With so many insurance policies vying for your attention, it can be hard to choose one that fits your needs the best. Here are some of the most common in Canada –

Permanent Life Insurance

A permanent life insurance policy will have you covered till the policy matures. You can choose this policy as long as you are prepared to pay the premiums when you are required to. The country offers the following types of permanent life insurance policies –

1. Limited Pay
2. Whole Life
3. Universal Life

Term Life Insurance

As the name implies term life insurance policies are designed to provide protection for short term needs. This also makes it the simplest form of life insurance policy available. The premiums from your term life insurance policy might start off low. However, they will mature as you grow old.

Short term policies like these are perfect for individuals who have debts to pay or need to resolve financial emergencies. This is because term life insurance offers a range of perks for fewer premiums. Your chosen policy can last you for as much as 10 to thirty years.

Whole Life Coverage

This policy is for life provided that the insured pays premiums on time. The policy also allows loans and provides participating whole life coverage. These policies can also be non-participating.

Universal Life Insurance

This particular type of life insurance policy provides –

• Level death benefits
• Level cost of insurance
• Increasing death benefits

Universal life policy holders are also allowed to change their options according to their specific requirements.

What you can do

Life insurance policies are one of the most important aspects of any financial plan. However, most Canadians have trouble figuring out the type of insurance policy that will serve their interests the best. If you happen to be one of them, its best that you ask yourself the following questions before you commit to any policy –

How much insurance will I need if I have children?

If you have kids, your chosen life insurance policy should acknowledge the following expenses –

• Clothes
• Food
• Personal care such as medical expenses
• Expenses that are related to education such as school supplies
• Housing

Which insurance company offers the best policies?

The best way to find that out is to check your chosen life insurance company’s ratings. This will give you a fairly good idea about its financial success. While some insurance companies offer their ratings for free others might charge for it.

Which life insurance policy suits my particular needs the best?

If your needs are for the short term, a term life insurance should suit your needs the best. Analyze the policies mentioned above while keeping your needs in mind. Do you see yourself paying for more kids in the not so distant future? It’s best that you plan these things out before you commit to any one policy.