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Permanent Insurance: A whole new investment class

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Permanent Insurance: A whole new investment class

By Candian LIC,  June 19, 2021, 5 Minutes

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Recent developments in the investment markets and its volatile performance have revived an old workhorse. More and more Canadians are opting for a permanent or a whole life insurance scheme to reduce the hassle of renewals and the extra paperwork that comes with it. Investors are also looking into this policy to diversify their portfolios.

Also, permanent insurance can act as a tax-efficient fixed income investment alternative. But how is permanent or whole life insurance is a good investment? Well, let’s have a look at the list below.

A few reasons why permanent insurance is a good investment

  • The return of premium received is tax-sheltered for this type of policy, and it also has significant estate benefits.
  • Unlike accumulation policies such as mutual funds and universal life insurance schemes, the cash and dividend value of a permanent insurance policy never decreases as you make your monthly payments
  • Anyone who is looking for stable returns can invest in permanent life insurance schemes
  • The offset of taxes will become payable on your RRSP
  • A permanent life insurance policy can minimize the impact of taxes on other taxable assets in your estate- such as capital gains tax on the increase in value of a cottage
  • You will have the option to leave a financial gift in your name to your favorite charity

These seem excellent reasons why anyone can consider applying for permanent life insurance, but does it make sense for you?

Should I apply for permanent insurance?

This would entirely vary from individual to individual. With permanent life insurance, you will have lifetime coverage, which means it will be your financial safety net till the day you die. Also, you will be using it as an investment, and the cash component will only grow over time. You can withdraw the proceeds at any time you want. You may also receive anywhere between 25% to 100% of your permanent life insurance policy’s, Death benefit before you die or if you are diagnosed with a specific condition such as stroke, heart attack, invasive cancer, or end-stage renal failure.

These do look like only pluses, but one significant downside to permanent insurance is that you will have to pay higher premiums. There could be tax implications, if you decide to surrender a policy or pass away with an outstanding loan.

So, before you apply for whole life or permanent life insurance, it’s advisable to weigh in the pros & cons of the policy. You should also have a clear idea of your financial situation as well as your financial goals. If you need help with that, you can always get in touch with the team at Canadian LIC. They have a team of excellent insurance brokers who can advise you on what type of policy you should opt for based on your requirements. They can also resolve any queries you may have regarding any insurance policy or scheme. Contact them; you won’t regret it.

Simplifying Permanent Life Insurance for You

Permanent Life Insurance has been the go-to policy for many Canadians because of its no hassle, no fuss terms and conditions. It is as plain as water; the policy offers coverage for the entirety of the policyholders’ life or as long as the premiums are paid. On top of that, there is also a savings component available in the policy, and it offers continuous growth at a guaranteed rate. If you do not have a clear idea of what a Permanent Life Insurance policy is or what type of benefits it comes with, this blog is for you. Read on to learn more about the Permanent Life Insurance policy so you can make a well-informed decision when you’re choosing your plan.

Redefining financial security with permanent Insurance

As the name says, it’s Permanent Life Insurance, which means you get the coverage benefits for your lifetime. Unless you’re not able to pay your premiums, your policy will never lapse. And with the additional benefit that the policy can be used as a savings vehicle, you are guaranteed some extra cash even if you don’t have primary savings account to look into.

This savings component that we keep talking about accumulates funds from the premium that you pay. Now, you can not withdraw immediately after you’ve just purchased the policy; wait for some time for the funds to get accumulated. Once the waiting period is over, you can withdraw the funds you want and use them for anything you want. You can use them for your child’s higher education or for a long-awaited trip that you couldn’t take because of a busy schedule. The choice is entirely yours.

The best aspect of Permanent Life Insurance is, you will never have to worry about finding yourself in a financial crisis. Because of the savings component, you will always have some funds to use in case of an emergency. In the unfortunate event that you (the policyholder) pass away, the death benefits will be immediately released for your beneficiaries to claim alongside the accumulated funds in the cash component.

One thing you should also know is, as long as you don’t overdo your premium limits (meaning you pay an excess in premiums so your savings can increase), you can take out funds from the policy without paying any taxes. Permanent Insurance is because policy loans are not considered as taxable incomes.

