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LIFE INSURANCE

Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay designated beneficiary a sum of money in exchange for premium, upon the death of an insured person.
Above stated definition is most widely accepted one although there are different types of life insurance in Kitchener, Ontario which makes it more necessary that a thorough analysis be carried before deciding the type and coverage amount before buying. Regarding coverage amount school of thought of insurance says that if the person who is bringing food to the table dies then family should be able to survive with same standard of living for at least 10 years.

There is a famous quote about life insurance by Will Rogers which states

“A man who dies without adequate life insurance should have to come back and see the mess he created. “

Above quote provides enough reason that everyone should have life insurance. Below stated points will further strengthen the belief about necessity of life insurance.



BENEFITS OF LIFE INSURANCE


  • Help pays the bills.
  • Pay for funeral costs.
  • Used to cover any short term or long term loan. Example mortgage loan.
  • Ensures availability of funds for kids’ education.
  • Helpful in estate planning.


TYPES OF INSURANCE POLICIES


• Term Insurance:


This insurance covers for specific time period namely 10 years, 20 years, 30 years etc. This insurance is most economical of all the available types. It has to be renewed at the expiry of term or can be converted into a permanent plan. Ideal for any individual or small family which needs a higher coverage amount at a small cost.


• Permanent Insurance:


This type provides coverage till the age of 100 or death whichever is earlier. It is ideally used to leave something for near & dear ones. It is also used to cover funeral cost by seniors. With this insurance in place one can use his savings for investment purpose to garner further growth.


• Universal life insurance:


It is a unique product that combines permanent life insurance in Ontario / Kitchener coverage with options for investment that offer tax-advantaged savings. Its an excellent tax-efficient product to help you build an estate and pass your assets to your beneficiaries.


• Participating Policy:


A participating policy is an insurance contract that pays dividends to the policy holder. Dividends are generated from the profits of the insurance company that sold the policy and are paid out on an yearly basis over the life of the policy. A participating policy is also referred to as a with-profits policy.