whole-vs-term-life-insurance

Whole vs. Term Life Insurance – Which One Is Right For You?

At GetLifeInsuranceQuotes we want to make your life insurance experience as easy as possible. In order to do that it's really important to explain your options and the key differences between your options specifically term vs. whole life insurance. These two different types of life insurance options full fill different yet equally important requirements and depending your needs either one can be an excellent choice in setting up a stress free plan for the future.

Whole Life Insurance

Term Life Insurance

Coverage

Provides lifetime coverage with the added benefit of accumulating cash value over the years. A whole life policy can be broken down in to insurance and investment components.

Premiums

Fixed insurance premiums which cover the cost of the insurance + act as an investment. The investment component of a whole life insurance policy builds an accumulated cash value through equity growth and possible tax-deferred dividends or interest which build up overtime. A policy holder can also borrow against or withdraw against the investment component of a whole life insurance policy.

Coverage

Provides insurance coverage for a specific time period ex. 10, 15, 20, 25 or 30 years. Once the policy term expires it is up to the policy owner to decide if they want to renew the policy or let the coverage end.

Premiums

Specifically designed to insure individuals against loss of life and has no additional cash value. If a person dies within a policy term the death benefit is paid out however if the policy term has ended no death benefit is paid. Term life insurance offers affordable and flexible protection that can be customized to attend to temporary and growing requirements. Policy holders can also take advantage of options to extend your coverage period or even to transfer to a permanent life insurance solution should the need arise.

Well Suited To:

  • The need to provide dependents with cash quickly after the head of the family dies
  • The need to have cash to liquidate business debt, pay off mortgages and/or help family members reduce their debts
  • To fund requests from charities

Well Suited To:

  • Meet high, short-term protection needs for the lowest initial cost
  • Gives you the option to pay off existing debts - like your mortgage
  • Ensures you can maintain a comfortable lifestyle without having to worry about large premiums
  • Even allows you to invest in other long term educational plans or RSP's

Benefits

  • Your premiums, your whole life insurance policy face value and the surrender values are guaranteed. No surprises, no worries!
  • Flexible payment options
  • You choose when you want to pay your premiums up till. You can pay for 10, 15, 20 or even 30 years, up to the age of 65 or later so you can plan according to your priorities
  • Surrender values are available starting in the 11th year of the contract and they continue to increase with time, allowing the accumulation of a fund that can be used as needed

Benefits:

  • Premiums guaranteed to remain the same for 10 or 20 years depending on your needs
  • Affordable life insurance coverage
  • No medical evidence required at renewal period. However, medical evidence may be required if coverage amount increases
  • Ability to convert to a permanent life insurance policy
  • Be rewarded for a healthy lifestyle - your personal health and lifestyle determines the premium for your insurance coverage
  • Complete control of your coverage

Additional Advantages for Children

Whole Life Insurance coverage is a precious gift you can give to your children. By subscribing to coverage at a low price because of their youth, you guarantee them coverage that they can adapt to their needs as they get older

  • For all coverage issued between age 0 and 20, we offer a guarantee that once an adult, the insured can increase his coverage, regardless of his state of health
  • Healthy living is profitable. Insured children age 0 to 14 benefit from a 40% increase in their initial coverage beginning in adolescence if they meet certain health criteria—all at no additional cost
  • Coverage is grouped in a single contract to reduce multiple administrative fees
  • Children can benefit from preferred underwriting and obtain a lower premium

Additional Advantages for Business Owners

Owning a business means investing finances and time without counting the hours you put in. Building a successful business often represents your life’s work. Term Life Insurance can help protect your business.

  • Insure one of your key employees
  • Finance a buy-sell agreement
  • Meet the demands of your creditors considering your financial obligations

Choosing the right insurance option shouldn't be complicated. At GetLifeInsuranceQuotes.ca our team wants to make sure you know all your options and we are always available to answer any questions you may have. Get in Touch today or fill use our instant online quotes tool to get life insurance tailored to your lifestyle today.

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