Term Life Insurance provides only time-based insurance assurance (such as 10, 20, or 30 years). Should death occur to the insured within the stipulated period of insurance, the death benefit is payable. Whole Life Insurance is an insurance cover extending over the whole life of the insured, containing a cash value element that increases over time and level premiums.

Most traditional policies require a medical exam after a certain face amount. However, there are policies that have been set up where there is no requirement for a medical exam at all. The rate of these, however, may have higher premiums or lower coverage.

Generally, death benefits are not taxed in Canada, though under some conditions, there are some tax impacts on the cash value accumulation of some Permanent Policies.

Yes, you can have multiple Life Insurance policies from the same or different insurance providers.

Whenever the policy term gets over, coverage also gets over, but then, depending upon the terms of the policy, a policyholder may have the option to renew the policy, convert the policy into a permanent policy, or purchase a new policy.

This figure will vary with every individual as this has to be based on the debts, income, dependents, and financial goals. One may consult a financial adviser or even take the help of online calculators to determine the right cover.

Yes, basically, you have the right to change the beneficiary, unless an “irrevocable beneficiary” has been named. Always look through your policy, and if changes are made, discuss them with the insurer. 

The variables likely to determine the most probable premiums to be paid are the following: age, state of health, lifestyle choices and the kind of policy chosen, even the amount of coverage and the length of the term in some cases.

If at all, it might affect the premiums or the type of policy one is going to get. There may be conditions that would attract higher premiums; there would be others that would attract exclusions or limitations or even a decline.

Most Life Insurance policies have a clause by which no death benefit is paid out in case the insured takes his life within the first two years of the policy. Thereafter, generally, coverage would apply. Always review the specific terms of a policy.

Some may even provide such an insurance to non-residents, but with different terms, eligibility, and different premiums. It is best to discuss this with a broker or the company itself.

Term Life Insurance policies cannot be cashed out as they do not accumulate cash value. However, some Life Insurance policies have that aspect of cash value that could be paid out or borrowed against during the lifetime of the policyholder, for example, Whole Life and Universal Life. Policyholders should be aware that cashing out a policy may have tax implications and will reduce the death benefit.

Normally, the benefit paid out from a policy of Life Insurance is non-taxable and paid tax-free to the beneficiary in Canada. However, where an assignment has been made, such as collateral for a loan, this could muddy the water, as in such cases, the benefit would be subject to tax. Additionally, if the policy accrues a cash value, certain withdrawals or loans against this cash value may be taxable.

Generally, the death benefit paid out from a Life Insurance policy is not taxable and is paid tax-free to the beneficiaries in Canada. However, there may be deductions from the premiums of Life Insurance under certain situations, such as when one is self-employed and the policy of insurance is being utilized as collateral for a business loan. Always consult with a tax professional for advice on your specific situation.

Normally, Whole Life and Universal Life Insurance cover cash value. Whole Life policyholders have some assurance for cash value growth at a guaranteed rate of return. On the other hand, the cash value in the Universal Life Policy can vary based on the performance of selected investment accounts. This is often chosen by those interested in a Permanent Life Insurance option that has a savings or investment component.

• The major benefit is the financial security to your beneficiaries upon death. They normally receive a certain death benefit that may be applied to living expenses, paying off debts, and other necessary charges, such as funeral costs. 
• Many policies offer the option to add riders for additional coverage, such as critical illness or disability.
• Some types of Life Insurance policies have an investment or savings component, building cash value over time.
• The death benefit is usually tax-free.
• It can help preserve the policyholder’s estate by providing liquidity for estate taxes and other expenses. 
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• Term Life Insurance only provides coverage for a specified period and does not accumulate any cash value.
• Premiums may be higher for older applicants or those with health issues.
• There might be exclusions for certain causes of death, such as risky activities or pre-existing conditions.
• Permanent Life Insurance, while it does accumulate cash value, generally has higher premiums than term insurance.
• It can be complex to understand all the terms and conditions of various policies.
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• Contact the insurance company promptly to inform them of the death.
• Fill out a claim form, which the insurance company will provide.
• A duly filled claim form and a certified copy of the death certificate are to be submitted with any other requirements found necessary, including proof of identity for the beneficiary.
• The insurer will review the claim, and if everything is in order, they will process the payment.
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• Term Life Insurance—This is a policy that offers protection for a certain stated period, term, or time, and in case the insured dies, the company will only pay a death benefit to the beneficiary.
• Permanent Life Insurance: Offers to cover for the whole life of the insured, including Whole Life and Universal Life, which builds cash value.
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• The cost ranges usually define the kind of policy, the amount of coverage, and the age, health, and lifestyle of an insured. Besides, Term Life Insurance is cheaper than Permanent Life Insurance.

