canadianlic, Author at Most Affordable Insurance Policy Provider in Canada | Canadian L.I.C. - Page 5 of 14

Author: canadianlic

Importance of RESP

Posted on by canadianlic

What is an RESP?

By Candian LIC, October 22, 2020, 4 Minutes

Schedule a Call

A Registered Educations Savings Plan is a government enabled system that allows you and other family members to make contributions to your child’s education in a systematic manner. This also allows you to gain access to a number of grants that can boost your savings.

Why is it important?

 RESPs are considered a great choice for saving for the following reasons:

1.Government incentives

 An RESP can help you make use of the CESG and Canadian Learning Bonds based on your income. These accumulate to a large sum over the years and can be super helpful in funding your children’s education comfortably.

2. Tax-Free Savings

 Over the years, your contributions made to the RESP can be withdrawn tax-free. The grants received from the government are taxable once withdrawn but at very low rates, giving you more profit than loss!

3. It can be easily transferred

 The greatest feature of an RESP is its flexibility. Not all plans are created this way, but when you choose one which is flexible, even if your child does not make use of the amount, it never goes to waste. It can be transferred easily to your other offspring or can even be converted to an RRSP to help finance your retirement comfortably.

Final Word

 The dependence on a good education to get placed in the right organizations has increased significantly. Most parents, without a plan like RESP would not be able to work towards saving the right amount, considering the increased costs and fees involved.

The RESP provides parents with an investment plan that only grows exponentially. The government aids that come with it, work towards providing better opportunities to children even from very low-income families. The many plans can be tailored to work for the betterment of your child’s future and provide them with a comfortable cushion.

Get started now! Open your RESP account and secure your child’s future with Canadian LIC.

How does RESP work?

How this plan works

  • You, the contributor, enter into a contract with a promoter to open a RESP account for your child, the beneficiary.
  • You can then make contributions to the RESP that accumulate over time. Government grants (if applicable) will be paid to the RESP as well. Government grants are provided for children under the age of 17.
  • The amount in the RESP is not taxable and your savings can grow tax-free.
  • When your child enrolls in post-secondary education, they can start taking payments called Education Assistance Payments (EAPs). These are included in the student’s income. The promoters makes sure payments from the RESP are made according to the terms of the plan. Your child can claim the EAPs when they enroll in university, college or any other specified qualifying education program.
  • The account can stay open for up to 36 years. Under specified plan rules, the plan can stay open for up to 40 years for beneficiaries eligible for the disability tax credit.
  • If your child wished to not pursue higher education, the funds can be transferred to a sibling. If there is no sibling, the people who contributed money may transfer it to their personal RRSP tax-free for retirement savings.

Please note that when you close your RESP, the money that you have put into the RESP is returned to you. However, you will have to pay tax on the earnings in the RESP. Although there will be earnings on the CESG, the grant must be returned to the Government of Canada.

Types of RESP

There are three types of RESPs:

  • Individual RESP – This plan is pretty straightforward. Anyone can open this account and contribute to it, be it a parent, grandparent, guardian, a benefactor or even yourself.
  • Family RESP – This plan can have more than beneficiaries, they just have to be related to the contributor or formally adopted by the contributor. The beneficiaries should be under the age of 21 to be added to the plan.
  • Group RESP – In this plan, a single child is a beneficiary, even if the child is not related to the contributor. Many people invest in this plan and the beneficiary shares the pooled earnings with children of the same age group. This plan has a lot more restrictions and rules than other RESP plans.

Feel free to contact us for more information on RESP plans. We can also help you find out about any conditions that may apply to the plan if your child does not continue their education after high school.

Guide To Choosing The Best RESP Provider For You

Deciding whose hands you choose to put your children’s future education is a daunting process. Here’s our guide to choosing an RESP provider!

While searching for a good RESP plan, most of us don’t give much thought to the RESP provider. However, this is the person who will be going to be advising us, taking care of our RESP, and will be in charge of providing us with the monetary value once we want to take it out.

