Life Insurance


People purchase Life Insurance for many reasons. To protect loved ones, for business ventures, requirements by financial institutions, estate planning, and taxation planning in later stages of life. As everyone knows, the best time to purchase Life Insurance is when you are young and healthy, as premiums are lower and Insurance is also easily-attainable.


Many people are confused about the different types and distribution levels of buying Life Insurance. As an Insurance Broker, we deal with over 50 Life Insurance carriers who offer every type of Life Insurance. The terms you commonly hear are Whole Life, Term Life, Universal Life, and Critical Illness. To briefly describe Whole Life, it would mean a Life Insurance Policy paid monthly, which includes cash surrender values or dividends that accumulate over the length of the policy.


At some point, you can borrow against them or cash in the policy to access them. Whole Life premiums usually stay the same from the initial policy issuance. Term Insurance does not have cash surrender value or dividends, and is sometimes called 'pure' insurance. Premiums remain the same for specific terms of five, ten, fifteen, or twenty years.


Some companies offer Level Term premiums to ages 65, 75, or 100. Universal Life Insurance treats your monthly payment as a deposit, and deducts pure Life Insurance premiums from this deposit, and has an investment component for other parts of your deposit. These monthly deposits are subject to adjustment depending on the performance of the investment inside the Universal Life Policy, which may cause deposit premiums to rise as required.


Critical Illness is a policy that pays a specific amount to you if you are "diagnosed" with an unexpected critical illness. This amount of money is paid out as a lump sum to you to assist in your particular lifestyle needs for assistance during this time. This is written on a separate policy or may be added to new Life Insurance policies or added to your Employee Group plan at work. The above descriptions are summary only, subject to individual policy wordings.


The above descriptions are summary only, subject to individual policy wording.


As Life Insurance Brokers for over 25 years, we have seen many changes and enhancements to both personal and corporate Life Insurance products. For further consultation and discussion, please call us at 523-2030 to set an appointment to further explore Life Insurance options.