Term Life Insurance 2

Choosing the right policy can be a confusing process.
Some questions you should ask yourself are:
- Will the policy meet my current needs?
- Will the policy provide the flexibility to meet my future needs?
- What does the policy cost––both current and expected lifetime costs?
- Is the provider established and financially strong?
- Will the company back its guarantees?
Insurers offer two life insurance categories for you to choose from: term and permanent insurance. Both can be tailored to meet your financial needs.

Term Life Insurance
If you’re looking for basic insurance coverage for a specific period of time, term insurance is a good place to start. It’s a cost-effective and simple plan, with some flexibility to adapt to your long-term goals. Over time, your needs may change. Term life insurance can evolve with your needs by providing options to lengthen your coverage period or even to transfer to a permanent life insurance solution.
Permanent Life Insurance
If your financial objectives include more than basic insurance coverage, you may benefit from this option’s added investment potential. Permanent insurance solutions allow you to insure against the unexpected while increasing the value of your investment over time. Plans are flexible and can be tailored to the level of investment potential and insurance coverage to meet your personal financial goals. You can also select a plan that gradually minimizes insurance coverage so you can maximize your policy’s investment potential.

Term Life Insurance 1

It’s difficult to imagine needing personal life insurance while you’re young and in good health. But, if anything should happen to you, it can help protect your spouse, loved ones and estate. Some personal life insurance policies can also offer you access to funding during your life, such as for buying a home or educating your children.
What is Life Insurance?
Life insurance is a contract with an insurer, that promises a set amount of money will be given to your beneficiary upon your death. Your benefit amount depends upon many factors including the policy you choose, your age, sex and health, and the amount of premium you pay. These are the types of details you’ll discuss with an advisor so that the right policy can be selected by you, from those with fixed coverage and specific terms to those with greater flexibility.
Why Do You Need Life Insurance?
Life insurance can give you peace of mind knowing that, if something should happen to you, your loved ones won’t be left with a legacy of debt, final taxes or other money worries. Certain life events might cause you to re-evaluate your financial goals and consider the protection life insurance can provide. Some of these include getting married, buying a home, having children or planning for your retirement. With an appropriate plan, life insurance can help you meet your goals in life and protect your family when you no longer can.
As well, certain business situations call for life insurance. If you’re an entrepreneur or just starting a business you’ll need to protect your enterprise and any partners. A uniquely tailored insurance solution can also provide the money necessary to enable your fellow shareholders or partners to buy you out when you’re ready to retire.

Life insurance

Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.
Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kinds of actuarial and investment management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance.
Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed.
In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.
In U.S., the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation. A combination of low-cost term life insurance and a higher-return tax-efficient retirement account may achieve better investment return.