Saving for a Rainy Day and Life Insurance Policies

These days of economic uncertainties have made people realize the importance of saving money for a rainy day. Having enough money saved in the bank gives people an assurance that they can survive unexpected hard times like having their work hours reduced or getting laid off. It is a rule of thumb that families should have an emergency fund equal to 3 months income to weather these unexpected bumps in the road.

In addition to an emergency fund a family should seriously consider getting a life insurance policy. Life insurance plans can contain an investment component and over time can grow to a very significant amount. Before buying a life insurance plan, do your research on the plans available in Canada by making requests for life insurance quotes. This way, it should be easier to calculate which rates are affordable for the plan of your choice.

The cost of life insurance largely depends on the coverage selected. See to it that you choose the correct coverage to avoid unnecessary spending. For instance, if the children were left with a trust fund by their grandparents specifically for college expenses, the family breadwinners don’t need to have a life insurance plan that covers college education.

Life insurance plans are varied and a seasoned, reliable broker can help point you to the best product for you specific needs.


Insuring the Company with a Key Person Insurance

Key persons are those considered to have a significant hold or power within a company. These individuals can make or break the company, so to speak, as they are usually the brains behind strategies and directions that the business will take to become successful.

Because of their importance to the operations of the firm, it only necessitates having them insured with a Key Person policy. A key person’s untimely death can have a severe impact on the well-being of the company itself, after all.

One can say that key person insurance is similar to a regular life insurance policy, whereas the company will pay the premiums. The difference would be that the policy covers the owner, the founders, or one or two key employees in the company.

In the event that the key person passes away, the company or a related party will receive the funds. After the reception of the funds, it is now up to the discretion of the company on where these funds will be used. Some use it to pay off debt, while others use it to maintain the daily operations of the company. Others use it to pay for a replacement key person and have the luxury of time as this new person comes up to speed. These funds can also be used to effectively buy-out the diseased key person and are paid to a spouse or his or her estate.

Regardless of how the named beneficiaries use up their share of the policy face amount, what is most important is that the policy holder’s stake in the company is effectively protected, leaving the company just as secure despite losing a key colleague.

A Quick Guide to Choosing an Insurance Broker

Investing in insurance is a worthwhile and critical financial decision. The decision to get a plan must be based on well-researched information on the various options available to avoid major risks. To make sure that your choice of insurance is correct, consider hiring an insurance broker.

An insurance broker can help identify the type of insurance that will be to the best advantage of the policy holder. Finding the right broker to work with, therefore, is just as important as finding the right kind of policy. Here are some qualities one needs to look for in an insurance broker.

Experience. Be sure to choose a life insurance broker who has considerable experience and knowledge of the type of insurance that will best suit your needs. There are many kinds of policies and options. A quality agent will be able to walk you through the various plans available and help you choose the best one for your situation.

Reputation. Does he or she represent the top tier Life Insurance companies in Canada? Is your insurance broker fully licensed and in good standing with the latest knowledge and good working knowledge of what is available? The broker you choose should preferably be providing top quality service and ideally have been in the insurance industry for many years with a solid track record of success.

The insurance broker plays an important role in ensuring you get the coverage you need to protect your family, at a price that will fit your budget. It is in the consumer’s best interest to find a broker who understands your needs and who can recommend options and products to address your specific needs.

Financial Protection for Surviving Loved Ones

It is uncomfortable for people to discuss the topic of death, it is an inevitability that will have a significant impact on the survivor’s loved ones, and as such, must be addressed. Apart from the emotional impact on those left behind by the deceased, there can also be a lot of financial and legal issues that must be considered, such as financial obligations.

A person’s assets, whether a business, real estate, investments, or personal items that make up an estate, will most likely be left to loved ones and family members. It is important to note that debt is also left behind. Aside from leaving assets, therefore, it is also a very real possibility that the deceased will also be leaving them with debt.

