Build a Bright Future with Term Life InsuranceEveryone wants a measure of financial stability and protection to live a carefree life. This is where life insurance comes in which provides individuals with the ability to live fearlessly and make the most out of life’s joys. When looking for the best life insurance for you and your family, it is important to factor in your budget constraints and requirements to strike the perfect balance. Term life insurance is a viable option for individuals looking for something more affordable.
How Term Insurance in Ontario Works?Term life insurance policies cover you for a specified period of time which is also known as the term of years. The duration could be anything from 5 to 30 years. The term length and coverage will be chosen by you when you buy the insurance. Much like any other insurance, the term insurance offers different premium options. Premium is a specific monthly cost incurred to maintain the insurance policy. These premiums are calculated based on several factors including age, health status, life expectancy and occupation. The chosen premium is paid throughout the duration of the term. In case of loss of life within the term of insurance, the insurance company will provide the coverage costs of the policy to your beneficiaries.
For the duration of the term, your premium and coverage is locked. Upon expiry of the policy, your insurance provider may give you the option to either renew the coverage at a higher premium or let the insurance expire. The higher premiums are the result of change in your age, health status or other factors which cause the premium to increase. Some insurance providers also give you the choice to switch to universal or whole life insurance within the term.
Is Term Life Insurance the Right Fit for You?Not everyone can pay an exorbitant amount for the high premiums needed for Universal life insurance. Term insurance combats that problem with a more accessible solution so everyone can have some financial protection for a happy life ahead. Term insurance is ideal for people on the lookout for a more temporary insurance solution. If you are still not sure if term insurance is the right fit for you, here are some examples of why you may need term life insurance:
Types of Term Insurance in OntarioTerm insurance also comes in numerous types. From level term policies to renewable term insurance and more, you need to explore your options to choose the right type of term insurance. Here are the main types of term insurance solutions available in Ontario:
Convertible TermAs the name suggests, this type of term insurance is capable of converting to a different type of insurance such as a whole life or universal insurance. The convertible term is only applicable to term insurance policies which are 1 to 5 years from expiry. One major advantage of convertible term insurance is that there is no need for a medical exam or reevaluation of health status as you convert to permanent insurance.
Increasing TermSome insurance policies provide you with the option of increasing the term and death benefits for higher premiums with time. While you do have to pay more for increased death benefits, you still get the advantage of an affordable insurance policy when you need it the most in your younger years. With the increasing term, older people can also avoid the trouble of qualifying for other insurance policies to get some added benefits.
Decreasing TermOn the other end of the spectrum is the decreasing term policy where the death benefits decrease with the duration. This type of insurance is also known as mortgage term as the decline in benefits needs to be matched to the decline in outstanding mortgage. This may work because you may not need a large amount of life insurance with a small mortgage debt. With this option you will be paying smaller premiums than term insurance. However, the premium payments will remain constant regardless of the declining benefits.
Annual RenewableThe annual renewable term insurance renews each year with a higher premium. The new premium is evaluated based on your age, health status and other factors. Renewable term may not be the most cost effective solution as premium costs increase over time but the major benefit is that your coverage is guaranteed for approval each year.
Live Life on Your Terms
Living life on your terms means making the most out of each opportunity for a life full of growth and success. Don’t let some financial hiccups hold you back from living the life you have envisioned for yourself.
Term life insurance is an accessible and affordable solution for young people, families and business owners alike. With R.W. Insurance Group Inc., finding the right type of term insurance in Ontario is easier than you may think.
Supplement all the information given on this page with some valuable advice by our licensed insurance advisors in Ontario. R.W. Insurance Group Inc. is a licensed insurance agency and home to some of the best insurance professionals in the business. Contact us now to utilize our extensive knowledge and get a free consultation. We are just a call away!
Permanent Life Insurance
Whole Life InsuranceWhole life insurance in Ontario is a good fit for individuals looking to fix the monthly premium, build cash value or as a gift for a new born or a Grandchild. The advantage of such an insurance comes in the form of cash value that can work as an investment. Here are some features of the whole life insurance:
Universal Life InsuranceIn addition to financial protection for your family, the universal life insurance in Ontario can also help you get tax-sheltered cash growth. That is why this type of life insurance is preferred by families who want some additional funds on top of standard financial security. It is also a suitable choice for financially stable individuals who can afford to pay the high premiums to get a tax-benefit, with limits on how much may be deposited. Some features of universal life insurance are:
Critical Illness Insurance
Along with the disability coverage some banks may also carry critical illness coverage to help you remain financially stable. This insurance covers your mortgage debt in case of a severe critical illness. However, the extra coverage comes with an extra premium.
Technically, if you and your partner are covered in the mortgage, you will be paying for 4 coverage and getting only one possible payout from it. If you and your partner remain healthy, the bank will be making a huge profit from the premiums. On the other hand, if one of you becomes critically ill, the bank pays off the mortgage and the other 3 plans gets cancelled because the mortgage is now paid. The other partner will now have no protection from the critical illness coverage or the mortgage insurance since the mortgage is already paid. This means that the bank successfully made huge profits by charging you for 4 premiums and no matter what the outcome may be for you, the bank will be getting their due share.
This may sound surprising but mortgage critical illness coverage comes out to be way more expensive than any personal critical illness policy. Just like life insurance, it provides you with a set coverage for the desired number of years and is not connected to your mortgage. In case of a severe illness, you get the tax-free lump sum amount which you can use as you please. This provides you the flexibility to utilize your funds how you wish and also ensures that you pay for what you will get. Even if you get a payout on the critical illness insurance, your life insurance remains intact with your beneficiaries getting the financial support they deserve in your absence. This makes regular critical illness insurance a much better deal.
Disability insurance can help protect you and your family from an unexpected illness or accident that leaves you unable to work and earn an income.
Generally, disability insurance replaces between 60% and 85% of your regular income, up to a maximum amount, for a specified time if you:
temporarily can't work
are permanently disabled due to an injury or illness
Permanent refers to the nature of the disability.
It does not mean that you'll get benefits for the rest of your life. Many employers offer disability insurance. However, you can get your own disability insurance plan through a life and health insurance agent. If you're self-employed, you can also get disability insurance that will cover many of your business expenses if you're unable to work.
What to consider when buying disability insuranceIf you're considering disability insurance, make sure you: check with your employer to see if you already have group disability coverage with your employer's plan shop around, especially if you're considering private disability insurance Consider group insurance offered through a union, guild, or professional or alumni association. Premiums for this type of coverage usually increase as you get older. You'll need to renew your insurance every few years.
Short-term disability insuranceShort-term disability coverage typically provides benefits for up to 6 months while you're sick or injured. If your employer has a short-term disability plan, your claim must be made through your disability plan. Employers aren't required to provide paid sick leave and each employer is different. Speak with your employer’s human resources staff for details on your plan including any sick time or vacation time policies that might apply. If you don't have short-term disability coverage and your employer does not offer one, you may be eligible for Employment Insurance (EI) sickness benefits. To be eligible for EI sickness benefits, you must: usually have used all of your sick leave have worked enough hours
Long-term disability insuranceLong-term disability insurance benefits generally begin when the following benefits end: short-term disability insurance sick leave benefits from your employer EI benefits Most long-term disability plans will replace 60% to 70% of your normal income. Each disability plan is different. Some may provide disability benefits for up to two years if you're unable to return to the job you had before becoming disabled. After two years, you may continue to receive benefits only if you're unable to work at any job.
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