Life Insurance and Living Benefits

In our last blog (Term Insurance Defined) we talked about the basics of 10 and 20 year term insurance. This blog will cover the basics of Whole Life Insurance . Sometimes the need for insurance reaches far beyond the need for insurance which arises when you want to cover the payment of a bank loan, or a mortgage. In some cases the need for insurance is permanent. In other words, your need for coverage will last your entire life.   As such, an insurance solution would involve a “permanent” insurance product where the premium is affordable over a long period of time. Permanent needs are often considered to be things like: Funds to pay income tax, which are triggered at death. To pay the capital gain on a family cottage at death. Sometimes cash is needed at death to even the distribution of asset payments to the family where otherwise selling property or a business might decrease its value A permanent policy may help fund a charitable gift which would in turn decr...

Term Insurance Defined: When buying life insurance a person will want to consider various factors about their financial needs and about why they want insurance in the first place.  What do you want to protect?  What is an affordable premium?  Are my needs flexible?  What is the ideal amount of coverage? Do I only require temporary protection?   By asking these questions, the type of policy that will fit your need becomes apparent. While there are many types of policies today, we will explore “Term” insurance. How substantial you policy should be is also determined by things like mortgages and how complex needs become. Small business owners, for example, may want a fixed rate payment to help with budgeting; where a young family may use coverage as an aid in paying tuition. To begin with, “term” insurance refers to a life insurance policy where the premium is locked in for a specific number of years. The term is the number of years . For ...