Life Insurance

There are several types of life insurance, and each is designed to meet a different set of needs. Some policies are best suited for short term needs such as mortgage protection, replacing the income lost due to the death of an income earner, saving for the education of children etc. Other policies will accumulate a cash value after a number of years. When you have sufficient cash value, you can borrow money from your policy or use the cash value as collateral for a loan. To determine the amount and type of insurance that will best meet your specific needs, we strongly recommend contacting any of our advisors, brokers or agents.

Term Life Insurance

Term Insurance is a low-cost, straight forward insurance product designed primarily for short term needs such as mortgage and debt coverage, final expenses and also provides funds for children’s education. The initial premiums are very competitive but renewal premiums increase at every coverage anniversary thereby making term insurance expensive in the long run. Most Term Insurance plans offer renewable and convertible features. The most commonly purchased term products are Term-10 and Term-20.   Longer term insurance is also available with level pay periods and coverage periods of 65, 75 or to age 100.   Term to age 100 often called T-100 may sound as if it is a term insurance plan, but it is in fact a permanent insurance solution. Term to 100 provides coverage at the same premium through to age 100, with no increase in price. The premiums are payable as long as the insured person lives.

Universal Life  Insurance

Universal Life Insurance is also a permanent insurance plan. It has evolved over the last 30 years, and is now the preferred tool in most instances for wealthier Canadians. As a quick summary, universal life insurance policies provide insurance protection while also enabling the policyholders to save some money. Such policies generally have cash values. A policyholder may borrow money against the cash value or surrender (turn in) the policy for its cash value. Any amount borrowed against the cash value, plus interest, is subtracted from the face value if the insured person dies before the loan is repaid.   Our associates, brokers, advisors and agents will describe its chief elements, explain the features by which one product is differentiated from another and mention some of the situations where Universal Life is often utilized. They will also explain the concept of quick pay and cash values in UL plans.