If you are a Canadian who is over 50, you may find that getting adequate life insurance can be a challenge as your options start to become limited. For many, not leaving a financial burden means covering their funeral costs, or helping your beneficiaries cover any capital gains tax for when they inherit your estate. In response to those specific needs, insurance companies began to offer Over 50 Life Insurance, which guarantees insurance protection for life.
This type of policy guarantees acceptance if you are between 50 and 75 without health questions or medical exams. This guarantee is reflected in the price of your premiums which will be higher compared to similar coverage from more traditional forms of life insurance. Since these polices are designed to help offset the expenses of your final arrangements, the maximum death benefits you can have are capped. These premiums are normally guaranteed to remain unchanged for the life of your policy. It is also important to be familiar with the terms of your policy, as some require two years after starting before paying the full benefits. In cases such as these, the life insurance company usually guarantees either a full refund of your premiums, or your premiums plus a percentage.
Since Over 50s (or 50 plus) life insurance guarantees coverage for your entire life it is considered permanent life insurance. As with other forms of permanent life insurance, Over 50 policies build a cash value, which you are entitled to if you decide to surrender your policy.
If you are in the market for life insurance, it is very advisable to speak with an experienced professional so you are aware of your options. Many people unnecessarily default to guaranteed life insurance coverage because they fear a preexisting medical condition may forfeit them from more traditional forms of coverage. If you are of reasonably good health, and your illness is controlled by medication, there is a good chance you are eligible to receive better premiums and better coverage through another type of policy.
LifeCover.ca can help put you in contact with independent insurance professionals across Canada. We make insurance easy by getting you the coverage you need, at a price you deserve.