What You Don’t Know About Life Insurance in Canada

Life insurance is a critical benefit to possess in the event of a premature death. It provides family members with financial support during a tragic timeframe.

In Canada, over 28 million citizens have life insurance. With 96 insurance providers in the nation, it can be overwhelming for consumers.

There are many different plans to choose from. How much coverage is appropriate? What important terms and conditions should shoppers be aware of?

Read on to learn more about life insurance in Canada. Also, find out little-known facts about Canadian life insurance.

Where to Look for Life Insurance in Canada?

There are three places for consumers to shop before hitting the individual market.

First, shoppers should check to see if an employer-provided plan is available. This will likely be the cheapest possible plan.

Employers typically cover a portion of the premium. Additionally, the total premium should be lower at a group rate.

If an employer plan is not an option, consumers should reach out to professional organizations. This is another way to take advantage of a cheaper group rate. There are professional organizations for many crafts such as plumbers or electricians.

What are Some Reputable Insurance Providers in Canada?

The largest life insurance provider in the nation is Manulife Financial. The insurer is one of the top 10 largest companies in all of Canada.

Manulife is famous in the United States as well, owning reputable insurance provider John Hancock.

Sun Life Financial and Great-West Lifeco are two other giants in the Canadian life insurance industry. These companies provide many financial services in addition to life insurance.

Some customers prefer a company that specializes in life insurance and more personable. Canada Life Insurance Company meets these criteria.

Shoppers should check out Insurdinary life insurance quotes Canada for rates competitive with the larger corporations.

Facts that Many Shoppers are Unaware of

Many consumers falsely believe that coverage begins with purchasing a plan. Unfortunately, that is not true.

Most plans have a waiting period, meaning that coverage starts after a set duration passes. If a death occurs before the waiting period expires, the benefit paid to family members will be limited.

There are certain behaviors and activities that can also limit paid benefits. Extreme sports and traveling to dangerous countries are perfect examples.

Additionally, consumers should be cognizant of pre-existing conditions. Future claims may be denied due to a pre-existing condition or if the policyholder does not disclose health issues.

Another thing to keep in mind is the renewal conditions. Some customers like automatic renewals but are furious when the rates rise substantially.

The most prudent thing a shopper can do is to review the renewal conditions before signing the original life insurance plan.

Wrapping It Up

Life insurance in Canada is an absolute necessity to protect families in the event of an untimely death. Insurance shoppers need to read the fine print and understand the terms and conditions of the plan.

It would be tragic for a family to receive a limited paid benefit due to a pre-existing condition or an excessively long waiting period.

Check out our other blogs on products and services, and do not hesitate to contact us with any questions.

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