As people age, their priorities change. Along come children, high-stress jobs, and family matters to attend to. Then, suddenly it’s time to think about the future and what might happen after we’re gone. It’s important to think about these things, especially if you have young children or loved ones to care for.

That is where life insurance comes in. Though it is never nice to think about death, it is a fact of life. And therefore, something that needs to be considered. When you’re gone, you don’t want to leave your family with financial worries or stress. So, let’s take a look at life insurance. Why it’s important, and how you can get the best deals.

Why Is Life Insurance Important?

When you pass away, you will likely leave some family behind. This means your family will legally inherit everything you own. And everything you don’t. If you have a mortgage, loans, or other financial burdens, these can all be passed down to your family. Along with any property or assets you do own.

It is important, then, to make sure you get life insurance. And it is essential because life insurance can cover payments to your family for your assets, debts, funeral costs, and more. So you don’t leave them in a financial crisis after you are gone. It is recommended that, alongside a will, everyone has their own life insurance policy.

Compare Quotes Online

The easiest way to get an initial idea of how much your life insurance might cost is to have a look online. When you compare life insurance quotes in Canada online. VFor example, you will receive a broad spectrum of quotes from major and independent insurance companies. This is a great way to get a full list of prices and benefits in just a few minutes. The quotes will vary depending on the type of cover and the benefits they include. So you also need to understand the different types of life insurance in the country, what they offer, and how they work.

Types of Life Insurance

It’s not quite as simple as just selecting a quote, then. You need to have a basic idea of the different types of life insurance policies.And whether they are suited to your needs. Here’s a basic overview of the main types of life insurance in Canada.

ideal life insurance for you

● Term Life Insurance

Term life insurance is exactly what it sounds like; insurance for a limited term. Most often, these terms are 10 or 20 years. But some companies allow for a longer-term such as 25 years. These policies, due to their shorter nature, are often cheaper. Choosing a shorter term could help pay for something with a limited timeframe such as an outstanding mortgage or college costs. When the term ends, you can reapply for a new term.  Likely at a higher cost due to your increased age. Or convert the policy to a full-life policy, often with no further questions asked.

● Permanent 

Again, the name gives away the policy length here, as permanent life insurance.  Sometimes called participating life insurance – provides cover until your death, regardless of your current age. These policies include a lump sum payment to your loved ones in the event of your death. The reason this kind of coverage is sometimes referred to as participating insurance is that the premiums you pay are invested in a fund. To increase your end-of-life payout value.

● Universal 

Universal life insurance is similar to permanent insurance in that it can cover your whole life. The difference here is that you can choose what your premiums are invested in. So this is more suited to a more savvy investor-type person. This tax-advantaged investment component can also be partially cashed in upon your retirement. Reducing the payout on death, but providing some retirement savings instead.

● Term-to-100 

Finally, this kind of coverage is a combination of term and life insurance. This policy runs until you are 100, with no cash-out options, making it a little cheaper. The bonus benefit is that if you live to 100. You retain the policy but no longer have to pay premiums.

These different types that can suit a wide variety of people and their needs. If you are young, you may consider a short-term policy that covers you up until the end of your mortgage. After this, a full-life policy may be the best option. Whichever you choose, make sure you do your research on who is managing your policy. How they will invest your money, and what your cash-out options are.