Term Life Canada

Term insurance in Canada may be a new idea for many people who think of whole life insurance as simply a policy you pay throughout your lifetime, but term life insurance is actually a better option for most people for several reasons.

Term life is basically a life insurance policy that lasts for a specified period of time. Unlike whole life insurance policies which last from the moment they are purchased until the policy holder’s death, term insurance in Canada may last for 10, 20 years or to age 100. While this sounds the same, you will pay much lower premiums and get higher coverage when you opt for term life from any of the major insurers in Canada.

Term life is ideal protection for younger people and for breadwinners because coverage amounts can be chosen to cover the amount of the family mortgage, car loans, current debts; problems that you would not want to burden your loved ones with in the event of an accident. When something unforeseen results in the death of the family’s breadwinner, the economic results can be immediately devastating, but a term life policy can be the rescue net your family needs at this traumatic time. Plus, during the coverage period of your policy, your premiums will never change so you’ll always know exactly what you’ll owe to keep your policy in good standing.

TERM LIFE QUOTES

Premiums for term life insurance vary with your health, age, and lifestyle influencing whether you will pay a higher or lower amount. However, you can use the Internet to request a term life insurance quote online to get the lowest premium possible. The Hughes Trustco Group provides you with term life quotes from all the insurance providers in Canada so you can do your own life insurance comparison and select the premium and the policy that meets your needs.

Travel insurance has always been a necessity; now it is a “must “.

And I’m not talking terrorism here; I’m just referring to the terrible financial disaster that will result if you don’t have travel insurance for your protection. The worldwide cost of hospital and doctor care is skyrocketing and won’t put you into the poorhouse but send you directly to the bankruptcy court.

As an insurance broker who only sells life insurance, I buy all my other protection from a licensed broker for the product I need. Well going thru my wallet the other day, I found out that my travel insurance had expired and I missed the email renewal I had been sent.

That won’t happen again; my broker has been instructed to automatically renew my travel insurance.

You can find other term life Canada articles at our websites http://www.termlifecanada.com/ and http://www.hughestrustco.com

The family cottage. It is that most Canadian of legacies where the memories made become part of family lore. That’s is why it’s important that your cottage, and all that it represents, stays within your family for generations to come.

In the eyes of the Canada Customs and Revenue Agency (CCRA), your cottage is considered a capital asset. As such, upon your death they automatically assume that it has been transferred your spouse. If you have no spouse, you are deemed to have disposed of your cottage at fair market value, and of course they will expect you to pay taxes on this “deemed income”.

But what happens if your family does not have the money to pay these taxes? After all they haven’t actually sold the cottage. In recent years real estate values have increased substantially. Your family could be forced to sell the cottage at a fire sale price to pay the tax owing.

So what is the solution? Simple. Use a Universal Life policy to pay the taxes. Premiums paid over your lifetime end up being a fraction of the potential tax bill, and they are paid gradually rather than all at once. Take the example of Sam and Donna, and their son John. Sam and Donna purchased a cottage in 1980 for $30,000 and it is now worth $150,000.

Sam and Donna have arranged in their wills that their assets, which include the family cottage, be passed down to John. Should the cottage appreciate in value at 5% per year, the capital gains tax at Donna’s age 84 (her life expectancy) would be $104,000. This amount must be paid before John receives his inheritance.

Sam and Donna wish to conserve their assets for John and find a way to minimize the impact of the capital gains tax, so they establish a Universal Life policy. The policy is set up for a death benefit of $104,000 to cover the estimated capital gains tax. With premiums of $3,203 annually over 10 years, Sam and Donna will end up paying $32,300 to offset the $104,000 in taxes owing by John upon their deaths.

Using Universal Life, they are able to save over $70,000 in taxes, while at the same time keeping their cottage within the family.

For more information on how to use life insurance to ensure your cottage stays in your family, or to learn about other wealth management strategies visit our site at www.hughestrustco.com or give me a call toll free at 1-877-842-3863

You can find other term life Canada articles at our websites http://www.termlifecanada.com/ and http://www.hughestrustco.com