Many Canadians do not want to think about Life Insurance or their own mortality. However Life Insurance over the years has become much more complex and offer many options which allow not only funds to your family or estate after death, but can also offer income during retirement. Here is some basic information on the products available. If you think any of these might interest you, we would love to sit down and discuss these options. Contact our office today at 604-560-5561.

Life Insurance

Our services include Term Insurance (which provides coverage at a fixed rate of payments for a limited period of time) as well as Whole Life Insurance (which, in most cases requires premiums to be paid into the policy every year) and Universal Life insurance. One particular type of insurance we recommend as an investment vehicle is Participating Life which combines the benefits of insurance with a tax advantaged savings component.

Participating Life Insurance

While the primary purpose of insurance is to replace financial loss, it can also combine permanent life insurance protection with a tax-advantaged savings component. Participating life insurance is flexible permanent life insurance with:

A core of guarantees for basic coverage—premium, death benefit and cash surrender values
A tax-advantaged savings component
The potential for earning policyholder dividends that can be used to purchase additional life insurance or reduce your out-of-pocket premiums (policyholder dividends aren't guaranteed)
A choice of riders and benefits that can be added to the basic policy
Premium flexibility

How it works

When you purchase participating life insurance, the premiums you pay go into an account called the participating account with funds from other participating policies. The philosophy behind participating life insurance is to provide insurance at a cost that reflects the actual performance of the participating account. At the same time, participating life insurance is built on a foundation of guaranteed values. Here's how the guaranteed values and actual performance work together for your benefit:

To determine your guaranteed premium, cash value and death benefit, The insurance company uses long-term assumptions for factors such as investment returns, mortality, expenses, lapses and taxes.

If the actual results in the participating account are collectively more favourable than the assumptions supporting the guaranteed values, earnings are generated in the participating account that become part of the participating account surplus (retained earnings).
Each year, the company may distribute a portion of the earnings as participating policy owner dividends, as approved by the board of directors.
Surplus is held in the participating account to maintain the strength and stability of the participating account into the future. Here's more information on the key components that determine the value of your participating life insurance policy.

Policy cash values

The cash value of your policy is comprised of guaranteed cash values, as stated in your policy, plus non-guaranteed cash values. If you surrender your policy, you receive the total cash value less any indebtedness .

Term Insurance

Term life insurance is well-suited to meet high, short-term protection needs for the lowest initial cost.

Term life insurance coverage can do a good job of meeting immediate needs and may provide the opportunity to later move or convert to permanent life insurance without providing proof of health.

Term plans may also be renewable after 5, 10 or 20 years without providing proof of health.

Term Insurance is:

Affordable life insurance coverage
Premiums guaranteed to remain the same for 10 or 20 years depending on your needs
Guaranteed premiums for each renewal period (at the time of issue)
No medical evidence required at renewal period (medical evidence may be required if coverage amount increases)
Ability to convert to a permanent life insurance policy
Your personal health and lifestyle determines the premium for your insurance coverage—we reward you for a healthy lifestyle

How it works

As long as you pay the premiums, your coverage, once validly obtained, can't be cancelled or altered by the insurer.

Term Insurance Usages

Create an estate for your heirs
Pay off your mortgage
Pay taxes owing on your estate
Pay off business loans and lines of credit
Pay off personal loans
Fund buy-sell agreements

Would you like more information on the above products or a quote on the above products? Please contact our office directly at 604-560-5561.