Why is paying attention to your RESP provider so important?

 The RESP or Registered Education Savings plan provider is in-charge of your plan. Some providers tend to have extra costs or hidden fees in their plans. It is important to know

if there is any fee when you reach a limit on the amount or whether there is a service fee they may be taking. Sometimes, certain providers may even charge penalties when you want to close your account pre-maturely.

Another thing to keep in mind is that some portion of RESP money can be invested in the market too. Some people prefer to invest in other avenues to increase their value. This can be stock or mutual funds. As a provider, they will be doing so from their end. These methods usually have risks involved and need to be monitored on regular basis.

How can you choose the best RESP provider for you?

 Well, the first step in ensuring if the provider is good for you is to get to know them.

Meeting your RESP provider can help you understand their ideology and make the right decision. Asking them questions like “What is the extra fees involved? Do I have to pay anything once I have opened the RESP? Will I get regular reports on investments? and other such crucial questions, you can get a grasp of the way they function.

Checking their credibility using references and testimonials from previous clients can also help you make a better decision. It is also recommended to check whether they are allowed to provide you an RESP or not. Another way to verify the credibility of your RESP provider is to test their knowledge of the industry. This can help you determine how far your provider is going to be able to help you benefit.

Stop your search for the best RESP provider! Get in touch with Canadian LIC.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Get Quote Now

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

What kind of medical health insurance do international students get?

Posted on by canadianlic

What kind of medical health insurance do international students get?

By Candian LIC, August 24, 2020, 4 Minutes

Schedule a Call

If you are planning to study in Canada, then you must have health insurance, and medical insurance is included in that policy. In some provinces, it might not be, in that case, you would have to make necessary arrangements for a private insurance policy. You can get in touch with Canadian LIC and we will be more than happy to help you with your insurance requirements.

The benefits that come with international medical health insurance When you apply for medical insurance in Canada, you should know of the benefits that come with it. Have a look below:

Low insurance premiums:

The premiums for these plans are affordable and it can break down into several easy payments that can be paid during the student’s stay.

Dedicated benefits:

The following is the list of benefits that you would be getting with all insurance policies:

  • Hospital expenses and accommodation;
  • Diagnostic services
  • Physician charges
  • Prescription drugs
  • Paramedical services
  • Psychiatric treatment
  • Trauma counseling
  • Medical appliances
  • Treatment of dental accident

What are the types of insurance plans available?

If you do a Google search of what type of insurance you should get, you may get confused with the wide range of options that Google throws at you. Don’t worry though, below are some specific insurance policies which are tailored to a student’s needs and also don’t cost that much, have a look.

  • International travel medical insurance: It is specifically aimed for those students who are traveling to Canada and are valid for one year. It can be used as a supplement to medical insurance.
  • International major medical insurance: It’s a long-term insurance policy and is renewable. It offers flexible coverage options, pre-existing health issues or injuries, and much more.

To know how to apply for medical insurance using your insurance card, you can always get in touch with our team at Canadian LIC. We look forward to hearing from you.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

Can You Pay for Your Child’s Full Education with an RESP in Canada?

Posted on by canadianlic

Can You Pay for Your Child’s Full Education with an RESP in Canada?

By Candian LIC, August   21, 2020, 8 Minutes

Schedule a Call

As parents, we often dream of providing the best possible education for our children. In Canada, post-secondary education costs continue to rise, making it a significant financial consideration for many families. To help parents save for their children’s education, the Canadian government introduced the Registered Education Savings Plan (RESP). But the main question is: Can you pay for your child’s entire education with an RESP in Canada? This blog will help you understand RESP, its benefits, limitations, strategies to make the most of this savings tool, and most importantly can help to pay for the full education of your child or not.

