How should new immigrants buy insurance in Canada?

List of major insurance types in Canada

Automobile insurance:

According to Canadian law, every motorcycle (car, van, motorcycle, etc. ) must be insured. For example, every vehicle driving in Ontario must buy at least 200,000 yuan of third-party compensation insurance. Car owners who did not buy insurance were fined 25,000 yuan for the first time and 50,000 yuan for the second time.

The types of automobile insurance include not only third-party compensation insurance, but also body compensation insurance. Body compensation insurance is divided into two parts, collision insurance and comprehensive insurance.

The insured amount of auto insurance is related to the owner's driving experience, the purpose of using the car, the number of cars, the owner's living area and whether there has been a traffic accident.

family insurance

Family insurance is divided into comprehensive insurance and plate insurance.

When purchasing home insurance, the insured needs to declare the basic value of the house and related buildings and installations, such as building materials, garage size, number of bathrooms, whether the basement is decorated, etc.

In addition, if the owner sublets the house to others, he also needs to report the case to the insurance company, which is not responsible for the property loss of the lessee.

At the same time, insurance companies do not encourage homeowners to leave their houses vacant. Houses that have been vacant for more than four days need looking after. Once the water pipe bursts or the property is stolen because the house is vacant, the insurance company will not be responsible for compensation.

life insurance

Many Canadians buy life insurance, and Canada's life insurance industry enjoys a considerable reputation. Life insurance can basically be divided into three types:

Term insurance (term)

Pay the premium every year, and the premium will increase with the age of the insured. The premium is low, but it only has the insurance function.

one's whole life

Pay the same fee every year for a certain number of years or in your life. The premium is higher than term insurance, but it has the function of saving.

comprehensive planning

Combining the above two methods is a more flexible scheme. Many policyholders who can't afford the subsistence allowance will adopt a regular renewal plan and make changes after the economic situation improves. The insurance period is different from the premium, which can be studied with the insurance company or agent. French

Investment insurance (universal)

Insurance and investment are combined, and part of the premium is used as insurance and part as investment. This method may have high returns, but it is risky.

Disability insurance

For self-employed, it is particularly important to ensure that you continue to earn income when you lose your job due to disability. In case of an accident, your income can be guaranteed to retire at the age of 65.

critical illness insurance

Help you solve the salary income lost due to serious illness and pay the extra medical or health expenses that are not guaranteed by the government health plan. The payment of critical illness insurance is also tax-free. If you recover, you can also get a one-time cash subsidy.

As early as in China, I have received a lot of insurance education and have a strong sense of insurance in my mind. Insurance consultants believe that life insurance must be bought. But how to buy, what insurance to buy and how much to spend on insurance are easy for people.

There are many life insurance companies in Canada, and some banks have life insurance. As a layman, I don't know which is better or worse. You must find out for yourself what suits you. Insurance salesmen can be divided into agents and brokers. Agents belong to only one insurance company, while brokers usually hold licenses from multiple insurance companies. On the surface, brokers can choose the one that suits you best from several insurance companies. So they say they have an advantage over agents. But in fact, it may not be that simple. Let's ask an expert to tell us what this is all about.

When your name appears in the phone book, someone will call you and ask if you want to talk to a financial expert and arrange your financial plan. If you have time, I suggest you say yes, and then at the appointed time, a well-dressed insurance salesman will appear at your home. You must learn from him, but don't make a hasty decision.

Two considerations:

First, the insurance salesman's time is precious. If you really can't buy his things, tell others early and let him go elsewhere to make money early.

Second, ask more questions and make decisions slowly. Use other insurance salesmen's views to refute this salesman and draw their own conclusions. After talking to the insurance broker, you will gradually get to know something about insurance. The following is the experience of a netizen: The fundamental purpose of life insurance is that when the main source of family income dies unfortunately, the rest of the family can get economic compensation and keep their living standards unchanged. For example, you can continue to have enough money to pay for your children's tuition, and you can continue to afford the house loan. After calculation, the amount of insurance is usually about ten times the annual income of the insured.

There are two kinds of life insurance: $ TERM and universal life insurance

$ TERM is term insurance You pay the premium (ten or tens of yuan per month). During the insurance period, if you die, the insurance company will pay the insurance money to your family without paying the inheritance tax. If you don't die, you get nothing. The premium is not fixed, and generally rises once every five or ten years. The extent of growth varies with the economic form. Some guarantee that it will not exceed a certain increase. Most $ TERM are convertible, that is, within a certain age range, they can be converted into universal life

Universal life insurance is investment insurance. You pay the premium (several thousand yuan per year), and the insurance company deducts the management fee from your premium, and part of it is used for investment. During the insurance period, if you die, the insurance company will pay insurance money to your family without paying inheritance tax. If you are not dead, you will continue to pay the premium until your return on investment can pay the premium for you (usually 20 years later). Then, you don't have to pay any more, you still have insurance, and your insurance coverage is gradually increasing. Because history has proved that everyone will die sooner or later, and insurance companies will pay the money sooner or later, so some insurance companies have different ways to let you use your money before you die, which is equivalent to a part of your pension. An insurance broker compared $ TERM to renting a house and Universal Life to buying a house with a loan. The same is the payment, the former is finished, and the latter can finally get the house.

However, insurance experts believe that universal life insurance is equivalent to buying an $ TERM and letting the insurance company help you invest (tax-free appreciation) In fact, you can also use this money to buy RRSP or other investments (tax should be considered).

Therefore, if you have money to invest, investment insurance is one of the good choices; But for most new immigrants, $ TERM may be a more rational choice until their needs are met.