Contacting an insurer at a local branch or online to ask for a quote is easy. The not-so-easy part is finding a suitable policy with adequate coverage and other benefits. It's critical that people looking to insure their lives should study the options before asking a North York ON life insurance company for a quote.
The main things to focus on are the amount of coverage and the policy type. There are any number of online calculators that will give a precise figure when fed input data such as monthly expenses and current and expected future income. This coverage amount and the maximum affordable premium can then be used to find matching policies.
Take a look at the options and then decide which of these policy types seems suitable. The main categories to consider are term and permanent. The latter can be further sub-divided into universal and whole life plans. Term plans, as the name implies, provide coverage for a specific period such as 10 or 20 years without offering any cash value.
Whole life plans, on the other hand, provide coverage until the insured's death. Premiums can be fully paid up within a limited number of years, and the cover still stays active after that for the entire lifetime of those covered. Unlike term plans, these policies are also a good investment because they have a cash value.
The good thing about it is that the cash value is allowed to grow without being taxed, and distributions to beneficiaries are also tax-exempt. However, the up-front contributions made towards the premiums are not deductible from taxable income. It's still one of the best ways to pass on a substantial inheritance without subjecting the transfer to taxes.
A universal plan is a whole-life plan with an additional component that allows for investments. The policy buyer makes contributions to an investment account, and premiums are paid out of this account. If the underlying investments start performing as per expectations, the buyer can soon stop making payments because the earnings from the investments will be enough to cover it.
The main things to focus on are the amount of coverage and the policy type. There are any number of online calculators that will give a precise figure when fed input data such as monthly expenses and current and expected future income. This coverage amount and the maximum affordable premium can then be used to find matching policies.
Take a look at the options and then decide which of these policy types seems suitable. The main categories to consider are term and permanent. The latter can be further sub-divided into universal and whole life plans. Term plans, as the name implies, provide coverage for a specific period such as 10 or 20 years without offering any cash value.
Whole life plans, on the other hand, provide coverage until the insured's death. Premiums can be fully paid up within a limited number of years, and the cover still stays active after that for the entire lifetime of those covered. Unlike term plans, these policies are also a good investment because they have a cash value.
The good thing about it is that the cash value is allowed to grow without being taxed, and distributions to beneficiaries are also tax-exempt. However, the up-front contributions made towards the premiums are not deductible from taxable income. It's still one of the best ways to pass on a substantial inheritance without subjecting the transfer to taxes.
A universal plan is a whole-life plan with an additional component that allows for investments. The policy buyer makes contributions to an investment account, and premiums are paid out of this account. If the underlying investments start performing as per expectations, the buyer can soon stop making payments because the earnings from the investments will be enough to cover it.
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