Life Insurance

People buy Life Insurance to replace a financial loss that would result from a death. For example, a "Bread Winners" future income may need to be replaced. Frequently, Life Insurance is used to create an estate for survivors, or to provide a pool of money to pay income tax owed by the deceased.

The amount you pay to buy Life Insurance is called the 'Premium'. This amount will vary, depending upon:

  •  The type of insurance you purchase:
    • Term Insurance
    • Whole Life Insurance
    • Universal Life Insurance
  •  The company you buy insurance from, your age, gender, health, occupation, sporting activities, life style,
  • Whether or not you use tobacco products,You must apply for Life Insurance, however once approved, the insurance company must continue to cover you, as long as you pay your premiums.

In the event of a death, a "death claim" is filed. Once approved, a lump sum tax-free amount is paid directly to the beneficiary. If the beneficiary is a person, the payment is made directly and bypasses the estate, and, as a result, avoids probate fees.

Life insurance is frequently used as a tax shelter, as federal legislation permits additional funds to be invested within the policy on a tax-exempt basis. This important tax-planning tool is used to defer or avoid taxation.

The design of proper Life Insurance coverage is an important issue, as part of an individual financial plan. The purchase and implementation of a group benefits package is complex. "Oracle Financial Services has a Chartered Life Underwriter, Chartered Financial Consultant, Registered Health Underwriter and Certified Financial Planners, Elders Planning Council, and Certified Senior Advisor
We can provide you with advice and help you implement the right benefits package for your employees.Key issues to consider when purchasing Life Insurance

The amount of Life Insurance required to provide income for a surviving individual or family depends upon:

  •     The amount of income required by each survivor
  •     The survivor's Tax Rates
  •     The duration over which income will be required
  •     Inflation
  •     A pre-tax investment return

In addition, capital may be required to pay:

  •     Final Expenses including burial expenses
  •     Probate fees
  •     Other debts such as the mortgage on the family home
  •     Costs associated with post-secondary education for survivors, and
  •     Income taxes upon death