Life insurance is more than insurance, it is an investment in your family’s security. In life, anything can happen, and that is why it is essential to ensure that no matter what, your family will be taken care of. Life insurance allows you to have peace of mind in the sense that no matter what happens to you, your family will be financially supported.
In the event of death, life insurance guarantees your beneficiaries a large sum of money that can be used in any manner they see fit. This can include paying the expensive costs of any medical bills, outstanding debt, or even just supplementing lost income. Life insurance frees your family from the avoidable burdens that death can bring and ensures that they have a level of financial security during what will be a tremendously difficult time.
Generally, there are a two categories of life insurance policies: Term life insurance and
Permanent life insurance. Permanent further includes whole life insurance or universal life insurance. Each is specifically designed to satisfy your specific needs and ensures that your family receives the most benefits.
Term Life Insurance: Are policies that lock in a specific monthly premium that will remain unchanged for the predetermined term, like a rental agreement for a house. Term insurance premium payments are guaranteed for a given period, usually 10, 20, 25, 30 or until age 65 years, depending on the selected plan. Some insurance companies even allow to convert term to permanent without a medical questionnaire.
For example, if as a young and healthy female adult you secure a $500,000 life insurance coverage, this premium will remain unchanged regardless of changing circumstances including age and overall health for the entire period. Price Examples:
Term 10- $500,000 coverage – 30 years old female Nonsmoker healthy $18.45 per month
Term 20- $500,000 coverage – 30 years old female Nonsmoker healthy $22.95 per month
Term 25- $500,000 coverage – 30 years old female Nonsmoker healthy $30,15 per month
Term 30- $500,000 coverage – 30 years old female Nonsmoker healthy $34.65 per month
Term 65- $500,000 coverage – 30 years old female Nonsmoker healthy $40.22 per month
(Prices are subject to change.)
*couples discount is available with some companies
Whole Life Insurance: Is a plan that is designed to protect your family for life. Although the premiums are higher than those with term life insurance, they are locked and never increased, they also guarantee a much larger payout. The higher the investment, the larger the payout. This policy also can be designed to pay you dividends in differing forms including but not limited to decreased payments or even cash payouts. With this permanent insurance plan, you build equity over time similar to purchasing a house. The cash value of the policy may be accessible as withdrawal policy loan or policy surrender and then may be subject to taxation.
Universal Life Insurance: Is more flexible and affordable alternative for permanent life insurance. This means that as your needs change, so can your insurance plan. Meaning, premium amounts and frequencies can change. This gives you the freedom to change what you pay depending on what you need, making Universal Life Insurance a highly sought-after investment as well as tax sheltered growth or just a flexible life insurance policy.
Non-Medical Life Insurance
Most, not all policies require an examination. Canadians who qualify for no medical exam insurance will get coverage with no physical examination. There is large selection of no medical life insurance plans to choose from, with high coverage and competitive prices regardless of your medical condition.
The following situations will be ideal for non-medical policy:
• Anyone wishing to insure themselves to protect their estate and investment against taxes.
• Individuals that were declined by other insurance companies.
• People with health problems, overweight, or chronic health problems.