Life insurance has been sold as a commodity in Canada for over a century now and almost everyone has heard about life insurance and has developed an opinion about it. However, public stereotypes, uniformed agents and media hype have worked to conceal the real value and importance of a life insurance policy. To put it in simple terms, a life insurance Canada policy determined the destiny of your children or loved ones after you are gone from this world. So often, people work hard and sacrifice a lot to have their families get the best life and at least enjoy a better life than they did. However, it is sad to note that without proper futuristic perspective such as taking a life insurance, all you have worked to build for your life would end up being wasted away in a single day. Families get devastated everyday because a bread winner has passed on. However, all this can be avoided by taking a life insurance cover.
Life insurance in Canada provides an affordable way for almost all Canadians to leave a sizable inheritance to their beneficiaries. A good question for anyone considering life insurance is this – If I stopped working or earning a living today, would I afford to pay my rent or mortgage, service my car, pay my children school fees? Well the truth is that when you die – and no one knows when death beckons – the very things you have enlisted as being threatened or affected if you stopped earning today will hit your family and get them in a mess unless you take a quality life insurance policy. Families are forced to sell off their home, car, move to low rent and unsafe neighborhood all because of not having taken a life insurance.
If you are settled and convinced to take up a life insurance, there are options available for you in the different life insurance Ontario companies. There are three major policy options namely whole life insurance, term life insurance and universal life insurance.
Whole Life Insurance
Whole life insurance provides a life time cover at level premiums set at the beginning of the contract. The death benefit also remains the same throughout the policy life. The policy accumulates a cash value over time that can be used to secure a loan. The cash value can also be withdrawn on surrender of the policy but the insurance company deducts fees and other charges on surrender. This policy is ideal for individuals who want a straightforward lifelong policy.
Term Life Insurance
Term life insurance is a policy type that lasts for a given period of time. The policies can either be 5, 10, 15, 20 or 30 year term life. The policyholder will need to either renew the policy or seek alternative life insurance policy once a term terminates. The renewal of a term life policy will come with higher premiums. The term life insurance may also come with an option to convert the policy to a whole life insurance policy within a given term. The life insurance rates of the term life policy are much lower than the rest and the policy does not accumulate any cash value. This policy is ideal for anyone who cannot comfortably pay for the whole life premiums or an individual running alternative investments.
Universal Life Insurance
Universal life insurance policy is more of a blend between the term life insurance and the whole life insurance policy. The life insurance Toronto policy is permanent but has flexible terms that allow for adjusting of premiums or having periods where the policyholder can take a break from paying premiums. The policy runs a tax free investment account and the policyholder chooses where the cash value will be invested in. This policy is flexible and ideal for anyone looking for a permanent policy without consistent lifelong premium liabilities.