Life Insurance
It provides a tax-free cash payment to a designated beneficiary. These funds can be used to provide for the ongoing care of loved ones, and to cover taxes and other liabilities in the event of the life insured’s death.
Some common situations for which insurance can be used:
To protect a family financially
Life insurance on the life of an income earner can provide funds to replace his or her income in the event of death. The death benefit provides financial support for his or her survivors, alleviating the financial hardships they may otherwise encounter.
To fund a trust fund
Anyone who is supporting a financially dependent child or adult can purchase life insurance on his or her own life. In the event that the caregiver dies, the guaranteed death benefit can be used to create a trust fund to provide continued support for the dependent child or adult.
To pay off debt
Mortgages, bank loans, and certain investment strategies can create sizeable debt. Life insurance can guarantee that if the borrower dies, there will be sufficient funds available to pay off these liabilities.
To pay income taxes
Many self-employed individuals and professionals pay their income taxes quarterly. Life insurance can provide funds to pay outstanding taxes if the individual dies.
To pay capital gains tax
When an individual dies, taxes must be paid on the difference between the cost price and the market value of their capital property, such as a cottage, investment portfolio, or rental property. The individual’s heirs may not have the funds available to pay these taxes, and as a result, may be forced to sell the assets. Life insurance can provide funds that can be used to pay these taxes.
To fund bequests
It is the wish of many people to leave a cash bequest to a charity, family members, or friends. Life insurance can provide funds for these bequests in a tax-efficient manner.
Our firm is contracted with several insurance companies in Ontario that strive to offer life insurance products that will accommodate your unique needs. Below you will find some information on the types of insurance products we offer.
Term Life Insurance
Terms life insurance is a product designed to accommodate your specific needs for a limited time. This product is available only up to the age of 65 to 70, depending on the insurance company. The premiums will increase upon renewal. You can convert term life insurance to permanent insurance at any time without underwriting.
Permanent Insurance
There are two products you will find under this category:
1) Whole Life
This insurance will assure coverage for the entirety of the insured person’s life. The premium costs will remain the same for the entire life. This policy will cover the insured person until:
a) The insured person/policy owner terminates the policy
b) Upon the death of the insured
There are some key differences as compared to term life insurance:
• While whole life insurance is more expensive compared to term insurance, there are some key benefits of whole life insurance.
• Premiums of Term insurance will increase upon renewal. On the other hand, your premiums will be stable for your whole life.
• As a term insurance policy owner, you or your loved one will only be covered for up to 65 or 70 years of age. On the other hand, as an owner of a whole life policy, you or your loved one will be covered for your whole life.
2) Universal Life
This insurance is similar to whole life insurance; however, there are some key differences (compared to Whole life):
• Your premiums will stop after an outlined period; however, your coverages will continue until the end of life.
• Universal life offers great flexibility to the policy owner
• Compared to whole life insurance, the owner will have much more flexibility regarding policy reserve, premium amounts, and coverage in general.
It is essential for you to fully understand all the terms and conditions of an insurance policy. The above-mentioned information is for your knowledge and is not meant to replace professional consultation. Our knowledgeable team can provide you with the necessary help to discuss and decide on the product that would accommodate your needs. You can contact us directly at (647)–997–6512 or email us at [email protected]