Before Shopping Around, Know Your Life-Insurance OptionsUpdated on Jul 02, 2015
Your life insurance policy could be the most important purchase you ever make for your loved ones. The professional consultants of Blue Umbrella Financial Services put their experience to use making sure that Ontario’s life insurance needs are met not necessarily or simply with the most inexpensive life insurance products, but the ones that provide the most peace of mind for the money.
Should the most tragic of circumstances befall you, the aftermath will leave your loved ones not only grieving, but possibly conflicted as to how to pay for your funeral expenses and offset the income gap left for your dependents. A sound life insurance policy can guarantee their ongoing financial security and adequate coverage of your burial expenses.
On the other hand, choosing a product that doesn’t suit your personal circumstances could become a financial albatross that might not even cover your loved ones’ needs to an extent that’s worth the ongoing cost…
· COVERAGE OPTIONS TO CONSIDER…
When considering your life insurance needs, you’ll need some experienced guidance to assess what each plan really gives you for your money. Realistically, though all life insurance products are meant to provide aid to your loved ones, not all go about this in the same way.
In fact, some life insurance products benefit policy holders more effectively than others, owing to either how the policy type itself meshes with the holder’s circumstances or how these types of life insurance policies in general function realistically…
· TERM INSURANCE
· You’ll pay a minimal premium to receive substantial short-term coverage
§ CAUTION: Premiums can and often will increase with age throughout the usual 10, 20 or 30-year terms
· Benefits can pay off debt or other needs, at the insured’s discretion
· PERMANENT LIFE INSURANCE
· With coverage until the policy’s maturity as long as the insurer receives premium payments on time, this category encompasses three common types:
§ WHOLE LIFE
· It’s exactly what it says on the tin: these lifelong plans build cash value with on-time payments of the steady premiums, and permit loans to be issued against them;
§ UNIVERSAL LIFE COVERAGE
· The insured can change life insurance coverage as needed with flexible premiums and benefits, providing level or increasing death benefits, increasing-cost insurance options, or level-cost coverage
§ LIMITED-PAY COVERAGE
· You’ll pay a level life insurance premium over a shorter span than the coverage itself, often a span in which you’ll have fully paid your policy after 20 years
· …AND TWO POLICIES TO IGNORE
So, to review, life insurance policies are not planned equally. Your Blue Umbrella Financial Services representative will spend your free consultation listening to your particular circumstances and help outline which products will best compensate the loved ones you leave behind in the event of your passing.
That said, there are two life insurance policies that are almost always worth ignoring completely…
v GUARANTEED-ISSUE LIFE INSURANCE
Ø Mainstays of late-night television commercial breaks
Ø “You can’t be turned down…”
Ø Most guaranteed-issue life insurance policies do little more than return your premium if you die within two years of issue
Ø Low death benefits, high premiums, and little worth if you have a short life-expectancy
v CHILD LIFE INSURANCE
Ø Yep, let’s insure the portion of the population with the clearest immediate health, longest life-expectancy, and no income
Ø Set up a college fund, instead
It’s important to think about what will become of your loved ones when you’re gone, but it’s more important to provide for their security with a prudent life insurance policy. Contact Blue Umbrella Financial Services today for a free consultation.