Canada is a great place to live and work. It is also a great country to buy life insurance in. Yet, there are still many individuals living here that do not have life insurance.

Do You Need Life Insurance in Canada?

people

The answer to this is all going to depend on each individual. To answer it effectively it helps to know what are some of the main reasons why people take out this type of insurance.

Why Do People Take Out Life Insurance in Canada?

Every individual has their reasons why they want to have life insurance in Canada.

To Protect Loved Ones

Loved ones need protecting financially in a variety of different ways.

Debt

Quite often young families incur a large amount of debt. During the years they are raising a family. Those responsible for the family worry about this debt. What would happen to the family in the event the financial provider lost their life? There are common debts like car payments, mortgages, and credit card debt. Often the surviving spouse is also responsible for this debt. If they have a life insurance payout to rely on at least, these debts can get cleared.

Financial Stability

When an individual responsible for the family income passes away, it can be devastating. On many different levels. Quite often the family left behind may not have the financial means to maintain their lifestyle. This creates a heavy burden on them. The proceeds from the life insurance can help them. To get through until they can stabilize their lives financially once again. It often gives the surviving spouse a chance to get their finances in order. Also, give time to get re-trained to go back into the workforce once again. Or depending on the circumstances invest the insurance money to give them a source of income.

Education for the Children

A lot of parents start saving for their children’s education as early as possible. If death occurs with one of the parents, this can have a huge impact on the finances for education. Life insurance money can be used for this purpose. At least the surviving spouse can take comfort in knowing they don’t have to worry. About the education costs for the children.

Life Insurance for Investment Purposes

Depending on the type of life insurance you choose it can help to increase your financial stability. Permanent life insurance is one option for being able to do this. Within the permanent life insurance category, there are additional options. Ones that bring similar benefits. Such as Universal Life Insurance and Participating Life Insurance.

Choosing insurance for investment purposes has to be done carefully. There are different opinions about using permanent life insurance for investment purposes. Some feel it is beneficial for tax planning. Or for estate planning. Which are both important issues when it comes to the retirement years.

Life Insurance to Build Savings

Build Savings

Some individuals have a difficult time-saving. Yet, they want to have some cash savings for their future. They may decide to use life insurance for this purpose. It is not as viable as standard forms of savings where some interest can be realized. With permanent life insurance, it builds up in its value. Throughout the time the premiums are being paid. Then if an individual wants to cancel their policy, they can get a portion of what they have paid for it back. This gives them the comfort of knowing they have life insurance in place in the event of their death. But, at the same time if they change their mind about the insurance they can get some money back. To use in their retirement years.

There are several different types of life insurance. Ones that can be looked at in regards to investment values.

Understanding Life Insurance Canada

It is important that every individual that is going to buy life insurance understands at least the basics of it. They need to know what life insurance products are available to them. Then they need to look at which of these offers the most benefits. They also need to think about the future. Some types of life insurance may be perfect for now. But, it may not be the best for the future needs. Individuals need to look at insurance coverage. The type that will allow them to switch over to other types of insurance as their needs change.

At What Age Do Individuals Need Insurance in Canada?

Again this is a personalized product. So each individual has to think carefully about how life insurance can be beneficial to them. Some parents add their children to their life insurance package. This is something that some insurance companies offer. There are some parents who do not feel right about this. But, there can be some valid reasons for doing this.

Then there are some young people in university that think about life insurance. They may want to put their parents as beneficiaries. In cases where the parents have co-signed their student loans.

Shopping for Insurance in Canada

Shopping

Having the opportunity to have life insurance in Canada is one big benefit. To capitalize on this one needs to shop for this type of important insurance products effectively. Another opportunity that insurance shoppers have here is being able to get insurance quotes. This allows for insurance comparison shopping. It allows those who need and want life insurance to choose from that which is best for them.

They get the change to compare prices as well as coverage. It allows them to know what their options are now. Also, they can plan for the future. They may want to look at one type of life insurance now. That best suits their needs. But, will allow them to convert to another type. In the future when their circumstances change.

Resources

https://www.theglobeandmail.com/investing/personal-finance/gen-y-money/article-do-i-really-need-life-insurance-the-costs-vary-greatly-so-choose-with/
https://www.canada.ca/en/financial-consumer-agency/services/insurance/life.html
https://www.ctvnews.ca/lifestyle/life-insurance-can-help-take-care-of-your-loved-ones-after-you-re-gone-1.3530285
https://uwaterloo.ca/waterloo-research-institute-in-insurance-securities-and-quantitative-finance/sites/ca.waterloo-research-institute-in-insurance-securities-and-quantitative-finance/files/uploads/files/05.05.pdf