Buying life insurance in Canada isn’t just about picking a provider — it’s about choosing the right policy for your needs. Whether you’re new to insurance or upgrading your coverage, understanding how policies differ is key. Here’s how to approach the decision and why a broker makes the process easier and more effective.
Key Questions to Ask When Choosing a Policy
1. What type of policy do I need?
Do you want affordable, temporary coverage? Or lifelong protection that builds value? The main options are:
- Term life insurance: Temporary, cost-effective coverage
- Whole life insurance: Lifetime coverage with guaranteed cash value
- Universal life insurance: Permanent coverage with flexible investments and payments
2. How much coverage is enough?
Consider your:
- Mortgage or rent
- Family’s living expenses
- Children’s education
- Debts and final expenses
- Legacy or charitable goals
3. What features are most important to me?
Look for:
- Guaranteed premiums
- Cash value growth
- Convertible options (term to permanent)
- Riders like disability waiver or critical illness
4. What can I afford?
Your budget plays a key role. A broker can help you find maximum value — balancing cost, coverage, and long-term benefits.
Why Use a Broker When Choosing a Policy
Choosing a policy can be confusing, especially with dozens of providers and products. A licensed insurance broker can:
- Break down policy types in simple terms
- Help determine how much coverage you really need
- Recommend a policy that fits your goals and lifestyle
- Compare multiple insurers on your behalf
- Keep your best interests in mind (they work for you, not the insurer)
Example: Term vs. Whole Life for a Young Family
A young couple with a new baby may be quoted:
- $25/month for $500,000 term life (20 years)
- $150/month for $500,000 whole life
A broker can explain the pros and cons of each and help them choose based on future plans, budget, and flexibility.
Final Thought
The right policy isn’t the cheapest — it’s the one that protects the people and goals you care about most. A broker helps you sort through the noise and focus on what matters. With their guidance, you’ll walk away with confidence and coverage that works.
If you would like for a licensed professional to help you explore your options, fill in a quick form below to get connected to a Canadian Insurance Broker.
