What is Term Life Insurance?
Provides affordable protection for a specific period. The most popular are Term 10 (meaning 10 years) and Term 20 (20 years) when insurance needs are high but your budget is limited. The price you pay will never increase over the duration of your term. If you die while your policy is still in place your beneficiaries will receive tax- free payout.
It is geared for Canadians who want to ensure debts, like loans and mortgages, are paid off. Also of concern is that their children’s education needs are met, or their income is replaced if they were no longer alive to support them. When applying for this type of insurance, there are underwriting requirements and a long questionnaire that must be completed. If you are looking for more than $300,000, there is a blood and urine test. And above $500,000 there are additional requirements that must be met.
What is Permanent Life Insurance?
This type of insurance provides lifelong protection, and the ability to accumulate cash value on a tax differed basis. Permanent insurance is often called “whole life” insurance because it covers you for your whole life. Unlike term insurance, a permanent insurance policy will remain in place if you continue to pay your premiums. It will provide your beneficiaries a tax-free payment after you die. It is more expensive then term insurance and the same underwriting requirements apply as with term insurance.
What is Guaranteed Life Insurance?
This is a type of insurance that provides protection regardless of the person’s health. There is no medical exam. It is a simple insurance solution designed to meet the insurance needs of the most challenging applicants. If you were ever declined for – or told you would be denied – life insurance, this is the insurance solution for you.
Let’s discuss which would be best for you!