Understanding the twists and turns of life insurance is one of those tasks that always gets cast aside until it’s too late. There might have been earlier moments when you considered is life insurance worth it? The simple answer is yes! Especially if you have dependents. After all, no one can put a price tag on a feeling of safety for you and your loved ones.

You might be one of those lucky few who already have enough assets and savings to cover your family’s expenses for a long time to come in the event of your demise. If not, paying an affordable monthly premium for a life insurance policy is worth it to ensure that your loved ones receive a lump sum of tax-free money in case you meet an untimely demise.

Think about the costs of full-time childcare if you are the primary caretaker of your child. Can you manage these expenses with the amount in your savings account? It will help to understand the two main types of life insurance policies out there before you decide if a McIver Insurance term life insurance policy is the best for you.

Two Main Types Of Life Insurance

The two main kinds of life insurance policies are ‘term’ life insurance policies and ‘permanent’ life insurance policies. Let’s look at the two types of life insurance policies in detail.

Term Life Insurance Policy

A term life insurance policy is easier to manage because the monthly premiums stay the same throughout the entire duration. A term life insurance policy provides the insured coverage for a specific ‘term’ or period of time. Your loved ones receive a tax-free payout known as a death benefit if you pass away while the policy is valid. Term life insurance policies are cheaper than the other types of life insurance policies.

Most life insurance agents require a medical exam before providing life insurance coverage. This means that younger people can get better rates if they are in good health. The important thing to remember is that you will have life insurance coverage only for the policy duration. You or your loved ones do not receive anything if you outlive the term specified in the term life insurance policy.

Permanent Life Insurance Policy

Permanent life insurance policies are high-end choices because they are active for as long as you live. Permanent life insurance policies allow your loved ones to receive a payout whenever you pass away, as long as you keep paying your premiums on time. A permanent life insurance policy can fall into two categories, a whole life insurance policy, and a universal life insurance policy.

Whole life insurance policies provide the opportunity to build additional cash value on the principal amount by investing funds on a predetermined interest rate. Universal life insurance policies can accumulate profit by investing funds in the stock market. Permanent life insurance policies are more expensive than term life insurance policies because of the ability to invest funds. Permanent life insurance policies are well-equipped for accomplished individuals that want a sense of security for their investment because it has a cash value.

How To Choose The Right Life Insurance Policy?

There’s no right or wrong answer for everybody for this question. The best approach is to put together all the facts related to your budget and unique personal situation to help you make the right choice. Let’s look at the advantages and drawbacks of both kinds of life insurance to help get a clearer understanding.

Advantages Of A Term Life Insurance Policy

Term life insurance policies are easy to manage, affordable, and much less complicated. Insurance experts advise purchasing a term life insurance policy because this is the best value for money. You can easily understand how much coverage you will have, which should be equivalent to covering expenses like college tuition, mortgage payments, and car payments. The best part is that you know for exactly how long you are covered.

Since you can choose all of these factors yourself, there is hardly anything left to chance. You get the best value for money because the term policy is customized to meet your specific needs.

The Main Drawback Of A Term Life Insurance Policy

The one problem with a term life insurance policy is that there is no guaranteed death benefit. You or your loved ones will not receive any payout if you outlive the duration of the policy. You can look for a new term life insurance policy.

Advantages Of A Whole Life Insurance Policy

Whole life insurance policies guarantee a cash payout to your beneficiaries whenever you pass away. A true bonus is that a whole life insurance policy develops cash value if you ever need the extra funds. You can customize your whole life insurance policy to include both an investment and insurance portion. You can receive the profits from the investments quarterly, semi-annually, or annually based on your needs.  

Drawbacks Of Whole Life Insurance

A whole life insurance policy can be quite expensive in comparison to a term life insurance policy. The returns on investment might not be that significant. You might be penalized by some insurance providers if you withdraw from the built-up cash value earlier.

Who Doesn’t Need Life Insurance?

Young successful people with no dependents might not need to buy life insurance. People with no dependents who have paid off their property, car, and educational debts might not require life insurance. You might not need life insurance if you have a hefty savings account with multiple assets to cover your daily and future expenses. You don’t need life insurance if you own your car, property, and have children that no longer depend on your income.

