Term life insurance: What are the types of Canadian life insurance?
Canadian Life Insurance Overview
Canadian life insurance is divided into two categories: term life insurance (Term Life Insurance) and lifetime life insurance (Permanent life insurance). There are three types of regular period: 10-year period, 20-year period, and 100-year-old period. Lifelong life insurance is divided into dividend-type lifelong life insurance (Whole Life Insurance, or Participating Life Insurance) and flexible investment life insurance (Universal Life Insurance, or Non-participating Life Insurance).
Term Life Insurance (Term Life Insurance) and its main features
Term life insurance is a type of insurance that covers death compensation within a specified period of coverage. According to different insured periods, it can be divided into three types: 10-year term, 20-year term and 100-year term. The first two are that if there is no life accident within the insured period, the insurance will be terminated without any compensation or compensation when it expires, so the premium is relatively cheap and suitable for temporary protection needs. The latter is actually the same as life insurance. If the insured person has not had a life accident at the age of 100, he will also receive insurance compensation. Another major feature of term insurance is that the premium does not contain any investment component, so the insured amount will not increase in value. If you buy a 250,000 term insurance, and you have a life accident at any time during the coverage period, the compensation you receive is 250,000, no more. Regular life is suitable for families with low net worth, low savings, and low income. There are family members (such as spouses and children) who need to provide support, and there are large debts that need to be paid off within a certain period (such as mortgages).
Dividend Lifelong Life Insurance (Participating Life Insurance) and its main features
Dividend life insurance is a type of life insurance. Its characteristics: First, the insured will eventually get a sum of insurance compensation. If the insured passes away before the age of 100, the succeeding person will receive compensation for the amount of insurance plus investment; if the insured is still alive when he turns 100, the insurance company will pay the amount of insurance plus the investment directly to the insured Yourself. Second, the premium paid by the insured is divided into two parts, one part is the insurance cost and the other part is the investment part. The investment direction and management of its investment part are uniformly supervised by insurance companies, and the insured participates in dividends. Therefore, the amount of compensation received when the insured person dies or reaches the age of 100 is generally higher than the initial underwriting amount due to the value-added portion of the investment. Dividend insurance is suitable for families with high assets and high income, and can achieve the purpose of stable value preservation and appreciation of tax-deferred and tax-avoidable assets and effective inheritance arrangements.
Universal investment life insurance (Universal Life Insurance) and its main features
Flexible investment life insurance, like dividend life insurance, is also a type of life insurance. The difference between the two is that the investment direction of the premium investment portion of the flexible investment lifelong life insurance is various types of funds with different risks, and the insured can choose the investment direction and fund type according to his own wishes and risk-bearing ability, rather than Like the dividend-type life insurance, the insurance company’s unified investment direction insured persons only share in dividends. Therefore, the insured may choose his own investment choice, but at the same time bear the investment risk himself.
What type of life insurance do you need to buy?
There is no absolute good or bad strategy for insurance products. For different groups of people, the family status is different, and the needs are different at different stages of life development. This requires detailed communication between the financial consultant and the client to understand the income status, asset and liability status of the insured family, the composition of family members, risk preferences Life planning and other information, so as to propose a combination of targeted products, insurance coverage and premium payment, and as the insurer’s work life and family continue to change, financial consultants will also make adjustment suggestions.
Read More: Fresh New Article
Solemnly Declare: The copyright of this article belongs to the original author. The reprinted article is only for the purpose of disseminating more information. If the author’s information is marked incorrectly, please contact us as soon as possible to modify or delete it.
Thank you
