Permanent Insurance
Whole Life, Universal Life or Term to age 100
This type of insurance comes in a variety of forms, but the main characteristic is to provide protection on a permanent, long term basis.
An example would be to use it for estate preservation. Many people who work hard accumulating assets, are not fully aware of the fact that taxes may seriously diminish the value of their estate, since, though upon the death of one of the spouses, assets can be transferred to the surviving spouse tax free, on the death of the surviving spouse however, all assets will be deemed by the government as disposed of, thus triggering taxes.
Also stocks, bonds, mutual funds, a cottage or vacation property could be exposed to capital gain tax.Funds in an RRSP or RRIF could be taxed at the top marginal rate of the deceased, and taxes must be paid in cash!
A good solution to this situation would be a permanent insurance policy (Whole Life, Universal Life or Term to age 100) on both lives with last to die. This could be the easiest and least expensive way to fund one’s estate.However, Permanent insurance (be it whole life or Universal Life), is not suitable to everyone.
There could be cases, that Permanent problem might exist but Term insurance (like Term to age 100) might be the only way to afford the needed amount of coverage at the time.
Term Life Insurance
Term life insurance as the name implies, is designed to provide a solution to a temporary problem during a specific number of years (term). It is well-suited to meet high, short-term protection needs for the lowest initial cost. For example, a couple with young children and a mortgage might select term life insurance as an affordable way to get the full coverage they need today.
Term life insurance coverage can do a good job of meeting immediate needs and may provide the opportunity to later move or convert to permanent life insurance without providing proof of health.
Term plans may be for a term of 5,10,20 years or 100 The price increases as appropriate for your age at renewal. Term life insurance can be used as an initial step before purchasing permanent life insurance.
Whether your life insurance needs are long or short-term, we offer the term life insurance solution for you. These solutions offer:
