What to know before choosing a plan
Plain-language information, designed to help you compare meaningful differences.
What can life insurance protect?
A life insurance death benefit can help survivors replace income, keep up with housing costs, repay debt, fund education and maintain financial stability. The right amount depends on dependants, liabilities, existing assets and any insurance through work.
An individually owned policy may offer greater portability than workplace-only coverage. Group insurance often changes when employment changes; personal coverage can stay in place as long as its contractual terms are met.
Term life versus permanent life insurance
Term life generally suits needs with a known time horizon, such as supporting children until they become independent or covering a mortgage. Permanent coverage is designed for lifelong needs and may include cash value, depending on the policy.
A combined approach is sometimes appropriate. It is more useful to identify what each dollar of coverage is meant to achieve than simply select the largest policy that fits today’s budget.
Read the Financial Consumer Agency of Canada life insurance guide ↗.
How much protection should a Cambridge family consider?
Start with outstanding debts, anticipated family spending, childcare, education needs, final expenses and the number of years income must be replaced. Subtract available assets and existing coverage where appropriate.
The simplified life-needs worksheet on this page produces a planning estimate, not an insurer quote. An application, underwriting and insurer approval are needed before coverage begins.
What changes the premium?
Age, coverage amount, term, tobacco use, medical history, occupational and lifestyle risks, and product design can affect an insurer’s offered price. Medical questionnaires and examinations may be required.
Review renewal provisions, exclusions, conversion rights, beneficiary designations and premium payment obligations before committing.