Best Life Insurance for Individuals in Canada

Buying life insurance is essential for anyone who is the breadwinner of a family with dependents. Despite what many people believe, life insurance doesn’t need to be long-term nor cost much. Whether you want to buy an individual or joint-life policy, read on to find out more about what we believe is the best life insurance for Canadians.

Life Insurance Explained

Anyone who has a monthly income that supports a spouse, children, partner, or even their parents need life insurance. Essentially, you need to think about the expenses that are related to the aforementioned as a financial obligation that does not go away even if you are not there. Consider mortgage payment or rent costs; your family needs a roof over their head to live. With life insurance essentially you will transfer this financial obligation to the insurance company in exchange for a premium. 

In the policy agreement, signed between the insured and the insurance company, the insured agrees to pay a monthly premium to the insurer in return for a lump sum payout if they pass away and the insurance is still active. This lump sum payout or the death benefit allows the family of the deceased to accomplish their life goals and pay the monthly bills once their paycheck ceases.

The higher your financial obligations, the higher your need for life insurance coverage. Here are six of the most common obligations:

1. Spouse
2. Children
3. Parents who depend on you
4. Debt repayment
5. Mortgage
6. Final tax bill liability

Types of Best Life Insurance

Several insurance companies offer life insurance in Canada, but there are two main ways to insure your life and keep in mind that the death benefit from life insurance policies is tax-free. 

What is Term Life Insurance?

Term life insurance allows you to choose a specific number of years you feel you need financial protection for. Usually, people choose anything between 10 and 30 years, the amount of time required to cover their mortgage, or they still have the responsibility of raising and educating their children. Due to its nature, term insurance is cheaper.

When you apply for term life, an underwriter checks the information you provide about your sex, health, lifestyle, and financial wellness. This helps calculate the cost of insuring you.

A 35-year-old male healthy male can expect to pay between $32.40 and $33.30 a month for a 20-year term life policy with a $500,000 benefit. For a healthy female applicant of the same age and the same benefits, term life insurance costs between $23.44 and $26.10. These premiums rise, sometimes significantly, if someone has health risks or is a smoker.

A 20-year term policy with a benefit of $250,000 for a 30-year-old male, non-smoker prices start at $17,16 and go up to a very affordable $22,28. 

What is my rate for Term Life Insurance? Click Here to Use our GetCovered App.

 

What is Permanent Life Insurance?

There are several kinds of permanent life insurance and the amazing perk is that there is no time limit to the policy; the coverage is for life. Whether a person chooses whole life, universal, or term 100, the policy’s coverage is lifetime but you are expected to pay a higher premium. 

Whole life insurance is a great choice for covering permanent liabilities and the needs that are always present for the insured, for example, funeral costs. With the whole life insurance policy, the insured has the ability to add different riders (additional coverage) to their policy to increase the payout of the policy if the rider is activated, for instance, the insured can add a disability income rider and in the event, the insured is permanently disabled, they will receive a regular income from the insurance provider.

Universal life insurance is another type of permanent life insurance that allows the option of investment and savings in addition to the life insurance component. Universal life insurance covers the insured during the entire span of life and expires upon passing the insured. The death benefit and the investment funds in the account (depending on the policy structure) will be paid to the beneficiaries.

What is my rate for Permanent Life Insurance? Click Here to Use our GetCovered App.

 

How Much Life Insurance Must I Buy?

As everyone knows, coverage can mean different things for every family. The best way to work out how much insurance you need is to work out your current debt (don’t forget your mortgage). Also factor in your family’s living expenses, education costs, and other future expenses, and the value of your current assets. In addition, you need to take your financial goals and objectives in mind when deciding between life insurance policies. Our GetCovered App provides recommendations following a 5 step analysis:

1) Establish Insurance Goals and Objectives 2) Gather Relevant Information 3) Identify Gaps and Problems 4) Identify the Right Insurance Solution 5) Highlight the Important Features  

Find out how much coverage you need through our GetCovered App.

Buying Life Insurance in Canada

There are three ways to buy life insurance in Canada – you can either go directly to an online independent broker, phone an insurance company or ask an insurance agent. Whichever of the three you decide to use, evaluate all the quotes you receive carefully before signing an agreement for a long-term commitment.

You need to have a good idea of the cost of your policy and the length of the approval time. It’s also good to know how you will submit documents. Can you send them online, or will you need to take them in person?

Which Insurance to Choose?

Canada has several excellent insurance companies offering different types of best life insurance policies. Whatever your insurance needs, getting online quotes to compare prices has never been easier.