What is the best type of life insurance to purchase? The answer depends on what you want the insurance for and for how long the coverage is needed.
Life insurance basically creates cash at death which can be used to create or conserve wealth. There are additional features available depending on the type of plan and how you are planning to use it in your overall financial planning.
Here are the main types of life insurance and some factors to consider:
Term life insurance
As the name implies, coverage is for a specified term: 5, 10, 20, 30 years, etcetera. At the end of the term the term the policy renews at a higher premium. Factors to consider include: how long you need the coverage for, the rate at renewal and if you will need to convert to permanent insurance.
Whole life insurance
With whole your coverage is for your whole life. The factors to consider include whether the policy is participating and is eligible for dividends or non-participating. In addition the policy guarantees such as premium and cash value. The company financials and dividend history are important considerations especially when considering a participating whole life policy.
Universal life insurance
Coverage for your whole life if properly managed. This type of coverage offers more flexibility in premium level, insurance cost and investment options. These are all factors to consider.
Working with an independent insurance broker, who understands your needs, will help you decide on the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
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Life insurance basically creates cash at death which can be used to create or conserve wealth. There are additional features available depending on the type of plan and how you are planning to use it in your overall financial planning.
Here are the main types of life insurance and some factors to consider:
Term life insurance
As the name implies, coverage is for a specified term: 5, 10, 20, 30 years, etcetera. At the end of the term the term the policy renews at a higher premium. Factors to consider include: how long you need the coverage for, the rate at renewal and if you will need to convert to permanent insurance.
Whole life insurance
With whole your coverage is for your whole life. The factors to consider include whether the policy is participating and is eligible for dividends or non-participating. In addition the policy guarantees such as premium and cash value. The company financials and dividend history are important considerations especially when considering a participating whole life policy.
Universal life insurance
Coverage for your whole life if properly managed. This type of coverage offers more flexibility in premium level, insurance cost and investment options. These are all factors to consider.
Working with an independent insurance broker, who understands your needs, will help you decide on the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.