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Why Canadians need life insurance 

According to LIMRA, approximately two out of three people admit they’d have difficulty meeting everyday living expenses either immediately, or within only a few months, if they lost their income. Life insurance provides protection for every age group, family dynamic and life stage.

Young adult

Young adults aged 18 to 24 are at the prime age to purchase life insurance for their future needs because premiums are at their lowest.


Single professional

Single people who’ve graduated school and are starting their careers need to consider how they’d cover school loans and credit card debt.


Single-parent family

Single-parent families need to cover debts, plan to support their families in case of a critical illness or disability, and ensure their kids have a secure future.


Two-parent family

Two-parent families need to cover the mortgage, taxes and other debts. They may need income replacement to maintain the family’s current standard of living.


Couple

Couples without children need to cover debts, protect their businesses and save for retirement. They may need income replacement to help the surviving partner maintain his or her standard of living.


Retiree

Retired people need to cover final medical and funeral costs, and provide for their spouses. They may be thinking about building a legacy for their family, charitable donations, or funds to pay tax liabilities on an estate.

 

What kind of life insurance is right for you?

Canadians can choose from three varieties of life insurance that offer flexibility for all needs.

 

Product

Term Life

Best for

Temporary needs and specific financial obligations

Coverage length

Protection ends at specified time or age

Cost

Lowest initial cost for coverage. However, premiums increase at each renewal and become expensive at older ages

Pros
  • Most affordable life insurance (low initial cost)
  • Easy to match specific obligations (mortgage, loan, education)
  • Option to convert to permanent insurance without medical evidence as your needs change

Cons
  • Premiums increase at each renewal
  • No cash value
  • “Renting” versus “owning”

Whole Life

Best for

Permanent needs and long-term guarantees

Coverage length

Lifetime protection

Cost

Higher premiums that are guaranteed to remain level

Pros
  • Permanent coverage for life
  • Guaranteed fixed premiums
  • Guaranteed cash value that can be surrendered or used as collateral
  • Level guaranteed death benefits
  • Dividends can provide additional coverage and/or cash value
  • Investment returns are stable
  • Tax-sheltered investment growth

Cons
  • No input into investment choices
  • Premiums are not flexible
  • Dividend levels are not guaranteed

Universal Life

Best for

Flexible financial plans with a permanent insurance need

Coverage length

Lifetime protection

Cost

Premiums vary depending on coverage and investment options; highly flexible

Pros
  • Permanent coverage for life
  • Multiple lives can be insured
  • Flexible premium amounts and investment choices
  • Tax-sheltered investment growth

Cons
  • Premiums and investment returns are not guaranteed
  • Ongoing planning required

Let’s discuss your options.