So Is Life Insurance Worth It?

Some people might still not be convinced about the worth of life insurance. At McIver Insurance we understand that each person has unique life insurance requirements. This is why we provide a free consultation to help you realize the different implications of life insurance in your specific situation. With professional advice, you can rest assured that qualified insurance brokers will be on your side to provide a solution for all of your life insurance needs.

Whole life insurance and accidental death & dismemberment insurance (or AD&D as it is also known) do have certain similarities, one cannot replace the other. Life insurance provides your family with financial security in the event of your death barring some specific cases. AD&D insurance, on the other hand, falls under the types of insurance that offer limited coverage, only covering accidental death and injuries, and won’t provide any financial security in the event of death resulting from natural causes or illness.

The only overlap between the two types of coverage is that both payout in the event of accidental death. Generally speaking, at a comparable price point, life insurance coverage encompasses more causes of death than AD&D insurance’s limited coverage options.

The above notwithstanding, both have their own pros and cons, and some basic features to be aware of, and we’ll be going over the difference between life insurance and AD&D today in this article. If you’re deciding which type of coverage to opt for, then this article is perfect for you.

LIFE INSURANCE: BASICS, PROS, AND CONS

Life insurance is a way for you to provide financial protection to your family and loved ones in the event of your death. One pays premiums either on a monthly or annual basis, depending on the insurance provider you choose to go with. Named beneficiaries are given benefits under the policy, and it serves as an effective way of income replacement, allowing families to deal with financial responsibilities even after their loved one has passed away. Want to learn more? Check out our blog that discusses how much life insurance you might need.

There are two main types of life insurance. Term life insurance is the first, which provides coverage for a set period of time. Policyholders pay premiums for that set term and should the unfortunate happen during that time frame, then beneficiaries of the policy will receive associated benefits. The other type is whole life insurance, which is for a permanent term and remains active as long as premiums are paid.

If you have dependents, then this is the best option for you, but even then it would be best if you do a proper assessment. While there is no denying that a tax-free death benefit paid to your loved ones will offer a great deal of protection, it can be costly for people who are a bit older or those who have pre-existing medical conditions.

Life insurance also tends to be a more affordable option when compared to other similar products, but you need to be aware of your return before signing anything. Term insurance can be a good investment option, but if coverage and financial security for your family are your main concerns, then term insurance would be disadvantageous. Once the term is over, and you look to subscribe to another policy, you’ll be facing much more expensive premiums and probably lower payouts as well.

AD&D INSURANCE: BASICS, PROS, AND CONS

AD&D insurance is a type of policy that provides financial protection in the event of death or injury which is caused by accidents only, like car accidents, a plane crash, or a slip and fall. Therefore, your loved ones would not be receiving benefits if you were to die from natural causes such as illness or old age.

AD&D insurance also provides protection to the policyholder if there is an accidental injury or loss of limbs due to an accident. However, injuries and dismemberment will only result in a partial payout, whereas death from accidents will result in a full payout. It’s important you check these details if you’re subscribing to an AD&D policy and speak to an insurance broker in detail. 

The foremost pro of AD&D insurance is that it offers additional protection on top of life and disability insurance. However, the coverage itself is quite limited in comparison to life insurance. Also, while AD&D insurance will pay benefits for injuries, it offers more supplemental protection than a standalone policy.

IS AD&D INSURANCE WORTH IT?

AD&D insurance will be able to provide you with some extra protection, such as for injury and dismemberment, which life insurance would not. As such it can be a good idea to supplement your life insurance with AD&D insurance to provide additional coverage. 

However, under no circumstances should you consider using your AD&D policy as a substitute for permanent life insurance. Some will argue that if they are younger, then it makes more sense to opt for AD&D, as the chances of dying with natural causes at a young age are lower. This does not mean you use AD&D as a substitute for term life insurance either though.

