Term Insurance is the most economical way of protecting your loved ones during your most crucial period of life. It helps your ensure your family's future while comfortably managing basic daily living expenses like food,
shelter, rent/mortgage, children's education, etc. The period of term plan varies between 10 to 40 years, or up to a specific age and the premium remains level during that time. These policies are renewable and can also be converted to permanent plans without providing any medical evidence of insurability.
In today's world a mortgage loan is one of the biggest liabilities and the amortization period varies from 20+ years. Among the younger generation, this policies are commonly issued for a period of 30 to 40 years. Term policies are usually based on the amortization period as well as until the crucial needs are met.
Universal Life Insurance Plans are designed for maximum tax deferred cash value accumulation purposes. They are offered on level with costs of insurance as well as ART (Annual Renewable Terms). A very careful understanding of the costs and the impact of how interest rates vary is needed.
THE PURPOSE OF LIFE INSURANCE
Life insurance is protection against loss of life - which is certain, but its timing is not. People build their future based on earning power and time in hand. The benefits paid by insurance companies help individuals and households remain self-supportive despite economic loss caused by the untimely loss of life of the family's bread winner. Seeking insurance is not to avoid risks and perils associated with social life or natural causes, but rather to provide for loved ones with financial protection. The insurance contract provides the insured with peace of mind and safety from the results of loss of life, which, without insurance, would greatly deplete a family's wealth and capabilities.
Limited Pay Whole Life Plans with guaranteed cash value are designed to cover your needs for long term commitments which include final expenses, unpaid taxes, credit cards, personal loans, or medical expenses not covered by provincial health plans.
The good thing is that these premiums can be paid off within 10, 15, or 20 years. In later years needs are not as big as those during one's crucial period of life, so people usually take Whole Life Plans comparatively for smaller amounts.
Premiums, cash values, and payment periods are guaranteed and partial cash values can be used at any time to meet financial needs while the rest continues to maintain protection for your entire life.
Limited Pay Guaranteed U/L Plans are the best of both worlds with guarantees, flexibility, and extra deposit options.