There are several types of life insurance in Canada – here is brief overview of different insurance types:
Term Life: Life protection that will expire at the end of a set term (e.g. after 5, 10, 20 years) and which does not accumulate any value. A Term Life Insurance policy is a pure insurance product: simple and easy to understand.
Universal Life: It is a combination of life insurance and an investment component. A portion of your premiums go into your account, increasing your net worth. You can choose how the investment component is invested. A Universal Life Insurance Policy typically comes at a higher cost than a Term Policy.
Whole Life: One of the most complex life insurance products. Like Universal Life, a Whole Life Insurance policy also has both insurance and investment components.  However, they typically offer less flexibility (e.g. the insurer decides how the investment component is invested). This product is also more expensive than Term Life insurance.
While each type of life insurance has its pros and its cons, we believe, the best choice for most people is very often Term Life insurance. It’s the simplest product to understand, it’s the cheapest protection you will get, and it fully fulfills its purpose – to protect.
One of the fans of simple Term life insurance is Suze Orman, one of the leading personal finance gurus in the U.S.A. This video about Suze’s perspective on life insurance is fully applicable to Canada.
According to InsurEye analysis, Term Life is the most popular life insurance protection type in Canada. Nearly 45% of InsurEye users, who have Life insurance, report that they have purchased Term Life insurance.
Please speak with a qualified insurance broker or advisor before making any important decisions associated with such an important topic. An insurance broker can also help with other types of insurance policies such as dental insurance policy, disability insurance coverage, or burial insurance protection (also called funeral insurance plans). Please note, that this article is provided for educational purposes only.