Understanding Life Insurance in Canada
Life insurance in Canada is well-regulated, so you don’t have to worry about encountering shady operations. The tariffs are competitive and don’t vary much from company to company. When searching for life insurance, start by asking friends and family for recommendations or go online to get quick quotes. You’ll have zealous brokers and agents in no time.
Choosing the Right Type of Life Insurance
The term “life insurance” is usually used for income protection, according to Rob Hollingsworth, head of distribution, individual insurance, at Manulife. This type of insurance is the cheapest and provides a way to ensure your loved ones are covered if you die while still making mortgage payments and paying tuition fees. If you have 15 years left on your mortgage and a similar amount of time until your youngest child finishes college or university, a term life insurance policy with a 15-year term would be a reasonable choice. As your financial situation changes over time, you can reconsider and adjust your policy.
Permanent Life Insurance
Permanent life insurance is used to protect one’s assets and for estate planning purposes. The older you are when you buy permanent life insurance, the more expensive it becomes. However, buying young can help you lock in a lower price. There are subtypes of permanent life insurance, including universal and term-to-100. Universal life insurance has an investment element, where you decide where to invest, and good returns can increase the value of your account. Term-to-100 is a hybrid policy that combines elements of term life insurance and permanent life insurance, making it the cheapest permanent life insurance option.
Universal Life Insurance and Term-to-100
Universal life insurance is suitable for someone who is less risk-averse and has knowledge of investments, as it offers the opportunity to increase the final death benefit. Term-to-100 is ideal for someone who wants permanent life insurance at a lower price. This type of policy is a unique Canadian product that provides coverage up to the age of 100.
Comparing Life Insurance Quotes and Saving
Request a personalized quote and contact an expert to discuss your coverage requirements. This will help you get the protection you need at the right price. Comparing quotes from different insurance providers can help you save money and find the best policy for your needs.
Considering Joint or Family Plans
Joint first-to-die (JFTD) plans are designed for couples or families. These plans can be a good option, as premiums are usually lower when two or more people have the same term. However, it’s essential to compare joint plans with individual plans to determine which option is more cost-effective. Some family plans also allow you to add children to the policy, which can provide income protection and guarantee insurance for your child, even if they encounter health problems later in life.
Checking Existing Coverage
Before buying a life insurance policy, it’s a good idea to check what you already have. You may have access to life insurance products through different channels, such as your employer or a professional organization. Checking your existing coverage can help you avoid duplicating policies and ensure you’re not over-insured.
Conclusion
Life insurance in Canada is a competitive market, and there are various types of policies to choose from. By understanding the different types of life insurance, comparing quotes, and considering joint or family plans, you can make an informed decision and find the right policy for your needs. Remember to check your existing coverage and consult with a licensed insurance advisor to ensure you’re getting the best possible rate and coverage.