Types of Life Insurance
Life insurance may be divided into two basic classes – temporary (term) and permanent (Whole Life and Universal Life).
Temporary (Term)
- Term Life Insurance is primarily for persons seeking coverage for a limited period. (young adults, young couples or young families for example).
- Persons wishing to meet their need for insurance despite budget constraints.
- Owners of small and medium-sized businesses (for example, to obtain coverage in case of the loss of a key employee)
Most term-insurance policies have the following features:
- Your sum insured and premiums are guaranteed for the term of your insurance
- Your premiums are determined on the basis of the amount chosen to be insured, the general condition of your health and lifestyle
- Several options are avaialbe o Renewable and convertible term coverage for term such as 10, 20 or 100 years.
- You may insure multiple persons under the same contract
Whole Life Insurance
Whole Life Insurance is suited to the needs of people who are seeking financial stability and security for their loved ones in the event of a premature death.
Who Should Consider Permanent Life Insurance?
- Persons wishing to ensure the financial security of their loved ones in the event of death.
- Persons seeking a simple, flexible and affordable product.
Common features and advantages of whole life Insurance
- Four permanent options are available:
- L10, lifetime coverage with premium payments for 10 years;
- L20, lifetime coverage with premium payments for 20 years;
- L65, lifetime coverage with premium payments up to the age of 65;
- L100, lifetime coverage with premium payments up the age of 100.
- Your sum insurance and premiums are guaranteed for the term of your insurance.
- You enjoy guaranteed cash surrender values
- Your premiums are determined according to the sum insured chosen and the general state of your health
- You may insure multiple persons under the same contract.
Universal Life Coverage
With universal life insurance, you can insure the financial security of you and your loved ones through one and the same contract and at the same time accumulate additional tax-sheltered amount.
Who Should Consider Universal Life Insurance?
- Individuals or families seeking financial security and wishing to accumulate additional funds (for example, to carry out retirement plans)
- Young dual-income professional couples that can pay the insurance premium more quickly.
- Persons with a higher than average income who are looking for a tax-sheltered savings vehicle other than a registered retirement savings plan (RRSP).
- Business people, to finance a shareholders agreement or insure a key employee
Features and Advantages of Universal Life
- You obtain affordable permanent life-insurance protection combined with an attractive tax-sheltered savings account.
- You can choose and modify the amount of insurance, the cost options, the payment frequency, and the premium amount in accordance with your needs.
- You can diversify your savings though a range of investment options.
- You have the opportunity to make partial withdrawals to carry out your projects.
- You may insure multiple persons under the same contract
Investment Options
You have the opportunity to maximize the growth of your tax-sheltered savings through a full range of investment options offering competitive returns.
