Life is definitely a roller coaster ride and it can land us and our loved ones in unpredictable situations. Hence, for the security of our dependents, life insurance is very important part of the banking system across many countries in the world. In fact, it is a very vital part of the financial planning. However, sadly not many people show interest in purchasing or discussing it. Although, it may sound little uncomfortable, but the fact is that life cannot be predicted and hence, it is better to be prepared before it is too late. There are many companies which can offer the best life insurance in Canada; however, people must need good knowledge on how to choose the best one.
Types of Life Insurance:
According to the statistics, majority (around 50%) of Canadians purchase the Term Insurance policies, 40% people chose the complete life insurance policy and remaining 10% choose the other types of life insurance such as the Universal life insurance. A term life insurance will protection, but will expire at the end of every term. The term can be decided by the purchaser such as five years, ten years and twenty years term. The term insurance is not complicated and is very easy to understand. It is also termed to be “the pure insurance product”.
The Universal Life insurance is a good amalgamation of life insurance and investment component. In this, you can choose the amount you want to invest. The term period is mostly higher than the Term insurance period. The third type of insurance is known as Whole Life Insurance. In this, there is less flexibility of investment or choosing term period. It is much expensive than the Term life insurance. Every insurance policy has its own pros and cons, hence it is hard to say which among the three or more is the best life insurance in Canada. Wholly, all the three meet the purpose of providing protection to the person’s dependents during unfortunate events.
Amount of Life Insurance you may need:
You can decide the amount of life insurance you may need, based on following factors: the amount of income your family may need, decide based on amount of debt or cost of pay down asset, children studies and securing future and aid for spouse and parents for a long span of time. According to studies, it has been found that around 30% people opt for around $100,000. However, it is better to opt for around $500,000. For more information, you can decide after speaking with the insurance company and the agents.
The amount of life insurance also depends on several other factors such as number of children, old age parents, dependent spouse, debts etc. If you have young children, then you may want to secure their future needs such as Clothes, food, health care, schooling and housing, and child care. Calculate the overall cost up to the age of eighteen and keep them protected. Make a good research, talk to many agents and compare the rates and terms before deciding on your future.