A Brief Overview of RESP

The Registered Education Savings Plan (RESP) is a tax-advantaged savings plan designed to help parents save for their children’s post-secondary education. RESP has now become an essential tool for Canadian parents looking to invest in their children’s future. Key features of an RESP include:

  • Tax Advantages: Contributions to an RESP are not tax-deductible, but the investment grows tax-deferred until withdrawn for educational purposes. When the funds are used for education, the earnings are taxed at the beneficiary’s (the student’s) lower tax rate.
  • Canada Education Savings Grant (CESG): The government provides additional support in the form of the CESG, which matches a percentage of your contributions. This grant significantly boosts your savings.
  • Canada Learning Bond (CLB): The government offers the CLB for lower-income families, providing an initial contribution and additional funds annually until the beneficiary turns 15.
  • Flexible Investment Options: RESPs offer a variety of investment options, including mutual funds, GICs, and stocks. This flexibility allows you to choose investments that align with your risk tolerance and financial goals.
  • Lifetime Contribution Limit: There is a lifetime contribution limit of $50,000 per beneficiary. While this may not cover the entire cost of education, it provides a substantial head start.

Read More – why to choose an RESP

The RESP’s Potential to Cover Educational Costs

While RESPs offer significant benefits for saving for education, managing expectations is essential. Here’s a breakdown of the RESP’s potential to cover educational costs:

Related Posts

  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
  • Tuition and Fees: Depending on the program and institution, tuition and fees can vary widely in Canada. An RESP, especially when coupled with government grants, can help cover a significant portion of these costs. However, it’s unlikely to cover the entire expense.
  • Books and Supplies: RESPs can also be used to pay for books, supplies, and other education-related expenses. These costs can add up, but an RESP can help to reduce the burden.
  • Room and Board: If your child plans to live on campus or rent an apartment while studying, an RESP can contribute to these expenses. However, it may not cover the full cost, especially in high-cost cities like Vancouver or Toronto.
  • Transportation: If your child needs to commute to the educational institution, RESP funds can be used for transportation costs. Again, the coverage will depend on the distance and mode of transportation.
  • Other Expenses: Miscellaneous expenses, such as a computer, software, or even a part-time job, can also be funded with RESP withdrawals.

Strategies to Maximize Your RESP’s Value

To make the most of your RESP and increase its potential to cover educational costs, consider these strategies:

  • Begin Early: Your investments will have more time to grow the earlier you begin making contributions to a RESP. Over time, compound interest can considerably increase your savings.
  • Participate frequently: Make recurring contributions to your RESP to guarantee steady growth. To stay on track, many parents decide to make a monthly or yearly contribution.
  • Maximize Government Grants: For increasing government grants use the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB) to your advantage by making the highest annual contribution permitted to get the full grant amounts.
  • Invest Smartly: Choose your RESP investments wisely based on your time horizon and risk tolerance. Your portfolio’s diversification can reduce risk.
  • Think about family plans: If you have several kids, think about a family RESP. This enables you to divide money among siblings, maximizing the advantages.
  • Understand the Withdrawal Policies: Learn about the regulations governing RESP withdrawals. Ensure that the school your child attends meets the requirements and that withdrawals are processed in a way that minimizes taxes.
  • Encourage Your Child to Work Part-Time: Encourage your child to work part-time to help them pay their living expenses while they are in school. Withdrawals from a RESP can be combined with earnings from a part-time job.
  • Explore Scholarships and Bursaries:  Encourage your child to apply for scholarships and bursaries, which can help reduce the cost of their education.
  • Examine Additional Funding Sources: Investigate alternative funding sources, including student loans or credit lines, if your RESP cannot pay all of your expenses.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Get Quote Now

RESP Rules and Regulations

While RESPs are a valuable tool for saving for education, it’s essential to be aware of their limitations and considerations:

