October 13, 2020

Life Insurance Canada: Whole or Term Life Insurance

So you’re looking for life insurance. Great! Taking care of your family and business affairs in case of your passing is the responsible thing to do, and not an easy decision to make. You’ve come to the right place. Insur Simple is launching an online-only life insurance Canada concierge service. Once you’ve filled out your profile, we’ll match you with plans that fit your budget and suit your circumstances. The best part is, you get all the life insurance quotes online without leaving the comfort of your home.

Now, the question is, what kind of insurance plan should you choose?

Critical illness insurance, partial or full coverage — where do you start? Insurance companies offer a menu of plans, but which one is right for you?

In general, there are two types of life insurance plans: temporary or term life insurance and whole or permanent life insurance. One thing is true for both: as long as the plan is active, if the policyholder dies, beneficiaries get a payout. Let’s look at some of the differences between the two.

Life Insurance Quotes for Whole vs. Term Life Insurance

Term Life Insurance

Temporary life insurance plans offer protection from the financial impact of death for only as long as the plan is active (usually between 5 and 30 years). Most of the life insurance plans employers offer are temporary. These plans are usually inexpensive, and therefore ideal for young professionals, small business owners, and families with dependents. It’s pretty straightforward and you can supplement existing coverage with temporary plans. The downside is the inevitably higher rate when you need to renew. And of course, if the plan expires, your loved ones don’t get a payout.

Whole Life Insurance

Whole life insurance plans offer lifelong protection. For this reason, they’re also more expensive. With permanent plans, your loved ones are protected almost indefinitely, and can be incorporated into estate planning. The price doesn’t change no matter your health, and it is actually more cost effective later on in life than temporary plans. People who have maxed out TFSA and RRSP savings can use whole life insurance plans as a tax-friendly cash growth opportunity. For this reason, those with large estates or many beneficiaries may find permanent plans to be more suitable. These plans are also more complex, and often require professional advice to navigate.

Find The Right Insurance Quotes Online

Finding the proper life insurance can be frustrating, especially when sifting through pages of small print for insurance quotes online. Insur Simple makes the process less complicated. By filling out your profile with health history, the type of life insurance you want, and add-ons that you’d like, you can see which offers from insurance companies suit you best, and get approved quickly.

We only work with reputable insurance companies who are comfortable with our online-only platform and can meet our standard of service. Check our life insurance calculator to figure out what cost and benefits work for you.