AD&D policies are not whole life and you’ll be looking at a 20-year policy usually. This means that after 20 years you’re without protection and will need to opt for life insurance. However, if you subscribe to a life insurance policy late in life, then you’ll need to pay higher premiums. In fact, one of the biggest advantages of subscribing to a life insurance policy early in life is because premium payments tend to be quite low and you can lock that rate for life if needed.

AD&D VS. LIFE INSURANCE: SPEAK TO AN HALIFAX INSURANCE BROKER TO FIND OUT WHO WINS

The simple answer is that nobody really wins. It’s about what type of coverage you’re looking for and what kind of payout you’re expecting. When making decisions of such magnitude, it’s best to speak to an expert.

At McIver Insurance, you can speak to a whole range of insurance experts to assess your options and choose what is best for you and your loved ones. We’ll explain the benefits you can achieve through an accidental death insurance policy in contrast to other types of insurance, allowing you to make a decision that provides you and your family with comprehensive coverage. We have a wide range of accidental death plans available on our panel and we’re sure we’ll find the right one for you.

If you live in the Halifax, NS, area, then get in touch to talk about a financial protection plan from the best insurance companies and a comprehensive updated list of rates. Whether it’s life insurance, health insurance, or disability insurance, we’ll have all the answers for you.

Life can be very uncertain and unfair. Many of us have found ourselves saying goodbye to a loved one unexpectedly and abruptly. Apart from the emotional pain of dealing with the burden of death, one could also find themselves in a world of financial shortfalls with the loss of income. Funeral expenses alone could amount to a substantial sum and have put people in debt at times.

This is where life insurance coverage comes in, as it can help couples deal with any unforeseen financial impact that may arise in the event one of them were to meet an untimely and unfortunate demise. Couples can opt for a joint insurance policy, where either partner (and any kids they may have) could be the beneficiary of the policy. You could contact an insurance broker like Pat McIver to learn more about specific policy structuring options.

However, today we’ll still be talking to you about joint insurance policies to give you a general overview and help you formulate questions if you were to consider a joint policy and speak to a professional advisor.

TYPES OF JOINT INSURANCE

One can opt for the payout to be structured in a way so as to payout upon the death of one partner, or after both partners have passed away.

The first type is called “first-to-die life insurance” where the life insurance benefit is paid upon the death of one of the partners. This is found commonly among younger couples and serves as a way of replacing the income of the partner who has passed away. The second type is called “second-to-die life insurance” and it pays out only when both partners have passed away.

Quite obviously, second-to-die life insurance won’t provide any household income replacement, so it typically forms a part of estate planning, with benefits going to surviving heirs and other named beneficiaries like family members or charitable organizations.

HOW IS JOINT LIFE INSURANCE DIFFERENT?

There are a few differences to note when it comes to individual and joint policies. An individual policy covers only one person and will pay out when that one person dies. Whereas joint policies provide coverage for the two people who subscribe to the policy and would payout in the event either one of them were to die.

As mentioned above, a joint insurance policy doesn’t require that the two people subscribing to it be married and either will be beneficiary to the death benefit regardless of marital status. However, if you have an individual policy, and you want your partner to benefit from the policy should the unforeseen happen, then you would need to be married or in a common-law partnership.

Finally, joint coverage can be more affordable. Considering two people are jointly paying for the same amount of money that they would have to pay individually under separate policies. However, the total payout of a single joint insurance policy would not be the same as that found with two separate policies of the same value.

In a nutshell, a joint insurance policy is a way of gaining affordable security for young couples. There is no reason that insurance for couples, and the security that it offers, be exclusive to a certain economic class of people. Moreover, if you’re opting for a second-to-die life policy, then you’ll have control over the estate planning in the event your partner were to pass away and, for example, you can alter beneficiaries or, if needed, tap into the policy’s cash value.

DRAWBACKS TO CONSIDER

While there is no doubt that joint policies can provide life insurance protection to couples to help deal with any financial responsibilities and unforeseen future expenses, there are certain drawbacks of affordable coverage that one should consider. First and foremost, joint insurance policies are a niche product and not many insurance companies carry such policies. 