  • Lifetime Contribution Limit: The lifetime contribution limit of $50,000 per beneficiary may not cover the full cost of a four-year university program, especially in high-cost regions.
  • Market Volatility: RESP investments are subject to market fluctuations. While they offer growth potential, there is also a risk of losing money, especially if investments are overly aggressive.
  • Withdrawal Rules: Funds must be used for eligible educational expenses, and there are specific rules governing withdrawals. Make sure you understand these rules to avoid penalties.
  • Unused RESP Funds: If your child decides not to pursue post-secondary education or if they receive a full scholarship, you may face penalties when withdrawing RESP funds. However, there are ways to mitigate these penalties.
  • Impact on Financial Aid: Large RESP balances can impact your child’s eligibility for financial aid. It’s important to consider this when planning your contributions.
  • No Tax Deduction for Contributions: Unlike RRSPs (Registered Retirement Savings Plans), contributions to an RESP are not tax-deductible, which means you don’t get an immediate tax benefit.

Read More – RESP here

The big question: Would RESP cover all higher education costs?

Now, we come to the main part of this blog. Whether or not the RESP account you have started would cover the complete costs. At Canadian LIC, we use a special calculator which takes into account factors such as the annual rise in tuition costs and the growth of annual investments. Another factor is, if your family income is more than $47,630 then you won’t be eligible for the Canada Learning Bond. So, to max out the CESG grants received, you will have to contribute $2500 annually.

So, if the total education cost is $83,504.02, then on a planned contribution of $2500 the lifetime saved amount would be $100,092.14. This lump sum amount is a combination of your contributions, the CESG grants, and investment return. You will save at least $16,588.12 by the end of the final year.

In other words, if you start saving early for your child’s education, then the RESP account will be more than sufficient. If you have any queries, feel free to get in touch. Don’t wait anymore, take advantage of the government’s free grants and open an RESP account today!

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Get Quote Now

Coming to The End

To sum up, a Registered Education Savings Plan (RESP) is an excellent way for Canadian parents to start saving for their child’s post-secondary education. Even though it might not completely cover the expense of education, it offers a strong foundation and can significantly ease the financial strain. You may get the most out of your RESP by getting started early, taking advantage of government assistance, and making wise investment choices. However, in order to make sure that your child’s educational goals come true, it’s critical to be aware of the program’s restrictions and take into account other funding options. An RESP can be a potent tool in safeguarding your child’s educational future in Canada with careful planning and diligent saving.

FAQ’s

So now let’s get the answers to some frequently asked questions (FAQs) related to paying for your child’s full education with an RESP in Canada:

An RESP, or Registered Education Savings Plan, is a tax-advantaged savings plan in Canada designed to help parents and guardians save for their child’s post-secondary education. It allows you to invest money that grows tax-free until it’s withdrawn for educational purposes.

While an RESP can provide substantial financial support, it’s unlikely to cover the entire cost of your child & education, especially if they pursue a long and expensive program or study in a high-cost city. However, it can significantly ease the financial burden.

government subsidies like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB), multiple investment choices, and the ability to increase your savings over time are the key advantages of holding a RESP.
government subsidies like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB), multiple investment choices, and the ability to increase your savings over time are the key advantages of holding a RESP.
It’s advisable to start contributing to an RESP as early as possible. The longer your investments have to grow, the more you can potentially accumulate. Ideally, it would be best if you opened an RESP shortly after your child’s birth
If your child decides not to pursue post-secondary education, you have a few options. You can transfer the RESP to another eligible beneficiary within the family, postpone withdrawals until your child changes their mind, or withdraw the contributions without penalty. However, government grant money may need to be returned or forfeited in certain situations

It’s generally recommended to purchase travel insurance before your trip begins. However, some insurance providers may offer options to Yes, there are specific rules governing RESP withdrawals. Funds must be used for eligible educational expenses, and you must provide proof of enrollment. Be aware of these rules to avoid penalties.

Yes, you can open a family RESP that allows you to allocate funds between siblings. This is a convenient way to manage savings for multiple children.

You can still use your RESP funds if your child receives a scholarship or other financial aid. However, you may need to repay government grant money or consider other options for using the RESP funds without penalty.

