Best life insurance policies in Quebec.
Best life insurance policies in Quebec.

Are you planning to buy life insurance to protect your family? Good news: there are plenty of options to choose from.

Although it can be difficult to sort through all the types of insurance available, choosing the right policy doesn’t have to be complicated.

To simplify the process, we present in detail some of the best life insurance policies available in Quebec for you to consider. 

Before choosing a product, always speak with a professional financial security advisor for advice tailored to your situation.

Which life insurance policy is best for your needs?

Don’t be intimidated by the multiple choices you can find for life insurance online. You can easily narrow down your choices with this list of the top 5 life insurance policies as follows.

#1: 25-year term life insurance

Get 25-year life insurance protection with term life.

Many of the financial risks that an individual faces during his lifetime are temporary. We can cite examples such as a mortgage, a car loan, a line of credit, income replacement, etc. These are considered risks because in the event of lost income, illness, or death, there may not be enough money to pay for them.

Term life insurance is the most popular life insurance product because it is very flexible and affordable. The level of protection is also adjustable according to your needs.

The period when you need life insurance the most is between the ages of 30 and 55. It is mainly during this period that couples have children, buy a house, and see an increase in their financial obligations. 

In the event of the death of a spouse, the surviving partner will find himself left with a financial burden that may be difficult to support with a single income.

25-year term life insurance is a very attractive solution for several reasons:

  • It is the cheapest type of life insurance on the market
  • You can take out any amount of protection ($100,000, $300,000, $500,000, $1 million, etc.)
  • The benefit is tax-free and paid directly to the designated beneficiary
  • The 25-year duration covers the most high-risk period for individuals;
  • The benefit can be used to cover all kinds of needs: mortgage, replacing the deceased spouse’s income, etc.

Keep in mind that term life insurance policies expire at the end of the term. If the insured dies after the policy has expired, no death benefits are paid to the beneficiaries.

The good news is that term life insurance can be renewed but it will cost more with every renewal. The renewal is subject to acceptance by the insurer based on health status, age, and other factors.

If you find that 25 years is not the appropriate term for you, know that term insurance is available in other terms (10 years, 20 years, 40 years, up to 65 years, and more).

#2: Permanent life insurance for lifetime coverage

Permanent life insurance for lifetime coverage.

The second most popular life insurance product is permanent life insurance or whole life insurance for lifetime coverage. 

Why is it such a popular product in Quebec? Because it’s the product advisors like to offer the most.

It doesn’t matter at what age you die, whether it’s 35 or 95, your loved ones will have to pay your funeral expenses. You will also have financial obligations left behind – credit card debts, student loans, mortgage, hospital bills, etc.

Without life insurance coverage, you will be leaving this burden to family members.  You can get permanent life insurance to set aside money for final expenses and bequeath money to loved ones. 

Permanent life insurance has the following features:

You pay a monthly premium for as long as you are alive:

  • You get lifetime protection which means your beneficiaries receive death benefits regardless of when death occurs; 
  • A cash value accumulates with the life of the policy which can also be used to pay for premiums
  • The benefit amount is not taxable
  • This type of insurance is used to cover risks of a permanent nature which will not disappear over time.

In short, permanent life insurance is advantageous because it is valid throughout your life. The premiums stay the same from the time you take out the policy. You will never worry about renewing insurance coverage or losing insurance eligibility when you get older.

It must be said, however, that permanent life insurance is not for everybody. It is more expensive than term life insurance.

#3: Participating life insurance with dividends

Participating life insurance is permanent life insurance with one distinction. Each year, the insurer may pay you additional participation benefits. But what is participation?

Dividends are the excess profits an insurance company makes in a year over its forecast. This occurs when:

  • The number of deaths is lower than expected
  • Internal investment performance was higher than expected
  • Management fees were lower than expected

Participating permanent life insurance costs more but if the insurer has a good year, customers who own this type of policy will get a share of the profits. It is, therefore, an investment and it relies on the performance of the insurer.

The amounts of the dividends can be paid in cash directly to the policy holder. However, there are other options.

What can you do with your dividends?


Dividend can be used to reduce future premiums payable on the policy. They can also be used to capitalize the policy or to make investments. Eventually, they can be used to purchase small amounts of paid-up life insurance.

#4: Universal life insurance

Life insurance is a measure of protection for your loved ones. However, if you’ve maxed out your RRSP and TFSA, universal life insurance can become a new way to invest tax-free.

Universal life insurance is a permanent life insurance product with a savings and investment component.

According to certain limits specific to each contract, the policyholder can pay each month an amount higher than the amount of his basic life insurance premium.

The excess amounts are then invested, and the profit obtained is NOT taxable. When the benefit is paid, it will also be paid tax-free.

Life insurance to maximize an inheritance

 

Universal life insurance is often seen as the product of choice for well-to-do people who want to take advantage of another account to make tax-sheltered investments. However, the amounts accumulated in this account will only be tax-free if they are bequeathed as a death benefit to the heirs. So it’s a great way to maximize an inheritance.

#5: 100-year term life insurance

Are you looking for a product that combines the features of permanent life insurance and term life insurance?

Term 100 life insurance fits that description. This is a popular coverage for different reasons:

  • The premium cost is lower than permanent life insurance
  • The product covers the policyholder for their lifetime. Just like permanent life insurance, death benefits are paid regardless of the age upon death.

Note, however, that this type of policy has NO cash surrender value. It means that if you decide to cancel your policy at any time, there is no return of premiums paid.

It’s an economical way to enjoy lifetime protection. It is more expensive than a standard term lifew insurance policy but less expensive than traditional permanent life insurance.

Compare the best life insurance from +20 insurers

Every one of these life insurance products presented above can meet your needs. Depending on your financial or family situation. One of them, however, will be more appropriate.

There is no doubt that you are looking to get the best life insurance at the best price. This is precisely the role of life insurance brokers in our network.

At Compare Insurances Online, we have independent life insurance brokers who can look for the right life insurance policy tailored to your needs and compare prices from more than 20 insurers!

No matter where you are in Quebec, our partner life insurance brokers can help you save on your life insurance and find the #1 protection for YOU.

Just fill out the form below, free of charge, to receive FREE and NO-OBLIGATION quotes to compare.

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