Kanetix Forum

I'm interested in getting life insurance. I'm looking to make sure that my debts are paid off so my family isn't left with a hassle if something happens to me. What kind of insurance should I be looking for?

This is a concern for many people with debts. Your best option is to talk to a life insurance broker that can look at your particular information and let you know the best way to proceed.

I found a brochure on the Canadian Life and Health Insurance Association called, "A guide to life insurance." Below is an outline of some of the information that I thought would be helpful for you:

Permanent life insurance: Meant to provide coverage for your entire life, as long as you keep the policy in force. There are two main types of permanent life insurance: whole life and universal life.

• Whole life:

-Premiums: remain level (the same) over the lifetime of the policy
-Death benefits (i.e. what gets paid out): guaranteed (remain level)
-Dividends: payable if the policy is "participating", not guaranteed (but may be used to enhance death benefits)


• Universal life:
made up of two parts; life insurance and an investment account
-Premiums: are flexible and can be increased or decreased by the policyholder
-Death benefits: flexible (within certain limitations)
-Dividends: most policies are "non-participating" and do not pay dividends


• Term to 100 insurance:
often thought of as a permanent plan, it provides life insurance coverage up to age 100.
-Premiums: guaranteed (usually level).
-Death benefits: guaranteed (remain level).
-Dividends: most policies are "non-participating" and do not pay dividends.


• Term life insurance:
provides insurance coverage for a specified period (fixed number of years or age) and then expire. Available for one, five, 10, or 20 years.
-Premiums remain level over term, but increase at renewal.
-Death benefit guaranteed but is only paid if you die during the term of the policy.
-Most policies do not pay dividends because they are non-participating.

Be sure to check out http://www.clhia.ca/ if you would like more information.

So which one should I purchase?

I can't really give you an answer as there are too many variables involved in making that decision. It will depend on your personal situation. Again, speak with a broker as they can take a more detailed look at your personal details and help you make an informed judgement call.

Good luck with your decision!

Thanks for the information. I'll be sure to come back if I have more questions.

-Paul