Life insurance is often considered the cornerstone of sound financial planning. Permanent loss of income due to death can leave behind a huge financial burden to one’s children or spouse, who must face continuing expenses such as a mortgage with the loss of a major income. Most families are unable to continue the quality of life they previously enjoyed without additional financial support. For individuals with dependents, life insurance is a critical tool to ensure that your spouse, children or other loved ones can continue to enjoy the quality of life they deserve.
Apart from income replacement, life insurance is also an important tool for building guaranteed savings throughout one’s lifetime, especially for those who are young or without any dependents. It is one of the few places one may invest in with guaranteed returns, without the burden of taxes. Returns from life insurance investments can also generate a substantial retirement income. Either way, life insurance is one of the most important investments you will make in your life, and that of your family’s.
Term Life Insurance
Term insurance is the simplest and most affordable version of life insurance. It provides sufficient coverage for an individual to cover his or her liabilities, which can be renewed at the end of each term. The insured’s beneficiary is paid if death occurs while the insurance is in effect. This is the most affordable form of life insurance for new immigrants or low-income families.
There are several types of term insurance you may consider:
You may renew your plan for another term (between 5 to 40 years), once the current term is completed, with subsequent premium change at each renewal. You may continue renewal of coverage up to 85 years of age.
- Convertible Term Insurance
You may convert your plan into a permanent or Whole Life plan anytime within the designated period if desired. With this insurance, the client is not required to perform the medical check again, making the conversion seamless.
- Level Term Insurance (or 100-year term)
You remain covered up to 100 years of age, without any change in premium. This is an attractive option for those who would like a simple plan that covers them for life, without the extra benefits of investments.
Permanent Insurance
Whole life, or permanent insurance, provides a means of full coverage throughout a client`s life, along with an investment component that can generate additional liquid money. Unlike Term insurance, permanent plans can be paid up after a certain time and the insured remains covered for life thereafter, without any more premiums. Investing through a life insurance plan is especially attractive for the following reasons:
- Tax laws favour family financial planning, so smart investors can earn excellent returns by taking advantage of tax-free growth through permanent plans.
- Unlike car or home insurance, permanent life insurance accumulates value and builds wealth over time. The insured not only receives coverage for life, he or she can use the investment as part of a retirement planning portfolio or for long-term savings and wealth building, without the burden of taxes.
There are two major types of whole life or permanent life insurance you may consider:
This is the best choice for those who are seeking a simple and flexible plan, and are not likely to change their investment options frequently. Premiums remain the same until the plan is paid up, after which the insured is covered for life.
- Premiums may be paid up after 10 years, 20 years, up to the age of 65, or up to the age of 100 years, after which no more premiums are required for lifetime coverage
- The total coverage and premiums are guaranteed and will never change
- Children between 0 and 14 years of age may submit a non-smoker’s declaration when they are between 15 to 20 years of age, for a 40% increase in their total coverage
- Up to nine persons may be insured under the same contract
This is an ideal option for individuals or families with a higher-than-average income who are seeking financial security with additional funds (to carry out retirement plans, for example). It is also a great choice for business people, to finance a shareholder`s agreement or insure a central employee.
- Premiums may be paid up after 10 years, 20 years, up to the age of 65, or up to the age of 100 years, after which the insured remains covered for life
- You may add additional savings to generate greater returns, and can maximize savings through a range of investment options
- You can modify your amount of coverage, cost options, frequency of payment, and the premiums as per your needs
- You enjoy a premium reduction based on the state of your health, lifestyle, and family history
- If you are unable to make payments temporarily, you may obtain a premium holiday
- Withdrawals may be made from the amounts accumulated in your investment options at any time
- Up to nine persons may be insured under the same contract
Click here to contact us or receive a free life insurance quote |
