Term life insurance provides temporary protection for a low, affordable price. It pays benefits only if the policyowner dies during the specified term. It is usually used when there is only a temporary need or a large amount of insurance needs to be issued at the least possible price.

With term life insurance, you simply have to choose how much insurance you need (face amount), what type of premium you would like to pay (level or increase), and how long you need it for (term). Then you can buy the policy that matches your needs.

There are two important points to think about when you are thinking of buying term life insurance:

1) Period of renewal:
Be sure to check both the initial premium and the renewal premium if you need to have your coverage renewed after the first renewal period. You want to make sure that the rates for renewal are guaranteed at the given level so that you are not locked with the high renewal rate if your health gets worse in the future.

2) Privilege of Conversion:
Some companies have restrictions on the type of permanent coverage that you can convert to from your term life insurance. You may want to convert your term life insurance to a specific permanent one in the near future so make sure that you have the ability to do this. There is usually a maximum age for conversion of term insurance and it will vary from different companies and products. Therefore you need to make sure that you convert before that age or else your coverage may cease to exist once your insurance terminates.

This type of insurance is a lower-risk option for individuals with a long-term focus in mind and don’t want to have to manage their own investment component. With this plan, investment professionals will actively handle the investment component of the policy. High quality bonds and mortgages will be invested and thus will give you a stable return in the long term. A guaranteed basic premium, basic coverage, and cash values are provided with this type of insurance. The starting premium is usually higher than normal for this type of plan due to the payout of dividends but the net cost should be lower in the long run.

Universal life is an all-in-one product that combines life insurance with a tax-deferred investment account. Its advantage include greater premium flexibility, potential for higher internal rate of return, cash value is considered more attainable since the owner can discontinue premiums if the cash value allows it and there is more flexibility for the death benefit payout. It is an excellent option for individuals who have a permanent insurance but want the flexibility and ability to change their level of premium, coverage levels, and have different options of investment.

There are four important points that need to be considered when buying this type of insurance:

1) Make sure you know what is guaranteed and what isn’t. Usually insurance charges are guaranteed, while on the other hand, investment products usually are quite limited.
2) Know all charges that are part of your package, including surrender charges.
3) Be aware of the investment risk that comes with the many options of investment and be sure that they correspond to your risk tolerance.
4) Keep in mind that illustrations provided are often only used to show how a product works and is not to be solely used for comparing plans with different companies or estimating future rates.

Premiums for limited-pay life insurance policies are paid over a specified period after which, no additional premiums are due to keep the policy in force. Common limited-pay periods are 10-year, 20-year, and paid-up at age 65.

It is an excellent idea for individuals to buy a critical illness policy to help protect family and loved ones in the case of illness. Many in Canada will suffer from heart disease or will develop a form of cancer in the future. The good news is that there has recently been such a great recent advancement of medical science and a social trend towards being more fit and healthy. However, survival of these illnesses is very expensive as many costs are not covered by the government, employees, or disability insurance policies.

With a critical illness insurance, it will help provide tax-free money if you`re diagnosed with and survive a critical illness (e.g. cancer, heart attack, stroke, blindness, Multiple Sclerosis, Parkinson`s etc.). You are able to use this money for any purpose and it can allow you to have access to treatments that may be out of the province or in another country.

However, be sure that your policy has the greatest coverage that gives you maximum protection. Different policies will cover different illnesses and usually the more illnesses covered, the more expensive the policy will be.

For many, our ability to earn an income is such an important asset in our lives. Without being properly insured, it may ruin your many years of hard work. Disability insurance can provide you with financial security by replacing a portion of your earnings when an accident or illness causes you to become disabled and leaves you unable to work or earn an income. Disability strikes far more often than premature death. This type of insurance covers both temporary and long-term disability.

With long-term care, you can take control over the quality of your care and eliminate many out-of-pocket expenses. It also provides comprehensive coverage for nursing home care, should you need it. It provides a daily benefit when your doctor states that you are unable to perform at least two out of six daily living activities or if you have become cognitively impaired (by Alzheimer`s, for example).

Mortgage Life Insurance provides you with peace of mind by helping to protect your family`s home for the life of your mortgage. In the event of the owner`s death, your outstanding mortgage would be reduced or paid off without burdening your family.