Life Insurance: What is it and why you may need it?
Life is inherently unpredictable, much like the weather, and it has the capacity to throw unexpected challenges or curveballs your way. Do you have family members who depend on you financially? Are you worried about the potential financial repercussions they might face if something were to happen to you?
We understand that making such decisions and choosing the right plan can be complex. That's why the advisors at Aarna Insurance are available to assist you. We will walk you through suitable insurance plans tailored to your specific circumstances, explaining the coverage associated with each plan. Moreover, the cost of individual life insurance varies based on factors such as age, gender, health, medical history, lifestyle, term, and sum assured.
Life insurance provides a solution to protect your loved ones by ensuring their financial security even in the event of your passing. It entails a one-time, tax-free payment to your beneficiaries, determined by the selected plan and the frequency of premium payments. This provision helps ease their financial burdens during challenging times by replacing lost income, settling debts, covering final expenses, and maintaining their living standards.
We offer a no-obligation, free life insurance quote with comprehensive policy details for easy comparison. This allows you to select the most advantageous policy that provides optimal benefits at an affordable price, ensuring you can secure a dependable life insurance policy.
For more in-depth knowledge, some specific scenarios and FAQs about Life Insurance in Canada, please refer to our Blogs
In Canada, there are several types of life insurance policies designed to meet diverse financial needs.
It's crucial to carefully consider your financial goals, budget, and specific needs when choosing a life insurance policy. We can help you navigate the different options and select a policy that aligns with your objectives. Additionally, policy details and availability may vary among insurance providers, and that is why we review and compare specific offerings from reputable companies in Canada on your behalf.
Description: Provides coverage for a specified term, such as 10, 20, or 30 years.
Features: Premiums are usually lower, and coverage is temporary. It pays a death benefit if the insured passes away during the term.
Description: Offers lifelong coverage as long as premiums are paid.
Features: Combines a death benefit with a cash value component that accumulates over time. Premiums are generally higher than term life insurance.
Description: Offers flexibility in premium payments and death benefits.
Features: Combines a death benefit with a savings component. Policyholders can adjust premiums and death benefits within certain limits.
Description: Provides income replacement if the insured becomes disabled and is unable to work.
Features: Offers financial support to cover living expenses and other costs during a period of disability.
Description: Covers two individuals under a single policy.
Features: Typically used for spouses or business partners. The death benefit is paid out upon the first death, and the policy terminates.
Description: Similar to term life but provides coverage up to age 100.
Features: Premiums are generally level, and the policy remains in force until age 100, with no cash value component.
Description: Pays a lump sum if the insured is diagnosed with a critical illness specified in the policy.
Features: The lump sum can be used to cover medical expenses, debts, or other financial needs during a critical illness.
Following is a high-level, simplistic comparative table of the features of different life insurance policies. Life Insurance products can be very complex and vary from one insurance provider to another, so it's important to consult with insurance professionals for accurate and up-to-date information tailored to your needs.
Please feel free to consult our advisors for any questions and details about a specific product.
| Feature | Term Life | Whole Life | Universal Life |
|---|---|---|---|
| Coverage Types | Temporary coverage for a specific term | Lifelong coverage | Lifelong coverage with flexibility |
| Coverage Amount | $100,000 - $1M (sample range) | $50,000 - $1M (sample range) | $50,000 - $5M (sample range) |
| Policy Term | 10 years - 40 years | Lifetime | Flexible |
| Premiums | Affordable | Higher, generally level | Flexible, may be adjusted by policyholder |
| Cash Value Accumulation | No cash value | Builds cash value over time | Builds cash value with flexibility |
| Investment Component | No investment component | Generally, conservative investments | Investment options with flexibility |
| Riders/Options | Limited options | Various, e.g., Waiver of Premium, Accelerated Death Benefit | Customizable, e.g., Long-Term Care Rider |
| Underwriting Requirements | Medical exam and health questionnaire | Medical exam and financial assessment | Medical exam and health questionnaire |
| Policy Benefits/Features | Pure death benefit, no living benefits | Living benefits, dividend payments | Flexible premiums, indexed interest options |