co-insurance
Costs you and your insurance company split after you’ve paid your deductible.
Guaranteed issue
Coverage you can get without medical questions or exams. Acceptance is guaranteed.
Medically underwritten
Coverage with premiums or acceptance based on your health. If you’re healthy, this can mean lower costs.
How do I buy insurance?
Insurance plans can be purchased through one of our trusted distribution partners. Get connected today.
FAQs
What is the purpose of insurance?
The purpose of insurance is to financially protect you and your family from unexpected events that could otherwise result in significant out-of-pocket costs.
Some types of insurance plans, like critical illness insurance, cover you if you’re diagnosed with a serious illness, while other types like health and dental insurance can help manage routine healthcare costs like dentist visits or physiotherapy.
What are the most common types of insurance coverage?
Some of the most common types of insurance policies Canadians take out are life insurance, health and dental insurance, critical illness insurance and credit protection insurance.
While each type of insurance covers a specific aspect of life, they all help financially protect individuals and families from out-of-pocket costs that can arise from unexpected events, or routine healthcare costs not covered by provincial healthcare plans.
How are insurance premiums determined?
Insurance premiums are calculated using a variety of factors. Insurers use a process called underwriting to evaluate an applicant’s risk and set premiums based on the results. The underwriting process looks at factors such as age, health and lifestyle, coverage amount, an applicant’s claim history, or where they live.