Can the Cash Value of My Canadian Whole Life Policy Decrease?

If you need an accurate Whole Life Insurance quote, then you’ll want to be detailed and accurate when answering questions about your health, lifestyle, and other financial information. Last month, a lady named Lisa from Ottawa reached out to us. She was a little apprehensive about revealing her full medical history. We explained to her how important honesty is in really receiving an accurate quote. Once Lisa provided her complete health background, we could then give an accurate quote reflective of her needs and budget.

Canadian Whole Life Insurance differs mainly because it offers a combination of lifelong coverage and a life insurance cash value component, which grows over time. Mark is from Edmonton and wasn’t aware of how these benefits worked. It was very interesting that our agents had to explain to him that Whole Life Insurance, unlike Term Life Insurance Policy, is not an insurance product which covers a person for some period of his life; rather, with Whole Life Insurance, you will definitely be covered throughout your life while building cash value which you may need or want later in life.

Yes, you can change your policy, including adding or reducing the death benefit amount and riders. In fact, we recently had a customer, Sophia from Toronto, who needed to make some changes to her policy after having made a shift in her career that affected her financial situation. Our Whole Life Insurance Agents in Canada worked with her so that we could adjust her policy to correspond with her new income level while still protecting her family’s financial future.

They will be knowledgeable, open, and flexible in accommodating your very unique needs. When searching for an insurance agent, for example, Daniel of Vancouver wanted somebody who would sell him an insurance policy and, importantly, explain all the options to him. He chose Canadian LIC because our agents take the time to discuss various policies with you and are open and forthright about all terms and fees involved in doing so.

If this is happening to you, or if you’re having trouble making premium payments, please don’t hesitate to discuss your options with your insurance agent. We had a call from a young couple in Montreal who found themselves in a similar situation. They contacted us because they were concerned that they would have to surrender the policy. Our team helped them investigate options such as reducing the coverage amount temporarily or using the policy’s cash value to cover premiums until their financial situation improves.

You can fairly quickly gain access to your policy’s cash value. However, it would help if you spoke to your agent about the implications of this action. We remember that once, one of our clients, Sammy, from Halifax, had an unexpected home repair that required cash. She could borrow, in no time, against her policy’s cash value, and our agents made sure she was aware of how it would impact her policy’s future value and death benefit.

Yes, there are indeed risks associated with withdrawing from the cash value of your policy: it lowers the death benefit and has other tax implications. Take, for instance, Tomar, who lives in Quebec City, who came to us for advice because he was thinking of drawing from his cash value to pay for a big ticket item. Our agents pointed out the possible risks involved and helped balance his options so he could make an informed decision that didn’t put his family in financial jeopardy.

Comparing Whole Life Insurance Quotes goes beyond the premium quoted. Added to this would be the premium, coverage amount, cash value growth rate, and policy flexibility. Our Canadian Whole Life Insurance Agents walked her through the fine print of each policy last week for a Mississauga client named Jenna, who was comparing quotes and getting frustrated.

This generally leads to your policy review in terms of updated health information and change of financial status. In Calgary, we assisted Alex, a customer who wanted to increase his coverage when he became a father. His agents guided him through the necessary assessments and updated his policy, considering these new responsibilities that would maintain protection for his family.

We always encourage our clients to check their policies once every two to three years or whenever a major change occurs in their life—marriage, having a child, or a serious change in income. Robert of Toronto had not checked his policy for more than five years. Meeting with one of our agents, he realized that he needed to update his beneficiary and adjust the coverage to his current life situation.

Yes, most clients take advantage of and use their policy cash value as a source of funding for their retirement. Carol from Winnipeg came through with her worries about retirement planning, but our agents took her through how she can use her policy cash value to tone her retirement supplementing-source income. This is to make sure that one retires at their comfort without any hitches.

It’s always best to talk to your agent before cancelling your policy. There may be other options available that suit your needs better, like adjusting your policy or taking a loan against the cash value. For example, Neil of Surrey was thinking about cancelling his policy because he had been under some financial stress. We sat down with him for a proper discussion, and we helped him adjust his policy so that his premiums were lowered for some time, yet still maintaining his coverage.

An experienced agent will walk you through scenarios and projects to help illustrate how various policies can fit with your potential future goals. For example, Emily from Ottawa was looking for clarity on how her career change might affect her financial future. Our agents ran a number of scenarios showing how her Whole Life Insurance could adapt to her potential new income levels and career paths.

There are many tax advantages associated with Whole Life Insurance. You can grow the cash value tax-free and then pass that on to your beneficiaries tax-free upon death. Just last year, Patrick from Montreal had doubts regarding his policy’s tax consequences. Our agents explained these tax benefits clearly to him, and he understood how his policy not only provided security but also gave him efficient tax planning.

Choosing the Right Beneficiary: This is very important. Think about who it is that is going to be most affected by your death from a financial standpoint. We had a case of a client, Harpreet from Brampton, who was really confused regarding choosing her spouse or children as beneficiaries. Our Whole Life Insurance Agents in Canada helped her walk through what the implications would be from both scenarios, thus ensuring that she made a choice that guaranteed her family’s future financial security.

Inflation can erode the purchasing power of the cash value over time. Recently, we helped George from Halifax realize that even though his policy’s cash value grows, it doesn’t grow with inflation. Our agents worked with him to strategize some other investments that would work in conjunction with his Whole Life Insurance to balance out a financial portfolio.

Yes, you can have multiple policies. One of our clients, Sophia from Vancouver, decided to get the second policy after the first one worked well to cover her business needs. She came to see us, and we helped her understand how getting an additional policy can provide further financial security in her personal life.

One can expect quotes to be more reasonable for a young and healthy individual. Recently, we helped a young couple, Tom and Rita from Montreal, receive competitive Whole Life Insurance Quotes. Our agents put into light the big role their youth and good health played in securing preferential rates, emphasizing the benefit of early application.

Find transparent and knowledgeable agents who will listen to what you really need. It’s something like when Anita from Saskatoon was looking for an agent. She wanted one who could explain complex insurance terms in simple words. Our Canadian LIC agent met her expectations with easy-to-comprehend information and was on his way to building a trustful relationship.

Such incorporation of your Whole Life Insurance into your estate planning is an important aspect if maximum benefits are to be derived. We have assisted Edward of Toronto in tailoring his policy towards his estate plans so that the benefits accrue maximally and in a tax-effective manner to his heirs.

In most cases, the best time to buy is when you are young and healthy. The premiums at that time will be quite affordable. However, it is never too late to start. We have advised a 50-year-old lady from Edmonton called Linda, who felt it was a bit late to be getting the insurance. Our agents still gave her options with huge benefits at her age.

Reviewing and possibly updating your policy after major life events is important. For instance, Derek from Ottawa came to our attention with a request to amend his policy as he was now married and had a newborn child. Our agents modified the beneficiaries for him and increased the coverage amount.