Life Insurance Policies in Canada

There are numerous life insurance companies in Canada offering excellent products that meet the needs of Canadians. Some of the most famous names to be quoted include Great-West Life, Sunlife, Primerica Life Insurance Company, BMO Insurance, RBC Insurance. Most Canadian insurers will be happy to provide a free life insurance quote considering various factors that impact the insurance costs. Average Canadian spends close to $58 per month (approximately $700 annually) on term life insurance, which indeed is a significant cost block.

The least expensive type of life insurance policy judged by size of premium payments and cost of insurance is a term life insurance policy. The reason is that term life insurance has no cash value, and expires before the insured individual is hypothetically expected to pass away. Whole life insurance is significantly more expensive. Premiums paid are often much higher than a term life insurance policy with the same amount of coverage since one is paying for an insurance policy in addition to putting money into the cash value portion of the policy as well. There is a significant difference in the term life and whole life insurance. This is because the money paid into the term life insurance premiums are only there to provide a death benefit to the beneficiary while the insured dies during specified term, while money invested in whole life insurance premiums builds cash value that can be used later in life or that will add to the death benefit pay-out.

It is easy to determine the amount needed for life insurance, simply follow this general philosophy to find the target coverage amount, which is financial obligations minus liquid assets. This is true for every broker including the best insurance broker Calgary or other insurance companies Calgary. To calculate obligations, add annual salary (times the number of years you want to replace income) + your mortgage balance + your other debts + Future needs such as funeral costs. Also, it is perfectly fine to have multiple life insurance policies. You just need to just need to justify the amount of coverage requested. You can apply for multiple life insurance policies simultaneously. One basic rule of thumb to be followed is that the death benefit on the policy need to equal seven to ten times the amount of annual salary.