It can be tough to decide what you REALLY need when it comes to life insurance. After all, who really wants to bet on when they’re going to die? What you’ll discover is that one type of insurance is drastically cheaper than the other (term, or temporary life insurance), while the other plan has a wide varieties of bells and whistles.
Understanding Life Insurance Policies
Think of Life Insurance policies like a more morbid form of renting. Imagine paying into a term insurance policy for 5,10, 20, or even 30 years, and never actually having to use it? Then you’re putting down a whole bunch of money on something you’ll never get. On the other hand, permanent insurance is more concrete. Imagine buying the whole house- for example Dad is a single parent and worries about his kid paying bills and going to college without him in the future.
With all the Variables, What do I Choose?
There are a huge amount of variables to consider, and Robert Yancovitch has the experience in Montreal to help you solve your insurance dilemma, but until then we’ve got some features and statistics for you to consider:
-When premiums don’t escalate, permanent plans are far more likely to hold their worth until a person actually dies to pay death benefits over term policies. Term policies start out very, very affordable and tend to increase as the age of the policy matures. Permanent policies also transfer death benefits at much lower tax rates (some term insurance policies tax about 50 percent).
-Permanent life plans actually give users tax advantages in that the actual “cash value” of the plan doesn’t accrue tax at a normal rate (instead at a tax-deferred rate). If your term life insurance doesn’t have a legitimate cash value, your really don’t make anything on the investment.
-Life insurance policies are typically never enough, because people invest in cheaper, more affordable plans that pay minimums (and that’s usually it). You should either ramp up your policy (with Robert Yancovitch’s help in Montreal) or expect to save regularly to commit an investment on the side.
Get all the Facts from Someone in Your Corner
It’s not all doom and gloom, however. With a skilled and helpful Montreal insurance agent you can find an affordable plan if you’re in the right health that maintains a steady value and makes you money!
A good term life program starts growing your money within the first year of being funded. Interest rates are locked in, the money can never be lost, and there are far lower tax rates to consider. These factors alone greatly improve the value of index life insurance for investors. It just takes the right agent. Get interest free access to the cash inside your policy, helping you rebuild wealth after a death in the best way possible- contact Robert Yancovitch today.