Life Insurance

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What Is Life Insurance?

Life insurance is a policy that you can take out with an insurance company. The policy will give out a lump sum of money to your beneficiary after your death.

How much this lump sum is, depends on the type of policy you take out.

Your life insurance policy can be either for a:

  • 10-20 year period; or
  • Until you reach a certain age, for example 65 years old

How much can your life insurance fees cost you in Canada?

Depending on the type of life insurance policy you take out in Canada, your premiums may vary.

On average Canadians spend around C$58 a month on life insurance. This translates to around C$700 a year.

If you renew your old life insurance, your monthly fees may increase as well. If you do not make your monthly payment then your life insurance policy may also be cancelled by the insurance company.

Always check what benefits you can get from different life insurance companies in Canada, before you choose a life insurance company.

Does the Canadian Public Healthcare Program Offer Life Insurance

No, the pubic healthcare system of Canada does not offer life insurance. There are other companies you can hire for Life Insurance policies.

What Sort of Life Insurance Policies can you get in Canada?

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There are several different types of life insurance policies in Canada. Here is a general list of policies you can apply for:

  • Term life insurance:
    • Joint first to die insurance; or
    • Single terms insurance
  • Permanent life insurance:
    • Whole life insurance; or
    • Universal life insurance

What is a Beneficiary?

A beneficiary is the person who will receive a payment after the death of the life insurance holder. The beneficiary could be a:

  • partner;
  • family member;
  • friend; or
  • a charity