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Life Insurance

Life InsuranceLife Insurance Available at Kulla Financial

What is Life Insurance?

Life insurance is intended to give you peace of mind that your dependents, such as children or a partner, will be financially secure in the event of your death. Consider the type of policy you want, when you need it, and how to purchase it.

How does Life Insurance work?

Life insurance pays out either a lump sum or regular payments on your death, providing financial support to your dependents. The amount of money paid out is determined by the level of coverage purchased. You decide how it is distributed and whether it will cover specific payments (such as mortgage or rent) or leave an inheritance to your family.

Types of Life Insurance Available

Life Insurance policies can be bifurcated into the following types:

Term life insurance

Term insurance protects you for a fixed period if you have a 20-year plan and keep making payments but stop living within those 20 years. Your beneficiaries receive the funds. Most individual term policies have level premiums, meaning you pay the same amount every month. When the term expires, you have no more coverage and must either go without or obtain a new policy if eligible, which will most likely be more expensive: the older you are, the more expensive it is to obtain a policy.


It pays as a lump sum if you die within the agreed term. The level of coverage stays the same throughout. This is the most simple and affordable option.


The coverage level rises over the policy’s term to keep up with inflation.


Each year, the level of coverage decreases. It is intended for use with repayment mortgages, in which the outstanding loan balance decreases over time.

Whole life insurance

Such life insurance comes in a never-ending category as they are entirely universal. You can either pay it all at once, which is very expensive or in installments, which is also very expensive but lasts forever.

These policies include an investment component, which means that some of the money can be invested in the stock market or taken out as a cash loan, giving you the option to access the money while you’re still alive.

Money back policy

The main distinction and benefit of a money-back policy is that it provides the policyholder with various survival benefits linked to the policy’s term. Unlike other policies, this one pays out during the policy period. The family receives the entire sum if the policyholder dies, regardless of the installments paid. These policies are more expensive than their counterparts.

Endowment policy

Endowment policies differ from term insurance policies in that the insured receives a lump sum if they live until the maturity date. The policy combines insurance and savings.

They also come with riders that can be used to expand the policy’s coverage. In the event of death, the endowment policy guarantees that the policy’s terms pay a participation profit in addition to the sum.

Who needs Life Insurance the most?

If you’re curious about who needs life insurance the most, the list below may be of assistance. Although not exhaustive, the list describes personal scenarios that could benefit from life insurance.

Empty Nesters

If your children have grown up and moved away from home to start their own lives, you should not necessarily cancel your life insurance policy. A policy can leave a financial legacy to heirs such as your children and grandchildren.

Singles without children

Without children to consider, singles may be prone to shrug off life insurance. However, you may still have people who depend on you financially. If you care for a parent or a special needs sibling, you should ensure their financial needs are taken care of if you pass away. Additionally, a life insurance policy doesn’t always have to support a family member.

Difference between Whole & Term Life Insurance

Some of the critical differences between Whole life and Term life insurance are:

The policy length

A whole life policy lasts your entire life, whereas a term policy only offers coverage for a limited number of years. Once the term expires, your beneficiaries are no longer entitled to a death benefit.

The cash value

Once a term policy expires, it isn’t very valuable. A whole-life policy is a long-term asset that can help meet financial goals before, during, and after retirement.

The premium

Whole-life premiums will be higher for a specified death benefit, such as $100,000, but your beneficiaries will be paid a death benefit eventually.

Core Benefits of Life Insurance

Purchasing life insurance can be a value-for-money decision for you as it covers your every expense like medical. Here are some of the core advantages of life insurance:

Guarantee of fixed returns

Life insurance policies guarantee you will receive a fixed amount after a specified period. Examine various life insurance products’ structures and terms and conditions to find the policy that best meets your requirements. Whatever option you select, you can be confident that the promised death benefits will be paid to the beneficiary.

Risk mitigation & coverage

These policies provide essential risk coverage in monetary compensations to mitigate and cover risks after the policyholder’s death. Life insurance would protect your family from financial risks if the primary breadwinner died unexpectedly.

Provision for loan

Specific policies include a loan option and allow you to borrow money. You can use the life insurance policy as collateral if you need to borrow money to pay for a child’s education or marriage.

Health expense coverage

Most of these policies cover the health and treatment expenses that may occur. Suppose the policyholder falls ill. You can also choose riders to increase the coverage of the insurance policy to protect your finances even while you are alive.

Where can you buy life Insurance plans?

If you’re a full-time employee looking to buy insurance, ask your boss if the company provides Life Insurance as a benefit. Insurance companies are constantly advertising their services. Feel free to contact the best in Milton, Ontario, Kulla Financial, and inquire about their insurance offerings.

Basic Principles of Life Insurance

Life insurance is a give-and-take transaction. It is founded on the fundamental principle of trust and security shared by the insured and the insurer. The parties are interdependent, and the contract between them is based on some fundamental principles. Its primary goal is collaboration. Furthermore, the principles of life insurance are based on market conditions.

Insurable interest

This principle was put in place to protect insurance policies from being abused. It refers to the level of interest that the potential policyholder is expected to have in the life insurance policy.

This interest could be a personal relationship, a family bond, or something else. The insurance company approves or rejects the individual’s policy application based on this level of interest.

Minimal Risk

Any company that provides life insurance is taking on some risk since they would need to pay the assured sum at some point. Therefore, the company would prefer to keep the level of risk as low as possible. The insurer might check the applicant’s medical status, smoking habits, etc. In addition, they might expect the policyholder to take good care of their health.

Good faith

A life insurance policy is a contract between the insurer and the policyholder. This contract is entered into in good faith that both parties provide accurate, relevant information without hiding anything. Withholding any information could have ramifications.

For example, suppose the insurance provider discovers that the policyholder had a pre-existing heart condition but did not disclose it at the time of policy purchase. In that case, they may reject the beneficiary’s claim after the policyholder’s death.

Law of large numbers

This is a crucial life insurance principle based on a statistical theorem that states that fluctuations tend to average out with more significant numbers. This means that since life insurance is a long-term investment, the losses and gains will average over time, minimizing the risks for the policyholder.

Get in Touch with Kulla Financial for Life Insurance Coverage

Want to buy Life insurance to protect yourself and your family? Look no further than Kulla Financial. Book a consultation with a member of our team to find the best life insurance policy for you and your lifestyle.