Life insurance is a type of coverage that pays benefits upon a person's death to designated beneficiaries. In some cases, there may be a maturity date, where the insured, if still living, can receive the proceeds.
A small premium gives you immediate coverage and provides for a large death benefit payable upon the death of the insured to provide capital to provide an income for dependents.
Tax deferred interest accounts are allowed with some types of life insurance to offer insurance in tandem with an investment component, which can allow increased funds to pass tax free to heirs. This advanced estate planning tool is used by tax specialists who maximize the estate value while using life insurance. The investment after achieving growth can enhance retirement income.
Life insurance may be divided into two classes:
Insurance is less expensive but most term periods are only temporary.
Insurance continues to the decease of the insured or alternatively pays one a level or an increasing lump sum at a certain age of maturity (usually age 100), or offers cash value or tax-advantage or premium pre-payment incentives. Where there are cash values associated with a Permanent plan, the amount of risk is reduced for the insurer. This often allows the cost of the insurance to be lowered as the increasing cash funds accumulating in the plan, increasingly reduce by replacing, the level of insurance needed.
Permanent Life Insurance plans include:
Mutual Fund Disclaimer Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual Funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated. Investors should inform themselves regarding securities, taxation or applicable regulations/legislation, which may affect them personally. Investment products or strategies may not be suitable for all investors.
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