What You Need to Know When Buying Life Insurance
Here’s a quick tutorial from Vancouver life insurance advisor Robert Trasolini.
What is life insurance?
Simply put, life insurance provides a tax free benefit to a named beneficiary in the event the insured person passes away. Life insurance can be broken down into two main types, there is Term Insurance and Permanent Insurance.
Term insurance provides a guaranteed rate and coverage amount for a specified period of time. The amount of time that the cost of insurance will be guaranteed for will be dependent on the term that you select. There are several term lengths that are available with the most common being a 10 year term, 20 year term or a 30 year term. Term insurance is the most cost effective form of life insurance and it can be useful for providing coverage for specific reason over a specific period of time. For example, a 20 year term insurance is great for covering a 20 year mortgage. Many term plans have the option to covert or renew this insurance. You may choose to convert this temporary term insurance into permanent insurance plan.
Permanent insurance offers protection with a guaranteed level cost and death benefit. It is often said it’s not “if” permanent insurance will pay but “when” it will pay. This type of coverage can also grow cash values the longer the policy is in force. The coverage is excellent for those who would like to leave a legacy and are concerned about estate preservation / estate planning and would like to build up a cash value in a policy.
In the end, life insurance is about protecting your family, your health, your income, your business and your legacy.
Safe Pacific Financial offers complete life insurance advice and service to families, business owners and professionals in the Vancouver BC area. We are independent financial security brokers who pride ourselves on working in our clients’ best interest. We’re based in Vancouver for your convenience and have a simple philosophy of “no pressure no rush”.
If you’re in the Vancouver BC area and have some life insurance questions, we’re happy to help. Contact us by phone or email here.