Many people believe that life insurance is only for those who are breadwinners or have dependents. However, life insurance can be beneficial for anyone – regardless of their financial situation.
What is Life Insurance?
1. Life insurance in Ontario is a contract between an individual and an insurance company. The individual pays premiums to the insurance company, and in return, the insurance company agrees to pay a sum of money to the individual’s beneficiaries in the event of their death.
Image Source: Google
How Does Life Insurance Work?
There are two main types of life insurance: term life insurance and whole life insurance. Term life insurance provides coverage for a set period, usually 10, 20, or 30 years. If the policyholder dies during that time, the death benefit will be paid to the beneficiaries.
Who Needs Life Insurance?
1. Anyone who has dependents who would be financially disadvantaged in the event of their death should have life insurance.
2. People who have large amounts of debt, such as a mortgage or student loans, should also consider life insurance.
How Much Life Insurance Do I Need?
How much life insurance do you need? It depends on several factors, such as your age, your health, your lifestyle, and your financial situation.
If you're young and healthy, you probably don't need as much life insurance as someone who is older or has health problems.
What are the Different Types of Life Insurance Policies?
There are two main types of life insurance policies: term life insurance and whole life insurance.
Term life insurance policies provide coverage for a set period, usually 10, 20, or 30 years. If the policyholder dies during the term of the policy, the beneficiaries will receive a death benefit.
Whole life insurance policies provide coverage for the entire life of the policyholder. The death benefit is paid out regardless of when the policyholder dies.