What is life insurance?
Life insurance is a contract by which the insurer undertakes to pay an annuity or a capital to a person , the subscriber, in return for a premium. This payment is made according to the type of contract taken out.
In fact, in a life insurance contract, two kinds of contracts must be distinguished: an insurance contract in the event of death and an insurance contract in the event of life.
How does Life insurance work?
Payments in a life insurance contract
The subscriber is required to commit to a payment based on a schedule, either monthly, quarterly or annually. This type of payment leaves the choice to the subscriber who can make additional payments.
As the name suggests, it is done freely. The subscriber chooses the amount and date of payment. However, there may be exceptions, some contracts impose a fixed minimum amount.
The single payment
This type of payment is made all at once and at the time of subscription.
The actors in a life insurance contract
It is the one who undertakes to pay benefits when the insured risk materializes.
It is the natural or legal person who takes out the contract with the insurer , he can be the beneficiary at the same time, except in the case of insurance in the event of death. The subscriber can also be a bank or an insurance company in the case of group insurance.
This is the person on whom the insured risk is based. At the same time, he can be the subscriber.
This is the person designated by the subscriber and to whom the capital will be paid in the event of realization or death. His presence is not obligatory during the subscription and it is not obligatory to inform him of his situation of beneficiary.
What is term life insurance?
The term life insurance is a protection insurance which aims to ensure a capital or an annuity contract to beneficiaries designated by the policyholder in the event of his death. Temporary death also guarantees income in the event of the subscriber’s disability. The contract is only valid for a specific period.
What happens to term life insurance at the end of the term?
When the insured is alive at the end of the contract (the duration of the contract is determined at the time of subscription), the insurer must pay him the savings constituted according to the terms set by the contract, that is to say either under in the form of a capital, or in the form of an annuity.
The insurer has a period of 15 days from the end of the contract to ask the insured for all the documents necessary for payment.
Payment must be made within one month of receipt by the insurer of all the documents required for payment.
Note: Beyond this one-month period, unpaid sums automatically generate interest at double the legal rate for 2 months then, at the end of this two-month period, triple the legal rate. .
Please note: contracts can be renewed at the end of the term, consult the general conditions of your contract or ask your advisor for more information.
What is terminal illness in term insurance?
Financial assistance for you at the end of your life
If you are diagnosed with an incurable terminal illness and your life expectancy is less than twelve (12) months, you can obtain payment of an early benefit by submitting a request to Viaction Assurance, accompanied by documents proving this. condition.
There is no cost for this option. It is included free of charge in your program.
Certain conditions apply
The diagnosis must be made by a physician with a valid license from the College of Physicians and Surgeons of the province or territory to practice medicine, excluding the insured himself or a member of his family.
The contract must have been in force for twenty-four (24) months or more and the amount of the prepayment cannot exceed 50% of the face amount up to a maximum of $ 50,000.
A single payment is payable during the life of the insured.
After the payment date, the premium will continue to be calculated on the full amount of the face amount as if there had been no prepayment.
On the death of the insured, the amount of the insured capital payable to the beneficiary by Viaction Assurance will be reduced by the amount paid as payment of the early benefit.
Why are we offering you this option?
We believe that at the end of your life you may need financial assistance. You can use this amount as you see fit. You could pay for palliative care services or offset the expenses incurred by the people who will accompany you at this end of life stage.
An appreciable help so that you do not have to worry about financial worries in order to live this last stage as serenely as possible.
What is the best life insurance policy?
The market is capable of both the best and the worst. You have to be very selective before you start investing for the long term and not hesitate to be unfaithful : your usual advisor will not be able to compete with the best life insurance policies on the market.
What is the best life insurance?
The choice of life insurance cannot be made solely on the basis of its rate of return because the markets fluctuate. Other parameters should guide your choice. What are the criteria to consider?
What life insurance do i need?
You do not know how to choose your life insurance? Term, permanent, participating or universal: which of these types of insurance matches your needs and goals? Here’s everything you should know before making a decision.
Thinking about getting life insurance? It’s a great way to protect your family financially.
In short, life insurance pays an amount to your family or beneficiaries in the event of your death. They can then use the money received to pay:
- child care,
- a mortgage loan,
- other current expenses.
Different types of life insurance
There are four different types of life insurance:
- Term life insurance;
- permanent life insurance;
- participating life insurance;
- universal life insurance.
The ideal life insurance for you will vary depending on your personal circumstances, your needs and your goals. Maybe there isn’t just one type of life insurance that’s right for you. You might need a combination of several different products. To help you see things more clearly, seek professional advice, such as a counselor .
To make a decision, you must first understand what each type of insurance can offer you.
How does permanent life insurance work?
Permanent life insurance provides protection for life. It is more expensive than term life insurance, but the amount of your premiums * remains the same. After a certain age, permanent life insurance could therefore be cheaper than new term life insurance.
(* The monthly or annual fees you pay for your insurance. Most permanent products come with guaranteed premiums, that is, they don’t change. But others have an adjustable cost: their premiums. may therefore vary over time.)
How does participating life insurance work?
The life insurance Participating best a type of permanent life insurance. It offers you lifetime protection and the possibility of benefiting from tax-advantaged growth:
- The cash surrender value;
- Of the death benefit.
Your contract gives you the right to dividends *, which you can use for:
- increase your coverage;
- receive cash payment;
- reduce your annual premium;
- generate interest by letting it accumulate.
(* Dividends are not guaranteed. You may receive dividends if Sun Life’s participating account results are more favorable than the assumptions made. These results are based on factors such as investment performance, death benefits and fees to support guaranteed values in contracts. If the board of directors determines that there is a surplus, a portion of it may be paid out as dividends to the owners of the contracts.)
How does universal life insurance work?
Universal life insurance provides more flexibility than other types of permanent life insurance. In most cases, it provides protection for life (or, at the very least, long term). In addition, it enables tax-advantaged savings *.
Some universal life insurance products have premiums that don’t change. For others, payments increase over time. And for still others, it is a mixture of the two.
You can invest any payment that exceeds the cost of the insurance. These savings can then grow tax-free *.
(* This means that any growth within the contract is tax free. You may have to pay tax if you cancel your contract or borrow from your contract beyond a certain amount. This is also true if you cancel part of your coverage.)
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