- Give you a peace of mind knowing your family is protected
- Ensure your largest financial obligation - 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 a pure protection and 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 any additional medical tests and examination. These are called convertible policies.
Second feature is renewable. Term life insurance with renewable feature is work upon term expiry. It does not require doing medical test. And policy will be renewed before 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 little bit longer term than useally.These type of 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 years of age depending on the insurance company.
- Cheaper premium
- Served better for temporary needs
- Can be converted to permanent insurance product (if it is convertible)
- Premium stays same for the term (if it is level)
- If option is choses it can be renewed guaranteed
- Premiums are very high as insured gets older and eventually it becomes UN-affordable.
- Can not be renewed beyond 80.
- No Cash value
- When you fail to pay premiums due to any reason, you loose your coverage after grace period.
- No returns on your premiums, no flexibility.
2 Permanent Insurance:
Permanent life insurance comes as a whole life policy, universal life policy and Term-100. Beside T-100 other policy has cash surrender value. It’s expensive compared to term life insurance policy but better for long period of time. Permanent policy has same premium for a life of the policy or/and life insured age. Permanent policy has limited pay option too, which may help to pay in early age and coverage remain for rest of the life.
It’s mention earlier that Permanent policy comes as universal life policy too, so it has a unique feature of investment. It means life insured is covered for face amount of the policy and same time your money grows in investment account too.
Benefit of Permanent life insurance policy:
- Lifetime coverage, cash values and level premiums
- In need of a permanent guarantee that will help protect family and loved ones, cover final expenses and enable them to otherwise plan their estate
- 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 a Estate Planning process to cover up all the estate cost
- Term 100 is most cost efficient permanent life insurance coverage for all age group
- Disadvantage of Permanent life insurance policy
- An expensive insurance coverage compare to 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, there is often a coverage limit on these policies in order to minimize insurance risk.
Why you should considered 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 just want your coverage fast
Speak with us for better understanding of non-medical insurance.
We Deal with almost all the Insurance Company in Canada