WHAT IS LIFE INSURANCE?
A life insurance policy provides a designated beneficiary with a lump-sum, tax-free sum of money when you have passed away. There are two different types of life insurance – term and permanent.
Term life insurance provides the payout benefit if you die within a specific period of time or before a certain age. The premiums for the insurance are generally established for the term of the policy, and increase when/if you renew it, but are less expensive than permanent life insurance premiums when you first purchase it.
On the other hand, permanent life insurance pays the beneficiary no matter when you die and builds up cash value – this means that you can still get some cash back in the case that you cancel your policy. There are two kinds of permanent life insurance: whole life insurance and universal life insurance. Whole life insurance provides coverage for your entire lifetime, with constant premiums and have a guaranteed minimum cash value. Universal life insurance is a blend of life insurance and an investment account that can be withdrawn from. Learn more about the differences by setting up a no obligation quote at www.mrtaxes.ca/mrinsurance
WHY WOULD I NEED LIFE INSURANCE?
Although hard to think about, there are many things that will affect your loved ones financially after you pass. Some costs to consider include: funeral expenses, debt payments, providing for children/dependants, etc. Without a life insurance payout, the costs that you leave behind after your death may cause financial hardship on your loved ones. Even if this is not the case now, you may incur debts or have dependants in the future that you may want to leave money for.
HOW DO I GET LIFE INSURANCE?
It is never too early or too late to get life insurance. Insurance policies are fulfilled by insurance companies, but can be made with insurance brokers or providers. These individuals can connect you with the best policies that include the amount of coverage and premiums that best support your needs and financial situation. For policies with over $1 million in coverage, you will likely need to take a medical test as part of the process of getting approved.
Did you know that our sister company, MrInsurance.ca, is an expert in the life insurance industry? We are able to connect you with the perfect policy and offer you a FREE financial review to assess your financial health. Sign up for a free consultation and no obligation quote here: https://www.mrtaxes.ca/mrinsurance-ca-quote/