Whole Life Insurance

To begin with, you need to understand that life insurance falls into two very broad categories: Whole Life Insurance and Term Life Insurance.

The basic difference between whole life insurance and term life is like owning or renting a policy. When you buy a whole life plan you own the policy at a set premium for as long as you live. Some whole life insurance plans will accumulate cash value some will not. It depends on your requirements and the plan you select.

A term insurance policy is a temporary plan designed for short term needs i.e to cover a debt or a financial responsibility for ten or twenty years. The premiums are guaranteed, when issued, for a specified number of years and then they increase. The higher increasing premiums in the contract are guaranteed regardless of your possible health change in the future. If you are still healthy at the time of renewal your rates would be much lower.

The absolute best way to determine if you should go with Whole Life insurance policy or a Term insurance policy is to speak with a professional insurance brokerage. At Assure-All Associates our advisors have decades of experience advising Canadians on how to make the right choice and then getting them the best rates and protection for their situation.

Cost of Whole Life Versus Term Insurance
The obvious advantage of taking a term life insurance policy over a whole life insurance policy is the cost. Often a term life insurance policy will cost you much less the beginning than whole life, however, should your health deteriorate after purchasing a term plan the guaranteed renewal rates could become more expensive than a whole life policy.

Flexibility
Term life insurance is designed for short term needs like the responsibility of a mortgage or a line of credit or the dependency period when children are dependent on Mom or Dad until they (the children) are gone from home and on their own. When the children are on their own and the mortgage is reduced or paid off the need for short term insurance is gone and the policy may be cancelled.

See Canadian Mortgage Insurance to learn why you should not buy mortgage insurance from a bank

Discuss your needs and plans with one of our brokers and have the type of policy illustrated that best suits your requirements.