A new plan with the unique features of the extremely remarkable life insurance plan launched on 7th Sept.
UV Insurance Company’s Whole Life High Values|20-Pay Guaranteed Values policy was just introduced in 2022. While the plan is impressive, as a prospective client, you may have questions about it. I hope the following questions and answers clear up any confusion:
For how long shall we have to pay?
You shall have to pay for a minimum of 20 years. Cash value – 50% of the insurance amount at the age 65 or after 20 – Pay for ages 46 and older.
Can we buy the lower face amount or shall we have to buy one million dollar coverage?
No, it’s not mandatory to buy a million dollar coverage. As per your own affordability, you can purchase coverage for lower amounts starting from $50,001. The great feature is that the cash values will be half the amount of coverage at age 65. For example, for 100,000 coverage 50,000 cash value; for 200,000 coverage- 100,000 cash value and; for 500,000 coverage 250,000 cash values at age 65- in all cases, if you buy the plan before age 45.
Through which insurance company do you do this insurance?
The Whole Life High Values|20-Pay Guaranteed Values insurance plan in which the cash values at age 65 are ‘Guaranteed’, half of the sum insured, is offered by UV Insurance.
Since when has this UV Insurance Insurance Company been in existence?
UV Insurance has been in the insurance business since 1889. Recognized in the insurance and financial services market for its financial strength, UV Insurance has a solvency ratio of more than 200% and has a strength of more than 250,000 members. UV Insurance is a member company of Assuris. Founded as a not-for-profit organization in 1990, Assuris is designated by the federal Minister of Finance under the Insurance Companies Act of Canada. It protects Canadian policyholders if their life insurance company fails.
If I cancel my policy after five years, will I get something back?
No, you won’t get anything. Term Life insurance is usually for short term and Permanent
Insurance is for long term needs. If you cancel an insurance policy within nine years, there are no cash values and you will lose all the money. But, if you are planning insurance for a short term period, it’s better to buy some Term Insurance such as Term 10, 20, 30 or till age 40. It should be kept in mind though – you cannot treat your life insurance as a bank account which can be encashed within 3-4 years. It doesn’t go like that – Life insurance is a long term plan.
When does the cash value start building up?
The cash values in the Whole Life High Values|20-Pay Guaranteed Values plan starts building up after nine years and the biggest attraction of the plan is that at age 65, cash values will be half of the face value and it’s guaranteed (applicable before age 45).
Once the market fluctuates in case the interest rate goes down or if the company doesn’t make any income, will my cash values at age 65 change or reduce?
No. Whole Life High Values|20-Pay Guaranteed Values life insurance contract is a guaranteed and permanent plan. It doesn’t fluctuate with the fluctuating interest rate of the market and also, doesn’t depend upon the income of the insurance company. Premium payment option is for 20 years, if the market fluctuates, nothing can be changed. Life insurance contract is ‘fully guaranteed’.
What options do I have, especially at age 65 if I want to withdraw the money? You have few options:
a) You can fully surrender the contract and encash the money/ funds but tax will be applicable. The surplus of the total ACB will be imposed in relation to the total net surrender value.
b) You can partially cancel the policy as per your requirement and encash the money from time to time. Tax will be applicable. The pro rata surplus of the total ACB will be imposed in relation to the total net surrender value.
c) You can borrow against the cash values. In case of a loan, the excess of the ACB is taxable.
cont. in next edition
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You can call at 604-996-6862 or send an email at sandeepahuja@ punjabinsurance.ca
Sandeep Ahuja
604-996-6862 [email protected]
