What product should you choose if you want life insurance in Quebec?

What product should you choose if you want life insurance in Quebec?

 

WHICH LIFE INSURANCE IS MOST ADVANTAGEOUS FOR YOU?

Life insurance is protection for the people you are financially responsible for.  When determining the necessity of life insurance in your case, the most important question to ask yourself is « If I should die today, will my family experience financial hardship? »  If the answer is no, then you don’t need life insurance. If yes, you must take quick action and find out all about your life insurance options.

When life insurance comes into play, only the financial aspect seems to matter. Many people look for a policy that costs the least in the market. This is generally based on the amounts to be paid monthly or annually for premiums and one’s budget.

However, in addition to life insurance prices, multiple criteria must be considered when seriously comparing insurance products.  If you want to know more about term life insurance, the least expensive life insurance product in the market, check out this article.

These motivating factors and goals are used to target your criteria to find the best life insurance:

  • The need for travel insurance
  • The time required to get certain individuals out of trouble
  • If you need financial assistance due to an accident or a health concern that has caused a disability (the need to obtain disability insurance or not).
  • If you should die, having depends who need your financial support.
  • The need to have insurance for critical illnesses or not.

If you need a life insurance professional, read the text below.

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Do not underestimate the importance of choosing the right insurance in Quebec!

The logo for the text on how to choose the right product in life insurance.

There are many products available in life insurance of which captive brokers of various insurers offer only the products from their own company.

Before you start considering one product over another, you need to evaluate whether you really need it.

 

LIFE INSURANCE: WHAT PRICE MUST YOU PAY?

 If you considering the purchase of life insurance, it is essential to assess your actual capacity to pay the premiums regularly.

These premiums vary depending on the term of the agreement, gender, age, your health condition, and the type of life insurance chosen.

 

THE CHOICE THAT WILL NOT HURT YOUR BUDGET: TERM LIFE INSURANCE

 Logo for term life insurance for the text on which insurance product to choose.

The « PROS » :

➢   This insurance provides, for a fixed period of time, generally 1 year, 5            years, 10 years, or 20 years, insurance coverage.

➢   Additions to improve health are offered by insurers to supplement                 term life insurance. These additions redesign your protection to meet           your needs.

➢   The rates (premiums) start very low and increase with every renewal             and as you age.

➢    A multitude of brokers or financial security advisors recommends subscribing to 10 or 20 years term life insurance and a subsequent reassessment of your needs.

➢    The ability of term life insurance to be converted to permanent life insurance is an important feature during renewal which offers you additional benefits and helps you avoid higher premiums.

The « CONS » :

  • If at the end of your term, you have an accident or develop an illness, your insurer may refuse to renew your coverage.
  • Zero redemption value or savings component.
  • After your 85th birthday, the majority of insurers refuse to renew coverage for term life insurance. If your policy is not renewed due to your medical history or an oversight on your part, your benefits are lost forever.

 

FOR LONG-TERM PROTECTION: WHOLE LIFE INSURANCE

 Logo of permanent life insurance on the topic of insurance products available in Quebec.
The « PROS » :

➢  An initial medical exam is required at the beginning of the policy. No renewal is necessary and you keep the original conditions of the agreement, even with increasing age or changing health status. Even when your condition deteriorates over time, you are still covered.

➢  No surprises during the contract. The price of the premiums remains the same throughout the contract.

➢  This product offers sufficient coverage to replace your income for the benefit of your loved ones and ensure the continuity of your plans and investments.

➢  Permanent life insurance honors the debts you leave behind, provide a legacy to your heirs and pays your final expenses.

 

The « CONS» :

  • Don’t take out permanent life insurance if you are already financially stable and can leave a sufficient legacy after debts. It would hurt you rather than help you by forcing you financially without any benefit.
  • Permanent life insurance becomes a real need if there are budget constraints and you out your legacy and family at risk.
  • Permanent life insurance is never the cheapest option available, especially compared to term life insurance.

 

Example of prices to compare term life insurance and permanent life insurance :

Let us consider an individual in his 30s, in good health and does not smoke. If he takes out a 20-year term life insurance for the amount of $250 000, he would pay approximately $25 a month.

