Back to Home PageWelcome Guest! Register | Login | Home | Contact Us | Site Map | Advertise | FAQ | Search
Canadian Desi

   Home   Submit Your Article   Success Stories   Search

Similar Articles

Life Insurance: Right Protection = Right Product + Right Amount
Right Protection = Right Product + Right Amount There is no doubt that everyone needs life insurance, but the real question is how much and what ki..
Insuring your biggest investment--- your home
Your home is probably the biggest investment you'll ever make. when arranging mortgage,your mortgage company offer you mortgage insurance. have you co..
What is CMHC Mortgage Loan Insurance?
CMHCs Mortgage Loan Insurance is an insurance that covers your lenders risks associated with financial loss that can occur when a homeowner defaults..
The Significance of Funeral Insurance for Seniors in Canada
What is Funeral Insurance and why is it Important? Funeral insurance is the way to make sure the expenses for the funeral of a policyholder are cover..
Insurance- Life, Visitor, Critical, RRSP, RESP-Free advise-Rajneesh
Hi Everyone I deal with all major Canadian Insurance companies. I am professional educated and have very competative rate. Please call me for getti..
Universal life insurance plans have distinct benefits, which set them apart from term, permanent and other life insurance plans. Universal life insura..
Travel and health insurance is required for a Super Visa application
For faster family reunification, Citizenship and Immigration Canada has introduced Super Visas for parents and grandparents of Canadian citizens or pe..
Buying a Home: What You Can Afford
Buying a Home: What You Can Afford If you're thinking of purchasing your first home, you probably have a lot of great ideas about what you'd like - ..
Buying a Home: What You Can Afford
If you're thinking of purchasing your first home, you probably have a lot of great ideas about what you'd like - such as several thousand square feet ..
How much will the house really cost me?
How Much will it Really Cost? Once you have figured out the home price range you can afford and the type of mortgage you qualify for, you will need t..
Mortgage Broker and Become a mortgage Broker
Unless you're switched on an understand specifically what's happening with the property market at all times, you will have to know where to find good ..
How to save for a down payment
Owning your own home has a lot of payoffs, especially these days when mortgage rates are still among the lowest in 30 years. There are also many housi..
Roadmap for new comers why and how to buy House in GTA
I am an IT guy and was not knowing anything about mortgage/house buying. Recently I bought a house after one and half year of immigration to Canada, a..
Segregated funds
Do you like the feeling of knowing that your money is well protected ? Segregated funds is great choice for investments as it combines the growth p..
Mortgage 101 The purchase of a home is one of the biggest decisions and significant financial investments a consumer makes. It is extremely im..
Articles Groups
  • Canadian Immigration & Citizenship
  • My Experiences with Canada
  • About Canada
  • Tips for job findings
  • Housing and Mortgages
  • Money Matters
  • Tips for newcomers to Canada
  • RESP & Insurances
  • Education in Canada
  • Miscellaneous
  • Most Common Mistakes

    By harnekuppal

    Most Common Mistakes People Make Regarding Life Insurance

    Life insurance protects against the risk that an insured person will die too soon and be unable to fulfill his or her obligation to others, such as debts, mortgage, and financial support to family. Therefore, when you buy life insurance take into account all your financial obligations to get enough coverage.

    Buying wrong type of policy

    This is one of those mistakes that individuals seldom realize. Common examples of buying wrong product are having too much or too less coverage, buying whole life insurance without the needs of estate planning, or using mortgage insurance to protect survivor needs. In order to buy the right product for yourself diagnose your current financial situation and calculate the right amount you need. Also consider your future goals and objectives before choosing a life insurance product.

    Treating Life Insurance as savings

    Insurance products with cash value and investment savings have high administrative charges, usually 5-10% up front. Lets say you invest $100 in an insurance product with 7% up front charges and promising 12%. You will only get interest on $93 ($100-7%=$93). Therefore, it will provide around 4.25% return which is less then promised.

    Considering it a one time activity

    You life insurance needs changes with your age and life style. For example, a married couple with kids and mortgage needs more life insurance coverage amount then a single person without any debts. Therefore, review your insurance needs if there is a change in your life, such as marriage, children, salary raise, or buying a home.

    Keep in mind

    Only buy whole life insurance if you concern about estate tax consequences at death.
    Look for alternative investments outside insurance products such as mutual funds.

    Harnek Singh Uppal (416) 723-3226

    Discuss this article

    Article Rating is 10.0000 (Excellent).
    Rated by: 3 voters.
    How do you find this article?
    Excellent Good Average Poor Very Poor

    You can also Submit an Article and help other community members. Thanks.

    Please Contribute!
    Write an Article
    Send Community News
    Create Photo and Video Albums
    Submit Good Pictures
    List Useful Websites
    Post Jobs
    Submit Events
    List for FREE!
    Social Organizations
    Religious Places
    Employment Agencies
    Email Page
    Your Email
    Friend\'s Email

    Advertise Contact Us Privacy Policy and Terms of Usage FAQ
    Canadian Desi
    © 2001 Marg eSolutions

    Site designed, developed and maintained by Marg eSolutions Inc.