New Diamond Financial
A life insurance policy pays a tax-free cash benefit to the beneficiary when the insured person dies.

 The different types of life insurance

 When purchasing life insurance, two important questions to ask yourself are:
   How much insurance you required?
   How much money you can afford for the premium for three years?

But not all life insurance products are the same. In fact, there are three distinct types of life insurance and each is designed to meet a different need. 

    Permanent (whole life) insurance
   Term insurance 
   Universal Life


Permanent Insurance

Permanent Life insurance provide guaranteed lifetime protection with fixed premium

A cash value usually accumulates, and is paid to you upon cancellation

It can be participating (with dividend) or non-participating (without dividend)

Premiums tend to be higher than term insurance when young, but lower than term renewal premiums at older ages


Term insurance

It is a low cost, temporary protection for times of high financial risk (e.g. when your have a mortgage
Coverage will end at a specified term, and once chosen, it doesn't change
The premium is lowest initial cost, but cost may increase each 5, 10 or 20 years
Cost can rise dramatically in later years

Term insurance can be converted to other types of insurance from the same  company without irrespective of health situation.


Universal life Insurance

It is a more flexible insurance that combines long-term life insurance with an opportunity for tax-deferred savings
Choice of level or increasing amount of insurance

Cost of the insurance may be:
guaranteed and level, increase each year, or be a combination of both
Payments made, in excess of required cost of insurance, can be invested and grow tax-deferred

Part of the information is provided by Sun Life