Are you an owner or a renter?
Do you own your house? Your car? Do you like the idea of one day having something that is paid for and yours -- and that you won't have to pay for in the future? If so, you may want to look at Permanent Life Insurance.
We will all die one day. When we do, there are going to be expenses: funeral costs, legal fees, etc. And one big fat tax bill. What's that you say?
When we die, the government basically rolls up almost all of the big stuff we own and treats it as if it was sold. Then it treats all of that like income. So, for example, all of your RRSPs are cashed in. If you have a rental property or a lake cabin or farm property (they don't count your primary residence), they'll tax you for Capital Gains on that.
Our clients see that this is coming and prepare for it. The best way to do it is with Permanent Insurance.
This will take one of three forms:
- Term 100 or Level Term Life Insurance. This basically means that you are guaranteed to pay the same insurance rate for the rest of your life. Even while the costs of everything else increase, your insurance cost will never go up
- Whole Life Insurance has guaranteed rates for your whole life (see the name connection?) and builds up cash values in the policy as well
- Universal Life Insurance doesn't always have guaranteed rates, but structured properly can be a bit less expensive than Term 100, with predictable rates -- and a few products can build up cash values that can be used for things like Long Term Care Insurance or taking a holiday from paying premiums
- 20 Pay Life Insurance is a product that a lot of our clients have loved -- basically, you pay for only 20 years (much like a house mortgage), and then have insurance that is fully paid up for the rest of your life
CEPC Hybrid Life Plans
One of the things we specialize in is a customized plan we call the CEPC Hybrid Life Insurance Plan.
The Hybrid Plan recognizes that there are some things in life that a short term -- mortgages, kids' school years -- and some things that are permanent needs. In keeping with that, we will design custom plans that have a small part of permanent insurance, often paid up in 20 years, and a large chunk of Term Insurance that covers short term needs. With the CEPC Hybrid Plans you get the best of both worlds, all wrapped up in one easy-to-understand policy!
Question: Isn't Permanent Insurance a whole lot more expensive?
Answer: In the short term, Permanent Life Insurance is generally more expensive than Term Life Insurance. But once you start to factor renewals into the equation, in the long run Permanent Life Insurance offers very similar value with a lot of extra features built into it that you don't get with Term Life Insurance
Capital Estate Planning has decades of experience in helping our clients to decide on the Permanent Life Insurance -- Whole Life, Universal Life, 20 Pay Life Insurance or Term 100 that will work best for them.
Contact us today to set up a Permanent Insurance policy that can take care of your needs today and the needs of your family after you're gone.
Long Term Care Insurance
What happens when you can no longer take care of yourself? Who will help you with that and how will you pay for that care? Long Term Care Insurance can help with the costs.
Term Life Insurance
Term Life Insurance is a broad category of insurance built to control your costs for a specific period of time.