Broker Check

Personal Insurance coverage

How can I protect those who depend on me? How to craft your life insurance benefit plan is equally if not more important than the amount of life insurance you purchase. Who should be covered? For what amounts? What are the tax implications? Should we offer a buy-up option? Should it be portable or convertible?

Term life insurance is life insurance in force for a set period of time, typically 10, 15, 20 or 30 years. The death benefit remains level throughout the specified term. It is often the least expensive form of life insurance coverage but is most effective when the need for coverage is of short duration - 10 to 15 years. Term life insurance, when purchased through a group or association, often has age banded rates. This means that your premiums increase as you move into a new age bracket, which are most often structured in five year increments. Medical underwriting may be more streamlined than for an individual policy but the amount of coverage available is usually less than for an individual policy. Both group and individual term life insurance policies may have conversion privileges - the capability to convert a term life insurance policy to a permanent or whole life policy.

Universal life insurance provides death benefit protection and may also provide a tax-deferred cash value accumulation component. Its flexible premiums allow death benefit amounts and cash value to be adjusted as individual needs change, subject to policy limitations and the insurability of the policy holder. If the need for coverage is for a period of 10 to 20 years, this product should be considered. 

Whole life insurance is also known as permanent insurance, as coverage lasts for your lifetime, as long as you pay the premiums. It provides a level or increasing death benefit, a guaranteed, tax-deferred cash value component,* and may also pay a dividend, which is not guaranteed. The premiums are level and generally, the younger and healthier you are, the less expensive the premium. If the need for coverage is from 15 to 20 or more years, permanent life insurance coverage has many advantages.

*Guarantees are based upon the claims paying ability of the issuing company.

In the event of an unexpected illness or injury that prevents you from earning an income, disability income insurance - either a group or individual policy - can help by replacing a portion of your income to help meet expenses during that disability.

Options that may be available with a disability income insurance policy*:

  • Inflation protection
  • Ability to increase benefit amount with no additional medical underwriting
  • Benefits paid for a partial disability
  • Protection for retirement contributions
  • Catastrophic disability income benefit

*Options are available in the form of Riders for additional cost