What is Life Insurance?
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits.
The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders.
It is possible for life insurance policy payouts to be made in order to help supplement retirement benefits; however, it should be carefully considered throughout the design and funding of the policy itself.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.
Life-based contracts tend to fall into two major categories:Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies.
Why do you need Life Insurance?Whether you are a parent, a young professional, a business owner or retiring, having a financial plan to make sure that your future, the future of your family or business is secure is essential.
What about plans from my employer?Coverage provided by your employer is often inadequate and may not continue if you leave your job. With your own policy, you're protected, regardless of what happens with your employment.
What plan is right for you?We work with all the major Canadian insurance providers and therefore, are able to find a plan that is tailored to suit your budget, lifestyle and needs at every stage of life. Explore our range of insurance options that can give you the security and freedom to live the life you want. Please complete a short enquiry form to receive a free, no obligation quote.
We search life insurance so you don't have to!