In essence, it is a kind of protection to deal with life accidents, and it is also a protection for family members.

Life insurance protects the financial security of your loved ones, giving them a tax-free sum of money after your death. The amount and type of coverage you choose will depend on your circumstances and needs. The cost of buying life insurance as an individual depends on your age, gender, health, medical history and lifestyle. Nowadays, various types of insurance, including life insurance, can also be regarded as part of family financial management, which not only has investment functions, but also benefits from tax reduction.

Whether a person needs to buy life insurance, the following factors should be considered in financial planning: the living and pension expenses of the spouse; the living expenses of the minor children, the education expenses of the spouse and children; the housing loan and other debts; emergency funds and final expenses etc.

Canada's life insurance is divided into two categories: term life insurance (Term Life) and whole life insurance (Universal life or Whole life).


Features of Term Life Insurance

  • Temporary protection
  • Low premium
  • Express underwriting
  • No saving and investing features
  • The sum assured will not increase

Features of Participating Whole Life Insurance

  • Investment and value-added
  • The investment is managed by insurance companies, no worry about market changes
  • Tax deferral
  • Effective estate arrangement
  • Premiums are more expensive

Features of Universal Life Insurance

  • Investment and value-added
  • The investment is chosen by the insured
  • Tax deferral
  • Flexible premium