To be covered under a life insurance policy you make payments that are called premiums, and in the case of the death of the insured person the life insurance company will pay a benefit to the person you choose, called a beneficiary. The policy must be in effect at the time of death, and the death benefit payment is tax-free under current Canadian law when paid to a named beneficiary that is a resident in Canada. Life insurance is usually used to insure that funeral expenses, mortgage payments, and living expenses can be met even though the insured person has passed away. However, life insurance can also be used for estate management and investment (permanent life insurance, not term life insurance).
We help Canadians to understand their life insurance needs, and also helps people to purchase the policy that exactly meets their requirements as quickly and easily as possible, at the best possible rate. There are 3 main types of life insurance. Term Life, Whole Life, and Universal Life. Each policy has is own distinct advantages. We will help you to determine the best type and amount for you.
Term life insurance is temporary insurance, which covers a person against death for a limited amount of time (the amount of time covered is called the "term"). A term might be until children are grown, or until a couple retires. Most policies have a set term in years (e.g. 10 or 20) and may be renewable for a second or third term, up to a certain age. Premiums are paid until the term ends, at which time the policy may be renewable. No benefits are received at the end of the term, regardless of whether or not any claims were made. Life insurance is primarily intended for people who have others who depend on them, and protects those dependents from financial difficulties.
Permanent life insurance is unlike term life insurance in that it is permanent, for as long as premiums are paid. There are several types of permanent insurance, however, they all include the following:
Contact us and we will be able to help you with your needs.