Life Insurance

Permanent life insurance provides lifelong coverage and includes a savings or investment component that grows over time. Unlike term life insurance, it doesn’t expire as long as premiums are paid.

In most cases, these death benefits are not taxable in Canada. However, any interest earned or investment income within certain policies may be subject to tax. error, est. Ea, consequatur.

1. Yes, life insurance can be a smart financial decision in Canada. It helps protect your loved ones financially in the event of your death by covering things like debt, income replacement, and funeral costs. numquam, error, est. Ea, consequatur.

The earlier, the better. Premiums are generally lower when you’re younger and healthier, so buying in your 20s or 30s can help you lock in affordable rates.

Most these policies pay out within 30 to 60 days after a claim is approved, assuming all required documents are submitted.

This type of coverage typically doesn’t cover deaths related to fraud, suicide within the first two years of the policy, or deaths caused by criminal activity or high-risk behavior (depending on the policy).

If the policy is active and all information provided was accurate, the insurance company will usually pay the death benefit—even if the death happens shortly after coverage begins (except in certain exclusion cases).

Some policies allow access to cash value or offer living benefits if you’re diagnosed with a critical or terminal illness. Term policies generally don’t offer this, but permanent policies often do.

Not necessarily. You must name your spouse as a beneficiary when setting up the policy. If you don’t, the payout may go to your estate or another listed individual.

Yes, the death benefit from a life insurance policy can be used to cover funeral and burial expenses, along with any other financial needs your beneficiaries may have.