The two certainties of life ...death and taxes!
Life insurance provides a "tax-free" benefit payout to your family after your death.
This death benefit can be used to pay for final expenses, outstanding debts including your mortgage and may help your family manage the costs of daily living expenses, and education tuition after you are gone.
With the Canadian household debt-to-income ratio increasing almost all Canadian’s require some form of life insurance. Questions to consider are:
- "If you died tomorrow, how would your loved ones fare financially?"
- Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyers’ fees, etc.)?
- Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc.?
- What about long-range financial goals? Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably?
The truth is, it's always a struggle when you lose someone you love. But your emotional struggles shouldn’t be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you're not there to care for them yourself.
Term life insurance offers simple and affordable life insurance protection. You get valuable coverage for a set period of time, along with plenty of options to meet your needs and budget. It provides a tax-free cash payment to your beneficiaries if you die while your coverage is in effect.
UNIVERSAL LIFE INSURANCE
With the ability to adjust your premium payments (within certain limits) to your changing needs and situation, universal life insurance is ideal for those focused on obtaining flexible coverage. And unlike term life insurance – which only offers coverage for a set period of time – universal life insurance makes sure you and your family are protected for life, provided you pay your premiums.
WHOLE LIFE INSURANCE
Whole life plans are designed to provide guaranteed lifetime financial protection, which is well suited to the needs of clients seeking financial stability and security for themselves and their families, in the event of a premature death.
Participating Whole Life
Participating whole life insurance provides insurance protection with the potential to grow money tax-free (within limits) inside your policy over time (called cash value). You can use your policy’s cash value while you are still living. As long as your premiums are paid, your coverage lasts a lifetime. Your initial basic coverage and basic cash value are guaranteed.
When you buy participating life insurance, you are also eligible to receive policyholder dividends, which can be used to buy more coverage, reduce your premium payments or taken as cash. Keep in mind that you may have to pay tax on any withdrawals.
Non-Participating Whole Life
Non-participating Whole life plans are a great solution for creating a long term insurance strategy. A fully guaranteed non-participating plan offering level coverage and guaranteed premiums payable for a specified period, after which the policy becomes fully paid.
Non-participating whole life policies, have no policyholder dividends.