Yes, you can contribute to an RESP for any eligible beneficiary as long as you have the necessary permissions and information.
While starting early is best, it’s never too late to open an RESP and contribute what you can. You may miss out on some government grants, but your contributions can still grow tax-free and provide valuable support for your child’s education.
RESPs can last for a maximum of 36 years. If the money isn’t used within this time, the plan has to be ended, and any money left over is given to the subscriber, the beneficiary.

Yes, RESP funds may be applied to eligible postsecondary programs offered outside of Canada. However, it’s crucial to confirm that the institution and program satisfy the requirements for eligibility.

Over contributions (contributions made in excess of the lifetime limit of $50,000 per beneficiary) may be subject to penalties, including possible taxation.
You cannot directly borrow against RESP funds, and you cannot use them as collateral for loans.
An RESP can be used to hold equity investments, such as mutual funds, individual stocks, and bonds, as well as fixed-income products. With the assistance of a Canadian LIC expert, you can decide which set of investments will perform the best for you.

A Registered Education Savings Plan accepts a limitless number of contributions each year. The maximum annual contribution per recipient is $50,000, though. (Your plan may have more than $50,000 in it until the time comes for your child to use it because government grants and investment growth in your RESP are not counted toward the $50,000 limit.

There is no time restriction. Contributions to a RESP are welcome at any time of the year. When requesting government support, use the calendar year.

If you want to take money out of a RESP, you might need to show the bank your receipts for purchases like laptops and books. Additionally, you need to demonstrate that the beneficiary is registered in an acceptable post-secondary program.

You are only qualified for $5,000 in payments from a RESP’s investment growth during the first 13 weeks of enrolment, in addition to any Canada Education Savings Grants, provincial grants, or Canada Learning Bonds (the educational assistance payment). After that, provided the payment is appropriate, you are entitled to any amount of payment. You can withdraw as much of your personal plan contributions as you want whenever you’d like.

In order to qualify for the CESG, beneficiaries who are 16 or 17 years old must fulfill certain contribution requirements. RESPs with beneficiaries aged 16 and 17 may be eligible for the CESG if at least one of the following two conditions is met:

  • Before the conclusion of the beneficiary’s 15th birthday, at least $2,000 was deposited into their RESP; this money was not withdrawn.
  • A minimum of $100 was paid to the RESP each year (and was not taken out of it) in any of the four years before the end of the calendar year that the beneficiary turned 15.

Yes, you are able to start a RESP for yourself. However, if you are 18 or older, a TFSA might be better than a RESP for you.

With the help of a Canadian LIC advisor, you may assess which type of account is best for your requirements.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

What is Super Visa Insurance for visitors to Canada?

Posted on by canadianlic

What is Super Visa Insurance for visitors to Canada?

By Candian LIC, July 30, 2020, 5 Minutes

Schedule a Call

What are the details needed?

This means grandma and grandpa can stay for thanksgiving and Christmas. An added benefit is, you won’t have to worry about short visa renewal deadlines. For further details about Super Visa Insurance, contact. Canadian LIC.
Before you apply for Super Visa Insurance on your parents behalf (yes, you can do that), you will have to submit some details about your parents or grandparents. Have a look at the list below, so you can gather all the information before you sit for filling up the form.

  • The purpose of the visit to Canada of your parents/ grandparents
  • If they have medical insurance from a Canadian company and with a coverage of $100,000 for at least a year
  • Status of their home country; if it’s socio-economically stable
  • You parent’s or grandparent’s relationship with their home country; whether they are not trying to seek permanent resident ship in Canada.
  • If they are admissible in Canada
  • Passing certificate for the immigration medical test.

You also need to submit some details

Alongside submitting details of your parents or grandparents, you will also need to submit the following to complete the whole documentation process. Have a look at the list below:

  • Proof of Canadian citizenship
  • Proof of employment in Canada with joining date
  • Proof of a stable income with bank statements, tax statements and pay stubs. This is done to ensure that you can support your family members financially when they come.
  • Proof of medical insurance

You will also have to draft a formal invitation letter and then submit all the details with that letter for processing. Once everything is completed, your parents or grandparents will have to visit the Canadian embassy on a given date for the final formalities.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Get Quote Now

Why is it necessary to get medical insurance from a Canadian agency?

