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Things to Consider When Purchasing Super Visa Insurance

If you are a parent or a grandparent of a Canadian citizen or permanent resident and you would like to visit your family in Canada, one way to do it is to receive a super visa. One of conditions for obtaining a super visa is the availability of medical insurance that is called super visa insurance. Applicants for this type of insurance should be Canadian citizens or permanent residents. Insurance is necessary to provide visitors with medical assistance in the emergency cases. There are many insurance companies that offer different policies, but are all of them provide a perfect solution for your needs? Some people, when buying super visa insurance, pay the most attention to rates. Yes, the price factor is undoubtedly important, but there are many other things you need to consider.

There are some basic requirements for super visa insurance:

  • it must be obtained in Canada;
  • its validity period must be at least 1 year;
  • the coverage must not less than $100 000.

Why Purchase Insurance in Canada?

There are basically two types of insurance. The one that is purchased in Canada is called Visitors to Canada, whereas insurance for Canada, bought in any other country, is called Travel Insurance. The latter can be cheaper, but it only acts as an addition to the basic state insurance of a country where the visa applicant resides. After leaving the homeland, an applicant may lose the right to obtain insurance in his/her home country, which leads to losing travel insurance as well.

Another important point: if an insurance event occurs you can call a Canadian insurance company and it provides an address of the closest clinic or hospital. When you get to such a medical institution it should already receive an application with your name so many formalities for filling out the papers will be solved easier for you.

Insurance Rates

Super visa insurance of 100,000 Canadian dollars is the minimum required amount of coverage. You can buy insurance for larger amounts: $150,000, $200,000, etc. In order to determine how much to invest in the purchase, you should carefully study the list of illnesses and diseases covered by insurance. It is better to pay more for coverage than in case of illness find out that it is not an insurance event and you will have to pay for medical care out of your pocket. The difference in the price of insurance plans with a coverage of $100 000 and $150 000 is not too big. Therefore, it makes sense to choose insurance with better coverage, providing yourself or your family with a full-fledged medical care. You can even get super visa insurance plans that include coverage of exacerbation of chronic diseases (in this case you need to look for an emergency medical insurance plan for pre-existing conditions).

As a rule, the price for insurance policy correlates with the age of an applicant. For instance, the cost of insurance coverage of $100 000 for 50 and 75-years-old applicants may differ by $ 1000.

You should also keep in mind that rates for super visa insurance may vary in different provinces. In Quebec, New Brunswick, Yukon, Northern Territories, and Nunavut prices may be higher as there are fewer insurance companies on the market. To get acquainted with the policy rates you can request super visa insurance quotes.

Deductible Fees

When purchasing insurance, many people do not pay enough attention to such an important aspect as deductible amount. This amount can vary from $0 to $1000. What does this mean? If a hospital charges for its services more than a deductable amount, then an insurance company pays only the difference between the amount in a bill and a deductable amount. If the cost of treatment is less than a deductable amount, then it is fully paid by a patient. For example, if medical travel insurance has $1000 as deductible amount, you have to pay all expenses up to $1000 for each new visit to a doctor. As a rule, insurance policies with higher deductible amounts are less expensive.

Some insurance companies offer deductibles per claim, while others – per period. What is the difference? In the first case, each time you visit a doctor, you pay a deductible amount from your pocket, and in the second case, you pay only the first time.

How Many Insurance Policies to Buy

If two members of your family enter Canada with super visa, then the insurance policies for them should be separate. What is it for? If a person decides to leave the country ahead of schedule without using insurance, a certain amount will be returned to this person. If the insurance is issued for two people and one of the parents applies for medical assistance in Canada, even in case of the early return home no refunds will be available. Besides, the travelers who have one insurance policy will have to return to the homeland together.

Cancellation and Renewal of Super Visa Insurance Policies

If a trip to Canada is canceled after you receive a super visa, you can cancel insurance or change its period. When entering Canada, super visa insurance must be valid. If the visa is denied, then the amount you paid for insurance may be returned without fees.

The super visa insurance policy is canceled in two cases:

  • when a person returns home;
  • when a person acquires provincial medical coverage.

