For the majority of families, life insurance needs will change over time. Typically, more coverage is required while a family is still young and growing, with a decreasing amount required as the family finances mature.
However, when it comes to insurance, permanent life insurance policies are designed to provide a level amount of coverage with level premiums for the lifetime of the policy. If you buy permanent insurance to cover all your needs, there’s a possibility you’ll be paying for more coverage than you need in the later years. Another option is term insurance, which is much less expensive in the early years, but becomes more costly than permanent insurance down the road, eventually surpassing the cost of permanent insurance. If you’re looking for the best overall solution for insurance protection, why not choose both?
Oftentimes, the best insurance protection can come from a Term/Perm combination – that is, a small amount of permanent insurance, PLUS a term rider to cover the remaining amount. With this Term/Perm blend, you can ensure that coverage is tailored to your lifestyle over a period of time and within your initial budget. So, you get lots of coverage in the initial years of your policy, while knowing that you have some amount of coverage for the duration of your life – for maximum flexibility.
Some of the benefits of using a Term/Perm blend of insurance coverage include:
- Coverage is aligned to your fluctuating needs over time
- Potential for a lower total cost over time
- At renewal for the term portion, you have the option to renew, convert, drop, reduce and/or add other coverages – options are great!
- It allows you to lock in permanent rates TODAY to guarantee the cost of the permanent coverage for life
Some plans allow you to build cash values to support “premium vacations”. The fact is that the earlier in life that you purchase permanent coverage, the greater impact it can have as a financial instrument in your overall financial plan. So be sure to set yourself up for success from the start!
For more information on Term and Permanent insurance, contact Filomena Viele.
Disclaimers
Echelon Wealth Partners Inc.
The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Echelon Wealth Partners Inc. or its affiliates. Assumptions, opinions and estimates constitute the author's judgment as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. The comments contained herein are general in nature and are not intended to be, nor should be construed to be, legal or tax advice to any particular individual. Accordingly, individuals should consult their own legal or tax advisors for advice with respect to the tax consequences to them.
Insurance products and services are offered by life insurance licensed advisors through Chevron Wealth Preservation Inc., a wholly owned subsidiary of Echelon Wealth Partners Inc. This material is provided for general information and is not to be construed as an offer or solicitation for the sale or purchase of life insurance products or securities mentioned herein. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please seek individual financial advice based on your personal circumstances. Please note that only Echelon Wealth Partners is a member of CIPF and regulated by IIROC. Chevron Wealth Preservation offers products sold through members of Assuris who are
regulated by OSFI.
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Please note that only Echelon Wealth Partners is a member of CIPF and regulated by IIROC; Chevron Wealth Preservation Inc. is not. ** Insurance products and services are offered by life insurance licensed advisors through Chevron Wealth Preservation Inc., a wholly owned subsidiary of Echelon Wealth Partners Inc.