Why buy Life insurance?

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• Why buy Life insurance?

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• To provide your dependents with a continuing
  source of income
• To maintain your familys standard of living
• To provide for your childrens education
• To pay off the mortgage on your house
• To pay off any outstanding debts
• To pay off any outstanding taxes

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Two Major Categories of Life Insurance

• Term Life Insurance
• Permanent Life Insurance

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Term Insurance

• Term Insurance is designed to address
  temporary needs and it buys you protection for a
  specified period of time or term.

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Term Insurance

• Term insurance provides protection for a
  specified period of time.
• 5 Year Term
• 10 Year Term
• 20 Year Term
• 30 Year term
• Term to 65
• Term to 75

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Term Insurance

• Premium remains level during the specified term ,
  but increases if the policy is renewed.
• At the end of the term, you may reapply for
  coverage and you may or may not need to provide
  proof of continued insurability.
• A death benefit is paid only if the insured dies
  during the term of the policy.

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Term insurance is the best if you

• need a large amount of insurance for a short term
  financial obligation (mortgage, childrens
  education, etc.)
• lack the financial resources to purchase adequate
  permanent insurance
• are enticed by the large face amount
• do not need insurance for estate planning

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Term insurance is the best if you (cont.)

• have collateral for a loan
• want to renew or convert the policy in the future

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Term Insurance

• If you do not want to spend a lot of money on
  life insurance
• If you would have survivors with financial needs
• If you have financial commitments of a known
  amount and period of time
• Then the term insurance is your choice

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Permanent Insurance

• Permanent insurance is used for permanent needs.
• It can be split into two categories
• Whole life with cash value
• Whole life without cash value

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Whole Life with Cash Value

• Cash value reflects the money that a
• policy holder puts into the policy in excess
• of the actual cost of the insurance.
• Whole life and Universal Life policies have
• cash values.

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Universal Life Insurance

• Universal life plans provide lifetime coverage
• It has an investment feature
• The investment fund is partially sheltered from
  tax
• The savings in a universal life plan are
  controlled by the policy owner

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Universal Life Insurance (Cont.)

• The premiums are flexible ( can be increased or
  decreased by the policy owner)
• Flexible cash values depending on investment
  returns and level of premium deposits.

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Whole Life without Cash Value

• Term to 100

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Term to 100

• It is a permanent insurance plan that provides
  life insurance protection to age 100
• It is an essence stripped-down whole life product
• It is less expensive than the whole life product
• It does not pay dividends or include cash value

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Whole Life is Best for

• Providing income for survivors
• Covering funeral expenses
• Capital gains taxes on investments
• Real estate and RRSPs at death
• Charitable gifts
• To pass a business to the next generation

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Comparison between Term and Whole Life
Term Permanent Permanent Permanent
Type Term Term to 100 Whole Life Universal Life
Coverage 5-20 years or to age Level Life Life Life
Premium 65-70 Level Level Flexible
Death Benefit Guaranteed Guaranteed Guaranteed Guaranteed
Cash Values None None Guaranteed Flexible
Dividends None None Participating policies None
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• Let 310-TERM
• find you the best premium for
• Life Insurance
• in all of Canada.

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• We shop. You save!
• Call 310-TERM(8376) or
• go online (www.310term.com)
• for your free quotes now!