Life insurance is an essential part of planning for your future and finances. Whether you are planning on starting a family or your family members are dependent on you, life insurance plays a key role in ensuring your family or dependents have a financial safety net in the future. However, with so many options to choose from, the process of acquiring life insurance coverage can seem daunting and overwhelming. Choosing the right coverage for you and your family entails taking into account your current financial circumstances, family dynamics and your family’s financial needs. To help you find the right insurance policy for your family, we’re breaking down the different options, so you can decide which one best suits your financial needs!
Term Life Insurance
Considered a temporary life insurance policy, Term Life Insurance provides individuals with the option of choosing the length of time that the policy will run. Particularly useful for individuals who are looking for inexpensive coverage, this policy gives you the option of choosing the length of time that best suits your financial circumstances. Your monthly premium payments are based on a fixed amount that is paid throughout the length of time of your policy, usually anytime between 5 to 20 years.
Your beneficiaries will be able to receive the policy benefits as long as it is within the time frame that you have chosen. The downfall to this particular option is that once your policy has expired, your family and dependents can no longer receive your death benefit unless you purchase a new policy or extend your current one. However, unlike other life insurance policies, Term Life Insurance can offer flexibility for the individual. If you change your mind, you may have the option to switch a permanent insurance policy. For younger Canadians, Term Life Insurance is a cheaper alternative than other insurance policies.
Whole Life Insurance
In comparison to Term Life Insurance, this option is permanent as long as premiums are being paid on-time. This specific insurance policy offers much more stability and security as Canadians don’t need to be concerned with an expiration date or renewal. There are also more long term benefits for Whole Life Insurance than Term Life. Besides the death benefits, this policy offers other perks, such as cash value and dividends. As premiums are paid over a long period of time, cash value is accumulated that can be used as a financial safety net for any additional expenses. However, Whole Life Insurance policies can be more costly than Term Life due to the investment option that is offered.
Universal Life Insurance
Another form of permanent insurance policy, Universal Life Insurance offers more flexibility for the individual. Unlike Whole Life Insurance, which offers fixed premiums, the duration of the Universal Life Insurance policy and the premium costs can change. When things get tough financially, individuals have the option of lowering their premium payments. Similarly, if an individual wants to invest more in their death benefit, they have the option to increase their premium. A Universal Life Insurance policy offers individuals insurance coverage and an investment option. Individuals that choose this policy can put money into their investment regularly. This allows individuals to plan their finances and attain more financial stability down the road.
Finding The Right Policy For You
Deciding on the most suitable insurance policy entails assessing your current financial circumstances and family dynamics. With numerous options to choose from, it can seem overwhelming to invest in the right coverage. Our team can help you find the right Life Insurance policy with your financial needs in mind. Discover our Life Insurance policies or contact us today!