It’s no secret that life insurance is a vital part of ﬁnancial planning, but choosing the right policy can be tricky. With the different ways to protect yourself and your family, how can you choose the perfect policy for you?
Here are some things to keep in mind when shopping for life insurance in Ontario.
First, think about how much coverage you need. You’ll want to make sure your policy will provide
enough money to cover your loved ones’ expenses if something happens to you. It can be helpful to sit down with a reputable broker and map out your expenses.
Next, consider exactly what type of policy is best for you. Here are the two main types of life insurance:
Term life insurance is an affordable option that provides coverage for a speciﬁc period of time. Term life insurance means that your rates remain level until your term period has expired, which is typically anywhere from 10 to 20 years. After this, your rates will ramp up dramatically, sometimes up to 10x or more.
Some term policies have a conversion option that will allow you to trade in your term policy for a permanent life insurance policy.
Term policies are great when you have family members depend on you for a certain period of time, like when your kids are growing up. If you have adult children living with you, term policies can span longer cycles as well.
Permanent life insurance policies are more expensive, but they offer lifelong protection. As long as you pay your premiums on time (which is kept down by good health, age, etc), your family is
guaranteed to get the death beneﬁt no matter when you pass.
Permanent life insurance is also split up into “whole life” and “universal life” options. Universal life insurance is a more malleable policy that allows you to change your premiums and death beneﬁts to keep pace with changes in your life.
Whole life insurance accrues a signiﬁcant amount of cash value over time, which can be used at any time.
Compare prices and choose the policy that offers the best value for your needs. By following these tips, you can ﬁnd the right life insurance policy for you and your family in Ontario.