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 risk before applying for Life
Insurance and 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.

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*Only 13 active Life Insurance Companies are left in Canada as of October
2013
Life
Insurance
Always Ask for the Best!