Having a life insurance cover means your family or loved ones would be able to take the fiscal effect of your passing.
A tax-free, single large amount called death benefit from your life insurance cover can help your family to live the way they used to when you were alive, pay off debts, and meet other expenses.
This cover’s death benefit is paid if:
The coverage’s length can be:
Also, note that:
Term life insurance – for couples
If you want to buy life insurance as a couple, first check your existing coverage and study all available options, keeping the advantages and disadvantages in mind.
There are two options:
What is Permanent life insurance?
This type of insurance means you are covered throughout your lifetime till your death. In case you die while the policy is in effect, the payment shall be made to the beneficiaries.
Types of Permanent life insurance
These are of two types.
In this type, you are covered for your entire lifetime.
In this type, life insurance is combined with an investment account.
A beneficiary is the one you name to receive the death benefit from your policy post your demise. You can name more than one beneficiary, in which case the amount is divided among them.
If you want to name a beneficiary that’s below the legal age, you have the option of setting up a trust and designating an administrator/trustee who can hold the death benefit in the trust on the minor’s behalf. In case you don’t name one, the province or territory shall do so and pay it to the beneficiary once they reach the legal age.
Naming your estate as the beneficiary
In this case, the estate will check your will’s details and distribute the death benefits accordingly.
It is vital to name a beneficiary for each policy. Otherwise, your estate shall be assumed by default to be your beneficiary by the insurance company.
Review your designated beneficiaries time and again and, if the need arises, update them.
Understanding Permanent Residency in Canada Gaining a Permanent Residency in Canada signifies a gateway to stability, opportunities, quality education, ample job opportunities and a thriving future. Express Entry for skilled...Continue reading