What Is Life Insurance?
Life Insurance is basically transferring our higher risk by paying a small amount of premium to insurer.
In the process a contract between an insurer and a policyholder is issued. A life insurance policy guarantees the insurer pays a sum of money to our loved ones who are named as beneficiaries when the insured policyholder passes away, in exchange for the premiums paid by the policyholder during their lifetime.
The Life insurance comes with different options which includes Term insurance, Whole Life insurance and Universal Life insurance.
Life Insurance in Brampton - Protecting What Matters Most
No one wants to think about what happens if they are no longer there for their family. But the right life insurance plan ensures that even in the hardest moments, the people you love are financially protected.
SJ Financial has been helping Brampton families, incorporated professionals, and business owners find the right life insurance coverage for over 17 years. We work with Canada's leading carriers and take the time to understand your unique situation before recommending any solution.
Types of Life Insurance We Offer
- Term Life Insurance: Affordable coverage for a defined period, such as 10, 20, or 30 years. Ideal for young families, mortgage protection, or those needing high coverage at a lower cost.
- Whole Life Insurance: Lifetime coverage with guaranteed premiums and a cash value component that grows over time. Often used for estate planning and wealth transfer.
- Participating Whole Life Insurance: A premium whole life product that can earn dividends from the insurer's participating account. It can be effective for incorporated professionals and families looking for tax-efficient, long-term planning.
- Universal Life Insurance: Flexible coverage with an investment component that allows you to adjust premiums and grow a tax-sheltered investment account inside the policy.
Who Should Have Life Insurance?
- Young families with a mortgage or dependents.
- Business owners protecting key persons or partnerships.
- Incorporated professionals seeking tax-efficient strategies.
- Anyone wanting to leave a legacy or maximize estate transfer.
We are not tied to one company. We access products from multiple top-rated Canadian insurers and match you with the right plan for your goals, budget, and stage of life. Serving Brampton, Mississauga, the GTA, and surrounding communities.
Term Insurance
Term policies are better for temporary needs. The premium stays same for the term/period we have purchased the policy for. Commonly used terms are 10, 20 and 30 years. These policies are mostly renewal and convertible which means term policies gets automatically renewed for next term with increased premiums. These details are provided by companies in their illustrations.
Whole life insurance
These policies are also called permanent policies which means they cover us for whole life and premium stays the same for the tenure we wish to pay for. These policies are mainly used to cover permanent needs in life like final taxes, final expenses etc.
As these policies are little expensive in the beginning as compared with Term Insurances, but these policies also have cash values accumulated during time. We can always put these policies for collateral and take loan against them. These policies are further divided into Non-paricipating and Participating policies. Both policies have cash values which increases with time. In participating policies, companies offer dividends which are vested and increases face/coverage amount with time. For details we can refer to the illustration and ask our advisors to explain the same.
Universal Life Insurance
Universal life is also a type permanent Life Insurance and is made of two components. One is insurance and other one is investment. This is only policy wherein we have a flexibility to have premiums between minimum and maximum range. Any amount we pay in premium, above the cost of insurance, is invested and we get statements of the same periodically. These are further categorised into YRT and LCOI. In YRT cost of insurance is renewed every year and in LCOI its same for the whole tenure.
For continuation of our policies we need to ensure that our account value is always positive so that in case we miss a premium, company can adjust from the accumulation account.
What happens if I miss premium
The treatment is different for different types of policies but for all policies we have 30days grace period to pay our premiums.
For term policy, as they don’t have any cash values, if we delay premium beyond 30 days, the company can void the contract or may ask for medicals to ensure insurability to reinstate the policy.
For permanent policies, as they have cash values, company can adjust premiums as temporary loan from your cash accumulated, but would be charging interest on that.