Term life insurance calgary
Life Insurance Quotes in Calgary Alberta
There are two main types of life insurance products that can be purchased in Calgary Alberta. These two types of life insurance are called term life insurance and permanent life insurance (also called whole life or universal life).
Determining which type of life insurance that you should purchase in Calgary Alberta depends on your need for life insurance. We recommend that you reach out to us to determine what type of life insurance is most suitable for you.
Term life insurance is the most commonly purchased type of life insurance in Calgary Alberta. This is because it is the most affordable type of life insurance that you can buy in Calgary Alberta and provides the highest amount of coverage.
If you have a family, spouse, children, debt which includes mortgage, credit cards, lines of credit, student loans, business loans, etc. Basically, if you are responsible for something financially for a period of time then you should be purchasing term life insurance.
The first aspect is a death benefit amount- for example $500,000, $750,000, $1,000,000. This is the amount that would pay out to your beneficiaries or loved ones if you passed away while you have the policy. This amount gets paid out as a one time payment, tax free. The Canadian government can’t get their hands on this money.
The second aspect is a length of time in years- for example 10 years, 20 years, 30 years. This is the length of time that your policy has fixed premiums (essentially the cost of the policy) and the length of time that your policy has a fixed death benefit (e.g. $1,000,000).
When we combine these two aspects, we have a coverage amount and a length of time.
As you’re researching term life insurance, you will notice that you can price out 10 year terms, 20 year terms, 30 year terms, etc. What this means is that if you have a 20 year term life insurance policy for $1,000,000 dollars- you are going to have $1,000,000 of death benefit coverage for 20 years with the same price. The price will not change. Basically, the cost of the life insurance policy is averaged out for those 20 years.
The shortest time period that you can choose with a term life insurance policy is 10 years. A 10 year term life insurance policy will also have the lowest premium. As the length of the term life insurance policy increases as will the cost.
Ideally the goal with a term life insurance policy is to ensure that the length of the term provides coverage long enough until you no longer need life insurance anymore. For example, you may want to purchase a 25 year term life insurance policy if you recently had a child as it would provide coverage until your child is 25 years of age and no longer dependent on you financially.
Permanent life insurance is a very unique product in Calgary Alberta and can be very complex. It is mainly designed for estate planning, final expenses (funeral costs), taxes at death, high net worth individuals and business owners.
Unlike term life insurance which provides insurance coverage for a period of time, permanent life insurance offers insurance coverage for your entire life. Permanent life insurance does not have an expiry date and is guaranteed to pay out upon your death.
We recommend that you reach out to our insurance experts in Calgary Alberta to discuss your personal situation so that we can help determine if you should consider term life insurance or permanent life insurance.