What To Keep In Mind When Going For The Best Life Insurance Plan In Canada

/ Life Insurance / Jul 21, 2020

With your growing responsibilities, it becomes increasingly important to protect your present as well as plan for the future. Life insurance is an effective financial planning tool that offers multiple benefits in terms of investment and protection.

But before buying a life insurance policy, it is important to be well equipped with the knowledge to choose the right plan as per your requirement and budget.

Make sure to keep the following points in mind when choosing the best life insurance plan in Ontario, Canada.

1. Buy for the right reason

Understand the actual purpose of purchasing insurance. Remember, you are buying a life insurance plan for a certain set of goals, cover for your life, and protect the financial future of your dependents. Don’t just buy insurance only for secondary benefits like tax savings (if applicable).

2. Duration of the policy

The duration of your life insurance plan should be “the estimated age of your retirement minus your present age”. This means that if you are currently 25 and want to retire before the age of 60, the duration of your contract must be at least 35 years.

Some permanent insurance plans also offer coverage for your entire life. You should discuss these things with your financial advisor to find the best life insurance (and affordable) for you based on your requirement and income.

3. Coverage amount

The life insurance premium amount is typically based on the amount of life cover you choose. As a thumb rule, you should try to go for a life insurance coverage that is at least ten times your annual income.

You can also use our life insurance calculator to get an idea of ​​the amount of insurance your spouse will need to protect your family until life expectancy.

4. The credibility of the life insurance company

Before purchasing a life insurance policy, it is important to make sure you research the company well to find out its pros and cons. Some of the key points to look into are:

  • Claims Settlement Ratio – This factor refers to the number of claims settled by the insurance company for 100 registered claims.
  • Assets Under Management (AUM) – This is the current market value of the funds managed by the financial company. Higher AUM suggests that the portfolio is solid and efficient.
  • Solvency ratio – This is the ratio used to measure the financial stability of a business. This ratio refers to the ability of the company for long-term debt settlement. A solvency ratio in the higher end suggests that the company is comfortably placed for claim settlements.

In addition to this, excellent customer service, positive reviews on the World Wide Web along with corporate governance practices provide vital information about the overall performance of the business.

Get in touch with us for the best and affordable life insurance plan in Ontario, Canada

Trust Life & Investments is all about providing affordable insurance options for our customers in Canada. We have over 30 years of experience providing expert insurance and investment advice for both businesses and individuals. Get in touch with our expert financial advisors to know more about affordable insurance plans.