Life insurance is the most cost effective way to manage the inevitable
and unpredictable risk of dying and leaving behind debts, and your
dependants without financial support.
Click here to check your health style before applying for Life
Insurance or take the online Check-up.
Click here to calculate your insurance needs.
Although you might have heard hundreds of fancy names of Life
Insurances offered by more than 105 life insurance companies in
Canada you must know that basically there are only two types of Life
Insurance - Term and Permanent (Whole Life). The third type,
called Universal Life Insurance, is a combination of Term Insurance
and Investment and must be used primarily for tax reduction and tax
deferral strategies.
As the name suggests, Term Life Insurance provides protection for a
limited period of time, usually 5, 10 or 20 years. As the premium
payable by the insured for this protection simply covers the cost of the
insurance (the risk of dying, or the so called mortality risk, plus the
administrative expenses of the insurer), there is no accumulation of
funds. When the insurance expires, at the end of the covered period,
the insured loses his protection and no money is paid back to him. If
the Term Insurance is renewable for another period (10 or 20 years)
the premium is increased based on a predetermined schedule. In any
case, at the age of 75, 80 or 85, depending on the plan, the
insurance expires. It is obvious that, although we all are going to die
one day, the risk of the insured dying during the term of the insurance
is significantly less. The predetermined expiry date and the
contractual future increases of the premium make this type of
insurance inadequate for permanent life protection. At the same time,
these are the reasons why this insurance is very affordable at the
time of purchase. Term Insurance must be used to cover temporary
insurance needs - debt with determined repayment schedule
(business debt, mortgage, lease), or as a temporary solution for
young couples with very limited budget.
There are a lot of people who shop around for insurance. That is why
there are so many companies providing tools for online insurance
quotes. I would strongly recommend against the use of such an
approach when it comes to choosing the right insurance
protection. Always use the services of a licensed and
knowledgeable specialist (life insurance agent, financial
advisor or financial planner). Their services are free, by law, in this
respect. Your chances to pick the right amount of coverage, the best
insurance for your circumstances, from the right insurance company
are better than winning the lottery, but not by far. You would never buy
a home or a car, without even seeing them, and by only comparing
their prices, would you? Why people are using this kind of
irresponsible approach when it comes to their financial security and
the financial security of their family is beyond me.
The second type of Life Insurance is the Whole Life Insurance. It
provides protection for as long as the life insured lives. All the
parameters of the insurance - the benefit amount, the premium, the
premium payment period, the accumulated funds in the policy (or part
of them) are fixed in the insurance contract, guaranteed never to
change. This is the best type of insurance protection and the most
expensive as it comes to the size of the premium compared to other
types of insurance at the time of purchase. Although, if you
compare the total amount of premiums that you will pay during your
lifetime, this is the least expensive insurance.
Ask for appointment with me to help you calculate your insurance
needs and to advise you about the best protection for you and your
family.
and unpredictable risk of dying and leaving behind debts, and your
dependants without financial support.
Click here to check your health style before applying for Life
Insurance or take the online Check-up.
Click here to calculate your insurance needs.
Although you might have heard hundreds of fancy names of Life
Insurances offered by more than 105 life insurance companies in
Canada you must know that basically there are only two types of Life
Insurance - Term and Permanent (Whole Life). The third type,
called Universal Life Insurance, is a combination of Term Insurance
and Investment and must be used primarily for tax reduction and tax
deferral strategies.
As the name suggests, Term Life Insurance provides protection for a
limited period of time, usually 5, 10 or 20 years. As the premium
payable by the insured for this protection simply covers the cost of the
insurance (the risk of dying, or the so called mortality risk, plus the
administrative expenses of the insurer), there is no accumulation of
funds. When the insurance expires, at the end of the covered period,
the insured loses his protection and no money is paid back to him. If
the Term Insurance is renewable for another period (10 or 20 years)
the premium is increased based on a predetermined schedule. In any
case, at the age of 75, 80 or 85, depending on the plan, the
insurance expires. It is obvious that, although we all are going to die
one day, the risk of the insured dying during the term of the insurance
is significantly less. The predetermined expiry date and the
contractual future increases of the premium make this type of
insurance inadequate for permanent life protection. At the same time,
these are the reasons why this insurance is very affordable at the
time of purchase. Term Insurance must be used to cover temporary
insurance needs - debt with determined repayment schedule
(business debt, mortgage, lease), or as a temporary solution for
young couples with very limited budget.
There are a lot of people who shop around for insurance. That is why
there are so many companies providing tools for online insurance
quotes. I would strongly recommend against the use of such an
approach when it comes to choosing the right insurance
protection. Always use the services of a licensed and
knowledgeable specialist (life insurance agent, financial
advisor or financial planner). Their services are free, by law, in this
respect. Your chances to pick the right amount of coverage, the best
insurance for your circumstances, from the right insurance company
are better than winning the lottery, but not by far. You would never buy
a home or a car, without even seeing them, and by only comparing
their prices, would you? Why people are using this kind of
irresponsible approach when it comes to their financial security and
the financial security of their family is beyond me.
The second type of Life Insurance is the Whole Life Insurance. It
provides protection for as long as the life insured lives. All the
parameters of the insurance - the benefit amount, the premium, the
premium payment period, the accumulated funds in the policy (or part
of them) are fixed in the insurance contract, guaranteed never to
change. This is the best type of insurance protection and the most
expensive as it comes to the size of the premium compared to other
types of insurance at the time of purchase. Although, if you
compare the total amount of premiums that you will pay during your
lifetime, this is the least expensive insurance.
Ask for appointment with me to help you calculate your insurance
needs and to advise you about the best protection for you and your
family.
Life
Insurance
Insurance
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| Always ask for the best! My recommendations are based on plans offered by the Top 5 Insurance Companies in Canada. |