Life Insurance Milton

There are many different forms of life insurance created for different situations. To keep things simple, the two most popular forms of life insurance are term and permanent. 

Term life insurance is the affordable option which covers a large sum (ex. $500,000) and can be priced very reasonably. You select an amount of time you would like to be covered for and as long as your monthly premium is paid, you will have coverage until it expires (Ex: 20 year term policy). Once the term expires, you will have to reapply for a new policy. 

The downsides of term life insurance is that after expiration, you will be much older and you next insurance policy will be much more expensive. 

The positives are that it is very well priced for the coverage you get. A 20 year term policy with $1,000,000 coverage for a young healthy adult can start at $30 per month. 

Permanent life insurance is the second option. The two most common policies are whole life and universal life. Each one has it’s own features and is good for certain situations. Permanent life insurance policies can be viewed as investments as well as life insurance because you can have a “cash back” option where after a certain amount of time, you can withdraw your money with interest. 

Permanent life insurance is a guaranteed life product. There is no expiration, it’s for your whole life. You can select a “20 pay” option where you pay your premiums for 20 years and once completed, you will have no more payments but your life insurance remains forever. 

If you have any questions or would like to speak to an insurance broker, please call Filip Ambroziak at (416) 803-2113 or email filipa@pbnet.ca.