Have you been thinking about buying Life Insurance in Ontario? If yes, you’re not alone. For most of the Canadians, Life Insurance is the most crucial part and the foundation of a secured financial future.

In this article, we will help you grasp the basics of Life Insurance and the types of Life Insurance in Ontario.

What is Life Insurance?

life insurance in ontario

Life Insurance is one of the most important ways to protect you and your loved one’s financial future and leave a tax-free legacy. A Life Insurance is basically a legal agreement between you and an insurance company that guarantees payment of the face value of the policy, upon death. The Insurance Company you choose will guarantee a predetermined amount of money to your family after your death, in exchange for regular payments during your term. The amount that is paid to your family depends on the type of policy you choose.

You can buy Life Insurance from either a licensed Life Insurance Company in Ontario or a qualified Life Insurance agent who can help you work out a more comprehensive financial needs analysis.

What are the types of Life Insurance in Ontario?

There are many companies that offer several types of Life Insurance in Ontario. Here are the general types of Life Insurance available in Ontario:

Term Life Insurance – Term Life Insurance is a low-cost option that covers you for a specific period of time let’s say 10 or 20 years or to age 60 or 65. Term Life Insurance is temporary and it provides death benefits only. A death benefit is paid to your family only in case you die during the term of the policy.
The premium costs remain the same and are low. When the time period is up, you can renew your coverage but at a higher cost. Because of the low cost, Term Life Insurance is a good option for people who are just starting out.

Get free Term Life Insurance Quotes here.

Whole Life Insurance – Whole Life Insurance is the most popular type of Permanent Life Insurance that covers you for life and builds up cash value over time. As you pay your premium over time, it builds investment value. The value of your Whole Life Insurance policy can be cashed out to supplement your retirement income or help you to pay your expenses. As you are protected for life, Whole Life Insurance has a higher premium.

Get free Whole Life Insurance Quotes here.

Universal Life Insurance – Universal Life Insurance is also a type of Permanent Life Insurance but it gives you more freedom with your investment. It has a self-directed long term investment component. The premiums in Universal Life Insurance are adjustable and depend on savings and insurance needs. It can be considered a way to save for retirement. Universal Life insurance can get complex, get costly based on your coverage, and requires constant monitoring.

You should always consult an experienced Insurance and Investment broker that can help you with the intricacies of Universal Life Insurance.

Term To 100 Policies – Term to 100 policies is a type of Whole Life Insurance but it does not have a cash-out option. Term to 100 policies provides Life Insurance coverage through to age 100. These policies are Permanent Insurance policies and are guaranteed for life. Their premiums are usually lower than traditional policies and hence these are the lowest cost form of permanent insurance.

Finding the perfect Life and Term Insurance in Mississauga can be a challenging task. Our team of well educated and renowned Insurance and Financial Advisors (CFP, CLU, CHS) can help and guide you to achieve your Financial Goals with the help of best suited Life Insurance and Investment options. Compare and get Free Life and Term Insurance Quotes online to see what kind of coverage you need and research about the policies that fit your lifestyle, financial plans, and needs.