If you plan to settle in Canada, it is important to have life insurance coverage of an appropriate amount. Some reasons to insure your life:
- Protect your dependents
- Repay parents and relatives for their investment in your education/immigration
- Protect assets that you are still paying EMIs/mortgages on
There are a few types of life insurance in Canada:
- Term insurance is where your entire premium goes towards insurance coverage. When the term is over, you get nothing back if you are still alive.
- Whole life insurance is where you can pay off your premium earlier and not have to pay premiums later in life. There is also a cash value if you choose to withdraw it.
- Universal life insurance is where your monthly premium is made up of insurance coverage as well as a portion going towards investments of your choice. The idea is for investment returns to cover premiums at a later stage
Each type of insurance has its pros and cons and should be considered in a comprehensive manner before taking a decision.
You can either buy insurance online or through an agent. It really comes to your comfort level in picking a product yourself, and whether you need guidance or not. If you do need advice, you can reach out to us and we can connect you to trusted insurance providers.