Canadian Life Insurance

The thin line of difference between Canada life insurance and life assurance Canada has blurred over time. Originally, Canada life insurance ensured that the beneficiaries of the policy received benefits in case the policyholder died within the term of the policy. If a policyholder survived the term, s/he could make no claims on the premiums paid, as no cash value was attached to this insurance.

The thin line of difference between Canada life insurance and life assurance Canada has blurred over time. Originally, Canada life insurance ensured that the beneficiaries of the policy received benefits in case the policyholder died within the term of the policy. If a policyholder survived the term, s/he could make no claims on the premiums paid, as no cash value was attached to this insurance.

However, with time, insurance companies introduced various changes and came up with new forms of insurance policies that included the cash value. With such a policy, a policyholder could claim benefits on the expiry of the insurance term or even upon cancellation of the policy. This policy is known as life assurance. However, now Canada life insurance and life assurance are often used interchangeably.

Canada Life Insurance: A Few Tips

While buying a Canada life insurance policy, one needs to remember the following things:

1. Whole life insurance is much more expensive than term life insurance. The higher cost of the former is a result of the investment component.

2. Keep the term coverage sufficient to meet requirements.

3. The returns quoted by insurance agents for whole life insurance are usually not accurate and tend to be exaggerated in order to attract buyers.

4. Whole life insurance should not be confused with investment. One can make investments in several areas without paying high commissions.

5. Canada life insurance is promoted aggressively by agents. The sole reason is that these policies yield high commissions and profits.

6. The policies must be bought when a person is healthy. If the person is unwell at the time of buying the policy, s/he may have to pay higher rates.

7. Before buying a policy, shop on the Internet for the best rates.

8. You must match the term of the life assurance Canada policy to the time when your dependents are able to start an alternate income.