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How to Choose the Right Life Insurance
Did you know that Canadians spend $13 billion every year on life insurance premiums? Maybe you’re one of them. Maybe not. Everyone has their own reasons for buying life insurance, but there are three primary life events that typically coincide with the decision:
- Marriage
- Expanding family
- Real estate investment
When you buy the right type of life insurance, you can rest assured knowing your loved ones will be financially protected in the event of your death. Benefits may cover the cost of:
Funeral expenses
Lost income
Unpaid debt
Estate taxes
Life insurance benefits can also help cover the daily living expenses for those left behind.
Choosing the Right Life Insurance Coverage
This is where things get a little tricky. No single situation is alike when it comes to lifestyle, finances and the many other considerations that go into choosing the right life insurance.
So where do you begin? First, explore the different types of life insurance:
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is sometimes referred to as guaranteed acceptance life insurance. It is a type of whole life insurance. You’re not required to answer any health questions or take any medical exams. With guaranteed issue life insurance, your insurance company is not allowed to review your medical records or prescription history. You’re guaranteed coverage.
Term Life Insurance
Term life insurance is also known as pure life insurance. It guarantees benefits will be paid if the person covered passes during a specific time. Whole Life Insurance Whole life insurance is a type of permanent life insurance that provides lifetime coverage. Whole life insurance not only pays a death benefit, but it also allows you to save and accumulate cash. policies are also known as “permanent” or “traditional” life insurance.
Permanent Life Insurance
Similar to whole life insurance, permanent life insurance covers you for life as long as premiums are paid. Permanent life insurance offers your beneficiary a tax-free payment after you pass, and sometimes includes the option to build a cash value.
Universal Life Insurance
Another form of permanent life insurance, universal life insurance is typically offered at lower premiums. It also has an investment savings option, and beneficiaries will receive a death benefit after you pass.
Final Expense Insurance
Just like it sounds, final expense insurance covers you for the cost of your final expenses. It’s easier to be approved for final expense insurance, as it offers the beneficiary a smaller payment after you pass.
Group Life Insurance
Often provided in conjunction with an employee benefit package, group life insurance is typically paid for, in part, by your employer. The amount of coverage is often twice your annual salary, although this is not set in stone.
Request Your Life Insurance Quote
Now that you know a little more about your life insurance coverage options, talk to a Dennis Financial agent. We take a personalized approach to life insurance. Together we’ll talk about your needs and goals, then we’ll recommend the best life insurance options to suit your unique situation. Getting started is easy: