Nowadays, the level of public pension is not able to cover all our needs and provide a descent lifestyle a person has used to live before a retirement. Unfortunately, public pension can not protect us from poverty in the old age. But now everyone has the opportunity to secure a dignified old age and be sure that your family is financially protected. Such a possibility is provided by cumulative life insurance programs. In this article we will try to understand basic concepts of life insurance, how it differs from other financial instruments, as well as cases of its application. Let us consider the nuances with the help of leading life insurance agent from Calgary.
What is endowment life insurance?
It is a combination of life and health insurance programs, including the possibility of funds accumulation and preservation with the subsequent increasing of the capital. This system of cumulative premiums, allows you purposefully keep and increase your funds, as well as to insure yourself and your life from various contingencies. In this case, your contributions are divided into two parts, one part goes to insure life and health and the second part is accumulated on your account. Accumulated money is invested in various instruments, with an annual overcharging you a certain percentage, which, in turn, consists of two parts. Firstly, it is a guaranteed income that hovers around 4% per annum. Secondly, this additional income that depends on the investment performance and may make up 8% per annum and 15% per annum. Although, you may get 0% of additional income per annum, if the company has invested poorly. That is why it is better to consider the choice of a program and a company with experienced agent.
How it all works?
To become one of the participants of life insurance it is enough to purchase an insurance policy. Every person defines for him/herself the amount of annual fee. The selection of a program depends on coverage of life risks, health state, age and financial goals of a person. Such programs are available for the periods of 10, 15, 20, 25 and 30 years. You should also know that such policies are tax deductible, so you can not only accumulate money for your future, but also minimize your taxes to be paid. After signing the contract, the person automatically becomes not only one of the clients, but also a one, who starts to earn using this program (as a rule, from 15% up to 20% of invested amount per year). In this case, the program participant is safe, because the insurance company will reimburse decent funds in case of an accident. The size of the insurance can be calculated as follows: the amount of annual fee multiplied by the number of years is equal to the sum insured. If you can not take a decision on your own then it is better to turn to experienced agent. So, it is clear that insurance premiums allow you to be financially free and not to depend on public pension rate.
Experienced agents from Calgary state that endowment life insurance is a reliable financial protection!
Julia Repkina with the assistance of life insurance agent Calgary about the nuances of various policies.