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Which
type of Insurance does your Canadian Insurance broker
suggest?
(continued
from Canadian insurance broker) Your Canada
insurance broker has a good handle on all the types of
Canadian insurance available, and they should be able to
make a good suggestion based on your needs. Here are
3 choices.
Canada
term life insurance. What is it? Canadian
term life
insurance is a type of policy that has a
specific start and finish date that you are covered for.
Term insurance quotes are based on this
time period and do not include any coverage after the
specified date. You will need to renew the coverage with
a new policy when the term expires. Term insurance
premiums are typically lower than other types of
insurance, which may seem appealing, but make sure the
insurance is right for you.
Canadian
Universal life
insurance is the most
flexible of all life insurance. If you're a seasonal
worker, fisherman, farmer etc., Canada universal life insurance
is the insurance for you. If your work week is variable, your
hours erratic and your paycheck goes up and down, you should
look at universal life insurance. This insurance is
flexible enough that should you miss a premium payment
it won't cancel. The premiums with a universal life
insurance vary from year to year so it won't break your
bank account. Best of all you have the same guarantees
as Canadian whole life insurance, which includes guaranteed benefits,
minimum cash values and death benefits. Your
third choice is Canadian whole life insurance.
With Canada whole life insurance the annual premium
is guaranteed and there is a guaranteed minimum cash
value and death benefits.
Almost all whole life
insurance policies are "participating". That
means they earn dividends and the dividends can be used
to reduce your insurance premiums and increase death
benefits. They can be refunded or applied to increase
the cash value of the whole life insurance policy. It's
advisable to consider purchasing whole life
insurance when you get your first job. That way your
premiums are much lower, although you will pay over a
longer period of time. One way or another your
investment in this kind of insurance policy is very
safe. So
the choices of types of insurance and policies available
from your Canadian insurance broker are
numerous. But the bottom line is that any type of
insurance is better than no insurance at all. Hopefully you will never need it, but it's great to have
it in place when you do.
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