Crucial decisions must be made before this time comes. Aside from writing a will, it is also recommended to have an insurance policy in place. Life insurance, for example, could help alleviate the debt or financial obligations left behind by the deceased. It becomes even more crucial for those whose real only asset is their ability to earn an income, take on debt and pay bills and debt monthly. For those with a mortgage, getting the best Mortgage life insurance that will pay off the outstanding balance will go a long way to ensuring the surviving family members have one less thing to worry about.

Common Types of Life Insurance in Ontario

The two main types of Life Insurance are term insurance and permanent insurance.

Term insurance is the most affordable when initially purchased and is designed to meet temporary needs. You are buying protection for a defined “Term” typically offered for 10, 20, or 30 years and pays a benefit (the Face Amount) only if you die during the term. Term makes sense if you want a large amount of coverage at a cheap price. For instance, you may decide that you only need coverage until your mortgage is paid off and the children graduate from college or university.

Permanent insurance on the other hand provides lifelong protection. If you keep the policy in force by paying the monthly premiums this type of insurance will stay with you for your entire life. Premiums start off being more than Term but have the advantage of remaining level for your entire life. If you feel you want to leave something behind to loved-ones this type of insurance is the best choice.

It takes a bit of planning to decide which type of life insurance is better for you and your family and depends on your financial goals and unique circumstances. Quite often, a combination of term and permanent insurance is the best solution.

On Carefully Choosing a Life Insurance Plan

Life insurance is a must for anybody who has dependents and may be one of the most important purchases you will ever make. If tragedy strikes, life insurance can pay off a mortgage or other debts, help pay bills, keep a family business going, fund future needs like your child’s post secondary education, and much more.

There is a lot to consider when buying insurance, the sheer variety of products and providers may seem overwhelming. Here is a brief description of the two main types. Insurance companies might give their products unique trade names but it basically breaks down to these two main types.

Term insurance

This is the most affordable type of insurance. It is designed to address temporary needs and is used to insure an individual for specific period of time. If you die during the term, whether it be a Term 10, 20 or 30 for example the benefit is paid to your beneficiaries. Term insurance makes the most sense when you have a large debt or a mortgage that you want to ensure is completely paid off if the unexpected happens. It is a great choice if you only need coverage for a specific time and need to fit the cost into your budget. You may decide that you only need insurance coverage until the house is paid off or the children graduate.

Permanent insurance

This type of coverage stays with you until death; premiums are guaranteed to remain the same throughout your life. Unlike temporary term insurance, permanent insurance is with you your entire life and always pays a benefit to your beneficiaries and is a valuable tool in estate planning. Your heirs can use the benefits payable to them to help cover the capital gains tax on any assets you leave them in your Will—for example, a cottage or other vacation home.

The main benefit of permanent life insurance is that it provides you with insurance coverage for as long as you live—at the same guaranteed rates as when you bought it.

Be sure to choose wisely and ask the experts for advice.

Requesting Life Insurance Quotes in Toronto

Finding the right life insurance at the right price has never been easier. There are many websites that will quickly search all the major insurance companies in Canada and provide you with life insurance quotes in Toronto and throughout the country.

Shopping for insurance online with a website that uses state of the art comparison software is quick and easy. Most sites include the rates of over 25 plus life insurance companies. That is just the beginning. All types of insurance can be searched and compared including Living benefits such as Critical Illness, Disability Insurance and Long Term Care Insurance.

First decide what coverage you want, how long you think you’ll need it and what you think you can afford monthly. Enter your age and sex and in a few minutes you will have your quotes. You have a few options to consider which will help you determine the type of insurance you eventually buy. Term Insurance is the least expensive and gives you the right to renew (usually at a higher rate) for another period when the term ends with no evidence of insurability. Permanent Insurance (also known by such names as Term100 and Whole Life) has premiums that stay level for your entire life and will never increase. These policies are more expensive initially but in the long run can be less expensive if you buy when you are relatively young. Permanent policies (if kept) will eventually pay out the face amount to your beneficiaries. Term insurance on the other hand is just there temporarily and will likely not be renewed due to the increasing price on each renewal. It was cheap and temporary and was put in place to mitigate the risk of something happening to you during the time in your life when debts where high and kids were young.

