Generally, life insurance is a type of insurance in which the insurance company pays your beneficiaries premiums paid after your death and is known as a death benefits. There are three basic types of life insurance policies and based on the premiums, you pay for each, make the determining factor.
●Term Life Insurance
●Whole Life Insurance
●Universal Life Insurance
Term Life Insurance
Term life insurance policy offers insurance cover for a specific time like a fixed number of years or fixed age for the policy expiry. If the policyholder dies during the policy term, he or she will be eligible for the death benefit.
When you choose term life insurance, you will have to pay premiums to keep the policy alive. Normally, this policy is divided into two types:
Ten-Year Term – Marginal increment in paid premiums for up to Ten years and after that, the premiums are adjusted again in the next few years.
Important Things to Know about Term Life Insurance Plan
●Term policies are generally available for ten, twenty or 40 years
●The premium payment amount remains the same for the term coverage period. But the amount increases with the renewal of the term plan.
●Most term insurance plans are non-participating and don’t include cash values or other nonforfeiture values.
●The premium amount is lower than the permanent policies and at least when you are younger.
●The insurance proceeds can be used as a replacement for lost potential income during working years.
●The plan can give a safety net for your beneficiaries while helping with the family’s financial goals like paying off a mortgage, running a business, and college fee payments.
Whole Life Insurance
The premium amount is fixed in the whole life insurance policy. Hence, you need to pay the same amount for the remainder of your life. Due to the lifetime coverage period, whole life insurance has higher premium payments than a term life plan.
Universal Life Insurance
Universal Life Insurance is a policy designed to provide coverage for a lifetime. By choosing this plan, you can choose to be an investor with the insurance firm. You will need to submit more dividends on top of fixed premium payments.
On maturity, you will receive a payout at the time of policy according to the market rate at that time. Another common reason behind choosing this insurance is long-term income replacement in which the requirement extends beyond the working years.
You can get both death benefit coverage and building cash value on some universal life insurance policies whereas other policies offer guaranteed death benefit coverage.
Bottom Line –
Understanding your life value and requirements, Gurinder Chahal Insurance Specialist offers a comprehensive range of the best life insurance plans in Alberta, Canada to keep your family secure. For professional help with choosing the right life insurance policy in Alberta, please contact us today at 587-707-7000.