What is life insurance?
Life insurance can protect the financial security of the people you love by giving them a tax-free payment after you die. The amount and type of coverage you choose will depend on your circumstances and needs. The cost of life insurance you buy as an individual depends on your age, gender, health, medical history and lifestyle.
Why life insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
- The date of maturity, or
- Specified dates at periodic intervals, or
- Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates ‘risk’, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.
After you’ve decided that you need life insurance, your next big decision is probably going to be whether to invest in whole or term life insurance. There are distinct benefits to both whole life insurance and term life insurance plans. Before you purchase a life insurance plan, you should consider your current and potential future dependents, income, and savings.
Types of life insurance:
Term life insurance offers simple and affordable life insurance protection. You get valuable coverage for a set period of time, along with plenty of options to meet your needs and budget. It provides a tax-free cash payment to your beneficiaries if you die while your coverage is in effect.
When you buy term life insurance, you choose your beneficiaries, the amount you are covered for, and the length of your coverage – either 10, 20, 30 or 40 years. Your payments will never increase for the entire length of your term. You can renew your coverage when your term finishes, but at a higher cost than what you paid previously. You can also easily convert to permanent life insurance, which – although more expensive – provides lifelong protection that can accumulate cash value to help you achieve your financial goals.
Term Insurance Benefits
Premiums and coverage are guaranteed for your entire term. Plus, you can renew your policy at the end of your term.
Premiums are typically lower than for other types of life insurance, making term life insurance a good option if you have a growing family.
Convert your policy into permanent or universal life insurance until you are age 71 or depending on the company contract, without health questions or a medical exam.
Whole Life and Universal Life
What is universal life insurance?
Universal life insurance is a unique product that combines permanent life insurance coverage with options for investment that offer tax-advantaged savings. It’s an excellent tax-efficient product to help you build an estate and pass your assets to your beneficiaries.
With the ability to adjust your premium payments (within certain limits) to your changing needs and situation, universal life insurance is ideal for those focused on obtaining flexible coverage. And unlike term life insurance – which only offers coverage for a set period of time – universal life insurance makes sure you and your family are protected for life, provided you pay your premiums.
With an added investment component you have the opportunity to grow your wealth over time, making it an excellent option if you want to utilize your insurance while you are still living. You can fund your financial goals or use it to leave a larger legacy to the people or organizations you’ve named as beneficiaries.
What is Whole life insurance?
Permanent life insurance is often called whole life insurance because it covers you for your whole life. It gives your beneficiaries a tax-free payment after you die. Some plans can build cash value over time. Permanent insurance costs are usually guaranteed not to increase from the time you first buy the policy. And some permanent insurance plans let you pay for a limited time and then never again. Universal life and participating life are other forms of permanent life insurance that you may want to consider.
Protecting your family
During your working years, the death benefit can protect your family by replacing your income. After you retire, that same benefit allows you to leave a tax-free inheritance for your loved ones or your favourite charity, pay for your children’s education, or even pay future premiums on your policy. It can also be used to help cover funeral expenses and taxes.
You can also buy whole life insurance for your child or grandchild when they are young.
- It protects their insurability no matter what happens with their health or career choices in the future;
- The rates are much lower and your child or grandchild can have permanent insurance coverage for life paid off in just 20 years; and
- The cash value can be a valuable asset they can use to pay for their future education costs.
Participating life insurance gives you lifelong protection and the potential to grow your wealth over time.
What is participating life insurance?
Participating life insurance provides a combination of permanent life insurance (whole life insurance) protection and an opportunity for tax-preferred cash value growth. The base insurance protection is guaranteed for life, as long as you pay the premiums on time.
When you buy participating life insurance, you are also eligible to receive policyholder dividends, which can be used to buy more coverage, reduce your premium payments or taken as cash. Keep in mind that you may have to pay tax on any withdrawals.
Is participating life insurance right for you?
Participating life insurance is an excellent solution if you are:
- Looking for lifetime protection and significant savings potential
- Interested in innovative ways to save for retirement or to more effectively make plans for your estate
- Concerned about the effect of inflation on your death benefit
Who is it for?
If you are interested in lifelong insurance coverage that can also be used to help support your financial goals, participating life insurance may be ideal for you and your family. It can also be a practical option if estate planning is your focus, as it gives you the option to increase your coverage to keep pace with inflation or leave more to your loved ones.
Leave more for the people you care about
The payout from your insurance can go to your beneficiaries tax-free when you die. You also have two powerful methods available to increase your coverage: depositing additional money into your policy and using dividends to increase your coverage.
Selecting the insurance solution that is right for your clients will depend on their objectives and investment styles.
Get the life insurance coverage you need
Life Insurance in Canada
Most of the Canada insurance policies fall under two categories viz., term life insurance and permanent life insurance. Term life insurance policy shall take care of any temporal requirements. While the permanent life insurance policies, as the name suggest, are for a lifetime. Top quotes for the various policies, as offered by the most reputed Canada insurance companies, are provided by Daya Insurance. As an insurance company, Daya Insurance provides a no obligation free life insurance quote. The insurance quote is complemented with detailed info on the policy nuances. A comparison is thus enabled, which helps you opt for the top benefits, at of course, the most reasonable cost. So now you have the chance to get the most reliable life insurance policy for you at the most affordable cost.
Life Insurance Quotes
Get lowest life insurance quotes from Daya Insurance Inc. We will provide you customized policies as per your requirements. Moreover in some term life insurance policies you can get back your money after the term is over.
Types of Life Insurance
You can choose from different types of life insurance policies i.e. permanent life insurance, term life insurance or universal life insurance as per your insurance requirements.
Life Insurance Benefits…
There are a number of insurance companies in Canada which offer life insurance packages. You have three vital reasons to contact either of them for quotes. One, with life insurance policy you are securing your child’s tomorrow. This is essentially where the investment positives of insurance come in. Secondly, investment in a life insurance policy makes your retirement lavish. You have less to bother and more to relax. Third of course is the eventuality of untimely death. As much as we would not like to think about it, this could happen and thus a safety cover will only help. Additionally, a life insurance policy also helps an effective redesign of the tax structure.
The listed are generic benefits of a life insurance policy, however depending upon your situation and requirements; you can opt from the various insurance options available. For example consider the case of mortgage life insurance. As per this insurance policy, if the policyholder dies, policy will take care of the outstanding repayment mortgage. So depending upon what needs you’d like your policy to cater to, there is a viable option. Most of the Canada insurance policies fall under two categories viz., term life insurance and permanent life insurance. Term life insurance policy shall take care of any temporal requirements. While the permanent life insurance policies, as the name suggest, are for a lifetime. Top quotes for the various policies, as offered by the most reputed Canada insurance companies, are provided by Daya Insurance. As an insurance company, Daya Insurance provides a no obligation free quote. The insurance quote is complemented with detailed info on the policy nuances. A comparison is thus enabled, which helps you opt for the top benefits, at of course, the most reasonable cost.
Get Competing Term Life Insurance Rates
At Daya Insurance, find the best term life insurance rates online. Shop and get personalized life insurance quotes for you today. Until a few years ago, life insurance was not a subject many of us preferred to talk about. It was associated with death and thus the sentiments involved, often prevented discussion. Today however scenario has changed. Life insurance , as a concept, has earned a different meaning altogether. Yes it is about life and health, but it is also about money. Life insurance has rapidly emerged as a versatile financial tool. Now when we look at life insurance quotes, we are talking about investment figures. So irrespective of how you take it, insurance is something, which at the end of the day, we’d all like to have.
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