Navigators Insurance Brokers (through our affiliate McLean Hallmark Financial Planning) is dedicated to finding the perfect match between its clients and their need for permanent life insurance. Research is key to developing a long-term plan when it comes to deciding on types of coverage. For example, you may be interested in learning the difference between term and permanent life insurance. Depending on a number of factors regarding an applicant’s personal situation, there are benefits to each.
For best, total protection for you and your family, permanent life insurance is the ideal product to examine. It costs more than term, but you may discover that the benefits far outweigh the cost factor. It does the job that you expect from a policy and delivers total peace of mind for all contingencies that the future may hold.
Three other sub-segments exist under the umbrella of permanent life insurance and should be understood as well: universal, whole life and term to 100.
Whole life policies
Whole life policies offer a fixed or guaranteed premium for life. The death benefit is also guaranteed for life. Whole Life policies have a added bonus by offering a guaranteed cash surrender value and the option to have your whole life policy participate in paying dividends each year you retain the contract. Your dividends can be used to accumulate future savings for yourself or they can be paid to you directly each year. There are many dividends features you can choose from so make sure you ask your Navigators / McLean Hallmark Financial advisor to explain them to you.
Universal life policy
Universal Life offers the applicant a unique opportunity to own a permanent life policy as well as own a tax shelter investment within the same contract. If you are looking for a way to accumulate and transfer wealth then this is the right product for you. There is a great deal to know about a universal life contract so please ask you Navigators / McLean Hallmark Financial advisor to illustrate for you all the features of the only tax shelter outside of your principal residence left in Canada.
Term To 100
Term to 100 offers the applicant the guarantees of a level death benefit plus the same premiums for the rest of your life. This policy does not offer the same features as a whole life policy. As a result, a Term to 100 is placed between a whole life policy and a term life policy. There are many variations of Term to 100 policies sold in Ontario today. Some contracts will offer a cash surrender value. It’s important that you discuss with your Navigators / McLean Hallmark Financial advisor all of the various Term to 100 products available.
Which Is The Right Product For You?
To decide if permanent life insurance is the right product for you, first look at a list of factors that may help you make a decision.
- How long do you what to replace your earned income if you die too soon?
- How much of your current debt do you what to have paid off if you die today?
- Do you want to transfer your family wealth to the next generation tax free?
- Do you want to provide for your partner and children after you pass away?
- Do you want to preserve your estate from taxes at death?
- Do you own a business? What happens to the business if you die today?
Your Navigators / McLean Hallmark Financial advisor will help you determine the best solution for you. If you are starting out in life and cannot afford a permanent solution, a term life policy does the job just as well as a permanent policy in the short run. Once you hold a term life policy in your hands no one can ever take your contract away from you. With your ownership comes the conversion feature in most term life policies which allows you to change your policy into a permanent policy with no medical underwriting. You have covered your needs today and into the future at a fraction of the cost.