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Life, Health, Disability & Term Insurance


Whole Life Insurance Canada

 

For people looking for financial stability and security for their loved ones if there is any premature death, Whole life insurance would be the right choices. It is a simple, flexible and affordable product and gives the peace of mind with its permanent coverage at a guaranteed rate. This type of insurance covers you for your entire life. There is no need to arbitrarily define a set period of say 20 or 30 years. Sometimes, a whole life insurance policy is available with extra perks, mainly if your insurance policy is available to you through your employer. Many companies sometimes provide guaranteed rates of returns to their loyal employees. Canadian whole life insurance gives relatively high rate of pay through dividends to the insured.

Features of Whole Life Insurance

  • L10, lifetime coverage with premium payments for 10 years
  • L20 lifetime coverage with premium payments for 20 years
  • L65, lifetime coverage with premium payments till the age of 65 years
  • L100, lifetime coverage with premium payments till the age of 100
  • The sum insurance and premiums are guaranteed for the term of insurance
  • There is guaranteed cash surrender values
  • Premiums are determined depending on the insured sum and the general state of health
  • Possibilities exist for multiple persons under the same contract

Benefits of whole life insurance

A major reason to go for whole life insurance policies is the premiums that remain constant for the life of the policy. This boils down to the fact that you do not need to pay more than what you are quoted at the initial consultation. This is highly suitable for Canadians who are worried about their fluctuating health problems with age. A belief exists that the decline of health with age, one has to pay higher insurance premiums, which is true with term life insurance plan after an individual reaches a certain date. This is however not the case when you invest in whole life insurance policy.

Cash Value of Whole Life Insurance

The cash value of whole life insurance is the equivalent value of a life insurance plan in cash. As payments are made on a whole life insurance policy, the cash value associated with Life Insurance Company also begins to grow. With whole life insurance policy, you can select the way to govern your funds.

The cash value of funds is more often than tax-deferred. It is only after you start collecting on your life insurance policy that you have to pay taxes on the cash value of your life insurance policy. This could be advantageous to some while for others it is burdensome and this depends on your life circumstances. If you are capable to pay taxes not then it is not really a big deal. However, in the event of you being in a financial tight spot, this turns out to be an added perk of whole life insurance plans.

Perks Whole Life Insurance Policies

People often buy whole life insurance policies to get added perks. A unique aspect of traditional whole life policy is the facility for home owners to borrow against the policy to get loan, say to make down payment on a new house. This is not possible for policy holders to borrow against their term life insurance policy. Hence, if you are looking to avail this advantage, it will do well to invest in a whole life insurance plan.

It is seen that housing and life insurance policies make for decent investments. If your whole life insurance policy grows and max out its cash value, then at the time of your retirement as your life insurance policy matures or when you endow, you may find your whole life insurance policy values more than double the amount you first invested.