Life Insurance

Life insurance is a contract that provides tax-free cash upon the death of an insured person.

Life insurance is purchased for many reasons:

  • To pay for final expenses
  • To pay off debts or a mortgage
  • To provide an ongoing income for your family and loved ones
  • To ensure that there is cash available to pay for children’s education
  • To protect your estate from taxes (income and capital gains) as well as from probate, legal and accounting fees
  • To “leave a legacy” for your favourite charity, church or other organization
  • Your business may require life insurance for a partnership agreement, key-man insurance or business continuity plans

Term & Mortgage Insurance

  • These plans provide coverage for the specified period (10 year, 20 year, 30 year or to age 65) and at the end of that period they will automatically renew at a higher premium
  • Depending on the insurer, these policies usually expire at age 75 or 80 (term to 65 would expire at age 65)
  • These plans are usually quite inexpensive at younger ages
  • Usually purchased when someone has a “temporary” need. For example, when raising a family or to replace the bank's mortgage or loan insurance.

Permanent insurance

Whole life, Universal life, Term to 100

  • These plans are more expensive, since the death benefit will eventually get paid out
  • The premiums remain level and are fully guaranteed
  • However some may allow premiums to be increased or decreased within certain limits
  • Cash values may be available and may be used to pay future premiums, to increase the death benefit or to access the cash for many other reasons

Most term and permanent insurance plans offer different “riders” or options that can be added to the contract, such as:

  • Accidental death & dismemberment
  • Disability waiver of premium
  • Guaranteed insurability