Even if you do find a life insurance company that provides joint policies, you’d be restricted to a few life insurance options. Most providers who do offer joint policies won’t offer permanent life insurance, and if you’re going with a term policy, you could not see many benefits when the term concludes. This does not mean you won’t find a provider that offers both permanent and term life insurance under a joint policy, but it’s possible you might have to look a bit hard.

TALK TO A BROKER NEAR ME

A leading insurance broker located in Halifax, NS, is McIver Insurance. They specialize in all types of insurance, be it dental insurance or even your existing life insurance plan. They can offer transparent and updated life insurance quotes, along with professional advice to enable you to make decisions with confidence. If you are looking for life insurance in Nova Scotia, McIver promises the best policies that are tailor-made for you. Speak to one of their consultants today to learn more!

Understanding Your Life Insurance Policy

Understanding your life insurance policy is important, especially when it comes to the financial benefits it provides for beneficiaries. After all, life insurance policies are an essential contingency plan if something untoward happens to you. 

The death benefit of your policy can help your family to cover their financial expenses, pay off any outstanding debts, or to meet day-to-day finances. In short, your life insurance policy will act as a financial backup for your estate or beneficiary, especially if you were the only breadwinner. 

However, you may be thinking about whether life insurance policies are taxable or not? Let’s find out: 

Is Life Insurance Taxable in Canada? 

Tax on life insurance payouts will depend on the type of policy. However, as a matter of fact, the majority of life insurance payouts are not subject to taxes. The beneficiary of a life insurance policy will not have to report the life insurance proceeds received by them on their tax return. 

The beneficiaries are not supposed to pay any taxes on life insurance because it will come under the category of financial gifts and inheritance. 

To make sure that your family gets tax-free death benefits, you will have to designate them as your only rightful beneficiary, this way no part of the benefit is paid to your estate. It is essential to do this because your estate can automatically be considered as the beneficiary, if not specified.

Importance Of Life Insurance

Life insurance death benefits can act as a safety net for the beneficiaries. They are not subject to taxes and are received as a single payment by the beneficiary. It can be used to help pay off any outstanding loans and debts, funeral expenses, and/or assist with mortgage payments and day-to-day expenses. A death benefit can be a lifesaver to the loved ones you leave behind. 

Additionally, it can save your family from selling assets to meet financial needs. The recipient of the death benefit will not have to report it on their taxable income and will not file it in his/her Canadian tax return. This includes both, term life insurance policies and permanent policies. 

When Can A Life Insurance Taxable Event Occur

The life insurance premiums you pay are invested so interest can be earned on it and over time your amount of cash increases. Permanent life insurance policies have huge potential to accumulate cash value depending on the cost basis. 

And if for any reason you decide to surrender or do a partial surrender of your policy, the withdrawn cash will then be taxable and the amount of interest that you have earned over the course of the policy will then be subject to income tax. 

Any interest earnings that your beneficiaries will receive will be a taxable benefit so a certain percentage will go into paying taxes.  

Tax Reporting Rules for Life Insurance Payouts 

Receiving life insurance payouts in Canada is very easy, thanks to the Canadian Revenue Agency. They have simplified the tax reporting procedure and these payouts are not to be reported unless there are interest earnings involved which are subject to taxes. 

The insurance company will provide you with a T5 slip if interest earnings are included in the payout. Similarly, the beneficiary will have to report the interest earnings on line 121 of their tax return. Make sure to check out the policy for cash payments with your provider for further information.

How to make your life insurance more efficient for beneficiaries

People who have a habit of planning and those who want to secure a better future for their family and their future generations are always looking for opportunities to take advantage of. Investments, saving plans, and life insurance are a major part of their portfolio. 

However, investing money in such financial products is an easy thing to do. The difficult part is figuring out how to manage and make them more efficient for the beneficiaries they are intended for?  

You can work out a plan with your life insurance company or financial advisor to find legal ways in which taxes can be reduced on life insurance proceeds. You will have to check the tax rules and laws of your province. But most importantly you will have to make a will and designate beneficiaries.

Naming beneficiaries to your life insurance providers can help quicken the distribution of assets after your death. Your beneficiaries will get the payouts in privacy and will not be left at the mercy of your estate.

