When you’ve decided to invest in whole life insurance, the next step can feel daunting: where to actually get the insurance you need.
Since whole life insurance is also a way to grow your wealth and create an additional savings avenue, it’s an important step to take. Not all companies who offer whole life insurance offer the same whole life insurance. And not all life insurance companies offer it in the first place.
Here are some suggestions on where to get whole life insurance in Canada, what to expect from the process, and ways to get vital assistance.
Investing in life insurance is always a good move, no matter if you’re entering adulthood or getting ready to retire and looking to carefully plan your estate.
Before finding a company to work with, it pays to do some research on whole life insurance to see if it actually fits your specific needs.
Unlike term life insurance, which sets coverage for portions of time — 10, 20, or 30 years typically — whole life insurance can last a lifetime. That means that the monthly or yearly premium you pay when you sign up for a whole life insurance policy stays the same the entire time you hold the policy.
When term life insurance expires and you want to keep it, you need to re-signup for a policy, which frequently means an increase in premiums.
That’s not the only benefit associated with whole life insurance. A whole life policy is particularly beneficial since it guarantees a cash value, another big difference when compared to term life insurance. Part of your whole life policy goes to a savings account that accumulates over time, called its “cash value.”
That means that with a whole life insurance policy you can access those savings, like you can with other plans, such as a 401(k) or a savings account through your bank. That comes in particularly handy to supplement income when you retire and if you face an unexpected financial crisis.
The invested portions of your whole life insurance premium may also be paid out as dividends, depending on the type of policy you choose. Additionally, for those looking to protect specific kinds of assets through estate planning, whole life is a great option to ensure that your beneficiaries are well taken care of following your death.
In all, whole life insurance is a great choice if you’re focused on wealth growth, very financially stable, and want to protect assets that will be subject to fees and taxes after your passing.
A managing general agent, or MGA, is often essential to finding the best whole life insurance and having the sign-up process go smoothly.
Insurance carriers throughout Canada work closely with MGAs to help sell and facilitate their portfolio of insurance needs. MGAs do everything from underwriting and binding coverage to settling claims and establishing pricing.
MGAs work with some of the biggest and most popular insurance companies and financial providers in Canada that provide well-regarded whole life insurance policies and different types of policies to meet your needs and financial goals.
Insurance carriers Canada Life and Sun Life are just two of the major whole life insurance policy providers who work directly with the MGAs that are working with you to tailor a policy to you and your beneficiary wishes.
MGAs are vital at this stage of whole life insurance planning. Not all policies are created equal and not all insurance carriers work the same way. An MGA can help connect you with the best companies in Canada that will carry a policy that best aligns with your needs.
Companies in Canada offering whole life insurance frequency have different tiers of policies. The coverage amounts may differ, there may be different fees included or different rules dictating how frequently or when you can access the funds in your policy if you would like to take them out as a loan.
For example, RBC Growth insurance lets policyholders maximize the long-term wealth growth that’s tax-deferred, with coverage starting at $25,000 and the cash value ac accessible after five years. The company’s next tier up accelerates the tax-deferred growth, making it the better choice if you plan to use it for a loan.
Coverage for that plan starts at $250,000, but you can access your cash value after just one year of holding your policy.
Canada Life is another example of an insurance carrier offering different levels of whole life insurance. While the company’s permanent life insurance is similar to other whole life insurance plans and has many of the same benefits, another version of its whole life insurance, universal insurance, has some differences.
Notably, with universal insurance, you can pick out your investment options, some policies do not come with guaranteed cash values, has more flexibility when it comes to paying premiums, and is usually less expensive than the company’s permanent participating life insurance.
Navigating the world of whole life insurance policies can be tricky. Working with Sim Gakhar makes it easy. Gakhar is a life insurance agent and investments advisor based in Ontario, Canada, working for HUB Financial, one of the country’s major MGAs.
When you work with Gakhar, you work with someone who has your best financial interests at heart. With over a decade of experience in life insurance, Gakhar can help you find the best whole life insurance company for you and develop a policy that meets every single one of your needs and financial plans.
It’s easy to start. Simply reach out to Gakhar today via email ([email protected]) or through a quick phone call (647-889-7290) to begin the process of investing in a whole life insurance policy that protects your best interests, provides for your financial future, and ensures financial security for your family and other beneficiaries.
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