Life Insurance in Canada
Life insurance is a legal contract between insurance holders and insurers, where insurers are committed to pay the beneficiary in exchange for a premium, upon the death of the insured. The conditions of payment depend on the contract and even an illness can trigger it. In Canada, two main types of life insurance are provided: Term life Insurance and Permanent life Insurance.
Just as it sounds by its name, term life insurance covers only a specific length of time. Popular periods of the term life insurance in Canada are 10 or 20 years, but 25 or 30 years or coverage up to age 65 are also attainable. Insurance companies pay a tax-free payment after the death within the term and it can be used to pay debts, child-care costs, living expenses, and more.
On the other hand, permanent life insurance (also known as whole life insurance) lasts for the duration of life if you pay insurance premiums on time. In most cases, companies guarantee not to increase premiums from the first day you buy the policy. Limited pay permanent life insurance keeps receiving premiums until a certain date, and after that, you won’t pay and just enjoy the payment. With Universal life insurance, you have a chance to control your investment and have tax-free income.
Finally, the best life insurance for you depends on your lifestyle, future plans for you and your loved ones, and your budget. Finance lawyers are always providing the necessary counsel that helps clients find out which type of life insurance is suitable for them.