A Personal Life Insurance Policy
Advantages of Personal Life Insurance
What are the types of Personal Life Insurance policies?
There are many reasons why you should consider buying a Personal Life Insurance policy. Here are just some of them:
- Protect Your Family
If you die suddenly, your family will receive the death benefit provided by your policy. If you pass away while still owning your home, your estate will receive the full value of your home. - Pay Off Debt
You can use the proceeds from a life insurance policy to pay off debts if you die too soon. - Save Money
A Whole Life insurance policy is a good asset builder for future use as collateral for a loan or retirement. - Help Others
Your beneficiaries can use the money to help your family or relatives who need assistance if are not here to provide for them.
Term and Permanent Live Insurance
Life insurance premiums are paid by the insured individual (you) to cover any future losses if they die prematurely before their retirement age. There are two main types of life insurance: Term and Permanent Life Insurance (Whole Life or Universal Life).
What is Term Life Insurance?
The term “Life insurance” refers to a financial product that can cover some or all of the costs associated with the loss of your income-earning capacity due to death or your mortgage or other debts. Term Life Insurance is like “Renting” your coverage for a set period of time. This provides the lowest cost way to secure coverage however, the rates are only fixed for the set term. Since term insurance has the lowest initial cost per dollar of coverage, this is commonly used for young families and anyone who has significant needs for coverage but wants to keep their premiums down in the short term.
However, many people do not understand what type of coverage they need and what they should look for to give the coverage really require or are wanting.
What is Permanent Life Insurance?
Permanent Life Insurance is also called permanent life insurance, or it is called Whole Life Insurance or Universal Life Insurance. This kind of policy provides permanent protection for their lifetime and is an asset that can be used to collate a loan or used in retirement planning. The premium is fixed for the life of a policy. However, for the Universal Life Policy, the premium can vary depending on the investments of the policy. The Universal Life Policy is a mixture of life insurance and Investment that the insured can change over the life of the policy. Usually, these types of policy coverage are obtained at older ages when they have more income to invest. However, younger individuals can consider buying a permanent life or Universal Life insurance policy then their annual premium would be less and their policy would have greater value or asset value in their later years because of contributing for more years and compounding interest. The growth in value of permanent life insurance is also tax-free.
The key characteristic of Permanent Insurance is that it allows you to “Own” your coverage, providing a guaranteed asset that assures there is always benefit paid out to your dependents.
Permanent Insurance policies can include the option to accumulate cash value within the policy on a tax-sheltered basis. These can be useful tool for retirement as well as tax and estate planning.
Call Glenn Stewart Insurance Broker Now at 1-888-256-8685
A few words of advice:
Find out why you should consider buying a Personal Life Insurance policy
You might be wondering if you need a personal life insurance policy in Ontario.
Well, let’s take a look at some of the benefits of having one.
First of all, it can give you and your family peace of mind. Knowing that you’re protected financially can help you relax and enjoy life a bit more.
Secondly, a life insurance policy can provide financial security for your loved ones in the event of your death. This can give them the peace of mind and security they need to cope with the loss of a husband, wife, father, or mother.
Lastly, having a life insurance policy can help you save money on taxes.
So there are some good reasons to consider getting a personal life insurance policy in Ontario. It’s definitely worth looking into if you want to be sure that you and your family are protected financially.
Don’t delay planning for your loved ones because it is to late after you pass away. Make plans now to ensure your children are financially taken care of. Take time to review your existing life insurance coverage and determine its value. Determine how much coverage you think you will need to pay off all your debts and future living for your family, then compare that amount to your total net worth in your planning.
Most Term Life Insurance policies have a conversion privilege that allows the Insured or owner of the policy to convert their coverage to an eligible permanent Life Insurance plan with the same Insurance company. You can usually exercise this conversion before the age of 70 for most plans or 75 with others. The premiums will be based on age at the time of the conversion. The longer you wait, the higher you’ll pay for permanent life insurance premiums when you convert. The conversion is guaranteed and thus there are no medical questions asked at the time of conversion.
Why is converting a Term Life policy to a Permanent policy beneficial?
The existing Term policyholders, may not qualify for coverage and wish to purchase permanent Life Insurance. The conversion allows them to convert to permanent Life Insurance without having to apply for coverage. Your health may have changed from the time you purchased your term policy or you may have certain health conditions that do not allow you to qualify for the amount of coverage you require. The conversion option allows you to convert all your existing coverage or part of it into permanent Life Insurance. The permanent Life Insurance options can vary from a Whole Life, Universal Life or Term 100 type policy. This will all depend on the Plans available with the insurer from whom you purchased the initial Term Insurance coverage.
Please keep in mind that the longer you wait to convert your coverage, the more it’s going to cost. Your existing term may also be up for renewal and will more than likely expire at age 80 or 85. Should your term expire, you will no longer be covered. This is why the conversion privilege should be very carefully considered for those who wish to be covered for the long term. This will ensure that your final expenses and needs will be covered.
If you wish to ask about converting your Term Insurance and would like to know more, please call us Toll-Free at 1-888-256-8685 and I will be happy to assist you. Note, I cannot provide you with any recommendations without properly assessing your Insurance needs and finding out more about your circumstances.
The Insurance Companies that Glenn Stewart is contacted with are some of Canada’s most trusted financial institutions. These Canadian Insurance providers are leaders in the industry and offer a wide range of insurance and investment products:
- Assumption Life
- BMO Insurance
- Canada Life
- Canada Protection Plan
- Empire Life
- Equitable Life of Canada
- Foresters
- Humania Assurance
- Ivari
- iA Financial Group
- Manulife Financial
- RBC
- La Capital Insurance
- Sun Life Financial
- UL Mutual
Personal Life Insurance available in Kitchener, Waterloo, Guelph, Milton, Mississauga, Toronto, Elora, Elmira, Listowel, Mitchell, Stratford, New Hamburg, Brantford, Hamilton, Burlington, Fergus, Oakville, and Cambridge area.
Call Glenn Stewart Insurance Broker Now at 1-888-256-8685