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Protect Your Future and Family: Canada’s Top Life Insurance Choices

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Life insurance is defined as a legally binding contract between a client and an insurance company that in return for a fixed amount of monthly or yearly payments, the company will pay a previously agreed-upon amount to the people named by the client as nominees. It is important to remember that life insurance isn’t meant for the client or policy owner, but rather, for the people dependent on them: children, spouse, retired parents, etc. It is meant to financially support them after the policy owner’s death.

As such, life insurance is a very important decision that must be taken with the utmost care. It is therefore surprising how many people often neglect it or don’t take enough care in choosing which policy they should opt for.

TYPES OF LIFE INSURANCE:

Term Life Insurance:

  • These come with an expiry date that can be as long as 60 years or as short as 1 year. If the policy owner dies within this time frame, the insurance provider will pay the death benefit to the beneficiaries.
  • However, in the case that the owner survives, there will be no payment made. However, in this case, the company usually allows the insurance term to be renewed.

Permanent Life Insurance:

  • This policy ensures that all of your debts would be paid, your loved ones would be taken care of, and an investment component is available- all without ever needing to be renewed after making the payment for it.
  • However, this option is much more expensive than term life insurance, often costing ten times more. The permanent life insurance plans have two sub-options. These are:
    • Whole Life Insurance:
      • A set portion of your premium goes towards the administrative fees and death benefit payment, while the rest goes to the investment fund.
    • Universal Life Insurance:
      • With more complex rules, this allows you to have more control regarding how much of your money goes where, but it also requires a lot of scrutiny.

These are the two most commonly bought life insurance policies, though there are a few other options available, namely: no-medical life insurance, simplified issue life insurance, and guaranteed issue life insurance. Of course, each comes with different terms and conditions, rules, and benefits.

HOW MUCH LIFE INSURANCE DO I NEED?

There are many factors that go into deciding how big or small a life insurance policy you need- the number of dependents, the premium amount that you can afford to pay, whether you are planning to have (more) children, if you wish to donate to charities, etc.

Calculating the net difference between your assets and liabilities also helps to fine-tune your calculations.

A simple method to estimate your required life insurance is known as the DIME method, which stands for Debt, Income, Mortgage, and Education Expenses. The idea is that the total sum of all these categories adds up to your life insurance amount.

WHAT ARE THE BEST LIFE INSURANCE COMPANIES?

There are many insurance companies in Toronto that can be what you need. However, each company offers numerous variations of policies, even imposing different rules, guidelines, and conditions. Choosing which one is the best option for you is always a tough decision that requires a lot of thought. Some of the factors you should keep in mind while doing so are listed below.

  • How much does the policy you need cost?
  • How long does the company take to approve your application?
  • What do their other customers have to say about them? Are they on time with the benefit payment? Can they be trusted with your money?
  • Is the company financially stable on its own? What does their future in the market look like?
  • How much is the benefit amount?

While the above questions will help you get started on the process of choosing the right insurance policies, we have also compiled a list of some of the best insurance companies in Canada for 2023, based on their annual premiums collected and their average financial strength rating, as per their client bases.

  • Manulife
  • Canada Life
  • Sun Life
  • Desjardins
  • iA  Financial Group

CONCLUSION:

  Life insurance is an important investment for anyone with a family- it ensures that, in the case of an untimely death, their loved ones are taken care of financially in the case of an untimely death. Having life insurance helps provide a sense of protection and safety, especially for the client, giving them assurance that their family will be provided for- funeral expenses, outstanding debts, and even some other expenses can be paid off with the life insurance money. No matter what your needs are, the life insurance contract can be tailored to fit your needs and budget.

  We have listed above some of the best life insurance companies in Canada- however, it is important that you do your own research and find the life insurance best suited to your and your family’s needs before picking one.

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