When is the Right

Time to Purchase Life

Insurance?

The Purpose of Insurance

• When most people think about life

insurance, they understand that it has

the purpose of providing security when

a death occurs. However, the timing

and purposes behind purchasing such

insurance sometimes have other

important implications.

• Aside from basic protection, modern

tax laws make insurance an important

part of estate planning for many

individuals. Policies are set up to allow

for the deferral of taxes and to provide

for other planning purposes.

Term Insurance

• Whole life is a more expensive form of

insurance that provides more than

simple protection. As premiums are

paid, a cash value accumulates and

earns dividends for the policy holder.

Many people use this form of

insurance for estate planning and

transfer of assets to other individuals.

This means the timing of purchasing is

directly related to key financial issues

and decisions involving one’s longer-

term financial objectives.

Whole Life

• Businesses also use insurance as a

planning device for their executives

and key employees. The purchase of

this insurance at employment or when

promotions occur helps to provide the

company a source of funds to replace

an executive in the event of a death.

This insurance is also considered an

important employment benefit in many

circumstances, with payments to be

made to both the company and the

employee’s family should unfortunate

circumstances occur.

Whole Life

• Businesses also use insurance as a

planning device for their executives

and key employees. The purchase of

this insurance at employment or when

promotions occur helps to provide the

company a source of funds to replace

an executive in the event of a death.

This insurance is also considered an

important employment benefit in many

circumstances, with payments to be

made to both the company and the

employee’s family should unfortunate

circumstances occur.

Timing the Purchase of

Insurance

• As the above circumstances indicate,

there are a number of different

reasons and times for the purchase of

life insurance. It is important to

understand the issues behind the

planning and the timing of the

purchases. These decisions affect the

costs and long-term benefits of the

insurance that is purchased.

• It is possible to get very affordable

protection by using the options of term

insurance, and this is often all the

protection that is needed for a family.

Timing the Purchase of

Insurance

• At the same time, it is possible to

achieve much more complex benefits

at a greater cost with whole life

options. At different points in one’s life,

different insurance choices are

appropriate to fulfill the goals of a

specific financial situation.

• Working with a qualified insurance

agent can be beneficial in determining

just the type and amount of insurance

that is needed to fulfill specific needs

at different times in your financial life.

There are variations and combinations

of these policies designed for specific

applications.

Conclusion

• As the above circumstances indicate,

there are a number of different

reasons and times for the purchase of

term or whole life policies for insurance

purposes.

More Information

• For more information on purchasing life

insurance visit

http://www.ontarioinsurancehub.ca/

• If you live in the Durham region of Ontario

and are looking to purchase life insurance

contact Jay Asher Ontario Insurance Hub