Can some body explain me in simple terms difference between term and whole life insurance in easy words, not in jargon.

Secondly, how life insurance works if i move away from canada and keep on paying my premiums?

Thirdly, if any one can sent me quotes for my life insurance, 31, non smoker, male.

If any insurance brokers wana sent me email, it is

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Windsorguy

Life: Love it or Change it!!

I forwarded your message to one of my friend who deal in insurance. His name is Sunny Bedi and most likely you will receive mail from him.

Thanks and regards.
Vimal

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"Change before you have to" : Jack Welch

I think some Insurance consultant should post a comprehensive article on Insurance for general public benefit and information along with basic tariff and rules of insurance.

As requested here is a very basic look at life insurance. First off a disclosure. This is by no means comprehensive. It is highly advisable to find a good advisor. Actually it is highly advisable to find an excellent advisor! This is a basic overview to give you some things to disscuss.

Life insurance is a contract that exists between three parties. The owner, the Life Insured and The Life Insurer. The owner and the insured may or may not be the same person.

There are 2 benefits to life insurance and a contract may have either benefit or both. The first benefit is it pays a tax free lump sum upon death. The second benefit is it acts as a savings/investment vehicle.

Life insurance is one of the few unilateral contracts out there. This means once issued, providing you pay a premium only you can cancel the contract. This includes if you travel, move, cahnge profession, get sick or anything else.

The cost of Life insurance is determined by a persons age, smoking status, type of policy and health. It is very easy to become uninsurable.

Also be forewarned all policies are not created equal. Too policies in the same category may be vastly different from two companies or even the same. Find a good broker/planner. Keep away from "career agents", these are people who are contracted to one company and whose contracts state they may not sell other companies, or restricts what they may sell to who from other companies.

So on to the types:

Term: As the name suggests Term insurance provides life insurance coverage for a fixed term at a fixed rate and then increases. Terms are generally 1 year, 5 years, 10, 15 or 20. There is no cash value to these policies and most expire at 75 years of age, while some go to 85. Most never pay because they become prohibitively expensive before they expire. Term can be converted to other types of insurance w/o providing additional medical proof. For this reason alone it may be worth the few dollars a week for the coverage.

Whole Life: This is the cadillac of insurance. You pay a fixed rate for a certain coverage. This doesn't expire. Every year you get paid dividends into the policy (these aren't taxed unless withdrawn). These dividends then generate additional dividends. The dividends also provide additional insurance coverage. These nos grow exponentially. Now dividends aren't guaranteed but historically they tend to slightly outperfrom long term bond yields. They also grow tax free, are credited annually, are creditor protected and come with a host of other benefits.

Universal Life: This is a term policy with an attached savings account that has the advantage of being tax deferred/free and creditor protected. These are excellent in some circumstances but many advisors sell them as a be all and end all despite their dangerous nature. The cast accounts can fluctuate up and down. The cost of the insurance option must be reviewed and a host of other things.

And that in essence is the overly simplified survey of Life Insurance in Canada.

Prices vary day by day and company to company. Should anyone have any questions feel free to post them. Also I will answer inquiries sent to my email address at



Hope this helps!

Its been indeed so kind on ur part FinWiz 2 clearly state the different variants of Life Insurance benefitting the users . I have a few basic qs and wud appreciate brief replies .

1. B/w a Life Policy & Term Policy(20yr 4 a 35 yr old for $1m) which should have more premium and what should be the variance percentage on an Industry average ??

2. Under the above conditions (though naive 2 ask) which shall be a better Returns option considering Reinvestment of Dividend .

I m sure the answers be 4 common benefit .

Regards ,
Manasvi

In addition to my previous reply, look at my new information in Questions to Ask in the Life Insurance section.

Basic premium for $1,000,000 male, 35, non-smoker. These are not neccersarily the best quotes. I have just taken some nos. of 1 company for illustration purposes only!

10YRT -- $63.00/mo. This increases to 275/mon in 10 yrs. $695/mo after that. $1935 after that. It expires at age 75 w/ no cash value.

20YRT -- $103.00/mo. This increases to $985/mo. It expires at age 75 with no cash value.

Whole Life Enhanced -- This is a whole life policy combined with 1YRT. Every year the dividends are used to purchase 1 yrt and additional dividends until the policy is fully whole life.
Cost is $537.29 /mo with a rider that will pay the premiums should you be disabled. At age 75 the Death Benefit will be $1,319,524 at todays dividend rate. The cash value will be $819,704. It will not expire and continue to grow unless you terminate it.

Whole Life -- $1,655/mo. At age 75 the death benefit will be $4,699,432 and the cash value $2,930,567.


This comes with all of the usual disclosures of note being complete and illustrated etc. But it should give you an idea of the varius types of insurance and their power.

I got quotation for my term life insurance for half million, for me and my wife, that's 'first to die' for 25 years standard rate is $133/= and preferred rate is $108.

First to die means if i die my wife will get half a million, and my wife die then i will get half a million, and if we both die, our kids will get half a million. i am 40 non smoker and my wife 33 non smoker.

if anybody got better than this rate, pls. let me know.

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LIFE IS BEAUTIFUL, LIVE IT TO FULLESST