After the early departure of a person from Canada and the cancellation of super visa travel insurance, a certain amount of money can be returned. To do this, you will need to provide a passport with the appropriate stamps and a ticket. A necessary condition for the return of the unused insurance cost is an absence of claims for the insurance events.

If you are going to renew insurance after the expiry of the insurance period, it must be done at least 48 hours beforehand and the important condition of renewal will be an absence of applications for medical assistance.

Super visa medical insurance is valid throughout Canada, so you can safely move from one province to another. In this case, you need to inform your insurance company about the change of address. If a person changes location within the same province, then the new address is reported only in case of insurance event.


4 Trade Finance Tools to Consider When Engaging in International Trade

Trade Finance Tools for International Trade
Businesses engaging in international trade are well-acquainted with the added financial risks of importing or exporting goods and services from other countries.

From the increased pressure of the global supply chain to fluctuating currencies to the difficulty of figuring out the creditworthiness of a foreign partner – the trade industry involves a lot of risks. Good thing trade finance offers several ways to mitigate these risks.

Here are four of the most common forms of trade finance tools to choose from if you want to engage in international trade and manage your business risks accordingly.

1. Letter of Credit

A letter of credit can serve importers and exporters in various ways. This is a guarantee of payment by the bank of the importer to the exporter. The guarantee depends on the exporter meeting all the terms and conditions mentioned in the letter of credit.

Oftentimes, the conditions will require the exporter to provide some documents like a bill of lading. This document serves as a proof that the right products were delivered, or that the correct services were performed.

A letter of credit is an invaluable tool if you export goods and services to foreign customers, especially in determining the creditworthiness of such clients, and their ability to pay you on time.

Due to the fact that a letter of credit is provided by a financial institution that is local to the importer, such a bank is in a better position to figure out if the importer is creditworthy. Typically, there is no question about the bank’s ability to pay.

It is a good idea for you to require an importer to get the right type of letter of credit each time you are working with new trade partners. This can be obtained for ongoing trade deals or for single transactions.

2. Accounts Receivable Factoring

Accounts receivable factoring is among the most common trade finance options your business can use. This is otherwise known as invoice factoring and debt factoring. This is a short-term asset-based financing available to B2G and B2B businesses.

Accounts receivable factoring involves selling an invoice that will be due at a later time (usually in 30, 60 or 90 days) to a factoring company that pays you a certain percentage of that invoice in advance. If the customer pays the invoice, the remaining balance of the invoice less the factor rate will be given to you by the factoring company.

Invoice factoring is an excellent form of trade finance since it will solve two common problems experienced by exporters – competitiveness and cash flow. It allows you to give more generous credit terms to your customers since you can turn an invoice into cash immediately. Also, it helps you pay for the costs related to producing and delivering your services or products. You don’t have to wait for months for your clients to pay the bill.

3. Forfaiting

Forfaiting is a trade finance form that is quite the same with invoice factoring. It allows your exporting business to sell your account receivables at a discount in exchange for cash. The only difference is that forfaiting is a non-recourse financing option for medium-term receivables instead of short-term receivables.

Forfaiting reduces the risk of non-payment by foreign customers whilst giving you a solution to near-term cash flow concerns. It turns a credit-based transaction into a cash deal. Aside from guaranteeing your customer’s creditworthiness, forfaiting also pays a medium or long-term contract instantly, thereby improving your cash flow.

4. Open Account

Open account is a convenient payment method in an international transaction, allowing you to get the most of import and export finance without the need for a documentary credit.

This arrangement can be satisfactory when the buyer is creditworthy, well-established or has demonstrated an excellent payment record. It allows you to bill your customer who will pay the agreed terms on a specific date. But before issuing a pro forma invoice to the buyer, you need to examine the political, commercial, and economic risks involved.

If you want to engage in international trade, it is crucial for you to familiarize yourself with the different trade finance solutions you can use.

From accounts receivables factoring to letters of credit and forfaiting to open account terms, there are a lot of tools available for businesses dealing with foreign customers. These trade finance options will help ensure that you get the full payment of your products and services on time. They also balance out the risks and make cash more readily available.