What do you mean by life insurance in Canada?
Life insurance in Canada is defined as a security blanket for your near and dear ones. The plan protects anyone who depends on you financially during the worst-case scenario.
Life insurance is an agreement between the policyholder i.e. you and your insurance provider. You need to pay premiums to the insurer and in return, they will provide your loved ones, known as insurance beneficiaries with a tax-free payment in a worst-case scenario.
Insurers call the money they receive a “Death Benefit” which helps out your family financially if they lose the source of income they depend on. If you want this protection, you have to pay premiums to the insurance provider on a regular period. These premiums pay for the life insurance cost and allow the insurer to take on the risk of covering your needs.
What is the main purpose of a life insurance policy?
The main purpose of life insurance is to create a safety plan for your loved ones if you are no longer available to provide the same. The policy can replace your income and offer support to young children, paying the mortgage and college fees.
However, money can’t replace the loss of a person you love; instead, it can help your family live the life that you have dreamed for them. You may want to mortgage so that your family won’t need to worry about a safe place to live or ensuring your kids can go to school or college without any hassle.
Choose the best life insurance plan in Canada so that you can protect your loved ones who depend on you during their financial hardships. Life insurance makes an affordable way to make their future secure.
What are the main uses of life insurance?
You need to know how you can use life insurance. This plan is for your family in event of your passing. Generally, the policy offers your loved ones with financial support that they require to cover their daily living expenses after your passing. But your family can use the insurance plan for the followings:
●Outstanding debt payment
●Mortgage Payment
●College fees for children
●Payment of burial expenditure
●Medical bills payment
●Charity donation
●Estate taxes payment
What are the benefits of choosing a life insurance plan?
You have to understand why a life insurance plan is essential. This insurance policy is crucial for your financial plan as it can make your family more secure and come with enormous benefits.
●Financial security and peace of mind for supplementing other retirement planning and savings
●Death benefit which is tax-free for the beneficiaries ensuring that they won’t need to pay taxes on the money they receive
●Coverage of living expenses of beneficiaries to avoid financial hardships and pay bills
●Coverage final expenditure incurred during your passing
●Coverage for chronic or terminal illnesses (You need to choose the life insurance plan that covers such illnesses)
Bottom Line –
Now you know about the purposes, reasons, and uses of life insurance plans in Canada. If you want to buy the best life insurance plan in Canada, feel free to contact Gurinder Chahal Insurance Specialist today.
Life is not about leaving early; so we want to provide support through the best life insurance in Canada. Receive a quote from our insurance specialist today at 587- 707- 7000.
