What exactly is life insurance?
A life insurance policy is basically an agreement between you and an insurance company. The insurance company agrees to pay the chosen benefit amount to the beneficiaries in case of your death. To maintain this coverage, you pay the insurance company a monthly or yearly premium.
Life insurance is like other insurance types, but instead of insuring a car or your home, you are insuring your life. It can be essential if your loved ones are dependent on your income or if you don’t your family burdened by expenses such as funeral costs.
Who needs life insurance?
An important question to ask yourself when considering life insurance is: “Would my loved ones be financially ok if I’m not here tomorrow?” If you think your family will struggle or go into debt, life insurance can be the right solution. The plan can help:
- Replace lost income
- Cover rent or mortgage payments
- Cover debts
- Cover everyday bills and expenses
- Pay for post-secondary education
- Pay for funeral and other final expenses
What are the different types of life insurance?
Life insurance policies are typically divided into two types:
provides life insurance coverage for a specific time period of your choice: usually 10, 20 or 30 years. This is the most affordable type of life insurance as the coverage is temporary, with premiums that are guaranteed to stay the same.
Term Life Insurance is very well suited for temporary financial commitments such as paying out a mortgage or ensuring your children are financially secure until independence.
as the name implies this type of life insurance provides lifetime coverage. Because of its permanent nature it is typically more expensive than Term Life Insurance; however, it ensures the benefit is paid out regardless of the time of death.
If you are looking for cash value accumulation or an investment component to your policy: Whole or Universal life insurance are permanent policies that offer this feature. With these policies a part of your premium can go towards investments to build a cash value.
Term 100 Life Insurance
is an affordable type of permanent coverage. Since it does not have a cash value option it is much cheaper compared to Whole or Universal Life Insurance and the premiums are guaranteed to stay level.
Guaranteed Life Insurance
is a type of permanent life insurance that guarantees acceptance as long as you meet minimal requirements. There are no health questionnaires and no medical exams. The coverage amount is typically modest, but it is great option for those facing health issues or prior denials.
What factors affect my rate?
Coverage type
term life insurance, which provides temporary coverage is typically more affordable compared to permanent life insurance.
Coverage duration
for term life insurance policies your choice of term: typically, 10, 20 or 30 years will affect the rate. The longer the term, the higher the rate.
Amount of coverage
the rate increases as the coverage amount goes up.
Your age
as we age risk factors increase, as a result the rate is affected by your age.
Your gender
statistically females have longer life span compared to males as a result the rates for females are lower.
Smoking status
smokers will have higher rates due to multiple risks associated with this habit.
Health history
a healthier individual can obtain better rates since the risks to the insurance company is lower.
Occupation
for some life insurance plans having a dangerous occupation can affect the rates.
How much coverage do I need?
It can be difficult to decide how much life insurance coverage you actually need. A good starting point is to consider why you are getting life insurance. For example:
Covering funeral expenses
and other final needs
consider the average funeral cost in your province which typically ranges between $5,000 - $20,000.
Covering
your mortgage
in this case align your coverage with the remaining balance of your mortgage.
Income
replacement
in this case our handy calculator can give an estimate on the needed coverage.
Life Insurance Calculator
Not sure how much coverage you are looking for?
Let us help you with our handy, easy to use
calculator.
Our easy application process explained
- Complete a 1-min quote request on our website.
- Our licensed financial advisor will reach out with a personalized quote and ensure to offer a plan that fits your needs.
- If you are happy with the coverage being offered, the application is completed right over the phone.
- Following 24-hour approval, a digital copy of your policy is provided by email and hard copy by mail if requested. You are covered and stress-free!
