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Vancouver, BC -- (ReleaseWire) -- 03/13/2023 -- Looking for whole life insurance in Vancouver? There are many insurance carriers. Popular carriers for whole life purchases in Vancouver include Sunlife, Equitable, Manulife, Canada Life, Empire, RBC, BMO, and Wawanesa. Each carrier has its strengths and weaknesses, including projected returns, historical returns, investment mix, and minimum guaranteed cash values. It's important to compare benefits before picking a provider. For more, go to https://www.venturefirstadvisory.com/blog/whole-life-insurance-vancouver-2/
COMPARING VANCOUVER WHOLE LIFE INSURANCE
A practical method of comparing Whole Life Insurance in Vancouver can be to input the same premium and parameters to each product and see how the resulting death benefit and cash values compare over the years. It is important to note that the premium/death benefit ratio can vary widely among carriers offering the same product. By restricting the input premium to the same amount and same payment period, regardless of how much the resulting death benefit is, it's possible to produce a fair cost-benefit comparison.
Other parameters to consider before investing in whole life insurance
PROJECTED VS GUARANTEED DEATH BENEFIT
Whole life insurance policies generally show two death benefits columns, a guaranteed column and a non-guaranteed column. The non-guaranteed column shows the company's projection of death benefit based on the current dividend amount. The non-guaranteed death benefit can vary yearly depending on the market conditions and current dividend scale. The guaranteed death benefit for each given policy year is the minimum death benefit that will be paid regardless of how the policy's underlying investment performs.
PROJECTED VS GUARANTEED CASH VALUE
Like the Death Benefit, Whole Life insurance policies will generally show two cash value columns, a guaranteed column and a non-guaranteed column. The non-guaranteed column shows the company's cash value projection based on the current dividend amount. The non-guaranteed cash value can vary yearly, depending on the market conditions and current dividend scale. The guaranteed cash value for each policy year is the minimum cash value that will be paid regardless of how the policies' underlying investment performs.
Many people will wonder whether you have separate access to both the shown death benefit and the cash value, and the answer is generally no. The death benefit is the amount paid on death, after which the policy is no longer effective, and there is no longer any cash value. Alternatively, if you cancel the policy to access the cash value, the death benefit (and policy) is no longer in effect. A more optimal method of accessing the cash value is borrowing against the cash value rather than a full or partial cancellation. This method allows you to obtain liquidity while keeping the life insurance asset growing.
LIMITED PAY OPTIONS VS PREMIUM OFFSET
Whole Life policies generally have a Pay-To-Age-100 premium schedule unless a shortened payment schedule exists. The first method of structuring a shortened payment period on a permanent life insurance product is to opt for a "Limited Pay" type of whole life insurance. By opting for the "Limited Pay" option, the insurance carrier will guarantee that you no longer need to pay beyond a certain number of years, typically 20, 15, or 10. The second method to structure a shortened payment period is requesting a "Premium Offset." Requesting a "Premium Offset" essentially directs the insurance company to use the cash values in the plan to continue paying the premiums. However, this latter method is not guaranteed and may require returning to paying premiums if the underlying investment performs differently than expected.
PAID-UP INSURANCE VS ENHANCED INSURANCE VS CASH
When designing a whole life insurance product, clients can select Paid-Up Additions, Enhanced Protection, or Cash. With Paid-Up Additions, the annual dividend is used to purchase more permanent life insurance, which increases the death benefit and cash value. With Enhanced Protection, the annual dividend will be used in two ways: to purchase more permanent life insurance, similar to the previous option, and to enhance the life insurance coverage with term life coverage. The term component will no longer be purchased when the permanent component grows sufficiently enough to catch up to the desired coverage amount. The third dividend option is to have the dividend sit in cash within the policy, which is typically not a popular option.
CONTACT VENTURE FIRST ADVISORY
To serve families in Vancouver and the rest of Canada, Venture First Advisory is located in the heart of Downtown Vancouver in the iconic Electra Building, formerly the BC Electric headquarters. For an experienced Vancouver life insurance advisor who can explain the difference and advantages of different products, book a free virtual appointment online at www.venturefirstadvisory.com.
About Venture First Advisory
Venture First Advisory is committed to having the most in-depth knowledge about insurance for British Columbians, from comprehensive life insurance to health and dental plans. We have relationships with every major insurance brand in British Columbia. Developing these relationships means that, with our deep knowledge of the different options available, we can find the best plan for you.
For more information, please visit https://www.venturefirstadvisory.com/
or call 1-855-245-8086.
Venture First Advisory
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