Life Insurance Markham

Life insurance is used to financially protect your loved ones through a tax-free payment should you pass away. In an effort to simplify the coverage decisions, only two of the most common policies will be explained: Term life insurance and Whole life insurance.

Term Life Insurance: Term life is by far the most commonly purchased life insurance policy due to its affordable pricing and high coverage. The insured would first select the term (years the policy will be in effect). A common choice would be 20 years. The client than selects the amount covered (Ex $1,000,000). Based on that information along with personal details and health history, a premium is calculated. If the client passes away within the term, the beneficiary (person selected for the payout) will receive the sum tax free. 

Who this is ideal for: Term life insurance is an excellent choice for young families with a tighter budget and high expenses. If one of the income earners in the family were to pass away, the family may have some very serious financial issues. The policies are also much more affordable for younger people and can fit into most budgets.

Whole Life Insurance: Whole life is a form of permanent life insurance and as the name implies, is for the insured entire life. The client would not be selecting a term but would still select the sum (Ex. $200,000). As long as premiums are paid, coverage lasts forever. There are many ways premium can be paid as well. Generally, a 20-pay option is popular. This would mean you pay the premium for 20 years, and after that, you are done paying while the life insurance still continues.

Who this is ideal for: Whole life insurance is a great choice for more established families with more assets and a larger net-worth. Whole life policies are more expensive than term life and are commonly used as estate planning tools.

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.