Cash Back Life Insurance
Posted by Georgia Edwards Life insurance policies in Canada are primarily divided into two categories, Term Life Insurance and Permanent Life Insurance.
Term Life insurance policies have level premiums for a stated term, i.e. 10, 20, or 30 years. In most instances, Term Life insurance policies do not build a cash value.
Permanent Life insurance policies are sub-divided into three categories, Term 100, Universal Life insurance and Whole Life insurance.
Some Term 100 life insurance policies do provide a cash value component, but most do not.
Whole Life insurance policies have a built-in cash value, in the case of Participating Whole Life policies, the cash value includes a guaranteed cash value and a dividend cash value. The dividend cash value is dependent on the performance of the insurance company itself.
Universal Life insurance policies offer an unbundled form of cash value life insurance. The insured is paying for the cost of insurance, premium tax, administration fees and policy fees. Any premium above these amounts is invested by the insurance carriers.
The investment choices including low-risk investments, such as GICs or bond funds, or higher risk investments, such as equity or specialty funds. Some companies, such as BMO Insurance, have over 400 different investments to choose from on their Universal Life plan.
Tags: BMO Life Insurance, cash value, non-participating whole life, participating whole life, Term 100, universal life insurance, whole life insurance
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