Life Insurance

What is life insurance and why it is important?

Life Insurance

Life is full of uncertainties, and it is crucial to plan for the well-being of our loved ones, even after we're gone. Life insurance provides financial protection and peace of mind, ensuring that your family is taken care of in the event of your untimely demise. In Canada, life insurance is a popular means of safeguarding one's family and assets.

Types of Life Insurance

Term Life Insurance

This type of insurance provides coverage for a specified period, typically 10, 20, or 30 years. It offers a death benefit to the beneficiaries if the insured passes away during the policy term.

Whole Life Insurance

Whole life insurance provides coverage for the entire lifetime of the insured. It combines a death benefit with a cash value component that grows over time. The policyholder can access the cash value through loans or withdrawals.

Universal Life Insurance

Universal life insurance offers both a death benefit and an investment component. Policyholders have the flexibility to adjust their premium payments and death benefits, making it suitable for those seeking greater control over their policy.

Why you should get life insurance?

Financial Security

Life insurance ensures that your loved ones receive a tax-free lump sum payment (death benefit) upon your passing. This amount can help cover funeral expenses, pay off outstanding debts, replace lost income, or fund your children's education.

Estate Planning

Life insurance can be a valuable tool for estate planning. It allows you to leave behind a legacy, ensuring the financial stability of your beneficiaries and protecting your assets.

Business Continuity

For business owners, life insurance can play a vital role in succession planning. It provides funds to facilitate the smooth transfer of ownership and management in the event of your death.

What to consider before buying life insurance?

Coverage Amount

Assess your financial obligations, including debts, mortgage, and future expenses, to determine an appropriate coverage amount that adequately protects your loved ones.


Understand the premium structure of different policies. Term life insurance generally offers lower initial premiums, while whole life and universal life insurance policies may require higher premiums but offer additional benefits.

Policy Riders

Explore optional riders that can enhance your life insurance policy. Examples include critical illness riders, which provide financial support if you are diagnosed with a specified illness, and disability riders, which offer coverage in case of disability.

Comparing Quotes

Obtain multiple quotes from different insurers to compare coverage options, premiums, and policy features. Consider consulting with an insurance advisor who can help you navigate the complexities and find the best policy for your needs.


Still not sure what to do? Here is a list of our FAQ’s; click the question to unveil the answer

Can I be denied Life Insurance?


Each insurance company in Canada has its own eligibility requirements and risk assessment guidelines when determining whether an applicant qualifies for a certain Life Insurance policy. Most commonly, reasons for coverage denial include a history of serious illnesses or terminal sickness, age of the applicant and even convictions involving impaired driving.

However, the above mostly applies to term life insurance policies so you can also apply for a guaranteed Life coverage. You can contact our Insurance Advisors to learn more.

Is it possible to use Life Insurance for business or mortgage?


Yes. While it is less common to use Life Insurance as a means to cover business expenses after one's passing, it is still possible to name a business partner your beneficiary.

Similarly, if you have a home with a mortgage, in case of passing, the payout amount can be used towards paying it off.

What coverage is a worth to have along with Life Insurance?


While Life Insurance gives you a guaranteed payout upon insured's demise, there are a few more coverage options worth considering that can save you money should a serious emergency occur.

Critical Illness and Disability insurance coverage are typically the first go-to insurance coverage options. Both of them offer payouts in case you are either diagnosed with one or more covered sicknesses or become disabled and unable to continue earning.

Another option that not many people know about is Accidental Death coverage that offers additional premium paid out in case death of the insured person is a result of an accident as opposed to death from natural causes or illness.

How to decide what amount of coverage to sign up for?


Most commonly, getting a life insurance comes to mind when you have a family to provide for and/or mortgage to pay off.

Depending on the level of your income, age (years left before retirement) and health status in addition to general costs of taking care of your loved ones, amount of mortgage and the length of its term you can calculate an approximate amount of money that should be enough to cover it all.

For example, for a married 40 y.o. person with 1 child earning $85,000 a year and $400,000 worth of mortgage for 30 years, something around 1 to 1.5 million dollars should be sufficient amount of money to cover most if not all possible expenses this person's dependents will face after his/her passing. It would include paying off mortgage, supporting a child up to the age of 19 and possible paying most of tuition costs as well as it would replace the source of income for several years.

How is Life Insurance insurance premium calculated?


In order to set a premium you will need to pay for your insurance coverage, insurance companies must assess the risk of you passing away during the coverage period. There are a few factors at play that insurers consider before making their decision.

More specifically, they review your health status, age at the time you apply for insurance as well as your smoking status. Consequently, for young and healthy non-smoker individuals insurance premiums will be considerably cheaper compared to an older adult with a medical history, who used tobacco products within a few years before applying.

What if I have Life Insurance through work?


Many employers offer Life Insurance coverage as a part of health benefits you get when you work there. However, a popular misconceptions about such coverage is that a person who decides to change jobs will still be covered under such policy, which is not necessarily true.

In case you leave your job where your life insurance coverage was tied to, you will loose it. Hence, it is important to have your personal life insurance coverage in case you decide that you are better off switching jobs or take a leave for an extended period of time.