For a whole life insurance policy (permanent life insurance) with the same amount that he would pay for 20 years, it would amount to about $290 a month, about 12 times more.*

*These prices were obtained automatically using online price generators. Do not rely on these prices.
If you wish to receive a FREE quote based on your needs, complete the short form on this page.

 

 

TAX DEDUCTIONS FOR UNIVERSAL LIFE INSURANCE

 The logo for universal life insurance concerning life insurance products in the province of Quebec.
The « PROS » :

➢  Opt immediately, based on your needs, for premiums that are fixed or are adjustable. There will be no increases thereafter as there is no need for renewal.

➢  Hedge funds that are not taxable due to tax laws. This can potentially pay for your premiums later on and relieve you of this financial constraint. You can also withdraw money for personal use.

➢  Due to its flexibility, universal life insurance accumulates a significant amount of cash based on your wishes.

➢  Many customers who consider cash surrender value to be important like the security of this product. In case of a sudden financial problem, you can receive the cash value (or part of it), all taxable, unfortunately. Your annual statement will indicate the amount available for withdrawal.

➢  Universal life insurance shows an adequate amount of insurance to meet any need, be it to bequeath a significant legacy or to take care of your debts (personal loans or mortgage…). To establish a profitable estate, this insurance solution is quite ideal.

➢  If your capitalization fund has adequate funds, you don’t need to pay for your premiums.

The « CONS » :

  • Follow the advice of your and place all possible amounts in your RRSPs and TFSAs or other tax shelters before buying a universal life insurance policy.
  • Expect tp pay very high policy costs, much more than for permanent life insurance or term life insurance.

For more information on universal life insurance, here are the complete product details on our site.

 

OBTAIN INSURANCE PROTECTION WITHOUT A MEDICAL EXAMINATION

 The pros and cons of life insurance without a medical examination in Quebec as a life insurance product to choose.
The « PROS  » :

➢  If poor state of health causes a denial of coverage from all life insurance companies, guaranteed life insurance or no medical examination is the solution to your problem. Thus, you can avoid taking a medical exam, replaced by a concise form that you must fill out completely, in order for the insurer to know your physical condition.

➢  Only in rare cases will your policy not be activated automatically as soon as the insurer receives the form.

➢  Usually, some answers will be adequate to subscribe to a plan. You will receive a confirmation from the insurer upon receipt of your request.

➢  This insurance product tends to be more prevalent as a multitude of insurers offers similar policies.

➢  Scales based on complex figures determine premiums. The estimate of the risks that you pose is measured as follows: your gender, your use of tobacco, and your age. The premiums, once established, will no longer increase.

➢  You will get a lower face amount than other insurance products but this will still benefit your finances. This protection will give your family the money to pay for your final expenses. If you can get a bigger insurance amount, try to choose based on your total debt or the amount you want to bequeath to your beneficiaries.

➢  You will immediately see the benefits of acquiring life insurance without a medical examination from the many leaflets distributed and the analyses of solutions in this field. You can discover right away the advantages of using this approach due to the absence of additions or supplements to these policies which facilitate your research.

 The « CONS» :

  • Sign the agreement as soon as possible! Fortunately, this insurance is provided until the age of 70. On the other hand, the longer you wait, the more the prices will increase.
  • Many life insurance policies with guaranteed membership require 2 years before the start of the contract. If you die within that time, the life insurance company returns all the premiums paid since the signing of the contract.
  • The premiums are very high since the insurer, without knowledge of your true state of health, must deal with significant risks. This is why premiums reflect a very negative estimate of each age group in society.

 

Are you in the process of shopping for life insurance?

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Use this broker reference platform for price comparison (insurance brokers and insurers perform this time-consuming and confusing task for you!) and obtain a quick quote that is tailored to your needs.

A simple form and its short fields to fill out (on this page) is enough. Your request is then sent to one of our partners.

He will evaluate your needs. He will look for the best policies among insurers at his disposal and send you the most competitive quote.

This is without any obligation on your part!

How much does life insurance cost in Quebec?

The logo for the text on how to choose the right product in life insurance.

