Life Insurance Canada
Human life is precious and it is always at risks of death or disability and the cause could be natural or other causes. In the event of loss to human life or temporary disability, it is the household that suffers due to loss of income. The family comes under tremendous hardship, to the extent that the family’s survival is at risk for the dependants. A risk to human life is unpredictable as death or disability to human life could happen at the least expected place. It is life insurance that can protect an individual against such contingencies.
Life insurance gives insurance on human beings. Although, on cannot value human life, a monetary sum could be determined after considering loss of income in future years. So in life insurance, the assured sum is a means of a ‘benefit’ that should be paid in the event of loss. Hence, life insurance is an agreement between the policy owner and the insurer, whereby, the insurer agrees to pay back a fixed amount of money to the dependants of the insured person in the event of death of the individual (life insured), like terminal illness or critical illness, during his active income earning period or become disabled due to an accident resulting in reduction or complete loss in his income. The insured makes an agreement to pay as insurance premium the cost for the service rendered.
There are different life insurance products available that in addition to providing protection, comes with savings. Some of the common types of life insurance are discussed below.
|In Canada, the major life insurance companies have been in operation since about 1870, selling insurance policies and paying claims.|
Life insurance protects your family from financial hardship. It can protect your business from loss of key people instrumental to the future of the business. Life insurance can create a legacy for the next generation, or your life insurance contract can be used to give a charitable donation when you are gone.
How to find the right amount of life insurance for you? A laymen’s way to determine is to have seven to ten times of your gross income as your insurance coverage. However, it is best to make a proper analysis after pinpointing the amount of capital your survivors would need in the event of your death. A life insurance need analysis takes into account your assets, the liabilities to be paid off, and covering the lost income for the future of the family.
Term Life Insurance
Life is unpredictable, that means you need protection against it. Life could bring changes in your life in different ways and it could be in the form of having a new baby, starting a new job, buying a new home or sudden loss of life. These situations influence your insurance needs.
The term life insurance policy is meant to cover risk only during the selected term period. The insurance company pays a specific amount of money to the designated beneficiary in the event of death of the insured person before the term. Term life insurance policies are usually sold for 10, 15, 30 years. The premium on this type of life insurance is comparatively lower in comparison to whole life insurance policies.
The situations that require consideration nowadays include children’s education, mortgage, car loan, credit and other debts, loss of group insurance plan as a result of job change, emergency need for home or car repairs, and sudden illness among others.
According to need, one can avail affordable term life insurance for longer duration. If you are planning to purchase term life insurance policy, make sure that you cover the following things:
- Provide financial support to your beneficiaries if you pass away
- Meet all financial obligation, including other expenses
- Taxes on your assets (investments, property, etc)
- Success to your business
- Provisions for legacy for charity
The need for Insurance policy depend on your age, marital status, income and assets, number of children, your income and assets. Term life insurance gives you a simple and economical way to protect your family.
Permanent Life Insurance
Permanent life insurance policy is an excellent choice if you want guaranteed lifelong insurance protection by keeping the policy active.
Key advantages of permanent insurance over term insurance
- There is guaranteed costs of Permanent insurance policies at the time of first purchase of the policy.
- With some permanent insurance plans, you need to pay for a limited number of years, then getting fully covered for the rest of life. In contrast, with term insurance, you need to always “pay as you go” and you have to keep paying premiums as long as the coverage.
- Permanent life insurance premiums are guaranteed for life (they don’t increase as you age, even with your change of health), or they may change depending on your selection of permanent insurance plan.
Universal Life Insurance
It is a one solution to protect and build money. Universal life insurance combines two aspects of financial planning:
- Permanent insurance coverage for lifelong peace of mind
- Investment account options that can grow your savings, tax-deferred
Universal Life Insurance is one of the most popular and flexible life insurance policies in Canada.
Whole Life Insurance
Whole life insurance offers reliable and fixed coverage for your entire lifetime. This kind of insurance is right for personal as well as business requirements, as there is reliable coverage and guaranteed cash values that increases with time.
If you are looking for a comprehensive array of quotes on Universal Life Insurance, Term Life Insurance, Permanent Life Insurance, Health Insurance and Disability Insurance in Calgary, you can contact Life Guard Insurance.