Life insurance in Canada: How to make the right choice

Think of life insurance as a safety net woven to catch you and your loved ones in times of need. It's a comforting assurance that spans all life stages, offering a protective embrace whether you're 18 or 81. 

Are you just entering your first career? Maybe you're juggling family life, a mortgage, and the daily grind. Or perhaps you're eyeing retirement on the horizon. No matter where you find yourself, life insurance might seem like a distant thought, but it is a crucial step for anyone. It helps ensure you're prepared for all of life's what-ifs. 

Different types of life insurance are available; here's what you need to know about each type to find the one best for you.

Term life insurance 

When looking at insurance coverage, think about what you want to protect. Term life insurance offers you coverage for a certain amount of time, depending on your choice. 

You can be covered from five years to 100 years, depending on your needs and budget. 

For example, some people may only want to be covered when they are raising their children in case something happens to them. This way, the children would receive death benefits, which could help them pay for education costs, living costs, debt repayment or future savings. 

Consistent monthly or annual premiums provide a predictable financial commitment, ensuring you can easily manage your costs. 

CAA Protect’s Term Life Insurance can be used for replacement income, university tuition and mortgage payouts in the event of your death. 

Permanent life insurance

Permanent life insurance is exactly as it sounds; it covers you for the entirety of your life. If you die while your insurance policy is in effect, your beneficiaries will receive a death benefit.

This form of coverage is designed with the long-term future in mind, accumulating cash back that you can collect if you cancel your policy. Additionally, your life insurance policy can serve as collateral, allowing you the option to secure a policy loan if needed. 

Your coverage helps with long-term financial planning, such as saving for retirement, paying for funeral expenses and leaving money for your family. 

With permanent life insurance, you're not just safeguarding against the unforeseen; you're crafting a financial strategy that will stand the test of time, helping offer peace of mind and stability for you and your loved ones. 

There are two different types of permanent life insurance that you can get depending on your needs. 

Whole life insurance

According to the Government of Canada, whole life insurance is a permanent life insurance variant that ensures your coverage persists throughout your life. 

The premiums you pay are fixed and will not increase with age. Typically, your policy includes a guaranteed minimum cash value and permits the withdrawal of funds during your lifetime. 

This insurance policy might appeal to individuals looking for lifelong coverage who are looking to invest their money.

Universal life insurance

Universal life insurance is similar to whole life insurance, with a few main differences. According to the Government of Canada, this coverage allows you to combine your policy with an investment account to build wealth for your beneficiaries. 

The death benefit and cash value of your investment account can increase or decrease depending on the types of investments and their returns. 

Universal life insurance may appeal to people who view life insurance as a long-term investment strategy. It is particularly attractive to high-net-worth individuals who can afford the additional premiums. 

How to pick the best coverage? 

It is never too early to start considering life insurance and your options. When you purchase life insurance, you will buy a plan best suited to your lifestyle. 

There are a few things you should ask yourself when you are looking at getting life insurance. Do you want it to last for a specific time frame? Then CAA Protect’s Term Life Insurance might be your perfect fit. 

If you want coverage that will last your entire life, you should check out CAA Protect's Permanent Life Insurance options. 

You should also determine what you want it to cover. Whether you are looking for a plan to help protect your loved ones later in life or a plan to allow you to make investments, there is a plan for you. 

Protect your family today

Having life insurance is an important way to help protect your family's future and secure their financial future. Regardless of whether you are just starting out or planning on retiring soon, CAA Protect has a life insurance plan that will work for you. 

Here are some key features of CAA Protect that you may be interested in: 

• With some policies, you do not need a medical exam.
• You can renew your term insurance plan without needing a medical exam.
• You can get customizable coverage.
•  You can add on plans like CAA Critical Illness Insurance or CAA Disability Insurance. 
• There are various death benefit options available to meet beneficiaries' needs.

Book an appointment today to speak with a licensed CAA Protect insurance advisor or call 1-800-709-5809. 

Have a question? To speak to a professional who can guide you to the right coverage from the right insurer at the right price call us at 1-800-709-5809 or email us at info@caaprotect.ca.