Most Canadians take the correct steps to protect their property against loss in case anything they own is lost or stolen.
Concerns about recouping losses if a home is robbed, or a favorite vintage guitar is destroyed during a basement flood, are questions with very routine answers. But when it comes to considering the value of a human life, many people don’t take the necessary steps to protect their loved ones against the financial loss when a primary income-earner dies.
Mortgage insurance (also known as Credit Insurance) is not the same as Life Insurance but I fear that too many consumers don't know the difference. A lot of Mortgage or Credit Insurance is sold by lenders when consumers purchase a home or take out a line of credit. Lenders know how to lend but I question lenders being the right ones to sell consumers insurance. Could it be that one of the reasons that consumers don't know the difference between Mortgage or Credit insurance and Life Insurance is BECAUSE they have purchased it from their lender? I believe that's a good possibility.
Sally has been working for the same company for over twenty years. About a year ago, she was given a new group benefits booklet because her employer had switched insurance companies. Like most people, she put it aside and intended to read it when she "had the time." Sally was just diagnosed with terminal cancer and made the time to read her group booklet. She was upset to learn that the life insurance coverage with the new insurer was only one times annual earnings. The previous coverage had been two and a half times annual earnings.
Starting in January 2017, the allowable cash value build up under tax rules in life insurance policies will change. The federal government introduced changes in December 2014 that are designed to modernize life insurance exempt testing rules as they have discovered that people are living longer and that their insurance policies will pay out later.
As a result of this new legislation, the affected demographics are middle-class consumers, business owners and wealthier Canadians looking to pre-fund their estate tax bills using cheaper life insurance dollars at death.
Permanent Life Insurance policies include insurance and savings in a single tax-advantaged plan.
With Permanent life insurance you have the ability to change your coverage, deposits and often your investment choices in response to your changing needs, conditions, or circumstances.
The two most common types of Permanent Life Insurance are Whole Life and Universal Life.