Why Should Canadians Prioritize Life Insurance?
Life Insurance serves as a vital safeguard for your dependents in the unfortunate event of your passing. It shields them from financial difficulties, enabling them to sustain their accustomed quality of life. Life Insurance becomes imperative when the financial well-being of your spouse, children, or other significant individuals relies on your support.
Depending on the chosen coverage, your Life Insurance policy can mitigate or entirely cover expenses such as funeral costs, outstanding debts, and even furnish your beneficiary with a reliable income source.
Moreover, certain policies offer the flexibility to access your funds, allowing withdrawal of accumulated premium payments. It’s important to note that, in the event of your passing, the payout amount will decrease proportionally if the withdrawn amount is not repaid.
Life Insurance Options in Canada
In Canada, two main types of life insurance policies exist: Term Life Insurance and Permanent Life Insurance.
Term Life Insurance
Unlike Permanent Life Insurance, Term Life Insurance provides coverage for a specified term. It ensures a payout to the beneficiary if the insured person passes away during the term, given that the premiums were paid. While it does not accumulate value like Permanent Life Insurance, the premiums are generally fixed for the duration of the term.
Permanent Life Insurance
Also referred to as “whole life insurance,” this coverage extends throughout your entire lifetime. These policies guarantee a payout to the beneficiary upon the insured person’s passing, provided that the premiums were consistently paid. Permanent Life Insurance has the potential to accumulate value over time, and the premiums are typically guaranteed not to increase.
Participating Whole Life Insurance
Similar to Permanent Life Insurance, this policy covers the insured for their entire life and may offer the opportunity to participate in the insurer’s profits. Participating Whole Life Insurance not only provides lifelong coverage but also introduces a unique feature where policyholders may receive dividends based on the insurer’s financial performance. These dividends can be utilized in various ways, such as enhancing the policy’s cash value or receiving them as additional income.
Universal Life Insurance
Universal Life Insurance, a form of Permanent Life Insurance, goes beyond by offering policyholders flexibility in premium payments and death benefits. This adaptability empowers individuals to tailor their coverage to align seamlessly with evolving financial circumstances and life stages, ensuring a customized and responsive insurance solution.
Saving Money on Life Insurance
At Life Insurance Pro, our aim is to assist you in optimizing your savings. The most effective method for economizing on Life Insurance is by comparing rates from various providers, a task that can be time-consuming. Fortunately, Life Insurance Pro streamlines this process for you. Through our online quote request feature, we diligently assess rates from major Canadian insurers, so that you receive the best options effortlessly. Some of the easiest ways to save money on life insurance are as follows:
Utilize our services to compare rates from major Canadian insurers effortlessly. Request a quote online through our website, and we will do the hard work for you.
Consider Your Age
Age significantly impacts premiums. Purchasing a policy before your next birthday can help you secure lower rates.
Healthy individuals can benefit from lower premiums. Opt for a fully underwritten policy if you qualify for regular life insurance.
Smoking status can substantially affect premiums. Quitting smoking not only saves money but also promotes better health.
Periodically reassess your life insurance needs. Instead of automatically renewing your current plan, explore new policies or consider converting a Term plan to Permanent Life Insurance.
Life Insurance FAQ’s
These answers, whether you have questions regarding coverage, life insurance types or beneficiaries aim to guide you towards finding the right life insurance for your needs.