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Benefits of Term Life Insurance in Canada

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affordable term life insurance quotes

The decision to get life insurance in Canada is an easy one if there’s someone relying on you financially. Having family members or dependents to take care of is a huge responsibility, especially when you’re the sole breadwinner of the family. 

The day you’re no longer there to support your family, they will start to struggle; unless you have a pension plan. Most people don’t have any type of pension plan. For them, the best choice is securing a life insurance plan. Family members who are dependant on you would have to pay for groceries, mortgage, gas, and countless other bills. Life insurance would be able to help them significantly.

Just how much insurance coverage you need depends on your monthly financial contribution. For instance, if your contribution to monthly expenses is at least $2,500 and your family would need this steady cash inflow for the next 20 years, then the desired life insurance coverage for you would be $50,000. This package would assume a 5% after-tax rate of return and inflation of 2%.

Continue reading and you can learn more pertinent information about term life insurance:

Term vs Full Life Insurance 

Term life insurance in Canada has a guaranteed cost, or premium, for a fixed term. The term duration is usually 10 to 20 years and after the term has expired, the premium goes up rather substantially. If you had hired professional financial services for the insurance planning, your life insurance requirement at the end of the term will be minimal. This means you can cancel the policy instead of paying the substantially high renewal rates.

A greater ratio of Canadians qualify for a better health class rating than the one they have under the current policy. Rates are affected directly by the health class rating, so if you have a good health class rating you can secure better rates at term life insurance

However, it is a fact that many Canadians - with existing life or term policies from most prestigious companies - are paying more than they should. To give you a fair idea of which names to trust when it comes to term life insurance, here is a list of popular insurance plans in Canada:

Top Term Life Insurance Plans in Canada 

  1. $250,000 Term 100 coverage (criteria: 35-year-old male, non-smoker):

Empire Life: $99.00/month

RBC Insurance: $99.23/month

Cumis Life Insurance Company: $101.50/month

2. $250,000 Term 100 coverage (criteria: 45-year-old male, non-smoker):

Manulife: $160.29/month

RBC Insurance: $177.30/month

Empire Life: $186.98/month

3. $250,000 Term 100 coverage (criteria: 55-year-old male, non-smoker):

Manulife: $319.79/month

Industrial Alliance: $345.15/month

Western Life: $356.90/month.

Insurance for all age groups 

Even though the groups mentioned above have age restrictions, this insurance is accessible to all age groups and they can get the benefit of this product. A popular myth is that “only the young can get affordable rates”. That is not true as there are certain misconceptions related to this industry and needs to be clear. Just read the guidelines online and then decide which insurance product suits your needs and secure your loved ones in case of accident or death. No matter how young or old you are, you can apply and secure your life and dependants.

Even seniors can secure life insurance and given the fact that they are old and ailing, term life insurance suits them more. Rates of guaranteed life insurance can be a lot higher for seniors because of the inherent assumption that seniors are not healthy. That’s why term life insurance can be a much better option for them. 

In fact, if you’re a senior and you’re in reasonably good health, term life insurance is for you. Term life insurance rates can be lower, as it’s based on your health. This could result in significant savings for you!

Why you need Financial Guidance from Professionals

Insurance is an important element of any sound financial plan. The plan you have chalked out for your future has to be meticulously planned out and free of loopholes. For that purpose, financial planning has to be done with the help of financial guidance professionals.

It is the process of meeting your life goals through the proper management of your finances. It includes elements of protection, wealth creation, planning for contingencies and emergencies, as well as planning for specific milestones in life. That is why you can only trust financial professionals who will go through your records and requirements, and will suggest the best insurance plan for you.

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