Our Insurance Comparison Tool allows you to pick the right Life Insurance policy by comparing every plan offered by Canada's leading providers. Need more info? Our Frequently Asked Questions can explain this coverage area in greater detail.
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Frequently Asked Questions(click to expand)
What Is Life Insurance?
Life insurance (also known as Life Cover, Death Cover or Life Assurance) provides financial protection in the form of a benefit in the event of someone’s death. By taking out a Life insurance policy, the client is able to provide financial security to dependants and loved ones in the event of their sudden death, a terminal illness or a critical illness.
Why Types Of Life Insurance Policy Are There?
- Term life insurance policy: Policies taken out to cover a fixed period of time with a payment only made out if death occurs during the agreed ‘term’ of the policy.
- Whole of life policy: A sum paid out regardless of time of death as long as premiums are paid.
Payouts can be given to beneficiaries either as a lump sum or through regular payments over a certain period. The latter ensures that the Life insurance policyholder with reassurance that their dependants will be looked after financially in the event of their death.
This can take the form of a regular allowance or mortgage payments if specified by the policyholder (instead of one lump sum).
Who Needs Life Insurance?
- dependents (eg children, ill/disabled family members, etc)
- a partner
- a family living in a home requiring mortgage payments
If the client is single, has a partner with sufficient income or has a job with payment-on-death benefits then a Life insurance policy is not necessary.
What Does Life Insurance Cover?
- critical illness cover (if included by the insurer)
- terminal illness cover (if death occurs within an agreed time limit covered by the policy)
What Is Not Included In Life Insurance?
- age limits
- pre-existing conditions
- long-term illnesses
- critical illnesses
However there are certain exclusions which are typical to most Life insurance policies:
- suicide or self-injury
- any illnesses not specifically included in the scope of cover
- death occurs outside covered period
- death caused by drug or alcohol misuse
- death caused by high-risk activities (eg sports that require extra or specific cover)
How Much Is Life Insurance?
- client’s age
- client’s health
- client’s lifestyle
- smoking habits
- policy length
- amount to be covered
In short, the younger and healthier the client, the cheaper the premiums will be for a Life insurance policy. While some Life cover plans are very rigid there are also some that take into account chronic illnesses and deteriorating health. The latter will be more expensive but are now beginning to appear more frequently.