The rule of thumb in deciding how much life insurance to get is to multiply your annual salary by five to 10, add your liabilities and subtract your assets. Each family is different, and while that general rule may work for some, it doesn’t automatically mean it will work for your family. The good news is when requesting life insurance quotes in Toronto online you can always talk to a live insurance specialist who can recommend suitable life insurance plans and amounts to best suit your needs.

Life Insurance for Seniors

The babies of the Baby Boom generation are reaching their golden years. People born between 1946 and 1965 are now hitting the golden years, and some might have already retired or getting ready to. Insurance companies like other businesses are tailoring some of their life insurance products to seniors in order to be competitive and fill a need. There is now a wider selection of products being offered to seniors.

If a senior needs life insurance in Toronto or anywhere in the country for that matter it is important to find a quality broker that has done their research and will take the time to help them find the right product for their specific age or medical issues. Each insurance company has different policies and conditions; some are more forgiving of certain health conditions, others insure different ages, some require medicals exams, others may need to contact your doctor and still others may only ask a few brief questions.

These policies are able to cover a lot of financial concerns that are important to seniors.

The most common uses of Seniors Insurance

  • pay for a funeral

  • leave money behind to loved ones

  • fund a grandchild’s post secondary education

  • take care of a tax liability like the capital gains on a second property

  • leave money to a favorite charity

People With Medical Conditions Now Get Insured Too

Many people with health issues used to be hesitant about applying for life insurance, especially if they had a pre-existing medical condition such as heart problems, diabetes etc. They felt there was no point, as they were likely to be declined or turned down.

It is good to know, however, that insurers are now offering a wide variety of NO-Medical Life insurance. There are many life insurance brokers in Toronto and throughout the country who have done research on what companies are more forgiving on certain conditions that will help you find the right product for your age or medical issues.

No Medical insurance is available to most anyone between the ages of 20 and 80, provided they can answer “NO” to a few qualifying questions. No disclosure of detailed medical or lifestyle information is required during the application process. A simplified application is all that is required.

This type of plan will benefit you if:

  • You have been turned down before

  • You are hard to insure

  • You hate needles and undergoing blood testing

  • You smoke

  • You are overweight

  • You don’t want to go through a medical exam

In Ontario Life Insurance Brokers are licensed and regulated through The Financial Services Commission of Ontario. FSCO is a regulatory agency of the Ministry of Finance that regulates life insurance and other financial services. Due to the continuing education requirements, this has resulted in better life insurance brokers in Ontario.

Choosing the Best Mortgage Life Insurance Policy

Taking care of your family usually means providing them with a comfortable home. Of course, this also means providing them with financial security in the event of the unexpected. If you have financed your home with a mortgage, you and your family will need the best mortgage life insurance available today.

A home is a major investment and the mortgage has to be paid monthly no matter what unfortunate circumstances occur. One of the wisest things you can do is purchase mortgage life insurance, which pays off the outstanding mortgage loan in the event of the policy holder’s death. In general, mortgage life insurance comes in two basic varieties, bank creditor insurance and life insurance through an insurance company.

With bank creditor insurance the policy ensures the bank is paid out. Bank creditor insurance policies are often post underwritten. What this means is you are only asked a few simple questions during the application process and then when there is a death, the bank will start to investigate your medical records to ensure you have answered the short questions they asked you (when you were living) were answered correctly. They may very well decide you were not covered and the mortgage is not paid out leaving the grieving family with a huge mortgage.

Top financial planners agree that the best mortgage life insurance can be purchased through a licensed insurance broker. These policies are underwritten at the time of application and are either approved or not. Once approved YOU ARE COVERED, the policy payment on death is paid out to the beneficiary of your choosing and the funds can be used to pay out the mortgage or not. The family may decide to continue paying the monthly payments. These policies are usually less expensive too!

Death is an uncomfortable topic for many people, but planning for this eventuality is important to guarantee your family’s well-being. Indeed, choosing the best mortgage life insurance for your home is an important step to towards it.