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FREQUENTLY ASKED QUESTIONS
What is term life insurance?
Term life insurance is an affordable short-term insurance option. It protects the insured for a stated period of time — 5, 10 or 20 years — and becomes void at expiration. Your payments are guaranteed for a definite period of time.
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What is whole life insurance?
Whole life insurance provides a guaranteed amount of money to pass on to the policyholder’s beneficiaries with fixed premiums. The cash value grows over the length of the policy and can be withdrawn if the policy is surrendered.
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What is universal life insurance?
Universal life insurance has both an insurance and savings component. Policyholders can transfer money between components, and can make adjustments to their premium amounts, which are variable and broken down into savings and insurance.
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Is life insurance affordable?
Your insurance portfolio should provide adequate coverage at premium levels that fit within your budget. There are many different insurance products available. The policy type and coverage amount will determine your premiums.
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What if I already have life insurance?
Even if you already have life insurance, it’s a good idea to review your insurance plan periodically. If there have been any significant changes in your life, your insurance needs may have changed. If you have recently purchased a second home, received an inheritance, have children or grandchildren entering college or university, or are responsible for the care of an elderly parent, you may have a need for increased coverage.
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What is disability insurance?
Disability insurance protects you and your family by providing income if you are unable to work due to injury or illness. Disability insurance policies are structured to begin payments at a set time (usually 30, 60 or 90 days after a disability) and continue for a predetermined period.
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What is critical illness insurance?
Critical Illness Insurance pays a lump-sum benefit upon diagnosis of an illness or condition specified in your plan. The benefit you receive can be spent however you wish - there are no restrictions or requirements.
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Should living benefits be included in my protection plan?
Living benefits, such as disability insurance and critical illness insurance, protect your standard of living if you are unable to work due to injury or illness. This is especially important for people in their peak earning years.
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How much coverage do I need?
The appropriate amount of coverage depends on your specific situation. Factors to consider include your annual income, your level of debt, future expenses for your family (such as tuition fees), and your family’s lifestyle.
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Which insurance plan should I choose?
The insurance plan you choose should be based on your specific needs and circumstances. There are options available for those with evolving short term needs and those with more clearly defined long term needs. Our insurance professionals will help you choose the best policy for you.
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If I have group coverage through my employer, do I really need more protection?
You may still have an insurance gap. In order to protect yourself and your family, it’s important your protection package is comprehensive.
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How can life insurance add flexibility to my retirement plan?
Certain life insurance policies have both an insurance component and an investment component. If your plan has an investment component, the cash value may be used to help pay for a vacation or the down payment on a second home.
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How can I use life insurance to maximize my retirement income?
As you approach retirement age, it’s a good idea to examine the amount of taxes you pay, and look for products and strategies that provide tax advantages. Certain life insurance products provide tax-sheltered insurance and investment options, and could be the cornerstone of a retirement plan.
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What other benefits are there in adding life insurance to my portfolio?
Certain life insurance products provide tax-sheltered insurance and investment options, and could be the cornerstone of a strong retirement plan. Also, if anyone besides your immediate family depends on you financially, your need for protection increases. As such, having a comprehensive insurance plan protects their interests, too.
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How can an estate plan maximize the value of my estate?
Without a sound estate plan, the wealth you have worked so hard to build could be significantly devalued by taxes and fees due at death. An estate plan will conserve the value of your estate by first minimizing the amount of taxes and fees due and subsequently ensuring adequate funds to cover the remaining costs. This will allow your heirs and favorite charities to receive assets from your estate according to your wishes, without the extreme tax burden.
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What is a succession plan, and why should I have one?
A succession plan ensures the orderly transfer of a business. It’s a vital part of an estate plan. If you intend to retire and pass your company on to a member of your family, or to someone else you trust, you need a succession plan to ensure that transfer is a smooth one. Also, if you pass away suddenly, a succession plan makes certain your wishes are followed.
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ATB Investor Services offers insurance products and services through a dedicated, mobile team of experienced professionals. To meet with one of our insurance professionals, please contact the ATB Investor Services associate at your nearest ATB Financial branch or call 1-888-ATB-7121.
ATB Investment Management Inc., ATB Securities Inc. (member CIPF), ATB Investment Services Inc., ATB Insurance Advisors Inc. are wholly owned subsidiaries of ATB Financial and are licensed users of the trademark ATB Investor Services. ® ATB Financial is a trade name/registered trademark of Alberta Treasury Branches.
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