Life insurance is an eminently valuable piece of coverage for many Canadians. It assures you that your dependants, partners and loved ones will be cared for in your absence. And more specifically, it can help cover a lost income, debts, mortgage payments, funeral costs and childcare in the worst-case scenario.
Too often, though, Canadians rush into a policy without research and due diligence.
There’s a lot to consider when you look for a life insurance policy in Canada. Affordability is obviously a central question. But Canadians should also consider time, effort, reliability, quality of service and flexibility when they hunt for the right policy.
Below, let’s unpack those criteria to help you choose the right life insurance policy.
Obviously, cost is a significant consideration. You want to balance future peace of mind with present financial feasibility – and that’s a tricky proposition sometimes.
You can save money by understanding how companies use your money. Many insurance companies use a significant portion of your monthly premiums to cover their operational costs. But Canada’s best life insurance policies cut out the unnecessary processes and steps associated with those costs, and pass the savings to consumers. Moreover, you can look for companies that offer couples discounts and free child coverage to keep costs low.
Time and Effort
In the digital age, life insurance approval shouldn’t be a protracted process. You shouldn’t have to drive crosstown for a meeting during bank hours. Nor should you have to bite your nails for weeks, hoping for application approval. Look for a life insurance company that boasts quick (but fully underwritten and properly assessed) application and approval processes. You’ll find that, where time and effort are concerned, online insurance companies in Canada offer the most attractive policies and processes.
Integrity and Reliability
Is the company trustworthy, backed by layers of protection? Or is their backing murky and tentative? Do they have a track record for being accountable and transparent? Or do online reviews suggest that their agents are more concerned with commission (i.e., pushing expensive, niche products)? These are some questions to ask as you assess the integrity and reliability of your options.
Ideally, try to find a company that doesn’t operate under a commission model. And find one that’s backed by global insurance giants that you know won’t fold in the coming decades.
This consideration shares some overlap with the point above, but it’s worth mentioning on its own. You want to feel supported through the journey. Find a company that offers honest, consumer-centric advice from licensed Canadian advisors. This way, if you have questions or concerns, you know they will be fielded by an expert with your best interests at heart.
Lastly, look for flexibility in your life insurance policy. Life changes, and you may need to adjust your plan accordingly. While it’s rare to find policies you can alter without restriction, you can find policies that allow modifications within the first five years.
Each of these seems like a minor consideration on its own. But in concert, these criteria should point you toward the right life insurance policy for you.
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