Life insurance lets you leave your family a non-taxable amount at the time of death. It can be used to cover your debts and replace your portion of family income when resources are less so they can maintain their quality of life. It is always easier and cheaper to apply when you are young and healthy, but there are many ways we can help to find the insurance coverage you need no matter what your situation.
If you have a mortgage or other debts, have a family to protect, want to set up a legacy for personal or business purposes and/or want to bequeath money to a charity, then life insurance is for you.
Life insurance is a big decision to make
To build the right plan, it’s important to know your options. There are two main types of life insurance. Both options protect you and your family but have different features.
- Term life insurance – simple to understand and affordable with flexible coverage. The initial term lasts for a set timeframe. The length of term depends on your needs. The policy automatically renews every at the end of the first term until a certain age, at which point it expires. You can end your coverage at any time, or you may be able to convert this to another policy that is permanent. This is the more affordable option in the short term.
- Permanent life insurance – this insurance is meant for protection for your family for your lifetime, with potential to grow your wealth tax-free while it remains in your policy or use the cash value to eventually pay the monthly premium for you. You may also be able to withdraw some of the cash value after a certain time period.