The types of Permanent Life Insurance policies

Generally, there are two types of Permanent Life Insurance policies available in the market. One is

  • Participating Permanent Life Insurance: You will have the benefits of Vested Cash Values and Insurance payout; the premiums will always stay the same. You will also have the option of paying a yearly dividend.
  • Universal Insurance: You have guaranteed cash values on some policies, but you can choose your investment options. This policy is less expensive than its counterpart, and premium payments are flexible.

If you’ve read through here, we hope that this blog has informed you enough to make a decision. However, it is advisable to contact us at Canadian L.I.C. brokers to clear any queries you may have.

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The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to Contact@canadianlic.com or Info@canadianlic.com

The Benefits of Whole Life Insurance

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The Benefits of Whole Life Insurance

By Candian LIC, June 16, 2021, 4 Minutes

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Whole Life Insurance is exactly what it sounds like, a Permanent Insurance policy for your entire life. You and your beneficiaries will be in a permanent financial safety net till the day you pass away, or the term ends. It comes with a fixed premium, which means you won’t have to worry about variable rates now and then. Also, when it isn’t likely that you would opt to renew for another term. You see, for this type of plan, the term ends after 90 or 100 years. However, these shouldn’t be the only reason why you should opt for Whole Life Insurance. That’s why, to give you a clear understanding of what are the additional benefits that come with this policy, we have made a list below. Have a look.

The Cash Value:

Similar to permanent life insurance policies, whole life insurance also comes with a cash component which only accumulates over time. It is guaranteed to grow at a particular rate and can be used as an investment vehicle. Additionally, this component is also tax-sheltered throughout its lifetime.

You can withdraw the cash component at any time and can use it in:

  • Paying premiums
  • Purchase additional coverage
  • Use it for emergencies
  • Provide a tax-free loan

However, you will have to keep in mind that it will deduct the loan amount from the death benefits if you borrow against the cash value and then pass away.

Let’s talk dividends:

If you’ve opted for a dividend-paying whole life insurance policy, there is a chance of a dividend cash-out in case the insurer performs better than expected. As a policyholder, you will be able to participate in the company’s profits after they have paid all death benefits and other business expenses.

No medical exams:

Generally, medical exams are not a component of life insurance policies, but they are always in the underwriting. However, choosing a guaranteed acceptance whole life insurance means you will have the option to skip detailed health questions and the medical exam.

Complete life coverage:

To reiterate, with whole life insurance, you get a policy for the entirety of your life. You can add your family member or any dear one as your beneficiary, and as long as you can pay the premium, you will reap the policy’s benefits.

These are to name a few; however, if you’re still not convinced about whether you should apply for this policy, contact Harpreet Puri. She’s an experienced insurance broker and can help you with your queries.

When Is Whole Life Insurance a Good Investment Strategy?

Under whole life insurance first

Well, before we get into the nitty-gritty of the matter, you have to understand what whole life insurance is. Often also referred to as permanent life insurance, this type of insurance is exactly what it says. The policy offers insurance coverage till you the day you die given that you keep on paying the monthly premiums.

A major feature of a whole life insurance plan is, there is a cash component value to it. If after some years you are not able to pay the premium amounts, the premiums that you have paid would be used to pay the monthly premium amount. This saves you from the headache of losing your insurance coverage.

Coming to the benefits, whole life insurance has a whole list of them. Some are mentioned below:

  • You will have guaranteed return on the money
  • The premium rates are fixed
  • The cash value that builds up when you pay your premiums can be withdrawn before

You can find out more about whole life insurance by getting in touch with Canadian LIC.

When does whole life insurance make sense?

Applying for whole life insurance sometimes can be an expensive option as you will have to pay the premiums throughout your life. However, in some instances, whole life insurance can be beneficial.

  • If you have a child with special needs, taking up whole life insurance will ensure that he or she will have plenty of financial resources throughout life no matter what.
  • If you have millions of dollars in estate taxes, then you can use whole life insurance to preserve money when it’s passed on to your family members.
  • If all your tax-sheltered accounts have maxed out, and you still want to save more for your retirement, then a whole life insurance policy can be used as a saving vehicle. It has a cash component that will only build up over the course of time.

