But generally, the more life insurance you have, the more benefits it will provide to your family when needed. The benefits of insurance are discussed below: Benefits of Insurance to insured. Term, Whole, and Universal life. In our “How corporate-owned life insurance can boost your liquidity” article, we discussed the role life insurance can play in managing business risk and tax costs in the event of the death of the owner-manager. Tax Savings - Life insurance plans offer dual tax benefits^. It inculcates regular savings habit, as in the case of life insurance. Employee Basic Life. Should you pass away, your beneficiaries would receive a lump sum, tax-free payment to help them replace lost income, maintain their living standards, pay debts or cover your final expenses. Premiums paid by the employer on behalf of the employee are a taxable benefit, however, benefits received are non-taxable. Life insurance owned in a private company can be used in two general ways – to provide liquidity and to build wealth. You pay in a premium every month and when you die, the policy pays out a lump sum to your loved ones. The maximum Employee Life Insurance benefit payable is $1,000,000. Agent Discussions. A flexible solution that offers the security of lifetime coverage and tax-effective investing to help you protect your assets and your loved ones for the long-term. Life insurance carriers offer two main benefits to insured individuals when a transfer of risk occurs: death benefit proceeds and cash value savings. Whole-of-life insurance is designed so the policy pays out a lump sum to your loved ones when you die. The premiums paid offer tax deduction under Section 80C of the Income Tax Act. You don’t have to understand cash value, surrender fees, and the other mechanics of whole or universal life. The money can help stabilize your family’s finances and be used to pay off a mortgage, education expenses or unpaid debt. UPDATED November, 2019. Find out how life insurance can help you. As we all know, being sick will cost a lot of money. All life insurance can give you financial confidence that your family will have financial stability in your absence. Term life insurance is the one for the protection of your business, loved ones, and land. All Articles; Search The Library; Article Categories. Your beneficiaries receive a payout to help with finances after your death. Some permanent life insurance policies give you the option of accelerated death benefits like term life insurance does. Basic life insurance pays a pre-specified amount (as defined in the contract) in the event of the death of an employee from any cause. Retirement is a significant life event for anyone, and we’re committed to your success – now, and in the future. Medical: A living benefits rider can enable you to advance part of the policy benefit to pay for expenses if you are diagnosed with a life-threatening illness. Tax-Advantaged Investing. You choose a guaranteed death benefit that your beneficiaries will receive. The death benefit can range from a few thousand dollars to millions of dollars, but the exact amount you should purchase is contingent on your needs. Insurance News. However, before purchasing life insurance, you should understand how the Canada Revenue Agency taxes its distributions. Customize your coverage with optional benefits. Lifetime Coverage. In addition to the policy provided by employers, there are various types of group insurance policies. The payments you make above the cost of insurance earn tax-preferred interest. This tax benefit^ is under Section 10(10D) of the Income Tax Act. Beneficiaries can use the money any way they want . 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