Types of Canadian Life Insurance

Written by Neil Mansell

Life insurance in Canada: you may need it, you may already have it but what exactly it can do for you? Every family should analyze which type of insurance is correct to protect it. There're two main types of life insurance in Canada: Term and Permanent coverage. 



Term Insurance

It usually gets with a set numbers of term years: ten, twenty, fourty etc. Over this period the price remains fixed. When the term comes to an end, the policy renews with a higher premium. The typical term policies last until the age of 80. There's another option called Term 100 which gives term price from today and for the rest of your life. The price is higher comparing to Term 10 or Term 30 and there's no cash value inside. Resume: low cost and risk protection.

Permanent Life Insurance 

It has two main categories: Whole life and Universal life.
  • Universal Life insurance has a broken policy - life insurance and investments separated into different parts. It is more riskier plan, however it is self managed. The returns are fixed to the bond and stock markets - potentially higher returns but also with higher risks. Resume: Flexible, profitable and risky.
  • Whole Life insurance in Canada is managed by the insurance company. When a company makes a profit, it returns to you in a form of dividends. The profit is guaranteed which means that you will never lose money with your life insurance.  Resume: simple and 100% guaranteed.

Canadian life insurance is clearly structured and insurers provide a variety of coverages and quotes people can choose from to protect themselves and their families.  

Life Insurance in Canada