There are two major types of life insurance: term life and permanent life insurance.
Term life insurance covers you for a specific period of time, which is often a year but can be much longer. A specified amount of insurance is provided during the term for a fixed rate. At the end of the term, the coverage ceases and the policy has no value. Buy this for its lower cost to match a need which has a specific time period – the term of a mortgage, for example.
Permanent life insurance protects you for your lifetime. It can build cash value and provide a death benefit. This can be used for wealth management, estate planning, tax-advantaged investments, and more. Types of permanent insurance include whole life or endowment, universal life, and variable universal life. Buy these when there is a bigger financial need – one beyond covering a need should you die.
Your life insurance should be considered part of your overall financial plan; the amount and type of insurance should match your exposure and risks.
- Life, Health and Financial Security Report: Globe & MailToronto, ON (July 31, 2020) – The global coronavirus pandemic has created an array of health and economic challenges, which have been felt to various degrees in every corner of the world. In Canada, the life and health insurance industry, governments and employers have been working together to ...
News and Articles
- Life, Health and Financial Security Report: Globe & Mail
- Verisk Launches Life Risk Navigator Software Platform
- Life Insurers Increasingly Turning to SaaS Core Systems for Speed of Operations
- SSQ Insurance launches new entirely electronic simplified life insurance products
- More than half of all Canadians do not know how to find virtual care
- iA Financial Group launches iA PAR, a new participating life insurance product
- Omniscience Launches First Life Insurance Underwriting Automation Suite Designed for Today’s Highly Complex Business Environment
- Life Insurers Waking Up to Importance of Customer Experience to Tech-Savvy Populations
- A Life Insurance Digital Transformation Benchmark: Infancy vs. Maturity
- PolicyMe raises $3.3 million to simplify the process of buying life insurance