Life Insurance
Secure Your Loved Ones’ Future
What is Life Insurance, and How Can it Help?
Life Insurance is a way to keep your loved ones protected in the event of your passing. When you pass away, life insurance is there to provide your beneficiaries payments that can assist them with several expenses, including:
Mortgage payments
Credit card bills/debt
Loans (Student, Car, etc.)
Taxes
Legal fees
Funeral Costs
Child Care or education expenses
Beyond covering immediate needs, life insurance safeguards your legacy, supports your family’s financial security, and can even help your business manage expenses or lost income. At New World Agency, we guide you through every step to find the perfect policy tailored to your unique needs and goals.
Term vs. Permanent Life Insurance
What is the difference between the two? We’re here to break it down.
Life insurance comes in two main forms: Term Life Insurance and Permanent Life Insurance (which includes Universal and Whole Life options). Each offers distinct benefits to suit different lifestyles and budgets. Below, we break down the differences to help you choose.
Term Life Insurance:
What It Is: Affordable, temporary coverage for a set period (e.g., 10, 20, or 30 years) with fixed premiums during the term.
Key Features:
Lower initial costs, but premiums increase upon renewal as you age.
Option to convert to permanent insurance without additional health checks (subject to policy terms).
Tax-free payouts to beneficiaries if you pass away during the term.
Best For: Those seeking cost-effective protection for specific timeframes, such as young families or individuals with temporary financial obligations.
Permanent Life Insurance:
What It Is: Lifelong coverage with consistent or flexible premiums, often including a cash value component that grows over time.
Types:
Universal Life Insurance: Flexible payments and investment options, with tax-free cash value growth (within legislative limits). You can withdraw or borrow from the cash value for major expenses, like a home down payment.
Whole Life Insurance: Guaranteed premiums and coverage, with potential dividends to enhance your policy or reduce costs. Cash value grows tax-free and can be accessed via withdrawals or loans.
Key Features:
Higher premiums than term insurance but stable over time.
Cash value can be used for financial flexibility during your lifetime.
Tax-free payouts to beneficiaries upon your passing.
Best For: Those seeking lifelong protection, wealth-building opportunities, or estate planning benefits.
Life Insurance Comparison
| Feature | Term Life Insurance | Universal Life Insurance | Whole Life Insurance |
|---|---|---|---|
| Coverage Duration | Fixed term (e.g., 10, 20 years); renewable | Lifetime | Lifetime |
| Premium Cost | Lowest initially; increases on renewal | Moderate; flexible payment options | Higher; fixed or limited (10/20 years) |
| Cash Value | None | Grows tax-free; accessible via withdrawals/loans | Grows tax-free; accessible via withdrawals/loans |
| Dividends | None | None | Possible; can reduce premiums, increase coverage, or be taken as cash |
| Flexibility | Convertible to permanent; cancellable | Adjustable premiums and coverage | Fixed premiums; dividends add options |
| Tax-Free Payout | Yes, to beneficiaries | Yes, to beneficiaries | Yes, to beneficiaries |
| Best For | Temporary needs, budget-conscious | Flexible payments, savings growth | Stable premiums, wealth-building |
Dividends in Whole Life Insurance
With Participating Whole Life Insurance, you may receive annual dividends (not guaranteed) from the insurance company’s shared profits. These dividends can be used to:
Increase your coverage without additional premiums.
Lower or eliminate premium payments.
Receive as cash for personal use.
When should you get life insurance?
It’s never too early to consider life insurance. Starting young offers unique advantages:
Lower Premiums: Younger, healthier individuals typically pay less.
Future-Proofing: Lock in coverage before potential health issues arise.
Growth Potential: Permanent policies build cash value over time, enhancing long-term financial planning.
Whether you’re a young professional, a growing family, or planning for retirement, life insurance provides peace of mind and financial security.
Why Choose New World Agency?
We partner with Canada’s leading insurance providers to offer personalized life insurance solutions. We take the time to understand your needs, ensuring you select a policy—whether term, universal, or whole life—that aligns with your lifestyle and goals. Ready to protect your loved ones? Contact us today or visit Our Partners page to learn about our trusted insurance providers.