An Overview On Life Insurance Beneficiary In Canada

1. An Overview On Life Insurance Beneficiary In Canada Life insurance policies are essential to secure the future of your near ones. You are not going to stay forever as a shelter above their head. It is important to assure that in your absence they do not suffer from any financial crises. Death can happen anytime and it won’t give you a scope to do all the arrangements in the eleventh hour. Before it is too late you should purchase the right insurance policies for your family members. This will ensure that they won’t face any monetary problem or be in debt due to insufficient funds. Who will be your beneficiary? As a life insurance beneficiary you can choose any of the members but he or she should be above eighteen years. Some people do also choose religious institutions or charitable organizations, especially those who do not have near ones. Whatever policy you purchase you can name a beneficiary and the person will get the entire amount after your death. If you do the policy without naming anyone it will go to your estate. Anyhow you can name your spouse, children or any other dependents as a beneficiary. In case if you name more than one then the insurance company will divide the death benefit amongst all of them. In such cases many people assign a particular percentage for each member, such as 50% to the spouse, 40% to children etc. There are two types of life insurance beneficiary like: ● Revocable: Here you change the name any time without informing the beneficiary.

2. ● Irrevocable: For this you need a written permission from the beneficiary before you make any changes. However, for purchasing an effective policy and to know how to update or change the name of beneficiaries you should search for a reputed insurance company in Canada. The web search will give you many options but make sure you choose the right one. There are mainly two types of policies: term and permanent. The time period of term insurance is for ten to thirty years and the premium is quite low. The permanent insurance is for the whole life where you can renew the policy within a specific age limit. Premium of this policy is high but there is a tax benefit. So hurry up, request a quote and know about the premium cost. Hope the article has helped you know about life insurance policies in Canada and details about beneficiaries.