Remember to discuss the beneficiary payment options with your insurance company to get the best possible payment plan.

Can I claim life insurance on my income tax?

Life insurance cannot be claimed on income tax because the insured person pays the premium after paying all taxes.  

Will my spouse/children pay my taxes after I die?

Your policy will be used to payout taxes after your death. The percentage deducted will be used to pay taxes owed by you to the government. These taxes are paid before the asset distributions.

In the case of an insolvent/bankrupt person, tax attributes will have to be adjusted.    

When do I pay tax on life insurance?

All Canadian life insurance policies will require you to pay taxes when you partially or fully surrender your insurance policy. “You might also have to pay taxes if you borrow directly from the life insurance policy, and the amount that you borrow exceeds a certain amount called the adjusted cost basis of the policy. The longer you own a policy, the higher the cash value will be and, over time, the lower the adjusted cost basis will be.” So, in essence, the amount of cash accumulated on the adjusted cost basis will be taxed.

Life Insurance Providers Near Me

Life insurance policy proceeds can be the biggest asset for your loved ones after your death. If you are looking for an insurance policy that is suitable for you, or are looking for financial or tax advice then McIver Insurance Inc, based out of Halifax, NS, is certainly a great place to start. 

McIver Insurance Inc. offers term insurance and permanent insurance policies all across Atlantic Canada. They also offer consultancy, guidance, and professional advice to help you make the best decisions when it comes to securing your financial future.

A financial advisor will recommend every person accumulate financial resources of at least seven to ten times their annual income. The life insurance options and benefits you choose will have an impact on the exact death benefit your loved ones will receive at the time of your demise. 

Different factors like any debts, loans, mortgages, the number of young dependents, and any taxes incurred on the various properties you own will affect the exact life insurance coverage you need. You also need to make sure that you leave your loved ones with enough financial resources to cover your funeral costs. 

How Much Life Insurance Do I Need in Canada?

How much life insurance do I need? This is a question that has no right or wrong answer. A younger individual, with a wife and kids, in the middle of their career, will have different expectations for the life insurance benefits from their life insurance plan in comparison to a retired individual. The accepted guideline is that you have enough life insurance benefits to cover your debts, income, mortgage, and children’s education. It is sometimes also referred to as the DIME formula for life insurance. Let’s have a closer look.

• Debts: How much total debt is in your name?
• Income: What is current monthly income? It needs to be replaced by the life insurance benefits for your dependents and survivors to have a successful future. 
• Mortgage: What is the total amount remaining on your mortgage?
• Education: How many children do you have? What are the educational expenses your dependents will need to pay in case of your demise?

Let’s get into the details now that you have a rough idea of how much life insurance coverage or the amount of life insurance benefits you need to leave your loved ones. 

Detailed Analysis Of The Exact Amount Of Life Insurance You Need In Canada

As we have described earlier, the exact amount of life insurance you need can be calculated by the DIME formula. Let’s look at each one of these factors in detail.

Debt: 

You need to calculate the total amount of debt you owe to get a good understanding of the requirements for the total life insurance benefits of your life insurance plan. Calculate the total credit card debt you owe taking into consideration the many different lines of credit you have. Take into consideration whether or not you will make major credit purchases in the near future that might have an impact on your total debt. Also, assess the total amount of remaining installment payments you need to make on big-ticket items you have already purchased. 

A practical suggestion to make life easier for your loved ones is to add your funeral costs to your total debt. This way your loved ones will not need to turn to anyone else for your funeral expenses. For example, you have a total debt of $40,000 and funeral costs are $12,000 in your area. Your total debt would look something like this:

Total Debt: $40,000 + $12,000 = $52,000

Income: 

Now we need to assess how long your family will need your financial support based on your current spending patterns. This should also take into consideration the age of any children that will require financial resources to spend on their education. Think of how long it will take all of your children to achieve their final educational qualification. For example, you have an annual salary of $60,000 and you want to financially support your family for the next seven years because this is the time it will take all of them to graduate and become fully independent. 

