Life Insurance

What Is Life Insurance?

Life insurance is a contract between you and an insurer that provides a tax-free payment to your beneficiaries when you pass away. In return for regular premiums, it offers financial protection for your loved ones when they need it most. The payout can help cover living expenses, debts, education, or estate planning goals.

There are several types of life insurance. Term life offers temporary coverage for a set period. Whole life and universal life provide lifelong protection and may include savings or investment features. Some policies require no medical exam, while others are designed for couples or employer-based group plans.

Why Is Life Insurance Important?

Life insurance creates a financial safety net for your family, business, or estate. Without it, loved ones may face financial stress on top of emotional loss. The right coverage gives peace of mind that your responsibilities will be taken care of.

It’s also a powerful financial planning tool. Permanent policies can offer tax advantages, retirement support, or liquidity for estate taxes. And even if you have insurance through work, reviewing your personal needs ensures you're fully protected.

The benefits of life insurance for you

• Protect your loved ones: Provide income replacement and financial security.
• Pay off debts: Cover loans, mortgages, or credit balances.
• Build long-term wealth: Use permanent coverage to grow tax-deferred value or support legacy planning.
• Plan for every life stage: Adjust coverage as your life and goals evolve.
• Access flexible options: Choose from a range of policies to fit your needs and health profile.

Explore the Different Types of Life Insurance

The articles below break down the features, benefits, costs, and key considerations of each life insurance option available in Canada.

Term Life Insurance

• What Is Term Life Insurance and Is It Worth It?: Learn the basics of how term life policies work and when they make the most sense.
• What Happens If You Outlive Your Term Life Insurance?: Understand the implications and options when your coverage period ends.
• When Should You Buy Term Life Insurance?: Discover ideal life stages and financial events that might prompt a term policy.
• Is Term Life Always Cheaper Than Permanent Insurance?: Compare costs and long-term value between term and whole/universal life insurance.
• How Much Does Term Life Insurance Cost in Canada?: Get a breakdown of cost factors like age, health, term length, and coverage amount.
• When Is the Best Time to Lock In a Term Life Rate?: Learn when and why rate locking can provide long-term savings.
• What Happens During a Term Life Insurance Application?: Know what to expect during underwriting and approval.

Whole Life Insurance

• What Is Whole Life Insurance and How Does It Work?: Understand how whole life offers permanent coverage and builds cash value over time.
• When Should You Consider Whole Life Insurance?: See when long-term goals or estate planning may call for permanent protection.
• How Does Whole Life Insurance Build Cash Value?: Learn how part of your premium grows tax-deferred inside the policy.
• When Can You Access the Cash in a Whole Life Policy?: Explore how and when you can use your policy’s accumulated value.
• What Are Guaranteed and Non-Guaranteed Premiums?: Compare fixed and variable premiums and how each affects long-term costs.
• How Are Dividends from Whole Life Insurance Taxed?: Find out how policy dividends are treated and how they can be used.
• What’s the Difference Between Lifetime and Limited Pay Whole Life?: Learn how payment schedules vary and what each option means for affordability.

Universal Life Insurance

• What Is Universal Life Insurance and Is It Right for You?: Explore how flexible coverage and investment options work in a universal policy.
• When Should You Use Universal Life Insurance for Estate Planning?: See how tax-deferred growth and lifetime protection can support legacy goals.
• How Do Investment Options Work in a Universal Life Policy?: Learn how premiums fund both insurance and market-based investments.
• What Is Indexed Universal Life Insurance?: Understand how returns are linked to market indexes instead of set interest rates.
• How Flexible Are the Premiums in Universal Life?: Discover how you can adjust your payments based on your needs and goals.
• What Are the Fees and Risks in Universal Life Insurance?: Review the cost structure and market-related risks involved in these policies.

Group Life Insurance

• What Is Group Life Insurance and How Does It Work?: Learn how employer-provided coverage works and who it protects.
• Is Your Employer’s Group Life Insurance Enough?: Find out why basic coverage may not meet all your family’s financial needs.
• What Happens to Group Life Insurance If You Leave Your Job?: Understand what coverage ends, and whether you can convert it.
• Should You Get Supplemental Life Insurance Through Work?: Explore whether additional coverage at work is worth the extra cost.
• What Is the Supplementary Death Benefit in Canada?: Learn how this federal benefit works and when it applies.
• Can You Get Critical Illness Insurance Through Group Benefits?: See how critical illness protection can be added to your workplace plan.

Joint Life Insurance

• What Is Joint Life Insurance and How Does It Work?: Understand how one policy covers two people and when it's used.
• Should Couples Buy Joint Life Insurance?: Learn when it makes sense for spouses or business partners to share coverage.
• What’s the Difference Between First-to-Die and Last-to-Die Insurance?: See how timing of the benefit payout differs between policy types.
• How Do Payouts Work with Joint Life Insurance?: Explore how beneficiaries are paid depending on the structure.
• Can You Separate or Convert a Joint Life Insurance Policy?: Find out if you can split or switch policies after purchase.

Simplified Issue Life Insurance

• What Is Simplified Issue Life Insurance and Who Should Consider It?: See how this no-medical policy works and who benefits from faster approval.
• How Does the Simplified Issue Application Process Work?: Learn how you can get coverage by answering a few basic health questions.
• What’s the Difference Between Simplified and Traditional Life Insurance?: Understand how underwriting, cost, and coverage differ.
• What Are the Pros and Cons of Simplified Issue Life Insurance?: Explore the trade-offs between convenience, coverage limits, and premiums.

Guaranteed Issue Life Insurance

• What Is Guaranteed Issue Life Insurance and When Should You Get It?: Learn how this policy offers access with no health questions or exams.
• Can You Get Guaranteed Life Insurance Without a Medical Exam?: Find out how guaranteed policies bypass traditional underwriting.
• What Are the Limits and Waiting Periods for Guaranteed Issue?: Understand the maximum benefit amounts and when coverage begins.
• Is Guaranteed Issue Life Insurance Right for Seniors or High-Risk Individuals?: See why it’s often used by those who have difficulty qualifying elsewhere.