Contacting an insurer at a local branch or online to ask for a quote is easy. The not-so-easy part is finding a suitable policy with adequate coverage and other benefits. It's critical that people looking to insure their lives should study the options before asking a North York ON life insurance company for a quote.
The main things to focus on are the amount of coverage and the policy type. There are any number of online calculators that will give a precise figure when fed input data such as monthly expenses and current and expected future income. This coverage amount and the maximum affordable premium can then be used to find matching policies.
Start by picking one of the policy types explained below. The two broad classifications are permanent and term policies. The permanent type may be further sub-classified as either whole life or universal. Term policies provide cover for set periods such as five, ten or twenty years without any cash value.
On the other hand, whole life plans cover insureds for the rest of their lives. The premium for a policy can be paid up within a set number of years. The coverage continues to stay active for the remaining part of their lives. Another difference between this and a term plan is that a cash value can be accumulated.
This cash value grows without being subjected to taxes, and distributions to beneficiaries are likewise exempted from taxation. The only tax paid is on the income used to pay the premiums, which are not deductible from taxable income. It's still one of the most sensible ways to pass on a large inheritance with no taxes to be paid by the heirs receiving it.
Universal plans include a whole-life component and an investment account. The account owner makes contributions to be invested, and premiums for the coverage are drawn from the account. If the investment portfolio is performing well, it should soon be able to pay for the premiums from earnings without requiring any additional contributions to be made.
The main things to focus on are the amount of coverage and the policy type. There are any number of online calculators that will give a precise figure when fed input data such as monthly expenses and current and expected future income. This coverage amount and the maximum affordable premium can then be used to find matching policies.
Start by picking one of the policy types explained below. The two broad classifications are permanent and term policies. The permanent type may be further sub-classified as either whole life or universal. Term policies provide cover for set periods such as five, ten or twenty years without any cash value.
On the other hand, whole life plans cover insureds for the rest of their lives. The premium for a policy can be paid up within a set number of years. The coverage continues to stay active for the remaining part of their lives. Another difference between this and a term plan is that a cash value can be accumulated.
This cash value grows without being subjected to taxes, and distributions to beneficiaries are likewise exempted from taxation. The only tax paid is on the income used to pay the premiums, which are not deductible from taxable income. It's still one of the most sensible ways to pass on a large inheritance with no taxes to be paid by the heirs receiving it.
Universal plans include a whole-life component and an investment account. The account owner makes contributions to be invested, and premiums for the coverage are drawn from the account. If the investment portfolio is performing well, it should soon be able to pay for the premiums from earnings without requiring any additional contributions to be made.
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