Life Insurance: Explained (Part 2)

Pure Life Insurance

Pure Life Insurance is an easy, affordable and dependable way to look after the people you love. Learn how it works, the different types, and what plan is right for you. 

HOW DOES PURE LIFE INSURANCE WORK? 

It’s simple. In exchange for premiums paid to a life insurance company, you have peace of mind knowing your family would receive a payout if you were to die.

You can rest assured that your insurance will be renewed at the end of your coverage period even if your health conditions deteriorate. This feature is known for guaranteed renewal.

WHAT ARE THE DIFFERENT TYPES OF PURE LIFE INSURANCE?

Two common types of Pure life insurance are “Permanent Life” and “Term Life”. Pure life insurance policies are typically categorized by duration: how long they provide coverage.

Permanent Life Insurance provides lifetime coverage. Usually this type of policy is important for estate planning; your heirs could use the payout to cover the inheritance tax on your assets. 

Term Life Insurance, as its name suggests, covers you for a pre-defined term or period, usually 15, 20 or 30 years. The golden rule to decide what term length is right for you is to maintain your coverage in place until your kids are grown and financially independent, your mortgage and other debts are paid off, and you’ve accumulated enough savings for your spouse to live comfortably.

WHAT PLAN IS MORE AFFORDABLE? 

Of course, the Term Plan. Permanent life is more expensive than term life since you're covered for life! The term life plan covers you until the end of a pre-agreed duration. 

BOTTOM LINE 

Together we can choose a life insurance policy that keeps your family financially secure until your dependents are no longer relying on you and/or that provides liquidity for heirs to pay taxes on assets such as real estate or a family business.

In order to make an informed decision, just reach out to any of our team members or click below to request a quote.