Life Insurance

Looking after your loved ones, even after you!

Do you have members in your family that are financially dependant on you? Are you worried about the financial impact on them in case something happened to you?

Life insurance helps you look after your loved ones by providing the necessary financial security even after you are gone. It is a one-time tax-free payment to your beneficiaries depending on the plan you choose and the regularity of your premium payments. This frees them from the financial burdens while dealing with their most difficult times; by replacing the lost income, pay debts or cover the final expenses and continue to maintain their living standards.

We understand that making such decisions and choosing the right plan is difficult. Thus, Poonam Khanna, an LLPQ Life Insurance Advisor and enthusiast in Canada, will guide you through the right insurance plans based on your circumstances and explain to you the type of coverage involved with each plan. Also the cost of life insurance you may buy as an individual will vary depending on your age, gender, health, medical history, lifestyle, Term and Sum Assured.

Types of Life Insurances

In today’s fast-moving scenario, life insurance has become a necessity, and choosing the right type of insurance has become an essential part of a comprehensive financial plan, for most Canadians. Let’s understand the different types of life insurance in detail.

Term Life Insurance

Life insurance does not always demand a lifelong commitment. Term life insurance provides low-cost coverage options, ensuring that your loved ones are protected when it is required the most. It provides you a fixed amount of insurance for a specific period of time, which could be 10, 15, or 20 years or more. You have the option of specifying the amount of time required.

Benefits of Term Life Insurance

It is simple to understand and provides medical coverage at affordable rates.
Coverage options are available up to $10 million.
Ensures a tax-free payment to the beneficiary, in case of your death while the policy is effective.
It provides financial protection that you can customize to meet any of your needs like debts, funeral expenses, mortgage or rent, child-care costs, or other living expenses.
You can convert your policy into permanent or universal life insurance before the age of 71, without any health questions or a medical exam.

Permanent Life Insurance

As the name suggests, permanent life insurance is also known as whole life insurance because it provides insurance coverage for a lifetime. It acts as a financial nest, providing security for your loved ones while building your wealth over time.

Benefits of Term Life Insurance

The premiums for permanent life insurance are usually guaranteed not to increase over time. In fact, some offered plans require you to pay for only a limited time to enjoy the lifetime benefits.
It is a permanent insurance coverage providing you security for as long as you live.
It includes the investment component in addition to the lifelong coverage, where a part of your premium is invested and the earnings may be paid out as dividends.
You can access your surplus funds while you live through a loan or a withdrawal to help pay any expenses, plan your estate or supplement your retirement income.
It provides your beneficiaries with a tax-free payout after your death.

Universal Life Insurance

It is a form of Permanent Life Insurance, that involves a self-directed long-term investment component with a tax-deferred investment account. In other words, it offers flexible protection that enables you to choose your investments and plan your payment schedule as per your requirement.

Some universal life insurance policies are designed with the ‘level cost of insurance’ that divides the cost of the coverage evenly over the life of the policy. While other policies have a yearly renewable term (YRT) that initially involves a lower cost and increases overtime to equal your actual cost of insurance.

Benefits of Term Life Insurance

It includes lifelong insurance coverage.
You have the power to choose your investment options and manage your risk profile.
It is cost-effective and includes flexible premium payment options.
It also provides your beneficiaries with a tax-free payout after your death.

Participating Life Insurance

Participating Life Insurance is another form of Permanent Life Insurance, similar to Universal, but has its own unique benefits. It offers you the best of both worlds where you not only build financial security for your loved ones but also grow your wealth tax-free.

Benefits of Term Life Insurance

Simplified Life Insurance

Simplified issue life insurance, also known as no medical or simplified life insurance, is a type of insurance coverage that is very easy to qualify for and purchase. It requires no medical examination, just the answers to a few health questions, and completing the necessary paperwork can qualify you for this insurance coverage.

Many people with a pre-existing medical history may find it difficult to get any life insurance coverage easily through traditional means. These health conditions include alcohol or drug abuse, depression, obesity, insulin-treated diabetes, cancer, heart failure, HIV, multiple sclerosis, Alzheimer’s disease, or other serious preconditions.

Simplified Life Insurance is frequently regarded as the easiest and the most affordable No Medical Life Insurance. It has various restrictions on the maximum insurance coverage limits, and the coverage generally varies between $100,000 and $500,000.