Tips For Getting The Right Life Insurance Package
Canada life insurance is available through an employer’s group plan or through an individual’s insurance that has been purchased privately. The CLHA statistics state that the amount of insurance owned by Canadians is split evenly between the two categories. This means that in 2008 around 1.8 trillion people owned individual life insurance while around 1.5 trillion people owned group insurance.
Group Life Insurance
Group life insurance is usually included in a part of normal employee benefit packages. Group insurance can provide employees an amount of life insurance that adds up to around twice the amount of the employee’s salary. It is also optional for an employee to purchase additional group life insurance for his or herself and his or her spouse. Many employees choose to do this because of the affordable premium rates.
Individual Life Insurance
Individual Life Insurance is categorized into two categories. This includes permanent life insurance and term life insurance. Permanent life insurance offers coverage for the entire lifetime of the insured person. There are many different types of permanent life insurance. For example, there is simple life insurance that offers guaranteed premiums. However, there are also extremely advanced combinations of coverage that offer investment options with tax advantages. These types of permanent life insurance include universal life insurance and participating whole life insurance.
There is cheap term life insurance available. Term life insurance is designed to be affordable for many different people. Term life insurance offers affordable protection for different people who have specific needs that should disappear in a specific amount of time. For example, cheap term life insurance is available for men and women who are looking for mortgage protection. Term life insurance is very popular due to the affordable premiums that typically increase after specified intervals. These intervals typically last between ten and twenty years. There is even a type of Canada life insurance that expires after men and women reach the ages between 75 and 85.
Universal Life Insurance
Universal Life Insurance is the type of insurance coverage in which the policy owner adds extra premium payments. These premium payments are directed towards an investment component that is designed within the policy. These investments are always controlled by the policy holder. By making these investments, the policy holder will receive a return that is not subject to income tax. When the policy holder dies, the insurance company will provide coverage and investment components that are paid out to the beneficiaries. The beneficiaries receive this amount of money with no worry about tax reductions.
Participating Whole Life Insurance
Participating Whole Life Insurance is the type of Canada life insurance that provides permanent insurance protection to men and women. These men and women also have the option of receiving potential policy dividends. The policy dividends are typically calculated by taking into account the investment, the claims, and the overall expense experience of the insured.
The dividends received through participating whole life insurance may be used to purchase extra Canada life insurance coverage. In addition, these dividends are not deemed as a taxable benefit to the policy owner. There is no doubt that participating whole life insurance is a great option for men and women who wish to receive extra life insurance that is not taxed.
When it comes time to find the right life insurance Canada, things can be quite confusing. Understanding the strengths and weaknesses to each coverage will help you make the right choice. Things also don’t have to be necessarily expensive, as there are many affordable life insurance firms out there competing for your business.
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