Life Insurance 101 Video from Life Guard Insurance

Life Insurance 101 – Life Insurance in a Nutshell

Our latest video production, Life Insurance 101. In this video we will explain the basics of how life insurance in Canada works, how your policy is protected from loss by the Canadian government and how you can use life insurance for you protection, financial and estate planning needs.

We hope you enjoy it (less than 5 minutes).

Life Insurance 101 – Transcript

Life insurance—you know you need it. You may already have it. But how much do you know about what life insurance can do for you?

 

Let’s look at life insurance and the basics of how it works. Think of this as life insurance 101 –the information you need to choose the insurance product that is right for you.

 

Very simply, life insurance protects you, your family or your business from loss of life, and the financial impact that would have.

 

Insurance agencies like Life Guard Insurance provide insurance policies for families and businesses. Large groups of Canadians each pay a small premium into a managed pool of funds. There’s always enough money in the pool to pay a claim when any one of the members of the group suffers a loss.

 

The Canadian government regulates these insurance companies and every insurance policy is guaranteed by the Canadian government’s contract called Assuris.

 

Insurance companies in Canada have been around since 1870. They are some of the longest running and largest companies in Canada. They are liquid and secure so you know they will pay your claim when you need it.

So what is life insurance used for?

• Its main purpose is to safeguard you, your family or your business from the loss of your long term income earning potential.
• It can be used to pay off major debts like mortgages, car and business loans.
• Life insurance can be used to cover taxes and final estate expenses at the end of life.
• It can be used as a charitable giving vehicle to support your favorite church or not for profit organization.
• Life insurance can also be used for wealth creation and to create funds as a legacy product for the next generation.

Life Insurance is one of the most tax-efficient savings vehicles in Canada. You can deposit excess money into it over and above the cost of the insurance and save money inside a permanent life insurance product.

 

How much insurance do you need? Every person or family situation is unique. Before buying life insurance, you should analyze how much insurance you need by doing a financial needs analysis.

 

Click the Insurance Needs Analysis button on this website for a calculator that can give you a good idea of how much insurance would be right for you to purchase.

 

You can also use our free disability insurance needs calculator and critical illness insurance needs calculator to see how much living benefits insurance you would need for your particular situation.

Did you know there are basically 3 types of life insurance?

•  Term life
• Whole life
• Universal life

Term life is a very cost effective short term insurance policy that only covers the pure cost of risk protection. It’s very affordable and is designed for things like paying off a mortgage or risk protection while raising children.

 

Whole life is a simple, life-long product completely guaranteed by the insurance company.  In this product, the insurance company takes on all the risk and offers you a 100% guarantee.

 

Universal life insurance consists of an umbrella product with 2 sides. First is term to 100 permanent life insurance. This is the pure cost of risk protection for the rest of your life.

 

The second side is an investment portfolio self directed by you.

 

This product can perform very well over time — but there is risk to you and it needs to be maintained like an investment portfolio

 

As you can see, life insurance is very complex and there are lots of options. Designing the product that is right for you is much more than just choosing the lowest cost term life alternative.

 

Contact us at Lifeguard Insurance – we will help you set up an insurance plan that is designed especially for your unique situation and your particular needs. Get started by clicking below to receive your free instant life insurance quote now.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Life Insurance 101 would be very much appreciated.

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