Well, it’s simple; it’s because most Canadian insurance companies have a direct billing connection with most of the hospitals in the country. If your dear ones are insured with a Canadian agency, medical processing fee won’t take that much time at all. Also, if they are insured by an agency from another country, the claim could be repudiated. You buy the insurance for only one year and you have to renew it every year. Apply today and spend some much-needed quality time with your family members. Contact Canadian LIC for further details or schedule an appointment.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

How To Pick The Right Insurance Broker?

Posted on by canadianlic

How To Pick The Right Insurance Broker?

By Canadian LIC, September 14, 2023, 8 Minutes

Schedule a Call

Getting insurance on your own can be very risky and challenging compared to buying a car or a home. There are so many things to consider, and that’s why you should consider hiring a professional insurance broker. They can help you choose the right policy and coverage for that policy. However, the question here would be, how can you choose the best insurance broker in Canada? Several factors play a crucial role in choosing an insurance broker, and we will discuss them, so you can have a better idea of Why you should Choose an Insurance Broker to Purchase an Insurance Plan. If you are looking for the best insurance broker in Toronto, you can contact Canadian LIC and get in touch with our team. We will be glad to help you out with all your insurance needs.

Learn more on – Why you should Choose an Insurance Broker to Purchase an Insurance Plan

Who is an Insurance Broker?

A professional insurance broker helps you purchase a policy that meets your insurance needs. They take a practical step-by-step approach starting with

  • noting down your requirements
  • comparing several policies
  • sharing the available policies that fulfill your needs
  • and getting you an affordable monthly premium

You should also know that insurance brokers can help in customizing the policy contract for you as well. If you want to add a clause or change the terms and conditions of the agreement, your insurance broker ensures that the changes are mentioned in the paperwork. If you have any queries, you can get in touch with Canadian LIC in Toronto today, and we will be happy to resolve all of them.

What does an Insurance Broker do?

An insurance broker possesses all the knowledge of the different types of insurance available in the market and provides the best advice on what might be the best insurance option for you as per your lifestyle, health, age, and available assets. Another amazing thing is that these insurance brokers will act as agents doing your paperwork and handling claims that arise.

Related Posts

  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?
  • Why Should You Use An Insurance Broker To Purchase An Insurance Plan?

Can we trust an Insurance Broker?

Insurance brokers usually get commissions from the insurance companies for the many types of insurance they sell if they are able to sell it successfully. These insurance agents work with a number of insurance providers, so there are very few chances of them having a monetary bias for any one particular product. Hence they are unbiased and impartial parties and provide you with a policy that would be in your budget as per your requirements from so many different insurance companies in their knowledge.

Do Insurance Brokers Understand the Products They Sell?

You will definitely be able to make a much better decision if you buy insurance through an insurance broker rather than directly from any insurance company. An insurance broker’s job is to have all the best knowledge about the best insurances available in the market from the best insurance companies and hence will advise you for one which is perfect for your budget. These insurance brokers in Canada are very well aware of the application requirements, coverage terms, and pricing.

Whatever insurance you are looking for, be it critical illness insurance, disability insurance, life insurance, etc., you can easily buy through an insurance broker in Ontario after comparing them with each other. Mostly all the insurance brokers cover all types of insurance, but you might find a few who specialize in specific ones. So if you want an expert opinion on a particular insurance, you can go to these types of insurance brokers in Canada.

