Here's where you find out about the different types of life insurance, and discover details about the popular choice of term insurance.
What's the point of having life insurance?
Sure, life insurance isn't exactly a popular topic of conversation. After all, buying a policy is like gambling against your own life. But it's not something that should be ignored.
There's no law that says you need life insurance. But if you have children or other dependents, life insurance is definitely a smart idea. You see, life insurance is designed to help the people who depend on you for financial support. When you get right down to it, taking out a life insurance policy is the best way to guarantee that your loved ones will be financially secure should you die.
When you decide to take out life insurance, choose a policy that meets your life insurance needs with a premium you can afford. A premium is the amount you agree to pay every year to the life insurance company. If you should die, the people named in your policy (the beneficiaries) receive payment for whatever the value of your insurance policy.
How much will you have to pay each year for your life insurance policy? That depends on different things. For instance, the higher your coverage, the higher your premium will be (a $100,000 life insurance policy will cost less that a $1,000,000 policy). But it also depends on the type of insurance you choose, your age, and your health. Other considerations that will affect your life insurance premium is whether or not you smoke, or work in a dangerous profession. Either of these situations will mean you pay higher premiums.
Useful life insurance tools
Life insurance quickguides
- Introduction to life insurance in Canada
- All about term life insurance coverage
- Life insurance: Dollars & sense