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Protecting Your Loved Ones

Life insurance is your protection for your family in case you do not survive. Your life insurance should be enough to support all your dependants. Old couples also use life insurance to help protect the surviving member. People with high income could use life insurance to reduce taxes, or to give money to the inheritors.

There are many types of insurance:

Term Insurance
This is for people under 50 years of age. Premium is paid for each term or period. At the end of the term the policy has to be renewed. As you grow older the premium becomes expensive.

Declining Balance Term Insurance
In this policy the premium remains the same but the face value of the insurance keeps decreasing. When the mortgage principal is completely amortized the policy expires and needs to be renewed.

Whole Life Insurance
This gives permanent protection combined with savings. Some of the premium is saved as cash that you can borrow from up to a certain percentage.

Universal Life Insurance
This policy is flexible with respect to face value and premiums. The earnings from the savings are higher in this policy.

Variable life Insurance
In this case the premium is fixed and you can alter the face value of your policy depending on your choice of investments.

Universal Variable Life Insurance
You can control the investment and the only assured return is the face value. Here the risks and returns are both high.

Finally, your insurance return should be enough to replace your entire income.