Chapter 9 - Health and Life Insurance Flashcards
Health Insurance
A group of insurance benefits provided to a living individual as a result of sickness or injury.
Life insurance
Insurance that provides a payment to a specified beneficiary when the insured dies
Canada health Act
establishes the criteria and conditions related to insured health care services that provinces and territories must meet to receive money from the federal government for health care.
What are the 5 principles of the Canada Health Act
Public Administration
Comprehensiveness
Universality
Portability
Accessibility
Whats the employee perspective on group health insurance?
Provides added protection beyond what is available from government plans.
Saves money on provincial premiums or the cost of having to purchase individual insurance.
Whats the employer perspective on group health insurance?
Write off premiums as business expenses
Encourages loyalty and trust among employees
enables better staff retention
keeps workforce healthy and productive
Disability Insurance
a monthly insurance benefit paid to you in the event that you are unable to work as a result of an injury or an illness. Ensures that you are still able to provide for your family adequately, even though you are unable to work.
What is the main differences between critical illness insurance and disability insurance?
CI Benefits are paid in one lump sum whereas DI is a monthly benefit
CI Provides coverage for insured conditions whereas DI Covers any injury or illness that prevents you from working
What are the 3 major critical illnesses for CI
Stroke
Life-threatening cancer
heart disease
Face amount
the amount states on the face of the policy that will be paid on the death of the insured.
Beneficiary
the named individual who receives life insurance payments upon the death of the insured.
Life Insured
The individual who is covered in the life insurance policy
Policy Owner
the individual who owns all rights and obligations to the policy
what is the role of life insurance?
The most common financial goal related to life insurance is to maintain financial support for your dependents.
What are the two main categories of life insurance?
*Temporary or short term
*Permanent
