Did you know that your life, and the ability to earn income, is the biggest asset you own? Please read below and feel free to share and learn about why life insurance is very important to have while understanding your options. It is financial assurance for you and the ones you love who depend on you too.
Term life insurance (Temporary): Lower initial price: Like renting an apartment versus buying a home, term insurance is known for its lower price. It is an entry level product that is more affordable. Price increases: One of the major disadvantages of renting is that landlords usually increase their rental prices over time. Likewise, whether someone owns 10, 20, or 30-year term, at renewal time, the price goes up. Protection ends: Another disadvantage of renting is that landlords reserve the right to terminate the lease under certain conditions. Term insurance is designed to eventually become more expensive and less affordable in your old age, when you need it the most. In other words, term insurance is priced to expire before you do. No equity: A renter has no equity at the end of a lease and, if they want to remain in the property, must renegotiate a new lease with the landlord. At the end of a term policy, there is no cash value. If you are still healthy and want to maintain coverage, you must reapply. Regardless of your health condition, the cost will increase significantly because you are older. Most people contribute into a Term Life Insurance policy through a Workplace Group Health plan, however, it is usually much less than one year of comparable income that the deceased's family and beneficiaries would receive. Also, most people don't realize until it's too late that if they leave the company, their life insurance leaves them too! However, not to worry if you hurry, simply Contact Us today so that we can get you better insured and at a lower cost too.
Whole life insurance (Permanent): Higher initial price: Whole life has a higher price tag which, as the next three points demonstrate, has a purpose and a value. One should expect to pay more to own a home versus renting, but keep in mind that price is only relevant in the absence of value. Price remains level for life: Just like owning a home via a 30 or 15-year mortgage, the price of whole life insurance remains level for life. Most whole life policies also reach a point where the payments are no longer required, and yet the policy and cash value remain in force for life. Protection lasts a lifetime: Just as the name implies, whole life insurance is priced to last as long as you do, providing coverage or “a roof over your head” (which usually increases in value) for your entire life. Builds equity: As mentioned earlier, just like building equity in your home, the payments you make on a whole life policy create a cash value. This cash value accumulates on a tax-deferred basis over time at least at the guaranteed interest rate, and also provides liquidity via withdrawals or loans. So yes, the price of whole life insurance is initially much higher. However, similar to owning a home, your payments create a value over time, either via the equity in your home or a guaranteed lifetime “roof over your head” for your family.
Whole Life Insurance Provides a Guaranteed Investment. Your cash value isn't subject to market losses, as it is with mutual funds and other financial services schemes. When the stock market significantly drops again (and it's never a question of if but when), you won't lose a dime.
Bottom line, term and whole life insurance are both excellent solutions for different needs. However, it is our job to properly educate and empower individuals, families, and business owners who can afford only term, or even better, a combination of both term and whole life to fully own this all-important protection. In either case, the main objective for every financial professional should be to ensure the right amount of coverage versus simply selling the features and benefits of the insurance type they prefer or are licensed to offer. As a client, you may simply wish to ask them what they personally have and why? Are they impartial in their recommendations? Their answer may help you decide if they are a good match to be the right advisor for you too!
As a fully licensed insurance broker, we can offer you unbiased advice for all of your insurance needs.
We have access to the products and services for all of the top ranked life and health insurance companies in Canada. Through a disciplined planning approach, a specialist closest to where you live from ProLaunch will help you select the right solutions for your budget and risk management requirements. As an added bonus, we are non-exclusive to our industry leading carriers so you will never pay a premium on top of your premium like many others charge, ever!
Critical Illness Insurance Protection - Choose critical illness coverage to help you meet the financial demands that often accompany a significant health change. A lump sum amount paid in the event of a covered serious illness - that lets you spend it anyway you wish, at anytime, on the important things in life.
Disability Insurance Coverage - Income replacement when you need it most due to an accident or sickness. Explore the peace of mind that is possible when you know that you are protected from the financial impact from a loss of income due to a long term disability.
Long Term Care Assurance - Provides benefits to help cover the cost of long term care, either home-based or in a long term care facility.
Personal Mortgage Insurance Protection - Every homeowner should have this kind of insurance. Unfortunately, with mortgage insurance through your bank, your coverage amount stays the same, even though your mortgage decreases! Mortgage insurance with your bank is meant to offer peace of mind. Most people pay the premiums and think they're covered. But some have discovered - when it's too late - that they aren't. Just watch our friend Erica Johnson - In Denial to learn more. However, Personal Mortgage Insurance lets you choose your premium, and your beneficiary. Plus, it's fully portable and you can even take it with you if you move to another home too.
Here at ProLaunch, we hold an accredited independent license to recommend the best solution with the most value at the lowest cost in regards to your personal situation. Unlike other advisors, as a broker and adviser (with fiduciary duty), we work directly and exclusively for you rather than another company. We can meet together with no-obligation anywhere in Ontario near you. Let's discuss your goals and concerns with full discretion assured. Book an appointment by calling 1-800-686-2703 or Contact Us today.
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