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In the event of your premature death, will your loved ones remain financially independent?

It is an essential part of financial planning. The main purpose of purchasing life insurance is to ensure that your dependents are financially protected in the event of death. Life insurance is a way to plan for the future.There are many options available to you when purchasing life insurance. Some policies provide coverage for your lifetime and others provide coverage for a specific number of years. With certain policies, you are able to combine different kinds of insurance and even build up your cash value. Your choice should be based on your needs and what you can afford.


Term Life Insurance

This product is generally less expensive than whole life and covers the insured person for a limited period of time. It is a good choice for someone just entering the workforce who does not have a lot of money available for insurance.

Major Advantages

  • This type of coverage is used for specific temporary or short-term needs. It is well suited for people who anticipate their insurance needs will diminish over time. For example, term life insurance can be useful for someone who has dependents or any type of shorter term responsibility, such as a personal loan.
  • As a general rule, term life insurance coverage can be renewed at the end of each term without proof of insurability.
  • Benefits paid out upon death are nontaxable.
  • Term life insurance is sold alone or in combination with other life and health insurance products.

Main Features

  • The coverage period is usually a set number of years. The most common terms are 1, 5, 10 or 20 years. The term can also be until the insured person reaches a certain age (e.g., 60 or 65 years).
  • The insured sum is only payable should insured person dies while the policy is in effect.
  • At the time of renewal, premiums are increased according to the age of the insured person.
  • A term life insurance policy can generally be converted into a whole life policy at any time before the insured person's 65th birthday without proof of insurability.
  • It offers a number of add-on coverage options with its term life policies:
    • Disability insurance;
    • Accidental death or dismemberment coverage;
    • Accidental fracture coverage;
    • Coverage for the insured person's spouse or children;
    • Guaranteed insurability;
    • A premium waiver in the event of disability;
      And others...
Term life insurance is the most popular form of life insurance


Whole Life Insurance

Whole life insurance* meets long term needs. Generally more expensive than term life coverage, whole life insurance protects the insured person for an entire lifetime regardless of age, provided that the policy is kept up, i.e., the premiums are paid.

Major Advantages

  • This coverage offers more advantages as well as lifetime coverage regardless of the age of the insured person at the time of death.
  • Most whole life policies have fixed premiums, which makes it easier to plan your personal or family budget.
  • The surrender value of whole life insurance can be used to obtain a cash advance or cashed in by surrendering the policy.
  • Benefits paid out upon death are non-taxable.
  • Whole life insurance is sold alone or in combination with other life and health insurance products.

Main Features

  • Generally speaking, the most common type of whole life insurance is with fixed premiums, i.e., premiums that remain the same for the life of the policy.
  • It also usually features a surrender value-a cash value that is paid out to the insured person if the policy is voluntarily terminated.
  • Other types of whole life insurance have premiums that vary at certain dates over the life of the policy.
  • Whole life insurance sometimes comes with a pre-payment option, which provides for the advance payment of a sum to the insured person to pay xpenses related to a terminal illness.
  • It can also include a paid-up insurance option, which allows the insured person to stop making premium payments, but remain insured at an adjusted level of coverage.
  • A number of add-on coverage options can be added to a whole insurance policy:
    • Disability insurance;
    • Accidental death or dismemberment coverage;
    • Accidental fracture coverage;
    • Coverage for the insured person's spouse or children;
    • Guaranteed insurability;
    • A premium waiver in the event of disability;
      And others

 



Universal Life Insurance

Universal life insurance* is like a personal financial security portfolio. This is increasingly popular coverage, different from other life and health insurance products in that it offers greater flexibility and addresses a wider range of needs.

Major Advantages

  • This financial security portfolio allows the insured person to progressively build financial security according to personal priorities, finances, and family situation. For example, the insured person can adjust the amount of life, health, or mortgage insurance, or add or subtract special benefits at any time during the life of the policy.
  • With the vast selection of coverage options , insured persons can design complete portfolios of coverage for themselves and their families.
    This type of product offers great premium flexibility. It is possible to reduce or even cease premium payments, yet maintain coverage with funds accumulated in an investment account.
  • The funds in the investment account are available at any time, subject to any conditions that apply to the selected investment type, and the insured person can increase or decrease the amount invested at any time.
  • It serves as an attractive tax shelter, especially for those who have already made their maximum RRSP contributions.

Main Features

  • This combination financial product has two components:
    • A life insurance component offering a choice between term life insurance of various lengths, whole life insurance, and mortgage insurance.
    • An investment component with various investment options, including guaranteed deposits and index funds. The funds accumulate in an investment account tax-free where you can use them in various ways-as an emergency fund or additional retirement savings, or to pay all insurance premiums owing, for instance.
  • Universal life insurance offers a third and optional component:
    • A health insurance component, adding coverage for critical illness or other general health coverage.
  • This financial security portfolio is extremely flexible at the time of purchase and for the duration of the policy, giving the insured person control over premiums and the amount insured (subject to a pre-established minimum). These variables can be adjusted at any time during the life of the policy.
  • For the investment component of the policy, the maximum investment varies with each person, mainly according to the length of the policy and the amount of life insurance purchased.
  • A number of add-on coverage options can be added to a whole insurance policy:
    • Disability insurance;
    • Accidental death or dismemberment coverage;
    • Accidental fracture coverage;
    • Coverage for the insured person's spouse or children;
    • Guaranteed insurability;
    • A premium waiver in the event of disability;
      And others

 



Accident Insurance

This coverage is a valuable addition to provincial health insurance plans, or even to a group insurance plan offered by an employer.

Major Advantages

  • With lump sum payouts, insured persons can meet often sizable expenses, such as the cost of making their homes wheelchair accessible if an accident causes them to be paraplegic.
  • Considering the levels of coverage available and its affordability, this type of coverage is a great way to round out an insurance portfolio.

Main Features

  • Most accident insurance products sold individually include the following coverage:
    • Accidental fracture;
    • Dismemberment or loss of use (one or two hands, paralysis, etc.);
    • Accidental death;
    • Disability benefits.
  • Some of these types of policy can also be combined with other life and health insurance products.
  • Benefits include two components:
    • A lump sum that can vary depending on whether the claim is for accidental death, fracture, dismemberment, or loss of use.
    • The reimbursement of costs up to a certain limit if the insured person incurs certain expenses following an accident, such as hospital, paramedical, dental, or ambulance fees.

 





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