What About My Work Plan?
While you may have basic life insurance through work, the coverage may not meet your needs and typically ends when you leave your employer.
With your own plan, you’re covered, regardless of what happens with your job. The first step in getting that independent peace of mind is asking for a life insurance quote from a variety of companies.
What do I look for in life insurance quotes?
- Verify that your information and expectations are relevant to your situation. For example, avoid United States data if you are looking for a life insurance quote in Canada.
- Check for the correct category of policy.
- Find quotes from as many different insurance companies as is practical, looking at least three or four.
- Confirm that each insurer's policy in your desired category has the protections you require.
- Make sure that your life insurance quotes all have an adequate term duration.
- Compare quotes that offer the same benefit amount and, ideally, the same supplemental protections.
- Examine any riders that you could add to the policies and consider the impact that addition would have on your premium.
- Estimate value by comparing benefit amounts to premium costs.
- Consult with a financial advisor for detailed advice after narrowing down your choices.
TYPES OF LIFE INSURANCE
Benefits of Term Life Insurance
- Term life insurance provides simple and affordable protection for a defined period when insurance needs are high but available funds are limited.
- In the event of your death, the policy pays a cash benefit, tax-free, to your beneficiaries.
- The costs never increase for the entire term.
- Ideal for people who want to ensure debts like mortgages and loans are paid off or children’s education needs are met, or to replace the income so your family can maintain their standard of living.
Term Life Insurance vs Mortgage insurance
There are many reasons why a term life insurance policy is a better choice than mortgage insurance:
- Premiums - With mortgage insurance, there are no discounts for being a non-smoker or for being healthy. Everyone pays the same premiums.
- Underwriting - Mortgage companies use “post-claim” underwriting, which means they’ll only decide if you qualify after you pass away, at which point they may decide that you never qualified.
- Declining Benefit - Mortgage insurance declines as you pay off your mortgage, but the premiums stay the same.
- Beneficiary - With mortgage insurance, the beneficiary is the bank. With personal term insurance, you assign the beneficiary.
- Portability - Mortgage insurance is tied to your home. A simple term policy is portable and covers you regardless of who holds your mortgage.
- Consolidation of coverage - Mortgage insurance only covers your mortgage; a personal term policy can cover all your insurance needs (mortgage, income replacement, education, childcare etc.)
In summary: Life insurance quotes might seem comparable in price to mortgage insurance. However, term life options usually come out on top when you consider the utility and long-term value of the policy versus your premium cost.
Looking for permanent insurance for final expenses, legacy, or funeral costs? Click here.
Participating Life Insurance
Participating life insurance provides lifelong protection, with an opportunity for tax-advantaged cash value growth.
The amount of coverage and annual costs are guaranteed for life, and you may be eligible to receive dividends that
can buy more coverage, reduce your premium payments, earn interest inside the policy or be taken out as cash.
Ideal for people who want to supplement their retirement income, help pay for children’s education or increase their
death benefit over time to keep pace with inflation.
Universal Life Insurance
Flexible lifelong protection is combined with an investment component that you choose and manage based on your risk profile and objectives
You choose a guaranteed death benefit that will be paid to your beneficiaries.
The money you pay goes into a policy fund that’s used to pay for the cost of your insurance. The remaining balance is invested on a tax-advantaged basis from a variety of investment options.
Ideal for people who have maximized their RRSP contributions, want to enhance their estate for their children and grandchildren or are business owners looking for a tax-efficient way to protect the value of their business.
Universal life insurance quotes in Canada are typically lower than those for whole life, but universal prices can vary considerably. This range of premiums reflects the flexibility of the policies.
Disability Waiver of Premium
This optional benefit is designed to waive the premium if the individual insured under the basic plan becomes totally disabled prior to attaining age 60 and is disabled for 6 consecutive months.
Upon receipt of proof of disability, all premiums paid during the 4-month waiting period will be refunded.
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