It's not so hard to get hold of insurers and ask for online or in-person quotes. The hard part is choosing the right kind of policy that is most beneficial. It's important because people in need of coverage must learn about their choices before contacting a North York ON life insurance company and comparing quotes.
The two key issues to be decided are the type of policy and the amount of coverage required. There are many online calculators that can help people figure out how much coverage they need based on monthly family expenditure, annual income, projected future income, etc. With this figure in hand and an estimation of what would be considered an affordable premium, it's easy to find a matching policy.
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.
On the other hand, whole life plans cover insureds for the rest of their lives. The premium for a policy can be paid up within a set number of years. The coverage continues to stay active for the remaining part of their lives. Another difference between this and a term plan is that a cash value can be accumulated.
The cash value grows without being subjected to tax, and distributions to beneficiaries are entirely tax-exempted. But the amounts that go towards the premiums are usually not considered deductible expenses from taxable income. It's a good way to pass on a sizable inheritance to heirs without making them pay the taxes on it.
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 two key issues to be decided are the type of policy and the amount of coverage required. There are many online calculators that can help people figure out how much coverage they need based on monthly family expenditure, annual income, projected future income, etc. With this figure in hand and an estimation of what would be considered an affordable premium, it's easy to find a matching policy.
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.
On the other hand, whole life plans cover insureds for the rest of their lives. The premium for a policy can be paid up within a set number of years. The coverage continues to stay active for the remaining part of their lives. Another difference between this and a term plan is that a cash value can be accumulated.
The cash value grows without being subjected to tax, and distributions to beneficiaries are entirely tax-exempted. But the amounts that go towards the premiums are usually not considered deductible expenses from taxable income. It's a good way to pass on a sizable inheritance to heirs without making them pay the taxes on it.
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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