Advantages of Life Insurance

Few individuals, particularly those with the responsibility of a young family, have sufficient savings to adequately protect their loved ones should the main income earner die. Life insurance can help create an estate at a time when funds may be needed most. This is a low-cost way to ensure your family’s continued financial well being.

Money in hand - quickly

Your beneficiary, the person(s) you name to receive the insurance money, will be paid within a few days of the insurance company receiving the required information. By contrast, savings and other assets may be tied up legally for some time after death.

Financial benefits you enjoy

Some people have the impression that insurance pays only if you die. That’s not the case. Many permanent insurance policies (i.e. participating and universal life) build cash values that you can access during your lifetime. The cash value is the equity you have built up in your policy. Cash values can accumulate within your policy on a tax-advantaged basis. The growth in the cash value is generally only subject to income tax when it is withdrawn from the policy. Your policy’s cash surrender value can be used to:

• provide funds in an emergency
• finance a down payment on a home or cottage
• launch or expand a business
• act as collateral for a loan from a third party lending institution
• supplement your retirement income
• provide income for long-term care or home care for you or your spouse

How you use the money is really up to you.

It’s customized for each of the following stages of your life: early career, concerned family, or empty nest. What’s the best life insurance is also available in a customized format according to your needs as an affluent and established individual or your needs as a business owner.

Other advantages

• the death benefit is not subject to income taxes
• probate costs can be avoided if you name a beneficiary other than your estate
• unlike a will, information regarding your life insurance can remain private
• in many instances, life insurance may be protected against creditors.