Freedom 55 Financial is a financial service company owned by the London Life Insurance Company. London Life came into existence in 1874 in the city of London, Ontario. For more than 130 years, London Life has been helping Canadians become more financially secure through its many savings and investment products, insurance policies and mortgages. Many of these products are available exclusively through Freedom 55 Financial.
Some of the insurance policies available through Freedom 55 Financial include individual life insurance, disability insurance, critical illness insurance, health insurance, dental insurance and business insurance. Freedom 55 Financial sells three different kinds of life insurance policies: term life insurance, participating life insurance and universal life insurance. Term life insurance is a type of life insurance that provides coverage at a fixed premium for a specified period of time; once that time period has ended, so has the policy. Term life insurance policies are frequently sold as 10, 15, 20 or 30 year policies with an option to renew. Most people purchase term life insurance in order to cover financial responsibilities such as dependent care, funeral costs, debt, mortgages and income replacement. This type of insurance is the least expensive way to ensure that your beneficiaries will receive benefits upon your death. Term life insurance was the first kind of life insurance developed; life insurance policies such as whole life insurance and universal life insurance only came about later.
Universal life insurance is a form of permanent life insurance, which means that it provides coverage throughout a person’s entire life instead of specific period of time. Universal life insurance policies build up something called cash value. If your policy has a cash value, then if you ever choose to cancel your policy, you can anticipate getting back some of the money you paid into the policy. Cash values can also be used as collateral on loans, and the interest from your cash value can be used to pay the policy’s premiums. Universal life insurance policies are ideal for people who are looking for more than just death benefits for their beneficiaries; these policies can be used for tax-advantaged savings purposes as well.
Participating life insurance is also a form of permanent life insurance. With this kind of policy, if your insurance company makes excess profits that year, policyholders will receive dividends; usually, these dividends are not taxable as income since they are considered partial refunds. Insurance companies make excess profits if less people die than anticipated during the year; this means that the insurance company will receive more money in premium payments than it paid out in death benefits. You can receive your dividend as cash, you can use it to pay off future premiums, or you can use it to build up your cash value. Some people choose a form of participating life insurance known as “paid-up insurance.” With paid-up insurance, the dividends you receive are used to pay for more insurance coverage. Thus, you increase the amount of death benefits without paying more money in premiums.