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What Are Common Question about Life Insurance in Canada?



One of the most responsible things that you can do is buy life insurance for your loved ones. However, the problem is that for some people, shopping for insurance; can be a little intimidating. They are bombarded with a barrage of questions in their mind. How much insurance do they need? Or which insurance company is best for them. There are multiple questions that people who are opting for insurance first time have in their minds we are listing a few of the most common questions about life insurance down below.

Do I require Life Insurance?

Think for a minute, if you die, will anyone related to you, will have to suffer financial problems? If there are people in your life that depend upon you financially, then it is essential for you to have life insurance. In most cases, these dependent people are Spouses and Children. These are the obvious candidates, you can also have elderly parents who depend on your finical help.

How much Life Insurance do I need?

According to experts’ advice, your insurance coverage should be roughly equal to 7 or 9 times your salary. Although this is a simplistic approach it can still leave you under-insured. In order to have a more elaborate sense of how much insurance you need, make use of Life Insurance Calculators. They will break down each of your assets and liabilities in order to give you a reasonable insurance amount.

How long do I need insurance protection?

Another most commonly asked and perhaps the most important question. Generally, there are different overage periods as per the individual insurance policy of each person but the following options are suitable for most insurance plans.

  • Coverage unless your youngest child becomes financially independent.
  • Until the mortgage is paid off
  • Until retirement
  • That will last for an entire lifetime

What kind of Life Insurance do I really need?

The industry of Insurance is now widespread and far more sophisticated with various options to choose from. Few of the popular options are as follows.

  • Term Insurance
  • Return of Premium Term Insurance
  • Whole Life Insurance
  • Universal life insurance

Term Insurance is usually the most opted insurance plan among the general public. This insurance last for a period of 10, 20 or even 30 years as it provides the most amount of coverage on the premium dollar rate.

How much does it cost to have life insurance?

This is also one of the most commonly asked questions. The cost of life insurance is depended upon many variables amongst which a few are as follows.

  • Age
  • Gender
  • ‘Health
  • Class rating
  • Amount of Coverage
  • Duration of coverage

Each person has a different situation when it comes to life insurance. So only get in touch with those agents that ask for important underwriting questions. This way you will get accurate and reasonable quotes.

What is the process for purchasing Life Insurance?

Due t the aid of technology, the purchase process for life insurance has become simplified. Most companies now offer online submissions along with signatures of documents. The agent will also help you fill out the forms over a phone call. After submission comes to the medical exam and now insurance companies will send a medical examiner to your home. The paramedical test involves the following tests.

  • Blood draw
  • urine sample
  • Blood pressure management
  • Height and weight measurements
  • Resting EKG

Usually, these medical records get approved in 3 to 4 weeks. Once the approval is made, the policy can be signed electronically as well as paying the premium amount and voila you are covered.

What is the time period for getting the life insurance?

Usually, a fully underwritten policy along with a paramedical exam takes 3 to 6 weeks. However, the life insurance period is usually dependent upon the type of insurance you have opted for. Whereas some companies also offer life insurance without the need for a medical exam and you can have instant approval. However, be warned these insurance policies are usually costly.

What Life Insurance companies should one use?

As the industry of insurance has grown, there are now multitudes of companies to choose from. The key role when choosing an insurance company is that it should be financially stable. Usually, companies with ‘A’ ratings are the best option. However, you can also choose the companies with Best or Standard ratings as well. The companies are also financially stable. One other thing to remember is that choose a company that offers a “Conversion plan”. So if you wish to convert your Term insurance to Permanent Insurance In the near future.

How to find the right insurance Agent?

You can choose from the following two agent types.

  • Independent agent
  • Captive agent

The captive agent generally belongs to a single company while the Independent Agent has access to multiple insurance companies. Our advice is to go for an Independent agent. He will provide you with underwriting requirements of multiple companies which will make the decision-making much easier.

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