What is inside your life insurance policy?

By john@panago.info   2024/09/20

Have you reviewed your life insurance policy with your advisor lately? What are some of the feature, benefits and riders in your plan?

  1. Cash Value:
    • Available in whole or universal life policies.
    • Can be accessed via loans, collateral, direct withrawals or surrendering the policy.
  2. Total Disability Waiver:
    • Waives premiums if you meet the definition of disability.
    • Some older policies pay out the face value upon reaching a certain age if continuously disabled such as at age 65.
  3. Term Rider:
    • Offers additional temporary coverage.
    • Check renewal terms as costs can increase; conversion options to permanent plans may be available.
  4. Spouse and Child Term Riders:
    • Provides additional coverage for your spouse and children.
  5. Endowment Policies:
    • Pays out at a specified age (e.g., 65).
    • Tax implications vary; consult your advisor for details.
  6. Charity Rider:
    • Designates a charity to receive a fixed amount upon death.
  7. Accidental Death and Dismemberment (AD&D):
    • Provides extra coverage for accidental death or loss of limbs.

Important Considerations

  • Regular Reviews: It’s essential to review your policy with an advisor periodically to ensure it still meets your needs.
  • Tax Implications: Always discuss potential tax implications of payouts with your advisor, especially for endowment policies and RRSP-linked life insurance.
  • Contact: If you need further assistance or a policy review, reaching out to me, john@panago.info.

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