Life insurance is often something that people have a hard time talking about, which is understandable. It involves discussing what happens when you pass away, however, it’s an essential coverage that will end up bringing you peace of mind.
But we know what you’re thinking once you start browsing through different life insurance policies and trying to find the best life insurance company: “Where do I even start? What is the best life insurance policy for me? Do I need permanent life insurance or term life insurance?”
We’ll cover all of these questions below to help you understand the differences between the two most popular kinds of life insurance policies, which may be best for you, and how to find a life insurance company you can truly trust.
What Is Permanent Life Insurance?
- It provides lifelong coverage, therefore, the monthly premiums are typically more expensive than term life coverage
- It can accumulate a high, tax-free cash value that you can borrow against over time
- There are different varieties of permanent life insurance products that may better suit your needs such as whole life insurance, universal life insurance, variable life insurance, and more
- If you want to cancel your permanent coverage, you will have to pay a penalty fee and you will lose the cash value if you cancel within the first 10 years
- The fixed amount, tax-free death benefit will be paid out to your beneficiaries when you pass which can be used to pay for anything your beneficiaries desire
What Is Term Life Insurance?
Term life insurance plans are very popular amongst Canadians who want to put a safety net in place to help provide funds to their family when they pass away. It works quite a bit differently than a permanent life insurance policy – it’s obviously not permanent, but rather, provides coverage for a certain amount of time, typically 10, 15, 20, or 30 years. If it ends up expiring, you can renew it or decide to switch to a different life policy. While there is no cash value that accumulates over time, there is still a death benefit.
Why To Opt For A Term Life Insurance Policy
- They're less expensive than permanent insuranceThey're less expensive than permanent insurance
- Since you're not locked into lifetime coverage, you can make changes to the policy or cancel at any time without paying a penalty fee or losing a cash value
- Term insurance is a lot more flexible since you can choose how many years you want to buy coverage for
- People have the freedom to use them for covering short-term debts such as a mortgage, tuition, home renovations, etc.
- You can use age in your favour – term life insurance rates do not rise for customers between the ages of 20-35 (and, the better your health, the better your insurance rates will be)
How To Find The Best Term Life Insurance Policies
When it comes to buying life insurance, it can be difficult to find the best life insurance premiums on your own. While you can compare rates from different life insurance providers, one of the best ways you’re going to find the best product and best rate for your particular wants, needs and lifestyle is by working with an independent insurance broker.
Most insurance companies can only offer you the products and rates that they carry, whereas an independent broker has access to a variety of rates and products from different life insurance companies. They can also negotiate on your behalf.
Want To Work With A Life Insurance Broker?
If you’re interested in term life insurance coverage, your best bet in finding the best life insurance companies is by working with an independent insurance broker like Maple Bay. We pride ourselves on being able to show our customers a wide range of products and rates for term insurance from various trusted companies across Canada that work best for them. Just remember, as an independent insurance broker, we work for you, not the insurance company.
There are many benefits to purchasing permanent life insurance coverage and term coverage, but if you’re having trouble deciding which is the best option for you, we can provide our expert advice and help you decide. Many young Canadians opt for term-life insurance because of its flexibility, affordability, and the ability to use it for short-term coverages.