Life Insurance

Term, Whole & Universal Life Insurance

These are traditional life insurance policies which is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. Typically, life insurance is chosen based on the needs and goals of the insured.

Term Life : An Insurance that covers for a specific period like 10, 20, 30 or even to age 65. This type of Insurance is known as Term Life, the premiums are set for the duration of the Term (Level Premium). After the term ends, the insured has the option to renew the policy at a higher premium which may increase every year (yearly renewable term). Most people will not renew at this time as it be too costly as compared to the original premium (when the policy was initiated). This type of insurance is excellent for protecting loans and mortgages as most people endeavor to pay of large debts (e.g. Mortgages) by this age.

Universal Life: This is similar to whole life insurance, except there is a self-directed long term investment component. Your insurer gives you options for investing the cash value of your policy so

it can be considered a way to save for retirement. If you are a savvy investor or mindful of estate planning, you may find that universal life insurance is a more appealing option. That said, universal life insurance does require more hands-on activity than other life insurance coverage options.

Term to 100: Term to 100 insurance is a whole life policy that doesn’t have a cash-out option, so it only pays upon your death (making it a little cheaper). It offers a bridge between term and whole life insurance. Plus, if you make it to 100 years, you’ll no longer be required to pay premiums and can still retain the coverage. This is great for Estate Planning as well – can be used to pay final expenses, taxes and leave money for your loved ones.

Whole Life : (also known as permanent insurance) covers you for life and there is an
investment or cash value component associated with your policy. This is also
sometimes called permanent insurance. As you pay into your policy over time, it
builds investment value. You can cash out the value of your whole life insurance policy to supplement your retirement income or help pay expenses. In some cases you can borrow against the value of a whole life insurance policy. This insurance usually has a higher premium, since you
are covered for your entire life. A variation of this is Whole Life Participating (PAR) which pays out dividends which can then be used to add additional coverage (Paid Up Additions). This type of policy can be great for Estate Planning since it doesn’t expire – death benefit is guaranteed. You also have the option to pay all premiums like 20 or 30 years after which no premiums are payable, yet the policy is in force for the rest of the insured’s Life.

Living Benefits – Critical Illness

Life Insurance can be of two types : Death Benefits and Living Benefits. Critical Illness is a Living Benefit Type of Insurance that pays out if you suffer an Illness that may be life threatening.
Critical illness can give you (Whilst You Are Living) a tax-free payment if you’re diagnosed with a serious condition. Your contract will define which conditions you’re covered for, but some examples include cancer, heart attack or stroke.
The Illustration shown is from Desjardins Insurance who cover 26 Illnesses, upon confirmation of the illness, insurance payout is made as a Lump Sum providing you meet the conditions of the policy. This type of Insurance can be combined with another coverage e.g. Term Life. It is also available for children covering additional childness illnesses. When the child becomes an Adult, the policy can be converted into an Adult Policy or the Premiums paid can be returned if no claim has been made (providing the Return Of Premium option is chosen when the policy was bought). Contact us to discuss how this can help your loved ones. We can also offer this type of Policy for Business owners who may not be able to work due to this type of Illness (can be paid by the corporation).

Term Life vs Permanent Insurance Policies

No one likes thinking or talking about their own death. However, when it come to protecting your loved ones, Life Insurance is something that you may have thought of, but not investigated further. We all want to ensure our families are financially secure at all times and, most importantly, at a time when we are not around to provide financial support. During such times, life insurance is what provides one with the comfort or assurance that their family is well taken care of upon their passing away. Term Life Policy is more cost-effective, but useful for a defined period that the risk exists (such as Mortgage Term). Typically chosen by younger people with temporary requirements (e.g. raising children, covering mortgage). A whole life or Universal (permanent) insurance policy is more expensive, provides lifelong protection. The best way to understand what is the best solution for you is to arrange a no obligation review with us at which time we will design a solution that best meets your needs and fits your lifestyle and budget.

F.A.Q.

Some of the Typical Questions Our Clients Ask Us

Why Do You Need Life Insurance?

You leave home driving or using public transport, Imagine you encounter an unexpected incident affecting your Life (Disability or even Death), your loved ones are left to deal with: 1. Loans and Mortgages that you have 2. Pay Taxes 3. Final Expenses 4. Loss of Income (that you were providing). All this can be taken care of with Life Insurance. Note: We never propagate fear  we instill good practices in Risk Mitigation  of which  Life Insurance is one of the strategies.

There is no Rush.. I can get Life Insurance When I need It..

This is one of the biggest mistake people make, the insurance rates are the cheapest when you are young. A great example is parents buying insurance for a new born baby which could be perhaps the lowest cost for that child. As you get older the cost of insurance goes up especially if an illness is diagnosed.

What if I can’t afford Life Insurance

Great question, we conduct a free review (suggest every person over the age of 18 years who is of “sound mind”) to ascertain the best strategy that the person can afford. We always suggest minimum amounts to fit your budget.

I am looking for the Cheapest Insurance Company

We work with most companies, most important is understanding the features of the product. We can provide price comparison from the leading Insurance Companies.

Why should I do Business With You?

My goal is 1.  Build a Relationship so I am your preferred Insurance Broker 2.  Educate to mitigate your risk 3. Periodically review your risk (Life Changes) 4. Provide the support you need.