Insurance Solutions
Your need for insurance will change as factors in your life such as income, dependents, and investment portfolio change. Make sure that your insurance requirements are kept up-to-date so you don't get any nasty surprises. Remember insurance is expensive until you need it.
Buy Term Insurance instead of Mortgage insurance
When buying a home or renewing a mortgage, many people think they are obliged to sign up for their bank's life insurance. It's important to remember that you have options. Individual Term Life Insurance is a great alternative to your financial institutinon's regular mortgage life insurance befcause it offers you affordable less expensive premiums plus the following key advantages:
1. Greater control for you and your beneficiary. Mortgage life insurance bought from a lender will typically pay the death benefit to the lender at your death. Individual Life Insurance will pay the benefit to the beneficiary you choose (e.g. your spouse). This gives your beneficiary the freedom to choose how best to spend the money. For example, some may decide that paying down the mortgage is the highest priority, while others may want to use the money for a more pressing expense that arises at the time.
2. Coverage that doesn't shrink with your mortgage. The coverage amount under typical mortgage life insurance declines as your mortgage balance decreases. With Individual Term Life insurance, your coverage amount remains the same.
3. No need to reapply. With mortgage life insuance, you have to reapply any time you switch lending institutions with a new set of medical questions. But, with indivudual Term Life insurance, unless you want to increase your coverage or terminate your plan, your policy is automatically renewed up to the age of 80 with no medical questions asked.
Remember, when thinking about your mortgage, Individual Term Life Insurance provides you with options.
To Maintain Your Family's Standard of Living
Life insurance is an important part of anyone's financial plan. Your spouse or family may find it hard to live the way they do now if something were to happen to you. The death benefit from a life insurance policy can help them maintain their standard of living by supplying funds they'll need for
- Mortgage, rent, car loan, or other debt payments
- Replacement income for your dependents
- Clothing and other expenses
- Phone, utility, and home maintenance expenses
- Children's post secondary education
- Final expenses such as funeral expenses
Certain types of life insuance may also provide benefits for you and your family while you're still living. Policies such as whole life or universal life accumulate cash value on a tax-deferred basis, and that value can be used to supplement your retirement income or help provide for a child's education.
Make sure you have sufficient insurance.
Why Own Permanent Insurance?
Permanent insurance is often referred to as universal or whole life insurance. This type of insurance combines affordable insurance coverage with a profitable tax-sheltered investment. It offers the potential not only for lifetime protection and guarantees, but also to build cash value. How that cash value grows varies based on the type of investment you decide on. Here are a few reasons to consider a permanent insurance policy:
Often permanent insurance is the perfect choice for high networth individuals who are seeking tax-sheltered invesments and have income levels too high for other tax-advantaged vehicles.
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