Matt Hands, VP, Insurance and MoneySense
A life insurance policy is essentially a contract between you – the policyholder – and your insurance company. By paying regular premiums, either monthly or annually, your provider agrees to pay a lump sum of money to your dependents after you pass away. So if you have loved ones around you that rely on you financially, a life insurance policy can provide peace of mind as they'll still be covered after a worst-case scenario.
If you're looking to purchase life insurance – or to simply find out how much you could be paying – we make it extremely easy for you to do so. In just a few steps, we can show you life insurance quotes from over twenty top providers across Canada. That way, you can secure the coverage you need, knowing you're getting the best offer on the market.
The money your beneficiaries receive after your passing is also known as a death benefit. This reserve can generally be used for anything they wish – so life insurance can cover a variety of needs, such as:
Term life insurance
Whole life insurance
Universal life insurance
Critical illness insurance
Mortgage life insurance
Family plan insurance
According to a recent article from Wealth Professional, 2022 was a challenging year for the Canadian life insurance market, but the industry saw slight growth overall. Policy sales returned to a more predictable pattern as the pandemic-fueled demand for coverage has passed – here's a breakdown of the term, whole, and universal life insurance market within 2022 based on data from LIMRA.
How much life insurance do I need?
The amount of life insurance you should purchase will vary on a case-to-case basis. Aside from the needs of your dependents, a few things to consider include your current income, your remaining debts, and your outstanding mortgage. By comparing quotes with us, we can connect you with a licensed broker who will guide you through the process of finding the right policy for your needs.
The cost of life insurance will differ based on your needs as a policyholder, as well as the risk you bring. For reference, here are a few rates we pulled from the market in August 2023. To find out the exact cost you'll be paying, be sure to compare life insurance quotes with us today.
20-year term policy with $500,000 coverage
Whole life policy with $400,000 coverage
Universal life policy with $700,000 coverage
There are many individual factors life insurance companies take into account when calculating your quote. Here, we cover a few main ones, so you can better understand the ins and outs of your coverage.
The older you are, the more expensive your life insurance policy will be. And some insurers won't offer you coverage after passing a certain age.
Males generally pay more for life insurance than females – statistically speaking, men are at higher risk of passing away earlier.
Health & lifestyle
A pre-existing condition, family history of illness, or participating in activities like heavy drinking and smoking, can come with higher premiums.
Term life insurance is generally much more affordable than permanent life insurance, simply because the death benefit could potentially expire.
A 5-year term policy will cost less than a 30-year policy because you're far less likely to pass away during a short period of time.
It's no surprise that the larger the benefit you choose, the more you'll be paying in premiums during your lifetime – added protection comes at a cost.