By: Life Insurance Toronto

Life Insurance Toronto — Fri, 19 Oct 2007 14:29:26 +0000

Many people ask me how should they picture life insurance.
Well, picture a crate. In this crate, you put a certain amount of money that you give to the insurance company. They than deducts the monthly insurance and administration costs and the surplus is invested in an account of your choosing many insurance companies offer guaranteed minimum interest rates (usually around 3-4 %) but it can be higher.
Now this policy is not without risks, many universal life policies have an escalating insurance costs in order to maximize the policies cash value build up in the early years. If the policy does not grow at you anticipated rate of return you could be left with an empty crate and no insurance. This type of policy is often geared towards high income earners who are looking to defer tax and already have their financial house in order.
Think about it.

Comments on: Life Insurance types

By: Life Insurance Toronto