Canadians purchase life insurance for a number of reasons. Life insurance can pay for final expenses; it can help to pay off mortgages and other debts; and it can even help to replace your income after you’re gone, giving your family the additional financial support it may need.
There are two major types of insurance:
Term Life Insurance gives you a steady premium for a set amount of time (usually ten or twenty years). After that time has expired, the rates will go up if you wish to renew. Term insurance is best for temporary needs such as paying off a mortgage or other kinds of debt. It is also a good choice if you only need life insurance until your children have left the house.
Permanent Life Insurance, also called Whole Life Insurance or Universal Life Insurance, lasts for the entire life of the insured person. Premiums may be paid for life or some insurance companies offer policies called “20 Pays” in which premiums are only paid for twenty years but the life insurance still lasts for the life of the policy holder.
Permanent insurance is best for permanent needs such as final expenses, estate equalisation or making sure your spouse as a regular income after you are gone.
If you are not sure what kind of insurance you may need, fill out our online form and one of our trained professionals will guide you through the process and help you get the best insurance cover that suits your lifestyle.