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Why buy Life insurance?


Why buy Life insurance? To provide your dependents with a continuing source of income ... lack the financial resources to purchase adequate permanent insurance ... – PowerPoint PPT presentation

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Title: Why buy Life insurance?

  • Why buy Life insurance?

  • To provide your dependents with a continuing
    source of income
  • To maintain your familys standard of living
  • To provide for your childrens education
  • To pay off the mortgage on your house
  • To pay off any outstanding debts
  • To pay off any outstanding taxes

Two Major Categories of Life Insurance
  • Term Life Insurance
  • Permanent Life Insurance

Term Insurance
  • Term Insurance is designed to address
    temporary needs and it buys you protection for a
    specified period of time or term.

Term Insurance
  • Term insurance provides protection for a
    specified period of time.
  • 5 Year Term
  • 10 Year Term
  • 20 Year Term
  • 30 Year term
  • Term to 65
  • Term to 75

Term Insurance
  • Premium remains level during the specified term ,
    but increases if the policy is renewed.
  • At the end of the term, you may reapply for
    coverage and you may or may not need to provide
    proof of continued insurability.
  • A death benefit is paid only if the insured dies
    during the term of the policy.

Term insurance is the best if you
  • need a large amount of insurance for a short term
    financial obligation (mortgage, childrens
    education, etc.)
  • lack the financial resources to purchase adequate
    permanent insurance
  • are enticed by the large face amount
  • do not need insurance for estate planning

Term insurance is the best if you (cont.)
  • have collateral for a loan
  • want to renew or convert the policy in the future

Term Insurance
  • If you do not want to spend a lot of money on
    life insurance
  • If you would have survivors with financial needs
  • If you have financial commitments of a known
    amount and period of time
  • Then the term insurance is your choice

Permanent Insurance
  • Permanent insurance is used for permanent needs.
  • It can be split into two categories
  • Whole life with cash value
  • Whole life without cash value

Whole Life with Cash Value
  • Cash value reflects the money that a
  • policy holder puts into the policy in excess
  • of the actual cost of the insurance.
  • Whole life and Universal Life policies have
  • cash values.

Universal Life Insurance
  • Universal life plans provide lifetime coverage
  • It has an investment feature
  • The investment fund is partially sheltered from
  • The savings in a universal life plan are
    controlled by the policy owner

Universal Life Insurance (Cont.)
  • The premiums are flexible ( can be increased or
    decreased by the policy owner)
  • Flexible cash values depending on investment
    returns and level of premium deposits.

Whole Life without Cash Value
  • Term to 100

Term to 100
  • It is a permanent insurance plan that provides
    life insurance protection to age 100
  • It is an essence stripped-down whole life product
  • It is less expensive than the whole life product
  • It does not pay dividends or include cash value

Whole Life is Best for
  • Providing income for survivors
  • Covering funeral expenses
  • Capital gains taxes on investments
  • Real estate and RRSPs at death
  • Charitable gifts
  • To pass a business to the next generation

Comparison between Term and Whole Life
Term Permanent Permanent Permanent
Type Term Term to 100 Whole Life Universal Life
Coverage 5-20 years or to age Level Life Life Life
Premium 65-70 Level Level Flexible
Death Benefit Guaranteed Guaranteed Guaranteed Guaranteed
Cash Values None None Guaranteed Flexible
Dividends None None Participating policies None
  • Let 310-TERM
  • find you the best premium for
  • Life Insurance
  • in all of Canada.

  • We shop. You save!
  • Call 310-TERM(8376) or
  • go online (www.310term.com)
  • for your free quotes now!
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