Temporary Life Insurance
(Term Life Insurance)
Term Life insurance is typically used for short term or temporary needs. For example, to provide financial protection while raising a young family. Term Insurance provides financial stability in the event of your death so that those who depend on you will have the financial means to:
- Cover debts such as mortgages, car loans, business and personal loans
- Improved option to Mortgage Insurance
- Replace the income you provided to your family
- Provide for your children’s education expenses (for example, future school funding)
- Funding for your spouse’s retirement plan
Term life insurance comes typically in duration terms of your choice. Premiums are guaranteed for that period and they will renew at a higher rate for the next term period.
Permanent Life Insurance
(Universal Life and Whole life)
Permanent life insurance provides coverage for whole of life, not just for a specific time frame such as term insurance. Your premiums, in most cases, will remain the same during the time you are covered, unless the owner chooses otherwise. With Permanent Insurance, you will have lifelong life insurance coverage with no need for future medical checks, unless you choose to increase your life insurance coverage or change your policy.
There are two types of permanent life insurance:
Whole Life and Universal Life.
In general, these plans come with two options, wealth and estate versions. The wealth versions are designed to maximize early cash values, resulting in a product that can be used to help fund obligations while the policyholder is alive, such as an education fund or retirement. The estate versions are designed to maximize long-term growth of the death benefit, which is ideal for estate planning.
Both types of plans offer life insurance coverage until death with the added benefit of investment cash values that carry tax benefits which can be used through the policy owners’ life.
Life insurance, both term and permanent, can be personally owned or corporately owned. Corporate owned life insurance is used for the business needs such as buy & sell agreements, key person insurance and liability cover.