Life Insurance Information
From an estate planning point of view, life insurance can play two roles. If you have not accumulated substantial holdings, insurance creates an immediate estate at death providing funds to meet the resulting expenses and taxes while guaranteeing an income for your family.
On the other hand, if you accumulated a sizable estate, there may be significant changes that will arise at death. Insurance is one means of providing the liquidity that may be needed to cover them.
Life insurance is an ideal financial vehicle since it matures at death. This is exactly when the funds are needed. The annual cost is reasonable and upon receipt, the proceeds are totally free of income tax.
There are two types of life insurance contracts:
Term insurance is temporary in that it terminates either at a specified age or a given date. Term plans that end at a given date often have renewal provisions allowing coverage to be continued for another specified period, usually ending at age 65 or 70. Term insurance is best used to protect temporary liabilities or commitments such as mortgages, university expenses, bank loans, etc.
Permanent insurance, on the other hand, is the best type of plan to protect long-term needs such as survivor income or estate settlement costs.
Group life insurance (which is usually term insurance) has all the attributes of personal insurance in the event of your death. However, your employer or association owns the policy; you are a group certificate holder, not a policyholder, and thus have no control over the contract. For this reason, it is generally recommended that a minimum of 50% of your required life insurance protection be personally owned, ensuring you have ultimate control over your program.
When determining the right amount and type of insurance you should own, consider the following:
- liquid and income-producing assets already available
- the amount of continuing income required by your survivors
- the age difference between spouses, if any
- life expectancy of spouses
- government and private pensions available
- income available for the purchase of insurance
"Gerry has served all my insurance needs for over 7 years. He has always been responsive, friendly and professional. Most important, they take my needs, economical and service, very seriously and have performed, in my opinion at the highest levels. I have never even considered changing agents. Great job and thank you."
"Gerry managed to find for me the best deal that I could get on the market for Life Insurance! Tanks Gerry!"
"I strongly recommend that you have Insurance Toronto review and quote your insurance program. They SAVED us OVER 40% this year alone and I believe that they can also help you!"
"The service provided by Insurance Toronto meant for me and my Family a lot. Customer satisfaction is the main goal of his activity."
"What a pleasure it is to deal with a company like Insurance Toronto! Always prompt, courteous, knowledgeable and most accommodating. This applies to their entire office staff - A+."
"Excellent knowledge of the insurance marketplace and ability to present best coverage at most competitive premiums to the client. Facilitates handling of any claim information between client and the insurer."
"My experiences with Insurance Toronto have been very positive and I find Gerry to be a real pleasure to deal with. He is competent and friendly which can be hard to find these days."
"I want to thank you personally for placing my insurance with a reliable company. I do recommend you to all of my clients. Thank you so much for all your help."
"There have been numerous times that other insurance agents have offered their services to our company. But we have always turned them down due to the excellent customer service by Insurance Toronto"
"Gerry was able to save us an incredible amount of money! We didn't realized how much we were overpaying in our Life Insurance! Thanks to Insurane Toronto we are saving over $125 a month. Thanks a million!"
"Extremely professional and knowledgeable! Insurance Toronto saved me time and money. They have always had prompt responses to questions or problems. "
"I am pleased to say that this family run office has looked out for our needs for over six years. It is comforting to know that I don't have to worry about best cost and proper coverage. Thank you for being there for us!"