Overlooking Insurance Premium Payments Can Be Costly!

When their annual family life insurance premium came due recently the Johnsons did not have the funds available.  Their credit cards were topped out from some unexpected house maintenance issues, a trip and, along with all of the other day to day expenses of running a household; there was just not enough money in the bank.  Their budget was on overload.   The life insurance premium statement and reminder notice was filed in their “to be paid” folder, untouched and unpaid for several weeks until they received the final “lapsed” notice.

Fortunately for the Johnsons there was no claim required under their now lapsed life insurance policy or this story would have had a much sadder ending.   There would have been no life insurance to look after their family responsibilities.    

Unfortunately, however, the Johnsons needed insurance and soon found out getting their life insurance back on track when it has lapsed is no easy matter.  New applications, new medicals (and a hope that their good health continued to even qualify) were required and now at much higher premiums reflecting their current ages.  Years of previous insurance payments now gone and a new policy required.   A costly and potentially financially catastrophic circumstance indeed.

Imagine similar circumstances if they had left the country on an extended vacation and their home, automobile, or any insurance policy expired while gone and they suffered a major loss such as a fire?  For the sake of a few extra precautions, the risk of financial loss could be catastrophic.

With most of our household budgets strained and on overload these days it can become difficult trying to prioritize which expenses come first.  Late with a credit card bill?  You’re charged more on the next one.  Late with your cable TV, cell phone or most other monthly expenses?  You might have an interruption of service or incur additional service charges.  Late with your home, automobile, life, business or any insurance premium?  You may find your policy lapsing and the financial consequences severe.

To avoid the chance of an accidental cancellation or expired policy always make sure your premiums are paid by their due date.  If you are unable to do so, it is always important that this be communicated to your broker or insurer to review any options available.

Sincerely,                    

                                                    The Insurance Advisors @ Guthrie Insurance Brokers Ltd

Toronto- (416) 487-5200  – 1-888-310-SAVE (7283)

www.GuthrieInsurance.com   -   info@GuthrieInsurance.com

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Important – Cold Weather Reminders

Summer is now well “in our review mirror” and winter is just around the corner…are you and your home ready?  Here are a few timely points to consider as we head into the cold season. 

• If you will be leaving your home for even a day or two it is a good idea (and a policy requirement if over 96 hours) to shut off the water supply and drain your pipes OR have someone check your home daily to make sure the heating is being maintained. 
• Now is a good time to give your roof a final check and arrange for any necessary repairs.  Doing so when the winter wind is howling and it’s covered in snow can be both costly and difficult.  
• Ice and snow build-up on your roof can result in seepage, cracking of walls and even collapse of your roof (especially cottages).  Carefully check that your attic ventilation is sufficient, that your ceilings are properly insulated and your eavestroughs are free of leaves and debris.  
• Beat the rush and arrange for early cleaning and servicing of your furnace, flues and chimneys (especially if you have a woodstove!). 
• Take stock of your ice salt and check your snow shovels or snow blower.  Do remember that it is your responsibility to keep your sidewalks, driveways and steps free of ice and snow.  It may help avoid serious injury from a nasty slip or fall and a subsequent costly lawsuit.   
• For car owners now would be a good time to check and install snow tires, replace your windshield wipers, prepare an emergency kit, stock up on supplies of windshield fluid and prepare your car (and yourself) for the annual challenge of fall and winter driving. 
• Hopefully this is now routine and done on a regular basis, and do remember to check your CO (carbon monoxide) detectors and smoke detectors.  Batteries should be changed at least every 6 months whether “needed” or not. 
• Reminder to turn off and drain your outdoor faucets. 
• Might as well clean out the lint from your dryer duct while you are doing everything else. 
• Please remember to exercise extreme caution when using candles, especially if children nearby.  Keep them away from curtains, clothing, or anything else flammable, and never leave unattended.  Consider using the newer “LED” style that only uses a small battery. 
• This time of year also sees the increased use of extension cords for holiday lights, decorations, and electric heaters.  Do make sure they are all carefully checked over, are in good condition, and each circuit is properly fused.     
• Review your home fire safety plan. 

The Insurance Advisors @ Guthrie Insurance Brokers Ltd

Toronto – (416) 487-5200   Richmond Hill – (905) 313-8481

www.GuthrieInsurance.com   -   info@GuthrieInsurance.com

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Why do YOU need Travel Insurance?

Whether you are heading to Buffalo for a few hours of shopping, or taking off for the 6 month trip of a lifetime, you need to travel protected from unforeseen medical situations!

Why do people need travel insurance?

 Who would have thought a volcano in Iceland would snarl air traffic around the world?

Flight cancellations, especially those attributed to “acts of God” can leave travellers at the mercy of airlines that are in a perpetual state of cutting back.  Travel insurance takes the guess work out of “what happens next?” when flights are cancelled or luggage is lost.  Travellers with travel insurance know before they leave that they have a “Plan B”.

Cancelled flights or lost baggage aren’t the only pitfalls travellers may face.  Requiring medical attention while away from home is always stressful, and can be extraordinarily costly.

Heading to Arizona for a week of golf, John from Calgary was thinking about nothing other than sand traps and his short game.  Midway through his vacation, a heart attack brought everything to a screeching halt.  Emergency medical care and three weeks in the hospital saved his life … and left him with a hospital bill totalling $1.2 million!

The cost of medical treatment in the United States has been international news for months, as President Obama tried to hammer out a health care reform bill with Congress and the Senate.  Although the bill passed, with numerous compromises, medical costs in the U.S. remain stratospheric.

Gerald from Windsor learned that when he went to Ann Arbor, Michigan for a weekend of fun.  He and some friends were tubing on a river when Gerald scratched his foot on a rock.  Being 25 years old, the slight pain didn’t cause him a moment’s pause.

Until that night when he could hardly walk on his injured foot.  The cut had become infected.  Grudgingly, Gerald allowed his fiancé to talk him into visiting a nearby emergency room.  He stayed the night, received some anti-biotics and was released the following day with his foot on the mend … and with a $6,000 hospital bill in hand.

“I was shocked,” Gerald said when asked about his reaction to the cost of his treatment, “but I was covered for medical treatment because I’d booked my trip on my credit card.”  Or, so he thought.

That’s when Gerald learned the difference between travel accident insurance and travel medical insurance.

Credit card companies – for the most part – offer something called travel accident insurance.  This means they provide a predetermined lump sum in the event of a specific injury, or death, as a result of an accident while travelling.

Which meant, in Gerald’s case: “I was on the hook for $5,000 of the $6,000 hospital bill!”

Nobody expects to become ill or injured while on vacation, but the sobering costs of care has made travel medical insurance a necessity.

Can Am Insurance – 2010

 Sincerely -  The Insurance Advisors @ Guthrie Insurance Brokers Ltd

  Toronto – (416) -487-5200  – Richmond Hill – (905) 313-8481

www.guthrieinsurance.com  - info@guthrieinsurance.com                                                  

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