Understanding Life Insurance in Canada: What You Need to Know
When it comes to protecting your family and securing their future, life insurance in Canada plays a vital role. Whether you're a young professional, a new parent, or nearing retirement, understanding how life insurance works and what options are available can help you make informed decisions. What Is Life Insurance? Life insurance is a contract between you and an insurance company. You pay regular premiums, and in return, your beneficiaries receive a tax-free lump sum—called the death benefit —when you pass away. This financial protection can help your loved ones cover: Funeral expenses Outstanding debts like mortgages or car loans Day-to-day living expenses Children's education Long-term financial planning Types of Life Insurance Available in Canada Choosing the right policy depends on your needs, budget, and financial goals. Here are the two main types: 1. Term Life Insurance Affordable premiums Coverage for a specific term (e.g., 10, 20, or...