Ten things you should know about life insurance

The average cost of a funeral in Canada is $8,500, and it can very easily rise up to $15,000. That is too much money, and it is just the starting. If you have any debt or loan, it would be passed off to your family. So, if the worst happens with you, your family would be burden with emotions and money issues. One of the ways, you can eradicate the latter is Life insurance. In this article, we are listing ten things you need to know about life insurance.

  1. Life insurance is a contract: You and the insurance company sign a contract in which you pay a premium for a fixed period. If your death is approved by the contract, the insurance company pays benefits to your listed beneficiaries. If the company doesn’t pay, you can sue them.
  2. Life insurance is not an investment: Many people believe life insurance is an investment that will give return after your death. This is completely false, as life insurance is a policy to safeguard your family’s financial capabilities.
  3. Different kinds of life insurance: There are different types of life insurance, such as term insurance in which you pay a low premium, but your coverage isn’t lifetime. While in permanent insurance, you pay a high premium and covers your entire life. You can look up each variant and select the one which suits you.
  4. It is affordable and expensive: Life insurance comes in different financial packages, the more cover you want, the more expensive it will get. Hence, you can sit down and shape your life insurance to fit your budget.
  5. Life insurances are assets: If you are about to get divorced and you are a beneficiary of life insurance or own life insurance, then your spouse can claim it. Life insurance is considered to be assets. So, ask your divorce about it so that you don’t give it up.
  6. Life insurances are tax-free: One of the reasons people go for life insurance is that it is tax-free, and it is also keeping your family safe after you are expired. So, it gives you a double benefit. Hence, it is a wise decision in this regard.
  7. Read the fine details: Before signing for life insurance, it is extremely important to read every fine detail. This will ensure the policy is appropriate for you, and you aren’t falling in a trap with no returns at the end.
  8. Life insurance isn’t adding monetary value to your life: Movies and books have spread the rumor that people kill for life insurance return. However, if your death is a homicide, chances are your beneficiary won’t receive money. Hence, life insurance is a savior in your life.
  9. Use DIME: DIME is a personalized way of calculating how much life insurance you might need. This can come in handy while you are deciding on which life insurance to choose from.
  10. Buying early help: The younger and healthier you are, the better it is for you. As you have to pay a low premium while the returns aren’t low when compared to premiums. So, get yourself life insurance before you fell to disease.

So, these are ten things you should know about life insurance before you prepare to buy. Use these tips to find suitable life insurance for yourself.

This could be the year of Visitor health insurance

The world is going a unique experience due to the coronavirus pandemic. It looks like things won’t be changing anytime soon. As major health organizations have predicted that the pandemic might be around for a couple of years until a vaccine is developed. It seems like this might be the situation as no universally accepted vaccine has been in latter stages yet. Plus, most countries have opened up their strict lockdown rules with social distancing measures.

How will it affect you?

So, if you’re a businessman, student, or anyone else planning to travel to Canada for a short trip. The new rules allow you to do so, but you might be putting yourself at risk. No one can guarantee that you won’t catch the virus while traveling in Canada. In case you catch a fever, it would be a nightmare as you won’t be allowed in any public place and taken to a hospital. Here, you would be under watch for a long time while the bills keep increasing. It doesn’t take big brains to figure out; the bill would put a hole in your pocket.

But the good news is that there is a way out for you. That is through Visitor health insurance! During your trip, if you suffer from any medical emergencies, health insurance would help you with the bill. In this way, you won’t be hurting your pocket while maintaining your health.

Things that will be covered in a visitor health insurance:
  • Physician services
  • Ambulance services
  • Hospitalization
  • Prescription drugs and more

Salient features of visitor health insurance:

You can also add your family members to the insurance to keep the whole family secure during the trip. Now, there are various different plans in visitor health insurance, such as accepting pre-medical conditions, accident coverage, covering side trips, and more. Hence, you could select all the features you want in your visitor health insurance according to your budget. Then buy it before you start your trip. This will save you a lot of time and effort.

The Year of Visitor health insurance

The world is on hold for a long time now, and people will move in and out of Canada. The only way to suffer a huge loss in this falling economy is by using Visitor Health Insurance on your trip. We believe insurance would be much more popular than ever.

Life Insurance: Five things you need to know

People actively buy assets such as home or car against a loan. Most people plan for the worst before buying, However, they don’t take into account their premature death. This can put their loved ones in deep financial problems without any help. We are not advising to stop taking a loan, or you will die early but suggesting that taking a Life Insurance covers you for the worst scenario. Here are a few things you need to know before buying Life Insurance:

