Navigating the Search for Life Insurance

Choosing the right insurance policy for your needs doesn’t have to be a difficult choice. Term and permanent life insurance policies exist for different reasons. These don’t have to be an either/or decision, as long as you understand your coverage options, you can feel comfortable securing your future and protecting your loved ones. As you are navigating the search for the policy that meets your needs, you’ll have to factor in which type, the coverage you require, as well as the cost, to make your decision.

Term, Permanent, or Universal?

Term life is relatively inexpensive because it only covers you for a predefined period of time. This type gets more expensive as you age. Most people purchase this type of temporary insurance to protect their dependents while they’re young. Term life insurance can help your family deal with their loss by reducing their financial burden. It also includes a joint first-to-die policy for spouses so both are covered. That type of policy is often cheaper than insuring both people separately. 

Permanent life offers guaranteed lifetime protection. This type is more expensive than term life insurance for younger people. The big advantage of permanent is that the premium cost remains constant. Some types of permanent life include policyholder dividends. These can be used to buy more coverage, decrease your annual premium, or take a cash payment. 

Universal life insurance is more complex than lifetime or term. This type of insurance comes with a tax-deferred savings account. Payments made over and above the premium amount are invested in your savings account. Choosing between these three types may require the advice of a financial advisor. 

What is the Cost to Expect?

Determining the amount you’ll pay for life insurance depends on several factors. Your age, gender, and general overall health play a role in the cost. The amount of coverage you choose is the primary factor in the monthly cost. Men typically pay more than women for health insurance each month, too.

The monthly premium amount also depends on several factors. You can contact life insurance companies online to get an accurate estimate of your life situation. Comparing these quotes can help you make a more educated decision. Most major companies in Canada offer online quotes in less than five minutes with minimal information. You should always compare multiple quotes to make sure you’re getting the best deal. Some providers offer extra discounts when bundling home, auto, and life insurance under one household. 

Who Needs Coverage?

Business owners, homeowners, and anyone with children need a life insurance policy. The type of life insurance depends on how much coverage you want for how long. Anyone with an asset that has yet to be paid off can benefit from coverage. Term life is great for young people starting out. It offers affordable monthly payments that don’t break the budget. As you approach the age of 50 you may want to consider switching to permanent life insurance. A licensed agent can help you determine which type is right for your family and protecting for the future.