Bounc3 Review: Helping Self-Employed Canadians Find The Right Insurance

Bounc3 Review: Helping Self-Employed Canadians Find The Right Insurance

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated October 26, 2021

Life insurance can provide your family with a financial cushion if you become unable to continue earning an income. But it can be a somewhat confusing and expensive endeavour, especially for those who are self-employed. 

If you’re looking for policies that are more geared towards entrepreneurs who don’t have employer-based plans to provide some backup, consider looking to Bounc3 for your life insurance needs.

Let’s take a closer look at Bounc3 to help you determine if this is the right insurance resource to use when seeking a life insurance policy. 

Who Is Bounc3?

Bounc3 is an online insurance broker that simplifies the process of finding and applying for insurance policies for Canadian self-employed individuals and business owners. The platform is designed to make it much more convenient for entrepreneurs to get the insurance coverage they need to protect themselves, their families, and their businesses.

The company was founded by Dr. Olga Morawczynski, whose goal is to improve the financial health of consumers, using technology as a vessel. Dr. Morawczynski used her experience to create a simple digital tool to help Canadians. Bounc3 serves as a simple and effective insurance platform for the self-employed who have traditionally been ignored by the financial sector.

Anyone looking for a life insurance policy may find what they’re looking for with Bounc3.

Types Of Insurance Offered By Bounc3 

Bounc3 offers 3 types of insurance plans for Canadians: Term life, critical illness, and disability insurance.

Term Life Insurance 

A life insurance policy protects your family in the event of your untimely death. Rather than leaving loved ones behind with all the bills that you were managing, life insurance will pay out a lump sum of money to help cover big bills — including mortgages — and help your family continue living the life they’re used to living.  

A term policy lasts for a finite amount of time, rather than providing lifelong coverage, and is more affordable than a whole life insurance policy.  

Who Is Term Life Insurance For?

Term life insurance is designed to provide coverage during the working years when your income is still relied on to pay the bills and while dependents may still be too young to fend for themselves financially. If you have a lot of outstanding debt and a young family who relies on you to pay the bills, a term life insurance policy may be a good idea to have.

Those who are self-employed are vulnerable to various employment risks when it comes to things like unpredictable issues with cash flow or a lack of benefits that salaried employees would normally have. In this way, a life insurance policy can offer coverage for personal risks, as well as risks for loved ones. 

Critical Illness Insurance

Unlike life insurance, a critical illness insurance policy pays out a lump sum of money when a claim is made. But rather than being paid out in the event of your premature death, a critical illness insurance plan is paid out if you’re diagnosed with a serious medical issue that renders you unable to continue working. 

While not all illnesses are covered, many of the more serious and common ones are, including heart attacks, strokes, and different types of cancer.

There are no restrictions on how the funds are used after the benefits are paid out. Recipients can use it to cover the cost of medical treatment, medication, medical equipment, or even updates made to their homes to accommodate their condition. 

Who Is Critical Illness Insurance For?

Self-employed individuals may find critical illness insurance helpful, as these benefits can prove to be essential to financial survival. In this case, the funds received from the policy’s payout can be used to cover the cost of personal expenses, such as your mortgage, groceries, utilities, bills, and childcare in the event that you can’t run your business — and therefore earn a living — due to your illness. 

Not only that, but the lump sum payout can also be used to keep your business in operation while bringing others on and training them to take over your role, or to bridge the gap between lost revenues that could occur because you’re unable to work. 

Disability Insurance

A disability insurance policy is designed to replace your income if you become disabled as a result of an injury or disease and are not able to work as a result. When a claim is made, you’ll receive a monthly payment to replace your income. Disabilities covered include mental disorders, substance abuse, cancer, and cardiovascular diseases.

Generally speaking, disability insurance policies pay out anywhere from 60% to 85% of your income for a certain length of time if you are unable to work for a temporary amount of time due to disability. You can use the monthly payouts to cover personal or business expenses.

Who Is Disability Insurance For?

Self-employed individuals who do not have at least 2 to 3 years’ worth of savings to supplement income lost due to the inability to work may want to consider a disability insurance policy. This is even more important when there are young family members involved who are still financially dependent. Certain disability insurance products are customized specifically for self-employed individuals.

Should I Have Disability Insurance If I Make EI Contributions?

Even if you make EI or CPP contributions, a disability insurance policy may still be worth considering as government programs like these have some limitations. For instance, the benefit for EI is often capped and might not be as much as you might require to cover your expenses. Plus, benefits are only paid out for up to 15 weeks. 

For CPP, there are also some limitations. For instance, you would only qualify if your disability is severe enough and prolonged long enough.   

Considering this, a disability insurance policy can fill this void, particularly if you’re self-employed since there is no employer available to cover your business expenses when you’re unable to work. 

How Does Bounc3 Work?

Applying for an insurance policy with Bounc3 is easy. Just follow these 3 simple steps:

1. Obtain A Quote.

You can get a quick quote online by browsing various policies and entering some basic information. Based on the insurance products you’re interested in and your personal information, the Bounc3 algorithm will display prices for products that best suit your needs.

2. Apply Online.

Fill out the online application, which only takes a few minutes to do, then submit it for review by a licensed insurance professional.

