You know you need life insurance, but what type? Comparing the main kinds of life insurance can help you make the choice that’s best for you.
Picture this: You and your spouse have just bought your first home together, a condo featuring 2 bedrooms, 1½ baths and a mortgage that makes your eyes water. Or this: You and your best friend have both plunged all your savings into a new business, and you’re working 18-hour days to get it off the ground. Or this: You hadn’t exactly planned it for right now, but you and your partner are expecting a baby in 6 months. What’s the common thread here, besides excitement, joy and more than a little trepidation? It’s responsibility: Someone else — your spouse, your partner, your child — is depending on you for their financial survival.
Buying a home? Consider life insurance call now 416-283 8899.
Why do you need life insurance?
With that great responsibility comes great power: the power to safeguard the people who depend on you, with life insurance. In simple terms, life insurance helps to protect the financial security of the people you love by paying them a tax-free cash benefit when you die. Although you won’t be around to reap the benefits, it’s up to you to make sure you have not only enough insurance, but also the right type of insurance, to adequately protect everyone who’s depending on you.
What type of life insurance is best for me?
There’s no “one-size-fits-all” type of life insurance. The kind your parents have, or that your brother-in-law just bought, may not be the best kind for you. You need to look at your personal needs and current situation, the stage of life you’re at, and what you can afford. (The cost of life insurance can vary based on your age, sex, health, lifestyle and medical history.) And the best solution could even be more than one type.
How to choose the right type of life insurance call now 416-283 8899.
Compare the 4 main types of life insurance — term, permanent, participating and universal (the last 2 of which are actually forms of permanent life insurance):
Term life insurance:
What do you get? Term life insurance gives you temporary, renewable and flexible protection from the financial impact of your death, for those who depend on you. You’ll also have the flexibility to convert to permanent, participating, or universal life insurance in the future.
When does it pay? If you die before expiry.
How does it pay? Your beneficiaries receive a tax-free cash payment.
How do you pay for it? It tends to be a less costly option. The cost won’t increase for the length of the term, but will increase if you renew your coverage at the end of the term.
Who is term life insurance for? Term life insurance is for you if:
About term life insurance call now 416-283 8899.
Permanent life insurance:
What do you get? Permanent life insurance gives you lifelong protection from the financial impact of your death. There’s an opportunity for tax-preferred cash value growth.
When does it pay? Whenever you die, with no time limit.
How does it pay? Your beneficiaries receive a tax-free cash payment.
How do you pay for it? Costs are guaranteed for life when you first purchase the policy. Some plans allow you to pay for a guaranteed number of years, and then never again.
Who is permanent life insurance for? Permanent life insurance is for you if:
About permanent life insurance call now 416-283 8899.
What do you get? Participating life insurance gives you guaranteed lifetime protection. You get the opportunity for tax-preferred cash value and death benefit growth. Policies are eligible to receive dividends, which you can use to increase your coverage or reduce your premiums, leave on deposit to earn interest, or take as cash.
When does it pay? Whenever you die, with no time limit.
How does it pay? Your beneficiaries receive a tax-free cash payment.
How do you pay for it? Costs are guaranteed for life when you first purchase the policy. Some plans allow you to pay for a guaranteed number of years, and then never again.
Who is participating life insurance for? Participating life insurance is for you if:
About participating life insurance call now 416-283 8899.
What do you get? Universal life insurance gives you guaranteed lifetime protection combined with tax-preferred investment options. You get the opportunity for tax-preferred cash value and death benefit growth.
When does it pay? Whenever you die, with no time limit.
How does it pay? Your beneficiaries receive a tax-free cash payment.
How do you pay for it? You choose how much you want to pay, as long as it’s enough to keep the policy in force. Any amount over and above the cost of insurance is deposited into a tax-preferred account invested based on the options you select.
Who is universal life insurance for? Universal life insurance is for you if:
About universal life insurance call now 416-283 8899.
Insuring your life is one of the wisest and most unselfish moves you can make. For help understanding all the implications when considering your options, talk to a Goldmax Advisor at 416-283-8899.