Life Insurance
Life insurance provides a lump-sum tax-free payment to the named beneficiary when the insured dies for as long as the contract in effect.
There are two types of life insurance that are available to protect your family in case of death. They are term life insurance and permanent life insurance. Each type has its distinct features designed to meet different needs.
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Term Insurance
Term life insurance is most cases the least expensive form of life insurance that protects an individual over a pre-defined period.
- Offers temporary Protection
- Different periods available
- Fixed payments for chosen period
- Offers ability to purchase large amounts of coverage at relatively low cost
- Automatically renews without medical evidence
- Convertible to permanent insurance without medical evidence
Term Insurance can be used in the following instances:
- To replace lost income in the event of premature death
- To cover debt
- To fund a buy/sell agreement for business owners
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Permanent Insurance
Permanent Life insurance provides protection for your lifetime and typically the premiums are guaranteed for life. This is why the cost is relatively higher than the ones found in Term insurance products.
There are various types of Permanent life insurance: Non-Participating Whole Life, Participating Whole and Universal Life. Depending on the product, a portion of the premiums can go towards building up a cash value. This cash value can be used in later years to pay the policy, provide a loan or be paid out as an additional part of the life insurance benefit.
- Offers permanent lifetime coverage
- Premiums guaranteed for life
- Flexible premium payment period
- Some contracts will offer cash values
Permanent Insurance can be used in the following instances:
- To cover last expenses and funeral costs
- To cover potential capital gains taxes
- To build wealth
- To supplement retirement income
- To fund a buy/sell agreement for business owners
To learn more about these products, Contact Us.