Which type of life insurance is right for your family?

(Provided by CAA)

For many people, the topic of life insurance is an uncomfortable discussion. They may not know how to get insurance, how much insurance they need to get, why they need it at all, or they may not like discussing death. All are totally fair reasons to avoid thinking about it - but we’re here to help.

To help you understand the what, why, and when of life insurance, we’ll cover the different types of insurance, the reasons you should get life insurance, and the different ways it can be beneficial for your life and loved ones.

Types of insurance

Before purchasing a life insurance policy, it’s important to understand the options available to you. There are two main types of life insurance: term and permanent.

Term life insurance covers you for a specific amount of time, usually between 5-50 years, at a fixed rate for the duration (or term) of the insurance policy.

When a term insurance policy expires, and you want to get another insurance policy to replace it, the premiums will be higher as you age.

If you want your family to be covered for a specific expense, term insurance is a good option. For example, if your mortgage has 25 years remaining, or your kids will be done post-secondary in 30 years, and you don’t anticipate needing additional cash aside from those major events, term life insurance can cover those expenses.

Permanent life insurance has no set time period, and as the name suggests, it’s a permanent policy that covers you as long as you pay the premiums.

Because permanent insurance doesn’t expire, your premiums won’t increase as you age, so it provides a lot of financial certainty, especially if you get it when you’re young and have lower premiums compared to getting coverage when you’re older.

With either type of insurance, it’s important to know that if you take out insurance after having any health issues, you’ll have to pay higher insurance premiums. Life insurance is always cheaper when you’re younger, whether you choose a term or permanent life insurance policy.

When to get life insurance

Simply put, it’s never a bad time to get life insurance, and it’s always cheaper the younger you are. But if you’re looking for specific life milestones, we’ve got you covered.

When you hit a major life event, like when you get married, buy a home, have kids, or have other loved ones who depend on you financially, it’s a good time to get life insurance.

Life insurance can help cover things like a mortgage, tuition or education costs, and even just day-to-day expenses, in the event that you pass away unexpectedly. If the situation arises where your family isn’t able to cover those costs, they’ll have to sell your assets or take on further debt to stay afloat. Having adequate life insurance coverage can ensure your family is protected and can cover your final expenses, and continue forward with some level of comfort.

Peace of mind

Ultimately, life insurance helps provide some peace of mind. When your family and loved ones are grieving, life insurance can help cover end of life costs like the funeral, taxes, or debts, and can ensure your assets stay with your family. By taking on a life insurance policy, you’ll know that the people you care about are able to continue living the life you intended for them.

To get more info on which insurance option is right for you, speak with the experts at CAA Protect. They’ll provide world-class customer service, and have access to the best value and pricing with a free, no-obligation quote that’s personalized to your needs.

You can contact CAA Protect directly at 1-800-709-5809 or [e-mail], and you can learn more at CAAProtect.ca to ensure your family and loved ones are covered, while providing you with peace of mind.