In the mentioned scenarios, whole life insurance may look like a good option but we advise you to get in touch with financial advisors for a better decision based on your requirements. Contact Canadian LIC and schedule an appointment today.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

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The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to Contact@canadianlic.com or Info@canadianlic.com

Why Get Term Life Insurance

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Why Get Term Life Insurance

By Candian LIC, May 17, 2021, 8 Minutes

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Sometimes insurance policies can seem out of reach if you are struggling with funds. Take a look at Term Life Insurance for an insurance policy that suits your budget and lifestyle.

What is Term Life Insurance?

Known to be easy to understand and affordable, Term insurance is a plan that keeps your insurance costs the same for a set amount of time (known as the term.) You can renew it at the end of one term to start a new term. If you pass away while your policy is still in effect, the payment will go, tax-free, to your beneficiaries. You can convert this coverage to permanent insurance if you want to, without worrying about health, lifestyle, or occupation changes.

Benefits of Term Life Insurance

  • Affordable: This is an affordable, less expensive policy than most other types of insurance as it only gives coverage for a set term. It is a great policy for young families with a mortgage, car loans, or college fees, and for anyone who has financial burdens. A Term Life Insurance policy will allow you to have insurance without causing you financial strain.
  • Fixed Terms: Having a fixed term makes it easier to budget and save money. Premiums won’t change and are fixed for the set term. Term insurance has coverage for a predetermined (fixed) time (term.)
  • Flexible Options: Endless options are available with Term Life Insurance. You get to choose the length of term, which can be from 10 year to Age 65. Using a term policy, you can lock in rates for a short period of time if you need help with something like tuition fees of your child in case of your death
  • Easy to understand: Term Life Insurance is known to be simple enough for everyone to understand. It’s an easy and affordable way to provide your family with financial security if something happens to you. Comparing rates is easy. All you have to decide on is the length of term, coverage amount, and the company. You are covered for the term by paying the premium.

Things To Know Before Buying Term Life Insurance

Term life insurance is a policy that pays a death benefit to beneficiaries if the policyholder passes away within a certain period of time or before a certain age is reached. For example, your coverage can be for a fixed time period, or until you reach the age of 85.

Term Insurance is an easy-to-understand and affordable way to keep your family’s financial situation secure if anything ever happens to you. When you buy a Term Life Insurance policy, you need to decide on three things. You need to decide on the company you prefer, your preferred length of term, and the amount of coverage. You will be covered for the term by paying the premium.

Your Family Can Use The Funds For:

  • Pay any outstanding debts
  • Get rid of any guarantees
  • Supplement lost income
  • Children’s education
  • Help with partner’s retirement plan

Some things you should know before buying Term Life Insurance

Amount of Coverage: Reviewing your financial goals and figuring out the amount of coverage you need, will help guide you to the right policy. Although working with an Insurance Advisor is recommended, you can add up debts, tuition, and mortgage, subtract what you would pay, and the difference would be the estimated needed coverage.

Length of Term: You can choose a fixed term, allowing you to easily budget, and save more of, your money. You can choose anywhere from 10 to 30 years of coverage or you can pick a term of coverage as per your need which will cover you for the selected term

Look Around: You will need to search for the right insurance for you. As with most life insurance policies, your health and other factors play a big role in coverage. Rates will also vary from company to company. An insurance agent can help you find what you need.

Being Healthy: Although most insurance applications take weeks, and you have to fill out documents, have an exam, and give information if you are healthy, the process can move along quicker. If you don’t have any health conditions, you may be able to have an agent use online applications to approve you quicker than usual. Even if you do have to wait several weeks, you can still get temporary coverage.

Term Life Insurance is usually more affordable than other plans because it only covers a set term and doesn’t build up cash value. For those who may be struggling financially, Term Life Insurance can give you insurance security without stressing your bank account.

Why You Must Invest In Term Life Insurance

If you are looking for affordable life insurance, perhaps you should consider Term Life Insurance. It is set up to keep your family financially stable if you pass away. Paying for such a policy is worth the peace of mind it will bring to you and your family.

What is Term Life Insurance?

