Choosing a whole life insurance provider and the details of your policy is as important as deciding to have whole life insurance in the first place.
Whole life insurance is a major decision. If you chose, you can keep the whole policy and its original premiums for your entire life, protecting not only your specific assets but ensuring the financial stability of your family and other beneficiaries.
Not all whole life insurance policies are created equal. Initial premium rates vary based on several factors, including your age, health, and gender. Policies can also be a bit complex since whole life insurance doubles as a separate investment approach.
It has guaranteed cash values, a kind of savings account taken in part from your monthly premiums. Many whole life policies also have different options for how to use dividends derived from the cash value.
So who has the best whole life insurance in Canada? Here’s our guide to help you make the best whole life insurance decision.
Unlike term life insurance, which covers you for set periods of time, there’s a bit more to consider other than the extent of coverage when it comes to whole life insurance.
Closely reviewing whole life insurance policies are a must for various reasons: you want to make sure it meets your savings or wealth growth goals, offers the flexibility you want with its accumulated cash value, and can be tailored to protect your very specific assets, and will fit in with your retirement goals and beneficiary wishes.
Carefully review the ins and outs of an insurance company’s policy — as well as research a financial provider’s overall reputation and strengths. You’ll want to compare the premium rate, dividend options, associated fees, charges related to ending a policy or lapsing, and more.
Life insurance carriers throughout Canada offer various forms of whole life insurance policies. They can often be found through blanket insurance providing and advising companies, such as the well-regarded HUB Financial, or as stand-alone entities.
Two of Canada’s most revered insurance carriers providing whole life insurance are Canada Life and Sun Life and both are available through HUB Financial.
Canada Life has been providing financial services and life insurance since 1847. It assists 12 million Canadians every day with their financial and insurance needs, has provided $5.8 billion in health and life insurance benefits, and paid out $9.3 billion in overall benefits.
Canada Life’s whole life insurance offerings are extensive and comprehensive. Called permanent life insurance by the company, whole life insurance comes in two general forms through Canada Life, each structured a bit differently from the other.
Participating life insurance from Canada Life has both guaranteed insurance payouts and cash values and premiums stay exactly the same over the years. Participating life insurance also may pay an annual dividend.
Universal life insurance is similar to participating but has a few key differences. There are guaranteed cash values but only on some policies. There is also more flexibility; you are able to select your investment options and there’s some wiggle room in payments on your premium. In addition, universal life insurance at Canada Life is usually less expensive than participating.
Sun Life also has been serving Canada for more than 150 years, boasting about 2,700 financial advisors in more than 1,000 Canadian communities. Sun Life also specializes in group retirement services, group benefits, and insurance and wealth advising. Sun Life is rated very highly in financial strength across the board, including top ratings from Standard & Poor’s and Moody’s.
The company’s options for whole life insurance — which they also refer to as permanent life insurance, is extensive. Like Canada Life, Sun Life’s whole life insurance provides cash value that builds up over time as well as immediate coverage through death benefits.
Sun Life is also well regarded for tailoring its life insurance policies to individual needs. For example, it offers policies crafted for Muslim clients in Malaysia and Indonesia and it’s testing a program in Hong Kong that lowers policy premiums if clients work towards improving their health status.
When comparing life insurance products there are a few things for you to keep in mind and also ask a financial or insurance advisor about. As addressed earlier, try to find a company’s financial strength ratings, which come from major rating agencies, as well as its ability to pay claims.
Other aspects to explore include a company’s historical performance, how well its policies and investment plans have worked over time and if they are better than other policies and products on the market.
Next, look deeper at a company’s individual policies, for example, if there are restrictions and fees tied to a policy or a general insurance account. Try to find out if the company’s pricing for its premiums is stable and if it’s competitive with other insurance companies.
By reviewing these basic — but extremely important — aspects of a financial provider and their insurance policies, you’ll set yourself on the right track for finding the best life insurance available.
HUB Financial, which offers both Canada Life and Sun Life, is one of the most highly respected MGAs working in Canada today. They have a dedicated and passionate team eager to work with you today on finding the best whole life insurance to meet your needs.
Sim Gakhar is a perfect example of a professional that is guiding HUB Financial’s success today. A life insurance agent and investments advisor helping clients throughout the Ontario area, Gakhar is well-versed on the ins and outs of all life insurance options available to Canadians today, especially whole life insurance.
You can easily start developing your whole life insurance plan today by giving Gakhar a quick call at 647-889-7290 or shooting her an introductory email at [email protected]. You’re financial future and estate planning will be in great hands.
When it comes to life insurance there really is no time that is too soon to get covered. And, this is because the younger you are, the cheaper those premiums are going to be. Not only this, but you are probably healthy right now.
If you wait until something bad happens, you will not only without a doubt face higher premiums, but you might not even be able to get covered at all.
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