Life Insurance Brampton

Life insurance does not need to be complex. In Canada, there are many insurance companies that offer different products with a variety of different names. In order to simplify life insurance, I would like to explain the very basics. There are 2 types of life insurance policies; Term Life and Permanent Life. 

Term Life Insurance: Term insurance is the more basic policy of the two. The client selects the coverage amount (Ex. $1,000,000) and chooses the term (ex. 20 years). Based on the clients age, gender, health, etc., a premium is generated. If the insured were to pass away during the term, the beneficiary (the person/persons the money will go to) will receive the sum insured. 

Term life insurance is perfectly suited for young families who recently had children or purchased their first property. These families usually are in the growth phase of their life and have not yet accumulated a lot of assets. In this phase of life, the loss of an income earner can be disastrous. Term life policies are very affordable and can fit into most people’s budget. Policies can start for as little as $15.00 per month. 

Permanent Life Insurance: Permanent life policies are more complex and are generally more expensive. Like term insurance, a sum insured is chosen (Ex. $250,000) but a term is not selected because these policies continue until the insured passes away. Prices are also based on the sum chosen as well as the health, gender, age etc. of the client. 

Permanent life insurance is a great option for those who have accumulated more assets, have a higher net worth and have the income supported to cover the premiums. Permanent life insurance is commonly used as a estate planning tool.

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.