Life Insurance Canada

Life insurance is something many Canadians consider beneficial to have so they can protect their family if they pass away. In Canada many companies offer life insurance products that cater specifically to the lifestyle choices, concerns and needs of the Canadian public. Life insurance in general has many advantages and features that can make you rest easy. Term life insurance in particular is popular because it offers many advantages that do not come with other types of life insurance, such as whole life insurance. If you have a big family, with many other expenses and a tight budget, term life insurance is beneficial solely because it is less expensive than other types of insurance. Also, if you strictly have temporary insurance needs you can sign up for a term insurance policy that covers you only for a limited amount of time. In fact, it is this aspect of term life insurance that makes it so affordable – because you are only covered for a limited amount of time the premiums you must pay tend to be much lower. The insurance company gives you a better rate simply because with a shorter term policy it is more likely you will outlive the term of the policy and they won’t have to make a large payout that would cost them money. And although the premiums are usually higher the second time around you can always sign up for another term once the first one expires. But if you live a healthy lifestyle and are generally in good health you can benefit from a lower insurance premium.

What are the options available to me?

Terms for term life insurance tend to be available in periods of 5, 10, 15 or 20 years, although terms that are available can vary according to the insurance company you work with. They can also be set up to last until age 65 or 75. If you set the insurance policy to the age of 100 you are basically signing up for a permanent or whole life insurance policy. Often you can opt for rates that increase yearly or a flat rate that is guaranteed to remain fixed for the entire term of the policy. If you want a lower rate from the start it is best to choose an increasing rate as you begin with a lower premium and then work up to a higher rate when you are more likely to be able to afford it. Usually you have the flexibility to pay monthly, quarterly, semi-annually or annually. Depending on your financial circumstances you can choose the option that is more manageable for you.