20 Pay Insurance is a Hot Commodity
A hot favorite among the products available in the Toronto life insurance product is 20 Pay whole life insurance. It is reported to be a Toronto life insurance product with little disadvantages, and the advantages far outweighing the disadvantages.
20 Pay whole life insurance refers to a policy where the owner pays premiums for 20 years after purchasing the insurance coverage. At the end of 20 years, the policy owner would have paid up in full, with no more premiums to pay ever again. The insured is covered for the rest of his/her life. It is this feature that makes the policy a hot favorite among young couples as one can’t be sure of what the future holds in store for them and they dislike the concept of having to shell out premiums all their lives. One of the companies offers a great feature in which the death benefit in the 10th year is paid up at 50 per cent.
20 Pay insurance boasts of a feature that you will in all probability find nowhere else. The policy comprises a no-lose clause which allows the policy owner to cancel the insurance at the end of 20 years of purchasing the policy, and get a refund of all the premiums paid over the 20-year period. This is a largely unwise move as you would have toiled for 20 years in vain and your survivors will be denied of any support. However, if are facing a financial crisis, this aspect of the policy will be a blessing.
This is where the policy differs from term 20 insurance – at the end of the 20 years you don’t get anything if you don’t kick the bucket during the 20-year period that you are insured. In the case of 20 Pay whole life insurance, if you choose to cancel your policy after a certain period of time, you get back all that you invested, and this would also mean that you were insured for that period for free!
Also, 20 Pay whole life insurance can be used as a collateral and you can borrow against this policy from banks. A feature that smacks of universal life insurance, no doubt. You can even borrow from the cash value of your 20 Pay insurance, and this amount will be deducted from the death benefits if you don’t repay the borrowed amount.
20 Pay whole life insurance does everything you would want your policy to do. All the same, you must ensure that you have chosen a sufficiently high death benefit, even if it means compromising slightly on your standard of living. This is because insufficient coverage will not elevate the financial trouble you family would experience when you pass away, but only marginally reduce it. You must remember that your survivors may have to spend more to cope with your loss. If you have left behind a growing family with your spouse in charge, house help or child care may have to be hired. Other such facets also come together to intimidate your family.
