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Home Articles Insurance Understanding Your Life Insurance Options
Understanding Your Life Insurance Options
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December 12, 2011, by Insurance Vancouver bc in Insurance

The primary purpose of life insurance is to:

  • Replace income in the event of the death
    of a wage earner
  • Pay debts (such as a mortgage) on death
  • Pay final expenses
  • Pay tax due upon death
  • Create an estate
  • Conserve an estate
  • Maximize an estate
  • Equalize an estate
  • Provide an endowment to a charity

 

 Two Types of Life Insurance

 

  • Term
  • Permanent

  

Who Should Buy Term Insurance?

 

Individuals looking for:

  • Coverage for short (10-20 years)
    periods of time,
  • Mortgage repayment,
  • Debt repayment,
  • Income replacement, or
  • Any temporary need.

  

Who Should Buy Permanent Insurance?

 

Individuals looking for:

  • Coverage which will last for a lifetime,
  • Estate creation, conservation, maximization
    or equalization,
  • Part of an insured annuity or pension maximization,
  • Providing an endowment to a charity, or
  • Any permanent need.

 

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