The Benefits of Working with an Insurance Broker in Toronto

Alongside helping you choose the ideal insurance policy for you and your family, working with expert insurance brokers has its advantages. Here’s how you will benefit from hiring an insurance broker in Toronto before choosing a policy:

  • Experienced and best insurance brokers in Canada always keep themselves up to date with the latest trends in the insurance market; they can help you choose the ideal insurance plan based on your needs and industry standards.
  • Your insurance broker in Toronto will be connected with many companies, and that gives them access to several insurance products. Once they know all your needs, they can compare multiple plans and policies and present the ones suited to your requirements and within your budget.
  • Once you have selected a policy, they can help negotiate premiums and see that you get an affordable monthly rate for the plan you choose.
  • If you are not sure which insurance policy is ideal for you, an insurance broker can share their unbiased advice so you can make an informed decision.
  • They can also help in settling claims. Once you have submitted your claim, your insurance broker will follow up to ensure the claim is processed correctly.
  • An insurance broker can help you settle legal disputes with the insurance company as well.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Get Quote Now

Some Tips On Choosing The Right Insurance Broker​

Although there is no established formula for finding the right broker for your insurance needs, what you should look for is someone who has a minimum set of attributes to shift through several policies and identify the right option for you. Here are some tips that can help you hire an insurance broker:

  • Visit their website and have a look at their customer reviews. This will give you a better insight into how they have worked with their previous customers.
  • Check if the insurance broker works with several companies; if they do, that would mean that they are well-established in the industry.
  • You can ask them for proof of their experience, as all registered insurance brokers must possess a minimum set of qualifications.
  • Ask for a consultation, and during the first meeting, you can resolve all the queries you may have.
  • Also, when you are searching for an insurance broker, you should pay close attention to their availability, as well as how long they take to return phone calls or respond to emails. Choose an insurance broker who is always prompt with their replies.

Process of Application

During the Application process, certain documents will be needed from you, such as:

  • Personal health records
  • Lifestyle habits
  • Income
  • Assets and Liabilities list

There are certain insurance policies that might even require you to go for a Health Exam before the issue of the policy, but it has become really rare now. 

Whatever situations you might be facing for the type of insurance you are dealing with, you will have complete guidance and support from the insurance broker in Toronto you are working with. A few things to consider before making your decision to buy your policy are as follows:

  • Is the policy fulfilling your needs?
  • Clarity of the coverage terms and the fine print
  • Are you getting the best value for the plan you are going for?

If in case you have missed anything or want to add to your plan, your broker should be able to do that for you effortlessly. Once you have made up your mind, the insurance broker will complete the application process and will proceed with the payment process for you. If you are required to make a claim, the broker might also support you after the coverage gets life.

To learn more about the application process, you can read – Getting an Insurance Policy.

What is the cost of buying Insurance from the Best Insurance Broker in Canada?

An insurance broker is paid by insurance companies and not by clients. They cannot charge a fee; if they do, then it might be a scam. 

You only have to pay the fee for the insurance policy you buy but not any fee to the broker. The prices of different insurance policies vary to a great extent as per their type and coverage.

In fact, if you buy insurance from an insurance broker in Canada, it might be cheaper than buying directly from the insurance company. This happens because the insurance broker provides you with various discounts and also negotiates the price of the plan. You can even take the benefits of rebates by bundling different policies together.

Thus to put it in simple terms, you might experience a vast difference in the cost of insurance when you buy it through a broker but not in any case, you will have to pay fees to the broker. You will only have to pay the price of the insurance policy you are buying after you have made the decision to buy it.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

Get Quote Now

Other Insurance Buying Options​

You can even buy your insurance directly through the insurance company or work with an agent if you are not interested in buying through a broker. But if you do so, then you will lose the biggest benefit of comparing different insurances available in the market. If you decide to work with an agent, it is best advised to do your proper research so that you are able to grab the best deal for your plan. 

Final Thoughts

Hiring an insurance broker can be difficult, but if you choose our team at Canadian LIC in Toronto, you will be hiring a team of professionals who can help you get a tailored insurance policy at affordable premium rates. Please schedule a consultation today; we look forward to meeting you. We are based in Toronto.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]