Life Insurance
Financially protect your loved ones
with the right insurance plan.
What is life insurance?
Life insurance is a policy or contract between you and a life insurance company that can last for the rest of your life or for a specific time period. This contract guarantees that your beneficiaries will get a tax-free cash payment (also called the death benefit) when you die – this is provided you meet all the requirements in your policy.
Here’s the gist of how it works:
You apply for how much coverage you want. Depending on what type of life insurance you’re applying for, you may have to go through the underwriting process.
- While your policy is active, you’ll have to pay premiums (monthly or annual fees).
- If you die while your policy is active, your beneficiaries will receive a lump-sum payout.
- The exact amount they’ll get depends on how much coverage you buy and the type of policy you select.
What are the benefits of life insurance?
Your beneficiaries can use the death benefit any way they want.
Certain policies offer a cash value option.
You have the option to get lifelong protection where your premiums never increase.
What are the different types of life insurance?
LifeGuard offers two main types of life insurance products: term and permanent.
Term life insurance
- Temporary coverage that can last 10, 15, 20 or more years.
- Initially a cheaper option, but your premiums typically rise upon policy renewal.
- Some term plans let you convert to permanent life insurance.
Permanent life insurance
- Coverage lasts throughout your lifetime and never expires.
- There are three types of permanent life insurance: whole life, participating, and universal life.
- Some plans may also offer tax-preferred growth in your cash value and ways to increase the death benefit.
How much does life insurance cost in Canada?
In Canada, the cost of life insurance varies from person to person. Your premiums depend on your age, health, and lifestyle habits (e.g. smoker, non-smoker, etc.) when you purchase life insurance.
For example, if you’re a healthy 30-year-old male, your premiums may be as little as $12/month for $100,000 of coverage – for a 10-year term life insurance policy with a non-smoker rate.
How much life insurance do you need in Canada?
It depends on your personal situation and how much money your beneficiaries will need when you die. Try our free life insurance calculator to find out how much coverage you might need to financially protect your loved ones.
Frequently Asked Questions
What kind of life insurance do you need?
It depends on your personal situation and financial needs. LifeGuard’s term life insurance products serve as a popular choice for short-term needs, offering affordable protection during certain life stages (e.g. paying off a mortgage, running a business, etc.). Permanent life insurance policies provide lifelong security and potential cash value growth. Connect with a LifeGuard advisor to get a life insurance quote that matches your budget and financial goals.
At what age should you get life insurance?
Life insurance can be beneficial at any age. Generally, it’s cheaper to buy when you’re young and healthy.
Is it cheaper to pay for life insurance monthly or annually?
You’ll often pay less for life insurance with annual payments compared to monthly payments. However, many people find it easier to have monthly premiums factored into their budget
Can you borrow money from a life insurance policy in Canada?
Yes, some permanent life insurance policies come with a cash value – a tax-preferred savings portion – that allows you to borrow and withdraw funds. Keep in mind, borrowing or withdrawing funds from your cash value may reduce your policy’s death benefit. There also may be tax implications to borrowing or withdrawing from your cash value. Connect with an advisor for more detailed information.
Why is it worth buying life insurance?
Life insurance can help financially secure your loved ones in the event of your death. Your beneficiaries can use the money from your policy’s death benefit for any purpose, including helping to cover the cost of funeral expenses, any debts (e.g. mortgage), and income replacement to maintain their lifestyle.
What if you already have life insurance through work?
It’s great if you have insurance coverage through your workplace plan, but keep in mind that you may lose that coverage if you ever leave your job. If you’re currently in the process of leaving your job, you may be eligible to replace your group life insurance with affordable coverage from our LifeGuard Choices plan .
Keep in mind, it’s also important to have enough coverage to help meet all your loved ones’ financial needs. In such cases, it can help to top up your existing workplace coverage with your own personal insurance policy.
At what age can you no longer buy life insurance in Canada?
You can’t apply for most LifeGuard insurance products if you’re age 85 or older. Some products may have other age limitations. Connect with an advisor for more detailed information.
When is life insurance tax deductible?
Life insurance premiums generally aren’t tax-deductible for most Canadians, as they’re considered personal expenses under Canada’s Income Tax Act. However, there are specific scenarios where you may qualify for deductions. Learn more about situations where your insurance premiums are tax deductible.
Which life insurance is best in Canada?
It depends on your individual situation. There’s no “one-size-fits-all” type of life insurance. The kind your parents have, or that your friend just bought, may not be right for you.
Term life insurance works well for younger Canadians or those with temporary needs like mortgage protection or income replacement while children are dependent. Permanent life insurance suits those seeking lifelong coverage with potential cash-value growth.
Get a life insurance quote online or speak with our advisors to explore which LifeGuard products align with your specific needs and budget.
How do I get life insurance?
Answer a few quick questions to get a quote for coverage up to $1,000,000.
Got more questions?
A LifeGuard advisor can address all your questions and help you figure out which insurance product best meets your financial needs.