It is a type of life insurance for business organizations. Corporate life insurance can be useful for a number of reasons.
An employer provides life insurance coverage for an employee who is related to him in a specified manner or is his son, daughter, spouse or a child. The term, ‘covered' refers to a contract that has been signed between the two parties. Corporate life is one such contract. Corporate owned life insurance plans in Calgary is a form of life insurance that involves one insurer, the Employer, and several individual companies, namely, the Insurer, the Company and the Employer's dependents or beneficiaries.
A corporate contract might cover the life of the entire company or a portion of it. If the company is a partnership, the assets and obligations of each partner are covered under the policies of the separate companies and funds generated by them are invested in those companies' life insurance policies. A life insurance policy provides financial protection against life accidents, death and loss. Premiums are paid by the insured and dependents until the death or cancellation of the policy.
Why corporate owned life insurance plans in Calgary?
Corporate owned life insurance plans in Calgary provides protection against financial loss in case of the death of the principal insured. The term, ‘corporation' refers to a commercial organization and its affairs. This policy provides for the payment of premiums by the company or one of its members, dependent upon the terms and conditions agreed upon. Under the policy, one insurer provides the coverage while the other or a third-party insurer provides it.
There are various types of corporate owned life insurance plans in Calgary. One is the ‘all risk' policy which provides coverage on all risks prevailing in a business environment and no other. Another is the ‘all risk' policy which includes all risk factors prevailing in a business environment. One more type is the'sole proprietorship' policy which protects the personal assets of only one owner. Under this type of policy, the corporation itself becomes the sole beneficiary.
Corporate owned life insurance plans in Calgary is usually purchased by the insurance company to meet the insurance needs of its principal clients. These policies are normally also referred to as ‘direct investment' policies. This form of policy, however, does not provide coverage for life events occurring after the purchase date. For example, a person cannot buy an insurance policy that will cover him from death until he attains the age of seventy. Similarly, the policy will not pay any benefits if his motor vehicle dies even when he is not around. These policies are normally purchased to meet insurance requirements for businesses.
The main reasons people purchase this type of insurance are to protect their life interests. In addition, it is a popular choice among entrepreneurs who are concerned about protecting their long-term wealth. A person can purchase insurance policies that will not increase their insurance premium. This means that in case he should pass away before a certain period (the age of the policy) then the remaining amount of the premium would be paid by the beneficiary or beneficiaries.
Therefore, it is important to read carefully the terms and conditions of the policy prior to purchasing it. It is important to understand fully the implications and consequences of opting for such an insurance policy. If it is required for you by your state law, it is imperative to know about the life insurance premium tax relief provided by your state. This is because in most states, a portion of the premiums are exempt from the income tax.