Life insurance will provide financial protection for loved ones if the insured person passes away. In addition, life insurance can provide tax-advantaged benefits that should be considered as an important part of an overall financial plan.
There are various types of life insurance plans that are offered by insurance companies enabling every individual to find the right product based on their unique circumstances, financial goals and plans. Insurance companies usually make an objective assessment of health and other conditions of the applicant before issuing the insurance policy, ensuring that the associated risks are properly evaluated and premiums are accurately calculated.
Generally, there are two types of life insurance plans, term and permanent. Term insurance plans provide guaranteed coverage during the term of the contract, for example, 10 years. During the term, the premiums are also guaranteed and will not increase. Term insurance plans can usually be converted to permanent plans, up to certain time or age, and are renewable for additional terms, without providing insurability evidence, such as health and financial requirements.
Permanent insurance plans provide coverage for the entire life of the insured person. When the insured person passes away their beneficiaries will receive the death benefit, providing that regular and adequate premium payments have been made. Permanent insurance plans could include attractive investment options that would enhance the savings substantially, usually on tax-advantaged bases. Permanent life insurance plans play important roles in estate planning and tax optimizing strategies.
Please contact us for a complimentary meeting to find out what life insurance plans work best for you.
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