Life Insurance

Life Insurance

Most people know what “Life Insurance” is for. When (not IF) you die – money is provided to your family or designated beneficiary – precisely when it is needed most. The proceeds from a Life Insurance policy can be used in any manner by the named beneficiary(ies) such as …

• Pay Final Expenses (Including Funeral, Lawyers, Accountants etc.)
• Pay Off Mortgage and other debts and expenses
• Provide Financial Security for your loved ones
• Leave funds to your favourite charity (psst!….Tax Advantages)

For a business, provide funds to your company to buy shares of a deceased business partner – thus avoiding having your business partner’s family assume shares of the company. Also, funds from life insurance can be used, to attract a talented key employee – should a talented key employee pass away.

 

 

Types of Life Insurance

Generally speaking life insurance can be divided into two main categories:

TERM INSURANCE

As the name implies “Term Insurance” is ideally used for a specific term of time when the coverage is needed – for example to pay off the mortgage or car loan, or other loan.

You can buy Term Insurance for any of the following terms (Other terms are available)

  • TERM 10 – Rates remain constant for blocks of 10 years & increase every 10 years
  • TERM 20 – Same as above except guaranteed rates for 20 year blocks
  • TERM 30 – Same as above – but for 30 year blocks

NOTE that most companies allow you to convert the TERM plan to Permanent Insurance without further medical evidence.

PERMANENT INSURANCE

“Permanent Insurance” remains in place for your entire lifetime unlike Term Insurance which usually ends between ages 75-85. In most (but not all) cases, the cost permanent insurance remains level for your entire life. The initial cost is higher than any of the term products shown to the left…. But usually works out cheaper than if you were to keep any Term Product in force for the entire term.

Types of Permanent Insurance include …

  • TERM 100 – Pure insurance with or without cash values.
  • UNIVERSAL LIFE – Offers a Tax Sheltered Investment which can increase the tax free death benefit
  • WHOLE LIFE – Features cash values that may build up from dividends paid by the insurance company

 

 

How Much Does Life Insurance Cost?

Life Insurance is priced based on a number of factors such as

  • AGE
  • GENDER (Cheaper For Females)
  • SMOKING STATUS
  • PERSONAL HEALTH HISTORY
  • FAMILY HEALTH HISTORY (immediate Family – Parents / Siblings
  • AMOUNT OF COVERAGE

In addition, many companies offer a discount over their quoted standard rates if your health history / height and weight ratios are better than average.

In order to receive an estimate as to how much a Life Insurance policy will cost you (either on a Monthly / Semi-Annual or Annual basis) – simply call us (902) 479-7000 or email us (gerry@mefine.ca)  and we will do a market survey in order to find some of the best prices offered by the various insurance companies. There is NO cost or obligation for this service. If more than one person is to be insured under the same policy, many Insurance companies offer multi-life discounts on the package.

If you email us, please provide, at least the following information for each person you would like to insure:

  1. Your Date of Birth
  2. Your Gender
  3. Your Smoking Status (You are generally consider a “Non-Smoker” if you have not consumed tobacco products etc. or smoking cessation products (The Patch etc.) in the past 12 months) Some companies may consider cigar smokers as non-smokers)
  4. The Amount of Insurance Coverage you want

 

 

Review Your Current Insurance Portfolio

If you presently have life insurance policies or if any of your Term Life Insurance policies are about to increase in cost, please contact us to review your current policies – and hopefully we can recommend plans that may save you money. We can also review and recommend what would be an appropriate amount of insurance you should have in force.

Once again, there is no cost or obligation for this service.