Life Insurance
Life insurance is a very unique financial product that will pay a lump sum amount of money tax free to a named beneficiary. It can be purchased for a variety of reasons but it also has a valuable secondary component with the ability to grow a cash reserve within the plan in a tax sheltered element.
Many young couples require life insurance to protect their family from a premature death. What is the right amount of life insurance?
The following Insurance Needs Calculator helps to determine the right amount of life insurance.
Insurance Needs Calculator
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These calculators are for illustrative purposes only and should not be relied upon as an accurate indication of your financial retirement needs. As each individual’s situation is different and changes over time, the results are limited by the accuracy of the assumptions you make in providing the information used in the calculation. I (we) do not guarantee that this calculator is reliable, accurate or complete or that it will be compatible with your computer.
Life insurance can also help us plan to reduce taxes and enhance your estate in the following methods:
- Offset a reduction in pension income at retirement
- Pay RRSP death taxes
- Pay capital gains tax
- Create a legacy for our children and grandchildren
- Create a significant tax deductible charitable donation
What type of life insurance is right for me?
Term Insurance:
- 10 year term – insurance rate is guaranteed for 10 years
- 20 year term - insurance rate is guaranteed for 20 years
- Term to 100 - insurance rate is guaranteed to age 100
Universal Life:
- Potential Permanent insurance option
- Investment options that are self-managed
Whole Life:
- Permanent insurance which may or may not be 100% guaranteed
- Investment component that is managed by the insurance company.
Many consumers today are purchasing term insurance for their mortgage insurance option.
Contact us to review your life insurance protection.
Insurance products and services are offered by Michael Farrell, an Independent Insurance Representative