If we talk about life insurance, as we have said and proven on previous occasions, it is to enter a very vast world. A quick search on the internet is enough to prove it: there are insurances as you can imagine.
As you know, at Lewer Canada, we specialize in corporate benefit programs, including life insurance. We know this is a subject that can lead to a lot of confusion, so this time we want to address it once again, from a different point of view.
Let’s talk, in particular, about the two types of life insurance and what is better in different cases: term life insurance or permanent life insurance? Let’s talk about it in more detail. Read on to learn more!
Life insurance in general
Before we compare permanent and term insurance, let’s talk very quickly about life insurance in general. In a few words, it is an agreement (policy) between two parties: an insurance company and a natural person. It is governed by a policy and the payment of life insurance premiums.
The natural person, called “policyholder” or “insured”, decides on the operating conditions of the insurance. For example: it decides the duration of the coverage, the people to include (beneficiaries), the type of premium to be paid (which in principle defines the price of life insurance), etc.
Another alternative to access life insurance is to go through the benefits offered by certain companies to their employees, as is the case at Lewer. You can inquire about our life insurance option by clicking on this link.
As you can see, opting for life insurance is a great decision to protect yourself or your loved ones financially in the future. Want to learn more about how life insurance works in Canada? Click on the link above to learn more in detail and on a legal basis about it.
In fact, you can visit our blog for more tips and interesting information like this. Having clarified all the above and having understood in a very basic way how insurance products work, let’s continue the subject!
Term life insurance
What is term life insurance? In very simple terms, this is a life insurance policy taken out for a set period of time. In other words, insurance coverage is limited to the period defined in the policy (months, years, etc.).
This period may vary and some companies establish it according to the age of the insured. For example, sometimes coverage is established until the age of 65 or 70, until death, among other alternatives.
As for the cost of insurance, it can also vary from one policy to another (for example, some policies consider the cost in the absence of a claim after the expiry of the coverage period to be zero). The ideal would be to inquire.
Permanent life insurance
At first glance, one might think that permanent insurance is the opposite of term insurance. And yes, it’s practically that: a type of policy that covers the insured and the beneficiaries indefinitely and does not take into account the time of death of the former: whether two years or fifty years have passed.
Many people usually opt for this type of insurance because of the type of premium, which usually does not change over time. Of course, within permanent life insurance, there may be other options that qualify as such, but with other conditions.
We reiterate what was said in the previous section: to take out an insurance policy, the most important thing is to inquire beforehand, either with the company or with the broker.
Improve your company’s working conditions with the best benefits programs in Canada
Finally, we hope this article has been helpful to you. We hope you’ve been able to understand the differences between the various policies and whether term or permanent life insurance is right for you.
If you want to improve the work environment in your company and take care of your employees, choose the best benefits programs in Quebec with Lewer Canada! Here are some of our services (more information on each link):
· Health insurance (general or supplementary)
· Dental care.
· Employee Assistance Program.
Do you have questions or want to engage in one of these benefits programs in your company? Contact us, you can find the option on the top bar of this site.
For more personalized attention, you can also find us at 3131 Boul. Saint-Martin West, Suite 410 Laval, Quebec.