Your life is an unpredictable path! You may be in the best of health today, but tomorrow, suddenly, things will change owing to a disease or accident. That’s where the need and role of life insurance comes into place for every individual who works in the interest of their family. There are various life insurance, and you should invest in one that fits you best and not because your friend has taken it! It would help if you experienced life insurance brokers in Vaughan who could help you analyze and choose the best life insurance. Additionally, you may have many questions like ‘Can I get my money back from life insurance?’ or ‘Is life insurance pay out tax-free?’ and much more, which the life insurance expert advisors answer!
What are the different kinds of Life Insurance?
Investing in life insurance from a trusted advisor in Vaughan is essential as it provides the safety net for your family in case of your untimely demise. Your family stays financially independent even in your absence and continues to the standard of living without compromising on their essential needs. So, secure your family today with the shield of a life insurance policy to provide them with adequate financial support.
Type 1: Universal Life Insurance Policy
As the name suggests, life insurance continues your life until you are alive.
Type 2: Money Back Life Insurance
In this policy, your family gets back the entire insured amount in the event of your death.
Type # 3: Term Life Insurance
With this life insurance, you get your life coverage for a specified term or period. In case of your untimely death during the term, the insured sum is transferred to your family.
What is a universal life insurance policy?
There are many takers for the universal life insurance policy; hence, understanding this insurance policy provided by the best life insurance advisors at platinummutualltd.com helps.
To explain the Universal life insurance policy further, it is a permanent life insurance that offers flexible premiums, a flexible death benefit, and the potential to build cash value over time. Its key features include:
1. Flexible Premiums: As a policyholder of this insurance plan, you can adjust your premium payments within certain limits.
2. Adjustable Death Benefit: It allows adjustment of the death benefit, which is the policy amount that will be paid to the family in case of policy holder’s death
3. Cash Value Component: It’s interesting to understand that a part of your premium paid towards this insurance policy goes into a cash value account, which earns interest over time. Then, as a policy hold, you can use this cash value to pay premiums, make withdrawals, and much more.
To know more about a universal life insurance policy and whether it best fits you based on your family’s needs and situation, click here!
What is better, whole life or universal life insurance?
Whole life insurance has a lot of similariites to universal life insurance, which is a type of permanent coverage that provides you with coverage for a lifetime. But, entire life policies come with a fixed premium and death benefit and offer guaranteed cash value growth, unlike university insurance policies. So if you don’t want to keep monitoring your insurance policy, then you can opt for whole life insurance but with the recommendation of the expert insurance advisors in Vaughan.
The Difference Between whole life and universal life insurance rates is explained!
For Men (Please note that the rates are indicative)
| Age of issuing the Insurance Policy for men | Universal Life Insurance | Whole Life Insurance |
| 30 years | $2,190 | $3,880 |
| 40 years | $3,140 | $5,800 |
| 50 years | $4,830 | $8,940 |
| 60 years | $8,100 | $14,400 |
For Women (Please note that the rates are indicative)
| Age of issuing the Insurance Policy for women | Universal Life Insurance | Whole Life Insurance |
| 30 years | $1,890 | $3,490 |
| 40 years | $2,790 | $5,220 |
| 50 years | $4,250 | $7,940 |
| 60 years | $7,060 | $12,540 |
Is life insurance payout tax-free?
Understanding and knowing that the life insurance payout tax is tax-free is interesting! That is one of the reasons why people with a tremendous net worth buy the universal life insurance to protect their family on the advice of the best life insurance advisors at platinummutualltd.com
Here are some tax facts related to Life Insurance Policy
- The cash payout done to your family from a life insurance policy is tax-free
- The death benefit that the insurer pays is tax-free.
- Since the various aspects of the insurance policy are tax-free, the life insurance policy can grow more quickly
- No payment of tax on any premium financing that you could be paying, which is secured against your policy
It’s also crucial to understand that you should not buy a life insurance policy only for its tax benefit; you should think about your long-term life goals and then accordingly pick a policy. That’s where the role of the best insurance policy advisors steps in.
Can I get my money back from life insurance?
The simple answer to the question, “Can I get my money back from life insurance?” is yes, but only with specific life insurance policies! For example, suppose you opt for a universal life insurance policy or a whole life insurance policy. In that case, you can use the cash value that has accumulated over time through withdrawals or policy loans.
If you decide to cancel your life insurance policy, you can receive the cash surrender value which is claculated by deducating the cash value from any exisiting surrender charges and outstanding loans. That’s why you need a dependable life insurance advisor company to guide you through your financial decisions!
Can you invest in a life insurance policy for a specific tenure?
The answer is a yes again! You can choose the tenure of your life insurance with a term insurance policy. So, you get to choose your insurance plan tenure and stay protected for a defined period.
Why should you invest in a life insurance policy?
Reason # 1: To fulfill Long term financial goal
The life insurance policy provides life coverage to fulfill your long-term goals, such as retirement or children’s education.
Reason # 2: Loans and liabilities
If you have bought a loan, the best insurance policy advisors recommend you go for a term insurance policy based on your expert knowledge and experience.
Reason # 3: Dependent spouse
If your partner is supported financially by you, then investing in a life insurance plan is a must. By taking this step, you ensure that even in case of your absence, your partners financial needs ate taken care of and they continue to live a financially stable and independent life.
Final Words
Take crucial guidance from the best insurance policy providers and advisors with varied options and recommend the most suited based on your needs, which goes a long way in your financial future planning.