The Globe and Mail, Joel Schlesinger
Most Canadians understand how term life insurance protects their families. However, financial advisors can find themselves with much explaining to do around using permanent life insurance as a financial and estate planning tool.
Still, permanent life insurance is a big financial commitment compared to term insurance. Cynthia Kett, principal at Stewart & Kett Financial Advisors Inc. in Toronto, says advisors must discuss with clients the need to be able to commit to paying premiums for at least 10 years if they choose the permanent life insurance option.
“[Otherwise,] the associated policy fees and cancellation charges are very high until that time period has elapsed,” she says.