Total Income: $60,000 X 7 years = $420,000

This means that your life insurance policy benefits need to deliver a total amount of at least $472,000 to be able to pay off debts and manage an income for your family after your death. 

Mortgage: 

What is the remaining amount on your mortgage? You must have life insurance coverage for the total amount remaining on your mortgage. You can even consider adding extra costs for any renovations that might be required which are completely based on your discretion. For example, you have $200,000 remaining on your mortgage and you plan to make renovations worth $15,000 in the near future. 

Total Mortgage: $200,000 + $15,000 = $215,000

This means that the total life insurance benefits payout of your life insurance policy needs to be at least a total worth of $472,000 + $215,000 which is equal to $687,000 in total. 

Education: 

According to the Government of Canada, the yearly and lifetime contribution limits for the Registered Education Savings Plan (RESP) for Canadians is currently $50,000. To receive the maximum payout on an RESP for a single child, you need to make a total contribution of $50,000.  

Education: $50,000

According to the DIME formula, this individual will need total life insurance coverage for an amount of $52,000 + $420,000 + $215,000 + $50,000 = $737,000. This amount will cover the individual’s family expenses for a period of seven years after the individual’s death. 

Conclusion

The traditional method of calculating how much life insurance you need in Canada was to find out the figure that is 10 times your current annual salary. But this has proven to be a completely arbitrary method of calculating the life insurance benefits for an individual. 

Every person has unique possessions, property, and business organizations that can be practically profitable for the people they leave behind. Some of these possessions will automatically increase in value as time progresses. If you are looking for personalized advice and some of the best insurance policies in Halifax, Nova Scotia you can trust McIver Insurance for dependable customized life insurance products. Their professional life insurance underwriters can design a life insurance plan according to your custom requirements based on your exact preferences. 

Another way to conveniently calculate the total amount of life insurance coverage you need is to calculate the amount of money you will make by the time you retire. Make your starting point from the current day and your rate of earnings equal to your current salary. Then make the necessary calculations to calculate the total amount you will earn by the time you retire. This is the total amount of life insurance coverage you need to safeguard your family’s future.

FAQ

What Resources are Available to Help Those Struggling with Suicidal Thoughts?

1. Talk Suicide Canada If you or someone you know is thinking about suicide, you can call Talk Suicide Canada at 1-833-456-4566. Support is available 24 hours a day, 7 days a week. For residents of Quebec, they can call 1-866-277-3553 or visit suicide.ca. Talk Suicide Canada also provides distress centres and crisis organizations nearest to you. If you’re experiencing gender-based violence, you can access a crisis line in your province or territory.
2. Wellness Together Canada Wellness Together Canada provides free and confidential mental health and substance use support. To connect with a mental health professional one-on-one, you can call 1-888-668-6810 or text WELLNESS to 686868 for youth, and call 1-866-585-0445 or text WELLNESS to 741741 for adults. They offer different levels of support, including one-on-one counselling, credible articles and information, self-guided courses and programs, and peer support and coaching.
3. Hope for Wellness Help Line The Hope for Wellness Help Line is available 24 hours a day, 7 days a week to First Nations, Inuit, and Métis Peoples seeking emotional support, crisis intervention, or referrals to community-based services. You can call 1-855-242-3310 (toll-free) or connect to the online Hope for Wellness chat. Support is available in English and French and, by request, in Cree, Ojibway, and Inuktitut.

It is important to understand what is life insurance in order to correctly analyze different life insurance products and life insurance premiums charged by life insurance companies. 

Life insurance provides a death benefit to the life insurance beneficiary when you pass away. Some types of life insurance policies have cash value while others don’t. Cash value is an amount an insurance company will be liable to pay you if you do ever decide to cancel your life insurance policy. 

The Different Types Of Life Insurance Policies Available In Nova Scotia, Canada

A majority of people believe that there are just two types of life insurance policies available for people in Canada; a term life insurance policy and permanent life policies. However, there are five basic types of life insurance policies and life insurance costs that can vary based on each type of policy. 

Life insurance products have different options and coverage plans that are tailored to cater to the insurance needs of Canadians. Let’s look at some of the pros and cons of the insurance policies that are available to Canadians for life insurance coverage.

