Canada’s Life Insurance Issue: So Many Options

Written By: Bettye R. Smart on September 2, 2010 No Comment

If you are like most Canadians, the prospect of purchasing life insurance is anything but apparent and understandable. Why do we need life insurance at any rate? It is security for our loved ones. Right?

It is perceived that life insurance is for those with big debt loads, young families, and young careers who desire to protect their families. They are utilizing life insurance to prepare for the unspeakable.

But what about buyers who are in a later season in life, when the debt load is lower and the kids start flying the coop? Thinking they are being fiscally sound, many cease their life insurance. While they may have saved a little money, they have put security for their family at risk.

It may not be as costly as you think to buy life insurance. Ten years ago, it was much more expensive than it is now. The ten million Canadians who are in their forties and fifties can get life insurance at very low rates.

The older you get, you can take advantage of the different policies to protect your family and your bank account. In the short term, a term life policy may be smarter, safer, and more affordable. But a permanent life insurance option will be best for the long term where you can purchase traditional whole life, universal whole life, and variable whole life insurance.

If you want to save money and still keep your family secure, these options will help prepare the future.

Buyers are offered the most guarantees with traditional whole life insurance. The yearly premium is guaranteed and there are minimum guaranteed cash values and death benefits. Most of the whole life policies can use the surplus they earn to grow cash value or death benefits.

If you favor premium flexibility early in the insurance plan, universal life insurance is for you. Universal life has maximum guaranteed premiums and minimum guaranteed cash value and death benefits. If the buyer would rather earn interest at a determined rate every year instead of dividends, universal life is the right choice.

There is also variable life, which is for the more knowledgeable and risky investor. Variable life has the least guarantees and because of that, it offers the most potential for cash value increases. Obligatory yearly premiums and guaranteed death benefits come with variable life.

Getting life insurance can be tricky, but can be beneficial for your loved ones down the road. Get great deals and professional council at www.infoprimes.com for life insurance that meets your needs.

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