The Covid-19 era has brought financial security to the limelight, people now want something to fall back to during hard times. Owning a life insurance Canada is a great way to upgrade your financial plan and also secure your family’s financial future.
Life insurance or life assurance is a legally bonded contract between a policy owner and an insurer/assurer; the insurer may choose to pay periodically or as one huge lump.
This policy warrants that the insurer pays a particular amount to a specified beneficiary upon the death of an already insured person most times the policyholder.
Having the best life insurance depends on your financial budget, goals, and how much money you want to invest.
Note that it is also an important part of legacy planning, it gives you all the needed protection to live life-based on your own terms and helps you reach your goals. You deserve that and more.
Know that all life insurance policies have one thing in common- they are all designed/created to pay money to the designated beneficiary when the insurer dies.
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Types Of Life Insurance
If you want to commence the search for life insurance, you need to decide the type of life insurance that is best for you, and also the right time to figure out how much life insurance you need. Below lies the different types of life insurance;
1) Term Life Insurance: This is a renewable insurance that has a specific end date for the term period especially when rates stay the same. After the end of every term, you can go ahead to renew the policy but understand that the rates keep getting high every year.
Their coverage lengths are 5, 10, 15, 25, and 30 years. It is considered the cheapest because only insurance coverage is bought and not cash value life insurance.
It is ideal for individuals who desire life insurance coverage for a huge debt, mortgage payment, and income replacement in case of death.
The downside of this term life payment is that the renewal rates are most times unaffordable after the level term expires.
2) Universal Life Insurance(UL): This insurance seems hard to understand because of its variety and different features. This insurance is cheaper than whole life insurance because it doesn’t offer the same guarantees.
It is ideal for individuals who seek lifelong coverage, for people who want to join their cash value profits to variable and indexed universal life insurance.
One of its disadvantages is that if you want just the cash value, you might not make gains. All you can do is understand what’s guaranteed within this policy and what isn’t.
3) Credit Life Insurance: Just like most life insurance, this one covers up a fixed debt. When a loan is given to you, you will be offered credit life insurance.
Most times the payments are rolled over into your loan payments. This insurance payout is the overall balance of the debt and it’s usually paid to the lender.
It is ideal for those with huge debts and those who are concerned about how their family will pay the debt if they die. One of its downsides is that they don’t allow financial flexibility in the future.
On A Final Note;
Forget the old myth that says life insurance is for the wealthy. Life insurance is for everyone that’s why we at EMA Advisors will get you the right coverage faster than you ever imagined.
You can get started by visiting our website to know the best life insurance in Canada.