1. Term Life Insurance

A term life insurance policy provides life insurance coverage for a select period of time which is referred to as the term of the policy. The life insurance beneficiary will receive a death benefit as a tax-free payment if the policyholder dies while the term life policy is still active. 

A term life insurance policy is made available for many different terms such as 10, 20, 25, or 30 years. Some life insurance companies in Canada allow you to select the period of time you want for the validity of a term life insurance policy.

Life insurance companies let you select the insurance coverage term and the total death benefit for the life insurance beneficiary. This is required to calculate the cost of life insurance and monthly premium payments the beneficially will be obliged to pay to keep the policy active. 

The monthly premium payments stay the same in a term life insurance policy. At the end of the life insurance coverage term, policyholders have the option to convert it into a permanent life insurance policy before reaching a certain age. A term life insurance policy is an affordable and simple way to protect your family in case of an untimely demise. 

2. Permanent Life Insurance

Permanent life insurance (aka whole life insurance) is valid for your entire life and is associated with a cash value. The cash value increases as you make the premium payments of a permanent life insurance policy. You can cash out the insurance coverage based on the total insurance premiums you have deposited for the permanent life insurance policy. This can be helpful especially during retirement. 

The premiums for a permanent life insurance policy are higher because you are covered for your entire life. Some permanent life policies allow the policyholder to take out a loan based on the total insurance premiums deposited. 

The monthly premium payments of a permanent life insurance policy stay the same throughout its coverage. The total death benefit can grow based on the total premium payments that have been made against the life insurance policy. 

3. Limited Pay Permanent Life Insurance 

A limited pay permanent life insurance policy resembles a permanent life insurance policy but for a shorter period of time; often 20 years or less. After you make all of the monthly premium payments for the total life insurance coverage you are entitled to receive a guaranteed payout. No more monthly premiums have to be paid to receive the guaranteed payout. 

These are the most expensive types of life insurance policies because the premium payments are often ‘front loaded’. This means that all expense charges, fees, commissions, and interest costs are subtracted right away from the premiums paid.

4. Universal Life Insurance 

Universal life insurance is similar to permanent life insurance but it also has a long-term investment factor attributed to the policy. The life insurance company provides the policyholder the option to invest the total monthly premium payments into various investment plans for future returns. 

Universal life insurance is the most versatile option for individuals looking for life insurance products with investment benefits other than the death benefit for the life insurance beneficiary. Universal life insurance products require the policyholder to be aware of the investment goals that will be used in coordination with the life insurance policy.

5. Term-To-100 Life Insurance 

Term-to-100 life insurance is permanent life insurance coverage without a cash-out option for the policyholder. This makes the term-to-100 life insurance policy one of the most affordable options for permanent life insurance coverage. 

You can think of this life insurance policy as a combination of a term life policy and a permanent life insurance policy. If you live to see a hundred years you no longer need to pay premiums but you will still have the life insurance coverage. 

Finding The Right Life Insurance Broker in Halifax, NS

A life insurance company can help you choose the right life insurance policy based on your personal needs. Some life insurance companies might require you to take a medical exam before you can apply. 

Some basic factors that affect the cost of life insurance are your age, health, smoking status, gender, profession, and hobbies. Hence, it pays to shop around. Finding the right plan at the best rate can be extremely beneficial for securing your and your family’s financial future. 

What Are Typical Life Insurance Premiums In Nova Scotia?

If you reside in Nova Scotia and are looking for a typical life insurance policy these are a few examples of the average premiums you can expect to pay for each policy type.

• A 45 year old non smoker male Term policy for 10 years at 500,000 face value  on average cost around $50 a month
• A 45 year old non smoker male whole life policy payable until the insured passes away 50,000 face value  on average cost around $120 a month
• A 45 year old non smoker male universal life policy payable until the insured passes away 100,000 face value  on average cost around $115 a month

For the best typical life insurance offers out there, you can Trust the team at McIver Insurance to help you pick the right plan for your goals. With years of experience and a 5-star reputation, they are the best resource for those seeking insurance coverage in Nova Scotia.