Life Insurance Jargon - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner

Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Student Line of Credit
Principal Residence Exemption


aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
Home Car Insurance
Income Splitting Strategies in Retirement
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
Real Estate - Investments / Retirement
Retirement planning
Save your money
small business planning
Tax Information for Students
tax news
tax planning
Tech news


January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by


Life Insurance Jargon

Life Insurance Jargon
Life Insurance Jargon
Written by Grant Hicks
If you have even bought insurance of any kind, you know it can be confusing. It is no different for life insurance, but here is a simplification for life insurance.
Generally there are two types of life insurance, term or permanent. The name says it all. Term is payable for a period of time or term. Permanent is that it will always be there for you. Some compare the two to renting or buying. They both have their pros and cons, but it is all for what you need it for today and more importantly, in the future.
First, term life insurance has a renewal option. In every set number of years it renews at a higher price. Typical term rates are yearly term or for five years, ten years, twenty years, to age 65 or age 100. The number of years describes the term rate or price you pay. It usually doesnt affect the amount of coverage, only the rate you pay. So you can select your terms based on how long you want the coverage.
Permanent life insurance has several types such as universal life, whole life, participating, non participating, dividend reinvestment etc, etc.
To keep it simple, decide on the amount of coverage you will need today and in the future as the primary goal.
The secondary goal is how much you want to invest or deposit into a plan for future use. Just like rrsps while the money grows inside most permanent plans, you do not pay tax on the growth or interest on your money each year. Only in the future you will pay tax.
Todays life insurance companies design policies for consumers needs. One will be to pay tax on an estate of a holder of a large rrsp or rrif account. Other policies are designed for tax shelters for business owners or professionals.
Then there are policies designed to maximize an estate for a spouse or family in the future and give more retirement income today.

0 Comments to Life Insurance Jargon :

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment