SISIP Financial – Executive Insurance Plans

Transcript

As part of the CF Morale & Welfare Services, SISIP Financial understands the realities of the military lifestyle and are the exclusive and trusted provider of financial products and services to Canada’s military community.

Our vision is that “Every member of the Canadian Armed Forces and their family has financial health and security”

Today, we will discuss what happens with your current SISIP Life insurance at release, and focus more specifically on the General Officers Insurance Plans (GOIP) and the Military Post-Retirement Life Insurance Plan (MPRLIP).

In closing, we will look at the importance of having an Insurance Needs Analysis (INA) done to properly identify your insurance needs.

Why Life Insurance?

Life insurance can provide income replacement when a member or spouse dies. It can also help eliminate or reduce debts.

Unlike anything currently available on the market, Insurance for Released Members (IRM) is specifically designed for former members and their spouses.

Within 60 days of release, members can transfer their Optional Group Term Insurance (OGTI) or Reserve Term Insurance Plan (RTIP) policy to Insurance for Released Members (IRM) with no medical requirements. However, if transferred after this date proof of insurability will be required.

Coverage for Insurance for Released members, or IRM, does terminate at age 75.

Key Benefits:

Available in $10,000 increments to a maximum of $600,000;
Free Dependent Life coverage up to $10,000;
Free Accidental Dismemberment benefit non-attributable to military service up to $250,000;
No exclusions for dangerous occupations, hobbies, volunteer activities or sports;
Less stringent medical underwriting requirements.

IRM has a Living Benefit that provides, under specific circumstances, access to an amount not to exceed 50% of the face value of the life insurance in force, to a maximum of $50,000, in the event that death is expected within the next twelve months.

Payment of premiums can be made by Electronic Funds Transfer or Pension deduction.

What is GOIP:
GOIP provides senior officers of the CAF Regular and Primary Reserve Forces insurance benefits funded by the Government of Canada, which are benchmarked to the benefits provided to the executive category of the Public Service and RCMP senior officers of equivalent ranks.

Who is eligible?
Regular Force officers, in the substantive ranks of Colonel and above in all classifications and Lieutenant-Colonel in the legal classification, are automatically enrolled in the GOIP upon their date of promotion.

What coverage is included?

Regular Force, Class C and Long Term Class B Reservists, receive:
Two(2) times their Basic annual salary, to the nearest $1000; premiums are paid by Treasury Board, therefore it’s a taxable benefit;
Accidental Death and Dismemberment, (AD&D), the maximum is $250, 000
Dependent Life: your spouse is covered for $5,000 and children are covered for $2,500.
You can also elect to purchase Optional Life Insurance, equivalent to one time your annual salary, adjusted to the nearest $1,000.

GOIP Conversion privileges to IRM upon release.

For members:
You may convert a portion of GOIP basic, up to 1.75 times your annual salary at date of release;
If you have the Optional GOIP, it too can be converted;
Your OGTI (if you get the coverage under the Reg Force for member or spouse)
The $5 K spousal coverage is also eligible for conversion, however it will increase to $10K (which is the minimum available under this plan)

Total amount for all of the above cannot exceed $600,000 in IRM coverage, and must be converted within 60 days of your Date of Release

The Military Post-Retirement Life Insurance Plan (MPRLIP) is a life insurance benefit which is automatically provided to eligible officers who retire from the CAF, with an immediate annuity and the General Officers' Insurance Plan (GOIP) coverage in force at the effective date of release. This benefit is funded by the Government of Canada and is benchmarked to the benefits provided to the executive category of the Public Service and to RCMP senior officers of equivalent ranks.

The Military Post Retirement Life Insurance Plan (MPRLIP) is a life insurance benefit which is automatically provided to eligible officers who retire from the CAF with a Pension and have General Officers' Insurance Plan (GOIP) coverage in force at the effective date of release. The amount of post-retirement life insurance is based on the annual salary to which the participant was entitled immediately before the CAF effective date of release.

This benefit is funded by the Government of Canada benchmarked to the benefits provided to the executive category of the Public Service and to RCMP senior officers of equivalent ranks.

What coverage does it provide?

In the first year of retirement, you receive 100% of your annual salary and then it is reduced by 25% yearly. In the 4th year and thereafter you are covered for the rest of your life for 25%.

The premiums are fully paid by the Government of Canada and therefore are a taxable benefit.

How much insurance do I need?

There is what we call a “Life Insurance Cycle”. Usually, when you are young, in your twenties for example, you have a minimal debt burden, so your need for insurance is generally low. Gradually, as you marry and have children your needs should increase substantially, as you see on the graph. In due course, you start paying down your debt, your children leave the home and eventually, you retire. At this time your insurance needs will tend to decrease.

So, how do we determine what your needs are?

This is where the Insurance Needs Analysis or an INA comes in. We use your relevant information, as stated here to determine your specific insurance needs.

An INA will be required when you request coverage that exceeds $400,000.

SISIP Financial has a team of over 90 financial professionals who know and understand the complexities of our military community.

For the convenience of our members we are located on all major Bases and Wings across Canada.

We are working together to find you the best financial solutions available through SISIP Financial and our various partners.

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