Determine your coverage needs and budget. Shop around and compare quotes from multiple insurers or work with an insurance broker. Complete an application, which may include a health questionnaire and possibly a medical exam. Review and sign the policy contract once approved and pay the initial premium.

• Personal information: age, gender, weight, and occupation.
• Health history: medical conditions, past surgeries, medications, family health history.
• Lifestyle information: smoking status, alcohol use, driving record, and potentially hazardous activities.
• Financial information: income, other insurance policies, and financial dependents.
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• The insurance company starts the underwriting process to assess risk based on your information.
• You might be required to undergo a medical exam.
• The insurer evaluates the application and decides on the premium rates.
• You are notified of the approval and given the policy details.
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• It really does vary, but typically, from the few days that simplified issue policies can take to several weeks that traditionally underwritten policies could potentially take.

• Businesses, indeed, may purchase Life Insurance on key persons, or in a partnership, on each partner for the purpose of ensuring business continuity should the business have to be liquidated due to the death of an owner. 

• This can vary considerably but average costs could range from $20 to several hundred dollars a month, depending on a number of factors.

• These might vary considerably, but average prices could fall between $20 and hundreds of dollars a month, depending on lots of factors.

• Life Insurance is usually called for once you have dependents, or should you be in large debt. The younger and much healthier you will be when you buy it, the premiums will probably be more affordable.

• It is usually cheaper to pay annually because insurers often charge extra fees for the convenience of monthly payments.

• Most insurers set their upper age limits at 60 or 85 for new policies, depending on the policy type and insurer. In contrast, Permanent Life Insurance has a higher age limit for new applicants.

• It depends on the type of insurance: whether Term Life or Permanent Life. It will depend on your financial objectives, the need for coverage, and the duration of necessity. Term life applies to time-bound limited financial liability, while Permanent Life applies to financial liabilities that are best taken care of for lifelong times of protection and carry an investment element.

• Yes, under certain circumstances, Life Insurance is considered a cost of doing business. For example, premiums on policies of life may be deductible as a cost of doing business in case the company takes out a policy on the life of any employee who is a key to the business.

  However, the benefit payout to the company on maturity of the policy or the death of the insured may not be tax-free. Specific advice in relation to your circumstances should be obtained from a suitably qualified tax professional.

• All Life Insurance policies—specifically those that have a cash value element, such as Whole Life or Universal Life Insurance—typically offer that chance as an option. Normally, this is allowed by the lenders since the policy comes with tangible cash value.

• Yes, the insurance firm might ask for your medical records during their underwriting. They do utilize it in health assessment and in the decision for the level of risk corresponding to your premium rates. Generally, access to these records is to be granted after you give your consent.

• Whether you have a preference for Term Life Insurance or the lifetime protection of Permanent Life Insurance, such as Whole or Universal Life, it has to meet your needs and financial goals.

  Term Life is recommended for a person needing cheaper coverage for only some definite period, whereas Permanent Life Insurance is best sought by those who are looking for lifelong coverage with some investment laid on it.

• In general, for Permanent Life Insurance Policies—Whole Life, Universal Life, and the various types of Variable and Indexed Life Insurance products—you can borrow against the policy’s value. The policies develop cash value over time, and borrowing against them may usually occur with interest rates offered at a discount compared with more traditional loans.

• Life assurance policies will mature at the end of their term for term insurance or when the policies reach an age of 95 or 100 years for the insured person, according to the terms often set under Permanent Life Insurance.

  In the case of Permanent Policy where maturity benefit exists, the policy may pay the death benefit when it matures to the insured.

• Generally, the Life Insurance may not be paid if the policyholder has been fraudulent or failed to disclose material facts. The death may also not ensue under circumstances that are excluded if death ensues (for instance, suicide within the first two years of the policy). Policies contain specific exclusions spelled out in the contract.

• Permanent Life Insurance might not literally be an investment; it actually includes a growing cash value over time, which can be borrowed against. It provides financial protection that might offer the possibility of letting loved ones be taken care of in the event of your passing and peace.

• Yes, Life Insurance policies will generally pay out for cancer, provided the policy was in effect before the diagnosis. Disclosure of pre-existing conditions is crucial at the time of application; failing to do so can lead to denial of a claim. 

• Yes, Life Insurance usually does pay out for liver failure because the onset of the disease or illness is after the policy has been put into force. It’s important to disclose any pre-existing liver issues when applying for insurance to ensure coverage.