Earlier this month, SSQ revised rates for their term life insurance products, bringing them a little closer in line with the price models of their competition. SSQ on a whole is worth discussion, particularly for consideration among families looking for coverage on a budget. With rate reductions nigh and a unique framework for coverage, SSQ’s Term Life and Term Life Plus bear address.
So What’s This Plan All About?
Most term life insurance plans generally contain more or less the same benefits, options, and stipulations as one another – the big differences between carriers being price and the underwriting process, which can vary quite wildly.
The SSQ Term and SSQ Term Plus plans generally operated under the same features:
- Coverage on terms of 10 to 35 years, in 5-year increments;
- Available where the term would conclude at age 85;
- Indexed coverage options are available;
- Half your coverage is paid in advance, up to $250,000, in the event you become disabled for 6 months.
It’s that last feature that gives SSQ’s Term life insurance a noteworthy distinction. Disability coverage being a rarely included feature on many term plans, it does lend itself to an element of usefulness – though it may not be the feature you can rely on in a pinch.
Why Disability Coverage is Valuable In General
It gets continually overlooked by working families, and yet the potential for disability or a work-ending injury isn’t just a real risk: it’s potentially more a risk on your finances than illness. It robs the one injured from earning an income while dealing with the very real costs of rehabilitation and reintegration into the workforce.
In fact, it’s estimated that around half of Canadians couldn’t meet their living needs if they missed even one paycheck, let alone the estimated three months the average disability would take out of their work. And more can be said about the reality that an injury may require that you change careers or take a salary hit altogether.
Is SSQ’s Disability Benefit Worth It?
Is this feature going to be a deal maker if you’re considering buying life insurance under SSQ? It helps to look at what this policy overs compared to a normal disability insurance plan. And those differences do highlight one key fact: the disability benefit really doesn’t replace disability insurance at all.
- This plan pays out a capped, lump-sum amount – rather than incrementally over the months – so you probably can’t depend on it for income replacement.
- The benefit pays out after 6 months of a disability, rather than the 30 to 90-day elimination period of other disability plans.
- The plan makes a stipulation that the disability must be an extreme disability, excluding lesser injuries that can lead to loss of work.
With these restrictions, SSQ Term Life’s disability benefit is a welcome addition to any financial protection plan, but it in no way offers enough incentive to displace a proper disability plan.
However with SSQ’s recent rate reductions on their term life products, the benefit of this plan may simply lie in its competitive cost, particularly among those who can qualify for preferred rates. However, if you do consider this plan, it would be advisable to top up yourself up with a proper, independent, disability insurance plan.