  • Working of Life Insurance: Life Insurance is a contract between you and the insurance company. You will pay the company a fee, and in return, they promise to pay back a tax-free lump-sum to your nominee. Hence, if you opt for Life Insurance in Brampton and pay a fee which adds up to 100,000$, then that’s the money the insurance company will pay back with interest upon your death.
  • Cost of Life Insurance: The cost of Life insurance depends upon a lot of factors such as the type of policy, number of beneficiaries, your age, health, sex, drinking and health habits, etc. Many Insurance also asks you to undergo a health checkup to find any life-threatening disease. Hence, if you are suffering from AIDS, you will have to pay more than a healthy person.
  • Term and permanent insurance: There are two main categories in life Insurance: Permanent and Term Insurance. In simpler words, Term insures you for a fixed number of years, i.e., 5,10, or 20 years while Permanent Insurance last throughout your life. Anyone can opt for permanent insurance while term Insurance is popular among senior citizens above 60 years old.
  • Creditor Life Insurance: If you take a loan or a mortgage, the financial institution will offer life insurance called Creditor Life Insurance. Your loan will be repaid after your death. However, the financial institution will pay the loan directly without any involvement with your nominee. This can create a problem; hence, you need to look for more flexible life insurance.
  • Group Insurance Benefits: If you or your spouse has group insurance coverage through your employer. It will also include life insurance, and you can plan accordingly. For example, many group insurances allow you to pay extra to cover additional levels of insurance at very cost-effective rates.

These are the things you need to keep in mind while buying life insurance.

 

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LIFE INSURANCE – VITAL OR NOT?

Life insurance is a thing which every person must have, and there should be no ifs and buts when it comes to safeguarding your loved ones. Getting into a little more technical terms, let’s delve into the definition. Life insurance is an instrument; you can call it a financial instrument which helps to lessen the financial burden of your family if you are longer there.

Yes, it comes with the acceptance of harsh truth- death. However, avoiding the facts is never a situation. Those who love their loved ones truly never take risks. Today, I might be available to stand by my family in every need. What about the time when I will not be there for them? This is where my life insurance will be there to help.

Death is uncertain; it can happen to anybody at any time, absolutely unexpectedly. Life insurance is the way to protect and aid your family even after leaving them forever.

If you still want some concrete facts to get yourself insured, go through the below-mentioned points. In case you are having doubts, go and clear them:

Two reasons why must get life insurance:

Financial security for your dear ones

Those who are dependant on you will surely get a lump sum of regular income if you face sudden death. The concept is as if the person holding insurance dies during the period of the policy, then the specified amount is given to his/ her nominees.

Yes, it’s true that nothing in this world can relief the emotional loss. However, these policies can strengthen your family on the financial aspect. They can mitigate the liabilities and continue to run their lives with comfort.

If you don’t have any dependants or any kind of liabilities then also getting insured is worth it. The amount of your insurance can be assigned to an NGO or a charitable trust.

Just consider your current lifestyle, future needs, and liabilities while deciding an insurance cover.

Investment Component

Other than these plans, usually the insurance policies can highly boost up as protection plans and systematic savings. You can select from various protection, long-term retirement plans and wealth creation plans available for yourself.

There are some insurance policies which offers market-linked growth plans which are highly flexible, where you can just select the nature of fund to invest your money. Here, at allkindinsurance.com you will surely find every kind of insurance plan, from aggressive ones to conservative ones, you can go for any fund which meets your financial terms.

 

 

TFSA Brampton – Allkind Insurance

As the name suggests, it is an account which does not apply any kind of tax to your contributions, and also it can also be withdrawn tax-free. We at Allkindinsurance.com respect your dreams and aspirations and to help you achieve them, we bring to you Tax-Free Savings Account.

Who can open a Tax Free Savings Account?

Any Canadian citizen who has attained 18 years of age and above can open a Tax Free Savings Account for any purpose.

What is the contribution limit to Tax-Free Savings Account?

TFSA was introduced in Canada in 2009, and the maximum limit of contribution as in 2019 is $6000 annually indexed to the Consumer Price Index (CPI) with $500 increment to account for inflation. The total cumulative contribution for a TFSA is $63500

Types of contribution in TFSA

Any investment income, dividends, capital gains, etc. can be contributed in a TFSA account, with complete tax-free interest.

What is Over-contributions?

Any withdrawal from a TFSA will further increase the available contribution room effective from the 1st January of the upcoming year. An over-contribution will occur if an individual mistakenly believes that a withdrawal instantly will create a room for contribution and deposits in the same calendar year. At any time in a year, if the contribution made exceeds the permissible limit, then it will be considered as an act of over-contribution and the account will be subject to a tax equal to 1% of the highest additional TFSA amount in the month, for each month that the additional amount remains in their account.

Core benefit of TFSA

The prime benefit of TFSA is “exemption of tax”. To explain it further, let’s take two friends Philip and Francis. At the start of the financial year, Philip puts his money in an investment account which gives him roughly 7.5% interest per annum. Francis also does the same however he puts his money in a TFSA. If both of these friends deposit a lump sum amount of $7350, they will each have a corpus amount of $7901 at the end of the financial year. Now, by investing in TFSA which is tax-free, Francis will be able to withdraw his complete accumulated amount of $7901 whereas, Philip will be taxed upon the additional amount of $551 which he earned in capital gain.

Tax-Free Savings Account is a beautiful financial product by which you can make robust savings, earn interest on your investments and fulfill your respective goals. Further, at Allkind Insurance shall take utmost care in facilitating you through this system and help you realize your dreams.

 

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