Got a question about insurance? We're happy to help. But first, you may want to see if the information you seek is here in these commonly asked insurance questions.
General Questions
What is a fraternal society?
What happens to my health and dental benefits if I am disabled?
Can I appoint my children as beneficiaries of my life insurance policy(ies)?
What is the difference between a primary and contingent beneficiary?
Why can't I cancel my policy by phone or e-mail?
Is Teachers Life an insurance company or a brokerage?
Who are the owners of Teachers Life?
How is Teachers Life financially managed?
Life Insurance Questions
Why should I purchase life insurance?
What is the difference between term insurance and permanent life insurance?
Once my term life insurance policy expires, will I receive a cash value on the plan?
Do I need to re-evaluate my life insurance needs periodically?
I have group life insurance. Isn't that enough?
What is the difference between group and individual life insurance?
Critical Illness Insurance Questions
What is critical illness insurance?
Which one is better: critical illness insurance or disability insurance?
How does the Teachers Life Critical Illness plan differ from others on the market?
What is a fraternal society?
Fraternal Societies are associations of persons drawn together by common interests where the goal is to furnish members with certain benefits such as life, accident, and health insurance. Early fraternal societies date back to 1500 where groups were organized in England to provide sickness and death welfare for members. Fraternal organizations typically feature restricted membership (such as Teachers Life being open only to those in education) and often take part in programs that support charities.
What happens to my health and dental benefits if I am disabled?
We recommend you contact your board of education to arrange for payment of your health and dental benefits while you are disabled. (Teachers Life does not provide health and dental benefits.)
What is the difference between a primary and contingent beneficiary?
A primary beneficiary is the person (persons) you have appointed to receive the proceeds of your life insurance plan. A contingent beneficiary is the person (or people) you appoint to receive the proceeds of your life insurance plan in the event that your primary beneficiary dies before you, the policyowner, die.
Can I appoint my children as beneficiaries of my life insurance policy(ies)?
Yes, you may appoint your children as beneficiaries to your plan; however, if your children are under the age of 18, you should also specify a trustee. A trustee is the person you appoint to manage the proceeds of your life insurance policy on behalf of an under-aged primary or contingent beneficiary. If you do not appoint a trustee for your under-aged beneficiaries, the policy proceeds of your life insurance plan will be paid into a government-appointed trust.
Why can't I cancel my policy by phone or e-mail?
This is a requirement of our security standards. Verbal communications do not provide us with any form of concrete verification that you cancelled your policy. E-mail messages, while quick and expedient, can become lost in transmission and do not reflect your signature. Consequently, we ask that you mail or fax us a signed letter requesting cancellation of your policy.
Is Teachers Life an insurance company or a brokerage?
Teachers Life is not an agency or a brokerage. We are a full-fledged insurance company. We sell our own line of insurance products, underwrite our own policies and pay our own claims and benefits. We do not broker our business to other companies or use any form of middleman to sell our products.
Who are the owners of Teachers Life?
Teachers Life is a fraternal benefit society that is owned by its members - people working in the field of education who have joined the organization for the purpose of obtaining insurance and other fraternal benefits. Unlike our competitors, we are not owned wholly or partially by any insurance company. Teachers Life is a not-for-profit organization with a board of directors that consist of both active and retired teachers who represent the membership as a whole.
How is Teachers Life financially managed?
Our management team and board of directors are involved in, and responsible for, a number of activities used to monitor and direct the company's security and stability. Risk management policies and guidelines are strictly adhered to and monitored on a regular basis. The Teachers Life assets and liabilities are also reviewed consistently to ensure quantities and quality are in accordance with our guidelines. Our board of directors and an appointed actuary work together to ensure the conservation of the Society's capital. Although we are provincially incorporated, Teachers Life also complies with the guidelines defined under the Standards of Sound Business and Financial Practices for Life and Health Insurers mandated by the Office of the Superintendent of Financial Institutions in Ottawa.
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Why should I purchase life insurance?
The single most important reason for purchasing life insurance is to guarantee the financial welfare of your loved ones in the event of your death. Your ability to earn an income is a valuable asset. Imagine what the loss of your salary would mean to your family. They could potentially lose everything you've worked so hard to acquire over the years. A life insurance policy protects your dependents from financial hardship by providing an income after your death which can be used for a variety of ways, including to pay funeral expenses and/or estate taxes, to provide mortgage protection or to fund your children's college education. If you have a spouse, dependent children, an aging parent or anyone who depends on you financially, you should evaluate your life insurance needs.
If you would like assistance in determining what coverage suits your needs, just contact a Teachers Life Member Service Representative by clicking here or calling 416-620-1140 or toll-free 1-866-620-LIFE (5433).
What is the difference between term insurance and permanent life insurance?
