Life Insurance

Michael Cherney Financial is proud to provide our customers with a broad range of life insurance solutions, including:

Term Life Insurance

Excellent choice for budget-conscious young families. This insurance offers level premiums for a term (e.g. 10 years, 20 years) after which the premiums increase to a new level for the next term. It eventually expires, usually around age 75 or 80. However, you may find that, after one or two terms are up, you no longer need insurance, in which case term insurance is the best choice – we will shop the market for you and give you your lowest rates!

However, if you’re thinking about keeping your insurance for longer, or for tax- or estate-planning purposes, then permanent is the best for you.

Permanent Life Insurance

The right choice for tax planning, estate planning, business succession and supplemental retirement income. As opposed to term insurance, permanent insurance offers level premiums for life and will not expire. The premiums start out higher than term insurance, but eventually the term premiums will overtake the permanent premiums. There are 3 main kinds – Term to 100, Whole Life and Universal Life, each with its own advantages and disadvantages. The latter two allow you to shelter investment income from tax and to prepay your premiums in a short period of time. You can even use the policy to obtain tax-free retirement income!

Mortgage Life Insurance

What are the four main advantages of an individual life insurance policy as compared to mortgage life insurance from a bank?

  1. Your death benefit stays the same throughout the policy, unlike bank insurance, where the death benefit will likely decrease without a corresponding drop in premiums.
  2. You will benefit from being a non-smoker, unlike most bank insurance.
  3. You have a private contract which you can take with you even if you switch banks and therefore have guaranteed coverage. With bank insurance, if you have since become unhealthy, you will not get insurance!
  4. Your beneficiary has the flexibility to apply the proceeds as (s)he sees fit, unlike a bank policy, where the proceeds go to the mortgage, even if the rate is very low and there is a more cost-effective place to use the proceeds (e.g. other outstanding loans or debt).