Before starting your search for life insurance, you must, first of all, estimate your ability to pay for it. Indeed, a monthly premium for your life insurance must be absolutely within your budget. The payment, since it will be required through most of your life, will have to consist of a negligible fraction of your budget. The budget of each individual will thus limit his options.

Be careful not to cancel your life insurance policy as you will lose everything. Do not cancel your policy in any situation, as much as possible. If this happens (more often than we think), your protection is gone forever and all the investment you made is lost at the same time. Paying your premiums all this time would have been for nothing.

 

Statistics Canada reported in July 2017 that in Canada, the average weekly salary is $970.50 per capita. The premium for a life insurance policy costs, on average, $50 monthly, just below 3% of the average monthly income. Learn about the costs of each life insurance product before making your choice.

Take a good look at the available choices based on your budget because the premiums will vary based on the term, type of insurance selected, your health condition, sex, and age.

To establish your current life insurance needs, take stock of your own finances. A financial security advisor would also recommend doing the same thing.

This expert is obliged to make a careful evaluation of your needs and budget.

To clarify your requirements regarding how low or high the amount of insurance needed, it becomes a question of determining your liabilities and your budget constraints.

Let’s do this exercise right away.  

 

HOW TO DETERMINE THE RIGHT PRICE TO PAY FOR YOUR LIFE INSURANCE?

PREPARE YOUR BALANCE SHEET

Le prix à payer pour votre assurance vie passe par un bilan.
Prepare all the documents needed for your balance sheet in life insurance.

PREPARE YOUR DOCUMENT

You will need to include:

  • Your total debt such as your student loans and personal loans, for example
  • The insurance policies you own (mortgage, home, life, car..)
  • The balance of all your credit cards
  • Real estate (their value)
  • The total of your investments such as pension funds, your RRSP or TFSA…
  • Your valuables (jewelry, art pieces)
  • The total of your bank accounts
Just add your liabilities in this column for your balance sheet for life insurance.

ADD UP YOUR LIABILITIES

In the first column, list all of your debts:

  • Credit card accounts.
  • Loans (mortgage, student loans, personal, car…)

Add up the amounts in this column and mark « Total liabilities» near this result.

It is a question of adding up the assets to finish the balance sheet and determine the necessary amount of life insurance.

ADD UP YOUR ASSETS

In another column, list down your assets:

  • Your retirement funds.
  • The value of your: vehicles, house, art pieces, properties or buildings, jewelry, etc.
  • Your bank accounts (only those in the positive)
  • Your investments (placements such as RRIF, TFSA, RRSP…)

Add these amounts in a new column and mark « Total Assets » near the amount.

Calculate your net worth to determine your life insurance needs.

CALCULATE YOUR NET WORTH

Deduct your total liabilities from your total assets. The resulting amount is your net worth.

If your net worth is positive, opt for a life insurance that will require investment or a lower amount of insurance to reduce your premiums.

On the other hand, if the net equity is negative, think of a life insurance policy that will cover your debts to leave less or no obligations behind to your family.

Prepare a budget so that you can choose a life insurance product.

MAKE YOUR BUDGET ON A SOLID BASIS

Since you now know the desired amount in insurance, you have the option to set up a budget (a list of your monthly cash inflow and outflow).

Thoroughly inspect the margin left between all of your income and unavoidable expenses.

Always leave yourself some latitude to prevent situations beyond your control such as transient disability or damage to your appliances.

Determine a portion of your life insurance budget so that it won’t be a burden to you.

Does your budget still seem uncertain to add life insurance payments?

Let the partners of « Compare Insurances Online » work it out for you. They are all insurers and insurance brokers.

Fill out the form on this page to receive advice from one of our partners.

He will find an insurance solution for you.

There is no obligation on your part!

 

The right life insurance will allow you to achieve your goals!

The logo for the text on how to choose the right product in life insurance.

It is important to choose the right life insurance which meets your financial capacity and needs.

There are several options but this online platform allows you to get assistance from our broker partners.

Simply fill out the short form located on this page.

After a careful assessment of your requirements, one of our partners will send you a quote, absolutely FREE OF CHARGE!

In addition, this does not commit you to anything so don’t let this opportunity to save money pass you by!

Get a Free Quote for your life insurance

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