Universal Life Insurance in Ontario – A Smart way to insure your life.
The world is full of unforeseen incidents and one must be well equipped for a mishap in daily life. Some people have an opinion that life insurance coverage does not have much importance in life since they are earning well and things are on better side. But sometimes a fraction of a second is enough to change things upside down. A slight slip is enough to change your entire life. Universal life insurance is there to help you to protect you from such incidents.
In most cases, it directly benefits the insured person, but in some cases like when the insured person dies, it benefits the family and the beloved ones. Being a good human being, it is our duty to ensure security for our beloved ones who depend on us. There are many types of plans available so that you can choose the one that suits your budget. If you can’t afford to go for huge sum, there are a number of small policies that help insure your life. You have the option to call an executive to help you choose the best policy.
The universal insurance polices give the most flexible plans and they cover you for the whole life. They follow a cash value system in which the money paid more than the premium by the insured person will be paid back as cash value with interest. The insured person will get interest every month. The interest is determined by the policy holder; hence, it is called flexible insurance.
There Are Mainly Three Types Of Insurance:
- Single Insurance: Here the premium is paid annually.
Fixed or Flexible Insurance: This policy is for a fixed period and the premium is paid in installments.
Flexible Premium: This allows the insured to select the premium to be paid on due dates.
In Canada, the death cost is a part of premium and the rest portion is death benefits. This portion is disclosed by the insurer. It is better to opt for a plan in which the death cost remains standard throughout the year. Administration charges are the processing cost and the payable tax will be disclosed. After the deduction of administration charges and the mortality cost, the balance amount is invested in stock markets so that it will give revenue to the policy holder. The interest is deposited in the account of policy holder annually. The universal life insurance in Canada is the best option for those who wish to purchase a term life insurance and earn an interest on the investment regularly.