Moving to Canada is a huge change, which makes it more important than ever to ensure that your family is protected financially.
Why should permanent residents of Canada purchase life insurance and what does it cover?
In the event of death, life insurance covers the deceased’s financial commitments, including mortgage and debts. It also provides relatives with the money they need to maintain their lifestyle and covers death-related expenses, such as the cost of repatriating the deceased to their country of origin. This money is tax-free.
How should a permanent resident choose the best life insurance?
The best way to choose a life insurance product that fits your specific needs and financial situation is to consult a qualified, experienced advisor. While it’s easy to go online and get lots of quotes, the coverage offered may not be appropriate for your family’s needs.
For example, the insurance policy may not cover
- repatriation of remains to country of origin
- financial support for aging parents
- higher education costs for children
- financial support for a spouse or common-law partner
Before purchasing an insurance policy, it’s always best to speak with an insurance advisor who is experienced with applicants in similar circumstances who will take all aspects of your life into account.
What is the approximate cost of life insurance in Canada?
The cost of life insurance varies according to your needs. Here are a few examples of term life insurance costs:
- $9/month for coverage of $100,000 on a 10-year term: 26-year-old female, non-smoker
- $47/month for coverage of $750,000 on a 20-year term: 35-year-old male, non-smoker
- $62/month for coverage of $350,000 on a 15-year term: 50-year-old female, non-smoker
Are non-Canadian citizens eligible for life insurance in Canada?
Yes, it is possible for both permanent residents and temporary residents to purchase life insurance. This would be the case for a study permit holder, for example. You can contact an advisor for more details.
What types of life insurance are available in Canada?
There are many types of life insurance to choose from, each with its own distinct characteristics. Examples include:
- Term life insurance
- Permanent life insurance
- Participating life insurance
- Universal life insurance
Are my immigration documents required to purchase life insurance?
No. Immigration documents are not generally required to purchase life insurance.
What other types of insurance are available to permanent residents and newcomers?
Different types of insurance products include:
- Critical Illness Insurance : Provides tax-free financial aid if you are diagnosed with a critical illness covered under your policy.
- Disability and Income Insurance : Provides a source of income during disability leave to meet financial commitments and concentrate on recovery.
- Accident Insurance : Provides a lump-sum payment or covers certain accident-related expenses if you suffer an accident.
- Home Insurance: Protects against damage to your home due to fire, flood, theft, water ingress, etc., whether you are a tenant or owner.
- Auto Insurance: Required by law, it protects your vehicle and wealth, and provides access to emergency assistance.
Please note that public and group insurance plans offered by employers do not always provide complete coverage. It is important to complete your coverage with the help of an advisor.
If you’d like to learn more about the best option for insurance as a permanent resident in Canada, contact Alan Tenenbaum directly at [email protected] or 416-930-4511.
