Types of Life Insurance Coverages Offered Through Don Wells Financial Inc.
- Renewable and Convertible Term Insurance provides the lowest initial premium outlay to the policy owner for the chosen amount of protection.
- Future premium rates are guaranteed but increase as one ages. Rate adjustments for most Insurers occur every 10 or 20 years. The cost of premiums increasing due to aging is the responsibility of the Insured.
- Some Term Insurance plans will lock- in premiums for a longer duration such as age 65 or even age 100 for a higher initial premium cost.
- Both Insurance coverage and premiums are locked in for the life of the Insured based on age at time of application.
- Premiums are higher than for Term Insurance plans as the increased risk associated with aging of the Insured is the responsibility of the Insurer.
- 20 year reduced premium payment option available.
- Whole Life policies contain a cash value reserve that builds up during the life of the policy. This cash value can be accessed by the policy owner if the policy is surrendered during his or her lifetime. Funds can be borrowed from these types of policies as well providing needed cash in event of an emergency.
- The majority of Whole Life policy owners participate in the dividend surplus of the Insurance Company each year. Dividends are not guaranteed but the Insurance Industry has a tremendous record of paying dividends to policy owners over the years. These dividends can be used to buy additional Insurance, pay part of the premium or taken in cash.
- These plans contain an Insurance element and an Investment element controlled by the Policy owner who has the opportunity to make adjustments to either element during the life of the contract.
- Plan concept is to buy term and invest the rest within one policy providing favourable tax sheltering benefits.
- Term rates can increase over lifetime of policy requiring additional deposits at older ages.
- Investment risk is the responsibility of the policy owner which can result in additional premiums being required to maintain life Insurance coverage.