Life Insurance Toronto

The right life insurance coverage is different for everyone. To keep things as simple as possible, we will discuss the two types of life insurance most people select (Term Life or Permanent Life) and when each one is appropriate.

Term Life Insurance: This is the affordable option and is commonly called “the only real life insurance”. The reason for this is that there is no investment portion, no option to receive any cash back or any growth options. The client simply chooses a sum (Ex. $1,000,000) and a term (Ex. 20 years) and pays the premiums until the term ends. If the clients were to pass away during the specified term, the life insurance company will pay out the sum purchased. 

Who is this best suited for: Term life insurance is ideal for young families who may have a tighter budget and have not built up a large net worth yet. These families may also be entering their peak earning years which means a loss of life can have a significant impact on the survivors. Term life insurance policies can be very affordable and fit into anyone’s budget. A $500,000, 20 year term policies for a healthy individual can start at as little as $20.00 a month.

 Permanent Life Insurance: As the name suggests, the coverage is permanent and no term needs to be selected. Coverage remains in force until the end of the insured’s life (unless premiums aren’t paid or another breach of contract is proven). When selecting the permanent life insurance policy, you will select a sum would like insured (Ex. $500,000) and based on your current age, health, smoker stats, etc., you are given a rate (Ex. $120,000). You can then select how you would like to pay (Ex. over the next 20 years). 

 Who is this best suited for: This is a more expensive option and is commonly used for estate planning or for more established families with many assets and a higher net worth. 

If you have any questions or would like to speak to an insurance broker, please call Filip Ambroziak at (416) 803-2113 or email filipa@pbnet.ca.