Affordable Life Insurance in Canada

Canadians know that it is important to have life insurance. Life is full of risks, and if something should happen to you, your family would be left not only without your personal presence, but also without the income and support you brought to them in a material sense. Many people delay getting a life insurance policy because they feel that it is too expensive, but there are several options available that won’t break your budget, and will make it possible for you to protect your family.

The cost of a life insurance plan depends in part on which kind of policy you decided to get. There are several different kinds of life insurance that are available to Canadians. These include:

• Term life insurance. This is the most affordable option of the several plans. Term life insurance covers a family for a specified term, such as ten or twenty years. It is the most common plan used by families with children, because it provides a higher level of protection for a shorter amount of time, usually replacing one parent’s income while the children are growing or are in college. Once the term coverage has expired, you can switch to another form of life insurance, or you can renew your term life insurance for another set term.
  
• Whole life insurance. These policies are a bit more expensive than term life policies. One of the benefits of these plans is that they do not expire; they continue to offer the same level of coverage for as long as you continue to pay your premiums. They also tend to have a much higher cash value after you have paid into them for a while.
  
• Universal life insurance. Universal life insurance is a less common option, but still an available one. The main difference between universal and whole life insurance is that you are responsible for investing your own premiums. If your investment isn’t as successful as you had hoped, you might experience a decrease in the value of your policy, which might leave your loved ones without the protection they need if you die.
  
• Accidental death and dismemberment insurance. This is insurance that is specifically geared toward what happens if you die suddenly or if you are maimed in an accident. This policy, called AD&D, is not a primary insurance policy, but it provides supplemental payments in addition to your normal policy. If you are looking for the most affordable plans, it might not make sense to pay extra for a supplemental policy, but if you work at a risky or dangerous job, it might be worth the extra money.
  
• Guaranteed life. This is a policy for those who are desperate to acquire life insurance. If you are looking for good, affordable plans, this is probably not the best way to go. You are guaranteed to be covered, no matter what your age or health condition, but you will pay much higher premiums and you will get much lower benefits from your policy.