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3 Points to Consider while Choosing Life Insurance in Canada

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Canada Insurance QuotesAlthough all people know that life insurance is an important factor of financial planning, not many people wish to talk about it. Regarding Canadian life insurance, there are some useful bits of information that everyone should know. Here are certain concerns and questions of Canadians about life insurance.

1. How Much Life Insurance to Choose?

While planning to invite Canada insurance quotes, you should make sure all essential financial aspects are covered so that they don’t become a burden for your family. These include:

  • Substitution of income for your family
  • Paying down loans on assets
  • Your children’s education
  • Other debts (such as credit card debt)
  • Other costs (such as funeral)

Speak with an expert insurance representative or broker, and discuss about how much life insurance is desirable for you. There might be other financial responsibilities you have forgotten to calculate.

It should be remembered that in most cases, separate mortgage insurance is not recommendable. Adequate life and disability insurance can cover a mortgage, preventing policies overlaps.

2. How Much Insurance to Choose if One has Children?

In case of kids, you have to calculate several areas into your financial planning, such as:

  • Food
  • Clothes
  • Personal care
  • Healthcare
  • Housing (more bedrooms in the house, additional utilities etc.)
  • Schooling and recreation
  • Transportation
  • Child care (daycare, babysitters, nanny etc.)

Having several children will naturally increase this cost. You should consider if you’ve calculated this cost in your life insurance cover.

3. Type of Insurance

Insurance in Canada is of several types, such as:

Term Life: This ends at the end of a set term (e.g. 5, 10 or 12 years) and doesn’t accumulate any value.

Universal Life: This is a combination of life insurance and investment, i.e. a part of your premiums goes to your account and increases your net worth.

Whole Life: This resembles Universal Life, but offers less flexibility

Since Term Life Insurance is the simplest and cheapest form of insurance, it’s the most desirable one; but you should consider what your needs are and which one of these is the most suitable for you.

So, are you ready to buy life insurance?

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