Term Life Insurance is a very simple plan designed to give death benefits if the policyholder passes away during the plan’s term. This type of plan is a great choice for those who want to secure stability for the family after the policy holder’s death. Term Life Insurance usually has high coverage with affordable premiums. The coverage is set for a certain length of time, usually 10 to 50 years, and once the policyholder passes, the beneficiaries will have a payout from the policy.

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How does It Work?

The insurance company will pay your beneficiaries the amount you agreed on if you pass away during the policy’s term. You agree to pay a monthly premium to the insurance company for the duration of the term.

Reasons to Consider Term Life Insurance

  • Financial Relief: Term Life Insurance gives financial relief to the family, especially if the policyholder was the sole bread-winner. For anyone who brings in earnings for a family, this type of policy makes sure the needs of the family are taken care of. The policy covers many of the everyday expenses after death, by providing a complete sum to make life a bit easier financially at this difficult time.
  • Low Premiums: Term Life Insurance doesn’t have any maturity benefits so it can offer high-coverage and affordable premiums
  • Additional Benefits: As with most insurance policies, there are additional benefits with this insurance policy. Term Life Insurance has what is called Riders, that you can choose. Riders can be accidental coverage, coverage for critical illness, or premium return. They make sure you get full benefits for an affordable price.
  • Future Security: Financial obligations can be hard to meet when the person who does the earning passes away. By getting a Term Life Insurance policy, your family will be able to meet financial obligations and the insurance makes sure any children of the family will get a good education. The policy will ensure the family has a comfortable life without any money issues.
  • Debt Assistance: Most people have some type of loan. Any proceeds from the Term Life Insurance will go towards paying off your loans so your family will not be stuck with those burdens.

With Term Life Insurance, you can rest easy knowing your family will be financially secure if anything should ever happen to you. Ask about this type of insurance policy today.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

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The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to Contact@canadianlic.com or Info@canadianlic.com

Why Choose an RESP

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Why Choose an RESP

By Candian LIC, April 30, 2021, 3 Minutes

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When you decide to help your children achieve their dreams for a successful future,  finances play a major part. One way to support your children’s future financially is opening and contributing to, an RESP.

What is an RESP?

If you are new to investments, an RESP, or Registered Education Savings Plan, is tax-deferred, government-assisted, investment plan designed to help save for a child’s future education. Parents open an RESP for their children’s post-secondary education, but you can still open one for yourself or other adults.

Reasons To Get An RESP

  • Length of Time the RESP can stay open: An RESP account can be open until child is 35 year old so your child does not need to go to post-secondary education right after high school. If your child decides to cancel going to post-secondary education, the financial institution can have the money returned. The contributors will have the money given back in this situation. If there were any grants, they would be returned to the government and not redeemed.
  • Anyone can contribute: Anyone can put contributions into the RESP once it it opened, such as grandparents, parents, godparents, uncles and aunts. Tax benefits are available for all RESP contributors.
  • Options for investing: You can choose options like risk tolerance or time horizon, speak to your provider to learn about different options such as stocks, bonds and mutual funds.
  • Educational Assistance Payments: When the child’s enrolment in post-secondary education is confirmed, he or she can begin getting Educational Assistance Payments, or EAPs. EAPs come from the RESP plan, drawn from investment earnings and grant money. Tax on EAPs are payable by the student only. Both the student or the parent can withdraw the money, but the person who is named beneficiary can receive the EAPs.
  • Tax-free: No tax is paid on investment earnings as long as nothing is removed from the RESP. Once the money is taken out, the child will get taxed on any interest accumulated on the RESP.
  • Government grants: There are federal government grants added to lower-income families RESPs, and you may be eligible for a provincial grant.

The student will need proof of acceptance from a post-secondary education institution. Once the student has needed documents, money will then be released to pay towards post-secondary fees, costs and education.

Choosing an RESP will give you peace of mind and security, knowing your children’s future education has a good start. An RESP will give them the best start to a successful future.

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

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The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to Contact@canadianlic.com or Info@canadianlic.com

Top 40 Under 40

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Top 40 Under 40

By Candian LIC, April 21, 2021, 4 Minutes

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This new age and young corporation is poised to set new standards of customer service, compliance, and team recognition through product knowledge, technology and sustainability. The Top 100 Magazine recently had the pleasure of speaking with this talented and dynamic couple. The conversation was both exhilarating and visionary.

