There are 4 main types of life insurance plans in the market –
see below for a detailed description of each life insurance plans.
- Term Life Insurance
- Level Term to Age 100
- Whole Life Par and Non Par
- Universal Life
Trying to determine which life insurance plan is the right fit for you.
A good starting point is to determine how long you need the life insurance protection.
Term Life Insurance
A timeless classic. Perfect for meeting short term obligations, or a need for a very large amount of insurance, or for specific or limited budgets.
Premiums are fixed and guaranteed for the term period. A choice of 10 year, 20 year or 30 year durations.
Look for plans that are guaranteed renewable and convertible to permanent insurance.
There are no cash values.
Term to 100
Durable. Hardworking. Uncomplicated low cost solution to long term needs. Excellent when the need for life insurance is permanent and your budget is limited.
Look for plans where the premiums remain level, fixed and are guaranteed for the life of the policy.
There are no cash values.
Universal Life
A sophisticated form of permament life insurance. A blend between term life insurance and investments in investment fund type or GIC type of accounts.
Growth in your investment is tax sheltered until withdrawn from the plan, providing you with more investment value than non sheltered investments.
Easy and quick access to your investment cash values.
You set your premium/investment level (within the minimums and maximums).
You choose and manage your investments from a large selection of professionally managed funds.
Your investment values become non-taxable to your heirs, upon your death, in addition to your basic amount of life insurance. Making this an excellent vehicle to transfer wealth to your loved ones and the next generation.
This is a more complicated type of permanent life insurance. You should seek the advice of a professional when determining whether it is right for you.
Whole Life – Par or Non Par (Participating)
A tried and true classic. Enduring. The plan that stands the test of time. The solution when your need for insurance is permanent and you would like a hands off approach to managing your insurance, with the unique advantages of special built-in features.
The insurance company manages the insurance and the cash values for you.
Premiums are set at the time of inception and are fixed. Cash values build up providing you with special features and benefits unique to par insurance.
Cash values grow on a tax sheltered basis until withdrawn.
All amounts paid to your heirs upon death are non taxable.
This is a more complicated type of permanent life insurance. You should seek the advice of a professional when determining whether it is right for you.
If you would like more information about what life insurance is right for you, just call or email me. It would be a pleasure to be of service.