LIFE INSURANCE
Term Life Insurance ~VS~ Whole Life Insurance
When it comes to comparing term life insurance vs. whole life insurance the decision typically comes down to cost. While whole life insurance is a guarantee and the cost of your life will be consistent, it is initially often too pricey for many individuals starting a family or who are recently married. In these cases, term life insurance is likely the best route to go to ensure that you guarantee the financial security of your loved ones. As with any major financial arrangement, it is important that you do review all of the details so that you have a clear understanding of the terms of your policy and don’t have any unexpected surprises.
What is term life insurance?
Term life insurance is affordable, easy-to-understand coverage that gives you flexible, temporary protection.
You will be covered for a specific period of time and the cost is guaranteed for the entire term. If you die while the policy is in effect, your beneficiaries will receive a tax-free payment. Most policies also have the option to convert your coverage to permanent insurance regardless of any changes to your health, occupation or lifestyle.
Is term life insurance right for you?
Term insurance is an effective solution for people who are:
Focused on affordability and value
In need of temporary protection (for example, to cover a mortgage or business loan, or until children are finished school)
Business owners with a need for key person protection and/or to fund buy/sell agreements
Mortgage Insurance ~ VS ~ Personal Life Insurance
Mortgage Insurance
Your policy is subject to change of the insurance provider and the terms of the agreement
Your mortgage lender owns the certificate of insurance
Your mortgage lender is the beneficiary
The amount of insurance protection reduces as you make your mortgage payments
The cost of insurance does not decrease even though the amount of protection does
The insurance protection is not transferable and is limited to the mortgage you have for a certain property with a certain lender
No changes are permitted under the plan
The insurance is not guaranteed renewable for a new mortgage and, if you change financial institutions, you must provide new evidence of insurability
PST added to your cost of insurance
Personal Life Insurance
Insurance company cannot change the policy provisions or the guaranteed policy premium
You are the owner of your mortgage insurance policy
You name the beneficiary of your choice
The insurance protection never decreases unless you request a reduction
If you reduce your coverage, your payments will be reduced as well
This protection stays in place when you change
Homes and mortgage lenders
You can make changes to your policy, including change of beneficiary, amount of coverage and conversion to a permanent insurance policy Insurance protection is guaranteed renewable up to age 85 and you can keep it this long if you wish
PST added to your cost of insurance
MORTGAGE WAIVER FOR