What brought about the formation of the Company?

Since Harpreet had been in the business since 2010, and my Canadian education and skills were directed towards technology platforms and business modelling, we decided it was time to set off on our own.

Consequently, Canadian L.I.C. was founded in 2018 and deals with some of the biggest names in the business such as Manulife, BMO, RBC, IA Financial Group, Equitable, and Foresters, to name a few. The brokerage provides financial advice and insurance as well as investments and asset management solutions for individuals, families, and businesses. Solutions offered by the brokerage use individual insurance and investment products in addition to combinations of them to secure and grow clients’ portfolios as well as to protect their livelihoods.

Elaborate on your company’s current portfolio of clients?

The company’s visionary approach to clients intricately engages with them over their life cycle and phases of needs. Often commencing with young married couples, the company facilitates setting up their mortgage protection plans.  Then, once they have children, needs analysis and solutions extend to education plans and life insurance policies. Further on in the life cycle, the focus shifts to retirement and assisting the couple with both long-term and short-term goals and what is needed to achieve them. A client’s business environment not only encompasses estate planning by the brokerage, but the team of experts also work with client’s attorneys on buy-sell agreements and other similar matters. Whether individuals, families, or businesses, Canadian L.I.C. clients are guided every step of the way.

What motivated you as founders?

The combination of skills between Harpreet and I, firmly lead us to believe that setting up a Brokerage was the right step. Whereas I had skills in business modelling, leadership, strategy, technology, team building and scalability; Harpreet had exemplary Industry product knowledge, related skills in sales and advisory services, and an award-winning performance and recognition background spanning ten years. Together, it was the right mix to commence a new age Corporation through innovative business models.

Tell us more about your work life balance

Both of us had a comfortable partnership in business and our personal environments, taking it in turns to give the required family time to our children while pursuing our advanced Canadian education and certifications. We excelled in our individual career tracks before finally deciding that the time was right to consolidate our skills and commence the Brokerage.

What is your Winning Edge?

Harpreet’s recognition in the industry kept her on the competitive edge of awards such as Million Dollar Round Table (MDRT), while my leadership and visionary talents have the company already competing for the Top 6 Producers in Ontario with a current ranking of #5* despite being a young brokerage founded only two years ago.

We both know that product knowledge and needs analysis with consultative selling is the key to team success with technology being a critical enabler for quality, consistency, and scalability. Much of our resources are deployed in making this happen in the organization’s daily work environment.We both know that product knowledge and needs analysis with consultative selling is the key to team success with technology being a critical enabler for quality, consistency, and scalability. Much of our resources are deployed in making this happen in the organization’s daily work environment.

In furtherance, we have enhanced our motivational and life goal aspirations by becoming a LICENSEE to Grant Cardone’s repository of infinite tips to a successful career.  Motivational and directional speakers such as Grant Cardone are one of the many methodologies that Canadian L.I.C. embodies in their work culture. This and the strong will to excel sets Canadian L.I.C. apart from other brokerages. The company’s DNA is built around putting all the moving parts together in an innovative people and technology package with product knowledge and motivation as the nucleus. A compelling business outlook indeed!

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What are your future Plans?

The company intends to obtain licenses for other provinces and extend its footprints across Canada. COVID slowed down these plans in the short term, but the next few years will see the Brokerage progress on a national scale.

*Data provided by MGA, one of the contests run by a leading insurance company

Contact:

Pushpinder Puri, CEO │Harpreet Puri, CEO, FA

Canadian Leading Insurance Company, Inc.

2969 Bovaird Drive E., Unit 2

Brampton, ON L6S 0C6

Website

www.canadianlic.com

www.pushpinderpuri.com

www.harpreetpuri.com

Facebook:  www.facebook.com/CanadianLICinc

LinkedIn: www.linkedin.com/in/candianlicinc/

LinkedIn: www.linkedin.com/in/harpreetpuricanadianlic/

YouTube: https://www.youtube.com/channel/UC3-Pe7_cA73lhVkFKThksLg   

Get The Best Insurance Quote From Canadian L.I.C

Call 1 844-542-4678 to speak to our advisors.

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The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to Contact@canadianlic.com or Info@canadianlic.com