3. Wait For Approval.

Following application approval, your insurance policy will be sent to you. Now you’re protected.

Cost Of Insurance At Bounc3

The cost for insurance with Bounc3 will depend on the exact type of policy you’re applying for.

Term Life Insurance 

Premiums for a term life insurance policy depend on several factors, including the following:

  • Age
  • Gender
  • Current health
  • Medical history, including family history
  • Lifestyle
  • Smoking status
  • Policy coverage amount
  • Term length

Critical Illness Insurance

There are different variations of critical illness insurance policies, which influence monthly premiums. Generally speaking, the higher the coverage amount, the more expensive your premiums will be. 

Disability Insurance

A disability insurance policy typically costs anywhere from 1% to 3% of your annual income. Factors that impact the cost of this type of policy include the following:

  • Age
  • Health 
  • Occupation
  • Policy type 
  • Coverage amount 

Benefits Of Choosing Bounc3

There are plenty of perks that come with obtaining an insurance policy with Bounc3, including the following:

  • Access to quality information from brokers. When using Bounc3, you’ll have high-quality information from licensed insurance brokers to base your decisions and choices on.
  • Reputable insurance carriers. Bounc3 is affiliated with reputable Canadian insurance providers who provide suitable insurance products for self-employed Canadians.
  • Fast process. Quickly get quotes and apply online for your insurance policy of choice. 

Consider An Health Spending Account (HSA) From Bounc3

If you own a small business, Bounce3’s health spending account (HSA) could be a good option for you. An HSA offers a way for you to cover your medical expenses and your employees’ health benefits without taxation. Anyone with an incorporated business may qualify for an HSA. 

What Does A Health Spending Account Cover?

HSAs cover many health, dental, and vision expenses, such as those that aren’t covered by conventional insurance policies, including orthodontics and plastic surgery. Employers can choose the expenses to be covered by an HSA and how much of the expense will be covered.

How Does An HSA Work?

Employers or employees can submit claims either online or via a mobile app, and payouts are made within 1 or 3 business days. HSA claims are withdrawn from corporate accounts, which are registered during the application process. Before the claim amount is withdrawn, an email notification will be sent out to the employer. 

Who Is An HSA For?

HSAs are ideal for small businesses that want a cost-effective way to provide benefits to employees. They’re also suitable for self-employed people who don’t have extended health insurance or have costs that aren’t covered by conventional health insurance policies. 

Benefits Of An HSA 

HSAs offer several advantages, including the following:

  • Tax advantage. 100% of the HSA-related costs can be written off to reduce your overall tax obligations. 
  • Keep health and dental benefits costs down. HSAs offer cost certainty for businesses with employees. You’ll be aware of exactly how much you’ll have to spend on benefits every year, and if no claims are made, it won’t cost you anything.
  • Flexibility in HSA allocation. You have the flexibility to choose how often to allocate the entire HSA amount every year. 
  • Set spending limits. If you have multiple employees, you can set up different spending limits for different categories of workers. For example, your directors and long-term employees might have higher spending limits than your entry-level staff. 
  • Unused benefits. If employees don’t use the entire amount allocated to your HSA, you can either leave it as unspent to be carried over to the following year or terminate it. 

Who’s Eligible For An HSA? 

You must have an unincorporated business or sole proprietorship and must have a one arm’s length employee — someone independent of you and not related — to qualify. To apply, simply complete an online application that takes just 2 minutes to fill out with no paperwork.

Bounc3 FAQs

What’s the difference between disability and critical life insurance?

A critical illness insurance policy pays out a lump sum of money all at once — usually after 30 days — if you’re ever diagnosed with a serious condition. Disability insurance, on the other hand, pays a recurring monthly payment while you’re disabled and unable to work, or throughout a specified benefit period as stated in the policy.

What is a waiting period?

Disability insurance policies usually have a waiting period, which refers to the amount of time between when your disability starts and when your benefits begin. Waiting periods are typically 90 days, but shorter-duration options may be available for an extra cost.

Should you get both disability and critical illness insurance?

Having both critical illness and disability insurance can provide you with optimal coverage, though it will cost you more. With this combination, you’ll have a wider range of illnesses covered that could prevent you from continuing to work. 

Can I get a quote from Bounc3 quickly?

Simply select the type of insurance policy you’re looking for, enter a few pieces of information about yourself (including your name, date of birth, and email address), coverage term, and coverage amount. Then click “get a quote,” and you’ll receive a quick quote to give you an idea of how much your policy will cost you before you proceed with an application.

Final Thoughts

Having a life insurance policy in place can give you the protection you and your family need if you’re no longer able to provide financially for your family. And if you’re self-employed, the need for some form of coverage maybe even bigger, considering there’s no employer-backed policy to fall back on. While Bounc3 may have solutions for all types of scenarios, it’s particularly focused on the self-employed, making it an ideal resource for all your self-employed life insurance needs. 

Rating of 5/5 based on 1 vote.

Lisa has been working as a writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same. She's used a variety of financial tools over the years and is currently growing her money with Wealthsimple, while stashing some capital in a liquid high-interest savings account so that she always has a financial cushion to fall back on. She's also been avidly using her Aeroplan TD credit card to collect as many Aeroplan points as possible to put towards her travels!

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