What is health insurance?
Health insurance helps pay for medical expenses, helping you and your family access necessary care without facing overwhelming costs. In New Brunswick, the provincial government health plan covers many basic health services, but there are important gaps.
Supplementary health insurance fills these gaps, offering coverage for services not included in the provincial plan.
Here are some common types of health insurance:
Covers services not included in your provincial plan. Before purchasing a policy, review your workplace benefits to avoid duplicating coverage you may already have.
Replaces a portion of your income if you are unable to work due to injury or illness. Coverage can be temporary or permanent, depending on the nature of the disability. Important things to note:
Long term disability refers to the nature of the disability, not the duration of the payments. Benefits may not last for your entire life.
If you pay the full premium, benefits are usually tax-free. If your employer pays any part of the premium, benefits can be taxable
Covers emergency medical care while travelling outside your province or Canada. Pre-existing medical conditions you had before applying for coverage may not be covered. Always read the policy carefully and ask questions to understand what is and isn’t covered.
Pays a one-time lump sum if you’re diagnosed with a serious illness listed in your policy, like cancer or Alzheimer’s disease. There are often exclusions, so read the policy carefully.
Helps pay for care in a long-term care facility such as a nursing home. It may also cover services of a caregiver in your own home. Some conditions and restrictions may apply.
Life insurance provides a tax-free payment to your loved ones when you die. When you purchase a life insurance policy, you name a beneficiary—the person who will receive the death benefit specified in the policy upon your death—or you can leave it to your estate or a trust.
There are two main types of life insurance: term and permanent.
Provides coverage for a fixed period, usually 10, 20, or 30 years, as long as premiums are paid.
Premiums are usually cheaper than permanent life insurance premiums but may increase when you renew the policy.
Most term life insurance policies only cover up to a maximum age.
Pays a death benefit if your death occurs during the term or duration of the policy; there is no payout if the term ends and you’re still alive.
Most policies do not accumulate a cash value.
Covers you for life, provided you pay your premiums.
Premiums are higher than term insurance at first but may be lower in later years.
These policies often build cash value over time. You can access this value if you cancel the policy or use it as collateral for a loan. Common types include:
Whole life: Guarantees fixed premiums and death benefit; often includes a minimum guaranteed cash value.
Universal life: Combines insurance with an investment account; allows for withdrawals and loans, and offers flexibility in premium payments and investment choices.
You can adjust premiums and investment options within policy limits. Death benefit and cash value may fluctuate based on investment performance.
Considering health and life insurance is essential when making a sound financial plan. They can provide peace of mind, knowing that you and your loved ones are protected against life’s uncertainties. If you have questions about specific policies or want help comparing options, reach out to a licensed insurance advisor or consult your workplace benefits administrator.
Before buying any insurance, make sure the person and company is licensed in New Brunswick. Visit fcnb.ca/check-now or email insurance.licensing@fcnb.ca to verify.