Are you shopping for life insurance in Canada? Here are the facts about term vs whole life insurance, and how to decide which one is right for you.
Having life insurance is an extremely important step to take to protect your loved ones from any financial hardship, should something happen to you. However, the majority of Canadians shy away from buying life insurance because they are overwhelmed, don’t want to take extensive medical exams, and they don’t want to spend money on high premiums.
At 20/20, we understand how important your family is to you and we want to make buying life insurance a positive and simple experience. Some of the benefits of our product include:
- our premiums are, on average, 20% cheaper and we offer coverage from between $500,000 - $4,000,000.
- for coverage up to $500,000, all you need to do is answer 5 simple medical questions. There is NO medical exam required.
- your premiums will never increase.
- we also offer disability and critical illness insurance to provide you with complete peace of mind.
- all our policies are equipped with a FREE Wellness Program that is designed to significantly improve your health and quality of life.
20/20 Life Insurance Was Designed For YOU
At 20/20, everything we do is for YOU and your family. We are committed to creating a positive and stress-free environment in which you can find the right term life insurance for your specific needs and circumstances.
Whatever you require, our licensed agents are happy and dedicated to finding you the right product that will protect your loved ones from any future financial hardships.
Want to know more?
Term vs Whole Life Insurance
For most Canadians, buying life insurance can seem like a daunting process. However, most people can start shopping and doing their research by making one key decision: Do you want term life insurance or whole life insurance?
In order to decide between the two, it’s important to understand how they’re different and what makes them right (or wrong) for your specific financial scenario.
What is Term Life Insurance?
Term life insurance is a type of life insurance policy that provides coverage for a certain period of years or a specified ‘term’ of years. If the insured individual dies during the time period specified in the policy, and the policy is active, then a death benefit will be paid.
PROS:
- Term life insurance is much less expensive when compared to whole life insurance.
- It’s straightforward and its policies are easy to understand.
- With term life insurance, you hardly need to worry about any hidden fees, exclusions, or risks.
- You can cancel a term policy before it expires without losing any value.
CONS:
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When the policy expires, so will your coverage. If you still want insurance, you’ll have to shop for a new policy.
Who is Term Life Insurance Ideal For?
Term life insurance is best for Canadians who want an affordable and straightforward financial safety net without any hassle or headache.
What is Whole Life Insurance?
Whole life insurance is a type of permanent life insurance which stays in effect for as long as you pay the premiums (so potentially your entire life.) This means you don’t have to worry about uninsurability or losing your safety net as you get older.
PROS:
- This insurance policy never expires so you can keep it as long as necessary.
- It works as a forced savings vehicle.
- It has a cash value component.
CONS:
- It’s far more expensive than term life insurance, sometimes even up to 4 times the cost.
- Because of the cost, people often buy less coverage than they need or surrender the policy early.
- The interest rate you’ll get on the cash value is likely to be less than you’d get if you’d invested it in other ways.
- Whole life insurance tends to be much more complicated than term life insurance.
Who is Whole Life Insurance Ideal For?
Whole life insurance is best for Canadians with complex financial needs, who can afford higher premium costs.
Call Today
To find out more about your life insurance options, and how our licensed agents can help you find the best product for your needs, contact us at 1-844-974-2020 or fill in our online contact form.
