The demand for life insurance policies in Canada has dramatically increased over the past decade. Life insurance policies are generally used as a way to provide financial security for survivors of the covered individuals who have died. Canadian life insurance policies differ significantly from those offered in the United States, with Canadian coverage differing on many fronts from its American counterpart.
Life Insurance Plans in Canada
Some of the differences include cost, coverage, age, and more. While it is true that most American life insurance policies do not offer all of the same options to Canadians, you should not limit your potential by signing up with the least expensive policy you can find.
It is important when searching for life cover in Canada that you understand the differences between permanent and term insurance coverage. Both types of protection are designed to protect your loved ones financially in the event that you are unable to provide them with monetary assistance after your death final expense. However, there are significant differences in the costs of these two types of life cover.
Permanent policies are designed to provide coverage for your entire life while term policies only provide coverage for a pre-specified period. For example, an entire life insurance plan will allow you to borrow against the policy while you build cash value, as well as receive tax-free benefits upon the death of the policyholder.
The cost of life insurance policies in Canada generally falls into two categories. These categories are short-term and long-term. Short-term policies pay a lump sum amount upon the death of the covered individual, providing financial security to the family members for a specified period of time.
Long-term insurance plans generally provide cash value or tax-free benefits throughout the life of the policy but also pay out at regular intervals throughout the covered individual’s life. The type of life coverage you should choose is determined by your individual circumstances and financial needs.