Affordable
Life Insurance For Canadians
Life
insurance protects the financial security of the people you love by
paying a tax-free cash benefit to your beneficiaries. The amount of
coverage you choose and type of insurance you buy should be based on
your circumstances and needs.
While you
may have basic
life insurance through work, the coverage may not meet your needs and
typically ends when you leave your employer. The cost of individually
purchased life insurance depends on your age, gender, health, medical
history and lifestyle.
Life
Insurance May Be Divided Into Two Basic Categories
- Temporary
life insurance - Otherwise known as “Term" Insurance
- Permanent
life insurance - Otherwise known as “Whole Life and Universal
Life” Insurance.
Term Life Insurance
Term life
insurance is
designed to provide financial protection for a specific period of time,
such as 10 or 20 years. With traditional term insurance, the premium
payment amount stays the same for the coverage period you select or
usually will increase every 10 years. Term life insurance is generally
less expensive than permanent life insurance. Premiums with increase
significantly as you your age increases. This type of life insurance
coverage provides a nice safety net for your beneficiaries and will
ensure the family is financially protected.
Whole Life Insurance
Whole life
insurance is
a type of permanent life insurance designed to provide lifetime
coverage. Because of the lifetime coverage period, whole life usually
has higher premium payments than term life. Policy premium payments are
typically fixed, and, unlike term, whole life has a cash value, which
functions as a savings component and may accumulate tax-deferred over
time. Whole life can be used as an estate planning tool to help
preserve the wealth you plan to transfer to your beneficiaries.
Universal
Life Insurance
Universal
life insurance
is a type of permanent life insurance designed to provide lifetime
coverage. Unlike whole life insurance, universal life insurance
policies are flexible and may allow you to raise or lower your premium
payment or coverage amounts throughout your lifetime. Additionally, due
to its lifetime coverage, universal life typically has higher premium
payments than term. Universal life insurance is most often used as part
of a flexible estate planning strategy to help preserve wealth to be
transferred to beneficiaries.
How Are
Life Assurance Premiums
Determined
Insurers
use rate
classes, or risk-related categories, to determine your premium
payments. Your rate class is determined by a number of factors,
including overall health, family medical history and your lifestyle
choices.
When
determining the
amount of life insurance to purchase, one must first decide what the
life insurance policy needs to accomplish. Are you a parent and wish to
have a security blanket if your partner passes unexpectedly, How long
do you want to be able to spend with your children free of financial
pressure? For example, a young couple with children may need enough
insurance to pay off the mortgage, pay for child care or take time off
work till the child is self sufficient and to cover college expenses.
Maybe you are a senior with no dependents and only want enough coverage
to pay funeral costs.
How much is
this peace
of mind worth to you? These are the factors to consider when deciding
whether to acquire life insurance. We are here to help you understand
your options, and make an informed decision.

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