Term life insurance is designed to provide you with insurance protection for a specified period of time, at an affordable price. Term life policies traditionally cover 10 or 20 years with level premiums. If you die within the time period, your beneficiaries can receive, tax-free, the coverage amount specified in your policy.
Permanent term life insurance is designed to provide insurance protection for your entire lifetime. With permanent term life insurance, your premiums never change. Many people appreciate the security this kind of insurance provides, ensuring that no matter when you die, your beneficiaries can receive the coverage amount specified in the policy. If you already have a Teachers Life Term Life policy, and the idea of permanent term insurance sounds interesting, you may want to consider converting some or all to our PermaTerm 100 plan. For more details click here to review the Teachers Life term life options.
Once my term life insurance policy expires, will I receive a cash value on the plan?
That depends on what type of Teachers Life policy you are insured for. Our Term 10, Term 20, PermaTerm 100, Term to 66 and Term to 75 plans do not have any form of cash value at the end of their terms. Once you have reached age 66 or age 75 respectively, the policy is terminated. However, our Term to 100, Term 80 and Lifetime Protection plans do provide some form of "paid up" insurance upon the expiry date of the policy. The Term to 100 plan provides a cash value of $3,000 for each block of insurance purchased, beyond the age of 100. The Term 80 plan also offers a paid-up life insurance policy of 10% of the value of the policy from age 80, while the Lifetime Protection Plan provides you with a cash value worth 100% of the policy's face value beyond the age of 100.
Do I need to re-evaluate my life insurance needs periodically?
Life insurance is an important part of your financial planning and should generally be reviewed every 2 - 4 years or when your family or career situation changes. To determine what your insurance needs are, a Teachers Life Member Services Representative can conduct a financial needs analysis on your personal situation which will give you a better idea of how much money your survivors will need when you die.
I have group life insurance. Isn't that enough?
In terms of dollar value, you may be adequately covered under your group insurance plan; however, you should still own an individual insurance policy that is specific to your own personal goals and needs. Should you decide to leave your job, or if your employment is terminated, you may no longer be eligible for group insurance, and that would leave you uninsured.
What is the difference between group and individual life insurance?
Group and individual life insurance differs in one key area: policy ownership. Group insurance, which is purchased by an employer or union to provide coverage for employees, is owned by the employer not the employee. As a result, changes to the policy can occur without your consent since you do not own the policy. Should you decide to leave your employer, you are not entitled to take your life insurance coverage with you unless the group policy includes a conversion privilege, which may be more costly than taking out an individual plan yourself. An employer can also decide to cancel a group plan or obtain coverage from another insurance carrier at any time, without an employee's consent. Unlike group plans, individual insurance is owned by you, the policy owner. You are free to make changes to your individual life insurance plan, as long as they are within policy guidelines. Your individual policy cannot be canceled as long as you continue to make your premium payments.
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What is critical illness insurance?
Critical Illness insurance is coverage that provides you with a lump-sum tax-free benefit should you become diagnosed with one of the illnesses covered under the plan. Thanks to the many advances in medical technology, most people will survive a critical illness. However, the recovery period can be a long and difficult one. Critical illness insurance can help alleviate some of the financial pressures that may occur during your recovery period, thus allowing you to concentrate on your recuperation. Proceeds of the plan can be used to pay for medical treatments outside of Canada, to help cover monthly expenses such as mortgage payments or even to help fund an extended sick leave from work. How you choose to use the funds is entirely up to you.
Which one is better: critical illness insurance or disability insurance?
It's really not a case of which coverage is better. Each form of insurance serves very different and distinct purposes. Disability insurance is a form of income replacement that pays a monthly benefit if you become disabled, are unable to work and fit the policy's definition of being totally disabled. This form of protection essentially covers your monthly expenses in the same manner that your salary would do if you were working.
In contrast, with critical illness insurance, there is no requirement that you must be unable to work before you receive benefits under the plan. If you are diagnosed with one of the medical impairments covered under the plan, you will receive a one-time lump-sum payment that can be used to alleviate some of the financial pressures that are often associated with recovering from a critical illness.
How does the Teachers Life Critical Illness plan differ from others on the market?
Our critical illness plan has been specially developed with the educator in mind, covering such illnesses that would affect a teacher's ability to continue his/her career. While many critical illness plans only cover the three major ailments (heart disease, cancer and stroke), the Teachers Life plan also covers the following 13 diseases: Renal Failure, Major Organ Transplant, Coronary Artery Bypass, Loss of Speech, Parkinson's Disease, Paralysis, Multiple Sclerosis, Blindness, Deafness, Coma, Motor Neuron Disease, Severe Burns and Occupational HIV.
Also, some plans only offer limited amounts of coverage. The Teachers Life Critical Illness Plan offers coverage to healthy members from as little as $25,000 up to as much as $500,000.
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