Mother's Day is the perfect opportunity to show your mother how much you love and appreciate her by giving her the gift of life insurance.
Choosing to get life insurance has many benefits for the individual being insured and those around them, making it a perfect Mother’s Day gift!
Your mother will gain a sense of security once insured, and may even be able to receive tax benefits. Not only will it protect her, but it will also protect her spouse and children, which allows for some peace of mind. Life insurance is typically known to go towards a mortgage, funeral expenses, debts, or outstanding expenses. However, it can also be used to look after a child or grandchild’s ongoing education, or even be used for donations to different charities.
There are numerous benefits to life insurance, so continue to read below for more information about the different life insurance policies available and what affects a life insurance premium.
Types of Life Insurance
Term Life Insurance
Term life insurance provides guaranteed rates and coverage, with prices renewing depending on the term selected, most commonly every 10 or 20 years (known as Term 10 or Term 20).
This is a cost-effective coverage type and is often used to protect mortgages. The plan you select should be renewable and convertible so that in the future you have the option to change your coverage to a permanent Whole Life or Universal Life plan as your needs change.
Whole Life Insurance
Whole life insurance provides permanent protection with guaranteed level premiums and death benefits. This type of coverage can gain cash values the longer the policy is in force.
This coverage is excellent for those who know they would like lifetime protection and are willing to spend more than for Term Insurance.
Universal Life Insurance
Universal life insurance provides permanent protection, along with the option to invest in a tax-sheltered environment by over-funding the policy.
This coverage is well suited for those who are concerned about estate preservation and estate planning.
Factors that Affect Life Insurance Premiums
The cost of life insurance premiums may be affected by the following factors:
- Marital Status
- Family History
- Medical History
- Current Health
- Smoking & Drinking Habits
- Driving Record
- Travelling Habits - Duration & Frequency
- Credit History
- Criminal History
Speak with Your Ontario Insurance BrokerIt will be important to reach out to your Insurance Broker to have them advise you on the process of buying life insurance for your mother as a gift. To purchase life insurance for your mother, you will need to gain consent from your mother to purchase the insurance for her. You will also need to provide proof of insurable interest. Proof of insurable interest verifies the relationship between the individual taking out the life insurance policy and the person who will be insured. Your Insurance Broker will be able to walk you through the process and will also advise you on what kind of life insurance policy and the amount of coverage that would be the best fit for your mother's life insurance needs.
If you would like to know more about purchasing life insurance, reach out to one of our independent Insurance Brokers today.
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Disclaimer: The information provided on this blog is for educational purposes only and is not intended as professional insurance advice. The coverage, terms, and conditions of each insurance policy are unique and subject to individual circumstances. The information provided does not guarantee the availability or suitability of any insurance policy for your specific needs. You should not rely on the information in the blog as an alternative to professional advice from your insurance broker or insurance company. If you have any specific questions about any insurance matter, please consult a licensed insurance broker for personalized advice and guidance.