- Give you peace of mind knowing your family is protected
- Ensure your largest financial obligation and your mortgage is secure
- In business: protect the value of your company and reduce your tax bill
- Offer a full portfolio of investment opportunities
- Accumulate cash value through tax-sheltered savings accounts
- Cover funeral costs
- There are two main types of life insurance:
- Term Life Insurance - Long-Term Care Insurance
- Permanent Life Insurance
1 Term Insurance:
Term Life is pure protection; there is no cash surrender value if you cancel the policy or if the policy expires. Premiums in Term Life are usually not high and depend on the age, sex, health, smoking habits and coverage of the insured. Term life insurance comes with two great features. It’s called Renewable and Convertible.
Term Life Insurance contracts can usually be converted to Permanent Life Insurance contracts like Whole Life, Universal Life, Term -100 etc., without additional medical tests and examinations. These are called convertible policies.
The second feature is renewable. Term life insurance with the renewable feature is work upon term expiry. It does not require a medical test. And the policy will be renewed before the term life policy expired.
Term life insurance generally comes in 5, 10, 15, 20, 25,30,35,40 year terms. Now a day’s, term policy comes a little bit longer term than usual. This term policy is now available for longer periods to provide coverage for long-term needs. The Term period indicates that the life insurance rates are guaranteed for that period of time, and they will automatically renew at a higher rate for the next term period. Term Life Insurance policies usually expire when the insured turns 75-80, depending on the insurance company.
- Cheaper premium
- Served better for temporary needs
- It can be converted to a permanent insurance product (if it is convertible)
- The premium stays the same for the term (if it is level)
- If the option is chosen, it can be renewed and guaranteed
- Premiums are very high as the insured gets older, and eventually, it becomes UN-affordable.
- It cannot be renewed beyond 80.
- No Cash value
- When you fail to pay premiums due for any reason, you lose your coverage after the grace period.
- No returns on your premiums and no flexibility.
2 Permanent Insurance:
Permanent life insurance includes a whole life policy, universal life policy and Term-100. Besides T-100, other policy has cash surrender value. It’s expensive compared to a term life insurance policy but better for long periods of time. The permanent policy has the same premium for the policy's life or/and life-insured age. The permanent policy has limited payment options too, which may help to pay at an early age, and coverage remains for the rest of the life.
It’s mentioned earlier that the Permanent policy is a universal life policy, too, with a unique investment feature. It means life insured is covered for the face amount of the policy, and same time your money grows in the investment account too.
The benefit of a Permanent life insurance policy:
- Lifetime coverage, cash values and level premiums
- In need of a permanent guarantee that will help protect the family and loved ones, cover final expenses and enable them to plan their estate otherwise
- Tax-free growth under universal and whole life policy
- Accumulate investments inside the policy.
- The investments grow on a tax-sheltered basis inside the policy and can be paid out, along with the face value of the policy, on a tax-free basis when you pass away.
- As the owner of a "participating" whole life policy, you'll be entitled to dividends from the insurance company.
- May set up as an Estate Planning process to cover all the estate cost
- Term 100 is the most cost-efficient permanent life insurance coverage for all age group
- The disadvantage of a Permanent life insurance policy
- An expensive insurance coverage compared to a traditional term policy
- Low-interest rate option for whole life policy.
As the name suggests, non-medical life insurance assumes no medical test when issuing a policy as opposed to a traditional policy where medical tests are required (e.g. blood test, blood pressure, etc.). If there are no tests, insurers see the risk higher and thus often would collect higher premiums for these types of policies. At the same time, these policies often have a coverage limit to minimize insurance risk.
Why should you consider non-medical insurance?
- You are a Canadian senior.
- You have some health problems.
- You are hard to insure
- You have a dangerous job or dangerous hobbies
- You don’t like needles or medical exams
- You want your coverage fast
Speak with us for a better understanding of non-medical insurance.
We Deal with almost all the Insurance Companies in Canada.