Life Insurance is a contract between Insured ( Policyholder ) and the Insurance Company ( Insurer ) to pay the Sum of Money in event of death pf the Life Assured. The contract is governed by the conditions of the contract of Insurance ( Policy Document ).
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Exclusions are often part of the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
The Life Insurance Policies in Canada are of following Types
- Level Terms Insurance
- Reducing Term Insurance
- Mortgage Term Insurance ( Insurance Linked to Reducing Value of Mortgage )
Traditional Whole Life Insurance
Term to Age 100- Whole Life Insurance ( Payable for Life )
Whole Life Insurance ( Payable for Limited Term 15,20,25 or up to age 65 )
Whole Life Insurance ( Participating Payable for Life , Limited Term 15,20,25 or up to age 65 )
Universal Life Insurance ( UL)
UL is flexible, transparent and has more investment options available to client’s but one has to keep in mind that the investment risk under these plans is borne by the policyholder and often charges under the policy are not understood by the policy holder (e.g. Mortality Charge, Fund Management Charge etc).
Before purchasing Life Insurance Need Analysis is advisable to be done by a Insurance Professional and we can help you make decision. Please contact us at firstname.lastname@example.org or call us for no obligation Life Insurance Need Analysis and Quote.