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From Canada's top insurers
Money Back Life Insurance
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What Is Money-Back Life Insurance?
If you are wondering what happens to the premium for your life insurance plan if you survive the whole term, well, you will be pleased to know that both Whole Life Insurance and Universal Life Insurance have a built-in cash value accumulation. This comes under the money-back life insurance policy, and you can get it back. Contact Canadian LIC today for more details.
How Does Money-Back Insurance Work?
With money-back insurance, you add a return of premium rider on top of a conventional term-life insurance policy at the time of purchase. You should that this money-back feature will last the entire term of your plan. Money-back insurance policy works in the following way:
- You may make a monthly or annual payment towards your premium to maintain coverage. The insurance company will calculate your premium rates based on the policy length amount, length of the term, and your health, age, and medical history.
- In the unfortunate event that the insured person passes away during the term, the insurance company will pay your nominated beneficiaries a certain pre-defined amount. It’s known as the policy’s death benefit. A life insurance beneficiary is someone (it can be a family member or someone close to you) you name to receive the payout upon your (the policyholder’s death).
- If you survive the entire length of the policy term, then the insurance company will refund all the money you paid into the policy while maintaining coverage without any interest. This income is taxable.
- However, you will have to pay a considerable amount extra for this money-back clause. The premium rates can differ from applicant to applicant. If you hire Canadian LIC, then you don’t need to worry about this part. We will offer you the best deal available in the market.
The Advantages Of Money-Back Insurance
As we all know that no financial product is perfect, and the same can be said for money-back insurance policies. However, this type of policy has a fair number of benefits. Have a look below to know what they are.
- REFUNDS PREMIUMS AT THE END OF THE TERM:
With this clause in place, if you survive the entire term of the policy and then the insurance company will refund all the premiums you have paid throughout the term of the policy. This return will be taxable.
- USE IT AS A SAVINGS VEHICLE:
It’s ironic that most Canadians find themselves without any savings by the time they are thirty. You can use the money-back clause as a means of forced savings. Not only would it reduce unnecessary spending, but you will develop a good grasp of your finances. You pay some money today and get more money back in a few years.
- THINK OF THE FUTURE:
You may think that a money-back insurance policy is more expensive than a basic term life policy. But you should think of the upside as well. If you live out the term, you will have a lumpsum amount of funds paid to you.
- IT IS MORE AFFORDABLE THAN WHOLE LIFE INSURANCE COVERAGE:
Money-back insurance plans are significantly less costly than whole life insurance plans.
How To Include A Money-Back Clause On A Term Insurance Plan
We give you the option to customize a Term Insurance Plan to include an ROI clause to get the complete amount back at the end of the tenure. You might be paying a bit extra on the premium. However, if you live out your tenured period, you would be getting a lump sum on the entire amount. We also give you the option of renewing your plan as it will increase the lump sum amount. Another additional advantage is since the lump sum that you would be receiving is tax-free.
Now, coming to the paperwork, if you don’t have a clear understanding of insurance plans and policies, we’ve got your back. Our team has been in this line of business for more than ten years, and we can advise you on what type of plan would be best for you based on your requirements. Your best interests are always our top concern. If you are searching for a Whole life insurance company, you can schedule an appointment with us today for more details. Contact us today for more details about money back life insurance plan. We look forward to hearing from you.
Some Features Of A Money-Back Policy
- It can be taken as an extra source of regular income
- It is a low-risk savings option which provides insurance coverage as well
- In case the policyholder passes away, the entire sum assured would be paid to the beneficiary
- Guaranteed returns
- There is no limit to the growth of the premium amount, and the amount is tax-free
- The monthly payment may be more if a money-back clause is introduced into a Term Insurance Plan. However, it will not cross a pre-determined level mentioned in the insurance agreement.
Is The Policy Worth It?
If you are purchasing a traditional term life insurance policy, you will already know that it does not guarantee a payout. Your insurance company will only pay the death benefit when you pass away during the term. If you outlive the term, neither you nor your beneficiary will receive any payout. Now, if you add a money-back clause in your contract, then you will not lose the substantial amount of money that you pay premiums towards the month’s end. Especially if you are receiving this lumpsum fund when you are nearing your retirement, the thought can be comforting. So, all-in-all, if you are not good at saving, money-back insurance can force you to save some funds for your future. If you have any queries, feel free to contact our team at Canadian LIC. We will be more than happy to resolve them.
Choosing Canadian LIC For Your Money-Back Insurance
If you choose our team at Canadian LIC for money-back insurance plans, then you will be working with an expert financial advisor who has been in this line of trade for many years. We can customize the contract as per your need and make sure that you are happy with the terms and conditions before you sign on the dotted lines. We also broker whole-life insurance and universal life insurance policies. If you are searching for a Whole life insurance company, you can schedule an appointment with us today for more details. We look forward to meeting you.
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Call 1 844-542-4678 to speak to our advisors.
FAQ
What if I pick the wrong plan?
With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet.
Do I have to commit to a contract?
With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet. With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company.
What Payment Methods Are Available?
With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet.With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company.
Which Plan Is Right For Me?
With any financial product that you buy, it is important that you know you are getting the best advice from a reputable company as often you will have to provide sensitive information online or over the internet.
Can I withdraw a portion of the cash value during the term?
It doesn’t have to be only a portion. You can with the entire amount as well.
What is the major benefit of universal life insurance?
In universal life insurance, you have the flexibility of reducing or increase the premiums. ( Subject to rules and regulations).
Can I increase the face value of my insurance coverage?
Yes, you can, given that you have passed a medical examination.
What happens if I outlive the insurance coverage period?
Generally, for this type of insurance, the maturity date is between the ages of 85-121. If you outlive the maturity period then you will receive a payment. However, if you have used most of the cash value to pay for premiums, this return amount will be very small.
Is universal life insurance better than whole life insurance?
As the interest rate is lower and more flexible, it can be an ideal choice. However please speak with our team members about your requirements before you choose an insurance policy.