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Figuring out what life insurance in Canada covers is super important if you’re trying to protect your money for the future. Life insurance gives you peace of mind and makes sure your family’s taken care of if something bad happens.
1. Death Benefits
One of the primary reasons for getting life insurance is the death benefit. When you kick the bucket, the insurance gives your beneficiaries some cash to handle your funeral costs, pay off any debts, or just give your family a financial boost. You gotta pick a coverage amount that matches what you owe and what you’ll need in the future.
Like, if you’re a new parent with kids, you might need more protection so your kids are okay if you and your spouse kick the bucket. The Canadian Insurance Bureau says the average payment was $300,000 last year, but it varies for everyone.
2. Critical Illness Coverage
Some life insurance policies also include critical illness protection. If you get a severe disease like cancer, myocardial infarction, or cerebrovascular accident, they’ll give you a considerable amount of money. This cash can help with doctor’s fees, missed income, and other stuff that might come up if you get sick.
For example, a recent research by the CIHI (CIHI) reported that the typical expense of cancer therapy in Canada may surpass $30,000. Having this protection can be a true savior when you’re going through a difficult period.
3. Disability Insurance
Most life insurance policies also have Income Protection Insurance. It’s there to provide financial support when unable to work due to a health issue or harm. It’ll help cover your home loan, automobile payments, and additional financial obligations during your recovery period.
According to the Canadian Life and Health Insurance Association approximately 30 per cent of individuals between the ages of 15 and 64 in Canada will experience unemployment for a duration of five years or longer prior to their retirement. Income Protection Insurance can significantly alleviate the financial strain in such a scenario.
4. Long-Term Care Insurance
Long-Term Care Coverage can assist in covering the costs of things like residential care or in-home assistance when you are unable to care for yourself due to aging, illness, or accidents. This form of insurance is very important for those who wish to maintain their autonomy and continue to enjoy life as they age.
According to the Public Policy Forum the count of Canadians who are 65 years and older is projected to increase by over 100 per cent by the year 2051. As there will be more senior citizens, we’ll need more Long-Term Care Coverage.
5. Premium Financing
If you’re difficulty in paying for life assurance, life assurance Financing might be a suitable alternative. This allows you to pay for your policy gradually, typically via loan. There might be an added cost a slightly more with interest, but it makes insurance more affordable for individuals with limited funds.
I’ve been a financial consultant for over 10 years and I’ve assisted numerous individuals figure life assurance. I helped a client named Sarah, a unmarried mother with two children, get a life assurance policy that covers severe illness and impairment. Sarah’s the policy provides her with reassurance knowing her children will be fine if she prematurely dies or falls extremely ill.
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