Understanding Life Insurance

Life insurance isn’t a fun topic, but it’s a critical part of your financial strategy. People don’t often talk about it. Most don’t understand it. Few want to buy it. Even those people who buy it don’t necessarily understand it or appreciate its importance in building and preserving wealth. As a result, a lot of people don’t have any life insurance protection. If they do, most don’t have enough.


They even buy travel insurance for their vacations. But when it comes to life insurance, people remain sceptical. The most important insurance that protects their family and their children is not taken seriously.

Life insurance doesn’t insure your life. It insures your family’s ability to continue on without being financially devastated. A good number of people believe they won’t die anytime soon. Why would they need insurance.

Some take it easy by just signing up with their employer’s group life insurance.  There’s no need for a medical check up. Others get it free from their company.  However, the company may not provide enough coverage, and if their employment terminates, they won’t have protection. They may also have difficulties buying individual life insurance if they have medical problems and need more coverage.

Today, people have all types of protection. They insure their house, cars, phones, and appliances.

Uls maybe a useful tool in implementing some tax and or estate strategies, may allow for changes to the death benefit, and may allow some flexibility in the timing of premium payments.

ULs also tend to be more transparent, in that the different fees are the COI are broken out.

No matter what you call it, all insurance has one thing in common. You have to pay for the COI inside the policy, which is the cost of term insurance.

What is life insurance?

Simply put, life insurance is an agreement an individual has with an insurance company, and every month you pay a premium. Upon the individual’s death, a lump sum of all the accrued money will be paid out to the beneficiaries of their choice, a child, a spouse, or someone else important.

The beneficiary can then use this lump sum to pay for services like university, and everyday bills, or use it to purchase goods they might need. 

How does life insurance work?

As you grow older and reach higher levels of status in your career, you’ll see a corresponding salary increase. At this time, you will likely see development in your emotional life as well, such as marriage or kids. This means at the point of your death, certain individuals will be left in a bit of a pickle in regards to incoming cash flow. 

To avoid the massive impact of your death being amplified by the accompanying shock of financial troubles, you may take out a Life Insurance policy to avoid this. You can select the policy that suits your needs best and based on certain factors such as health, you pay a premium to the insurance company. They will then pay a lump sum out in full to the people you love and cherish, upon your death. 

Why do you need life insurance?

At the time of your untimely death, things will be a bit haywire for a while. Emotions will be running high, social media will be flooding with messages to your loved ones, and rising above all, the financial burden. Yes, even in death you have things to pay. When considering all these variables, it would probably be best to invest in Life Insurance. 

Benefits of Whole Life Insurance

The world was in $226 trillion in debt at the end of 2020, and it’s safe to assume some of that might be yours. When you pass away, some of that might fall onto your loved ones, as well as funeral costs. Having Life insurance can help your beneficiaries cover the costs of :

  • Leftover debt you may have
  • Funeral costs if you chose to be buried
  • Paying off college
  • Sustain financial stability in your absence

To make sure your loved ones are taken care of, it would be best to leave them a little something. 

Benefits of Life Insurance in Vancouver

Living in Vancouver is great, but the reality is you aren’t going to be around forever. It may seem a bit morbid, but planning for the day when you are no longer around is a sound way of making sure those that are important to you stay safe. There are tremendous benefits to having Life Insurance in Vancouver: 

  • Being able to cover the Mortgage of your house left behind

  • Covering the education costs of your children 

  • Being able to help with your funeral costs

Types of Life Insurance

One size does certainly not fit all, and there is no exception when it comes to Life Insurance. Because of this, we find different versions of Life Insurance: 

Term Life Insurance is the cost-effective and more popular option, in which you sign the contract at a set premium for a set period. Once the period of the policy ends, you may increase your coverage by one year at a time. 

Whole Life Insurance, however, is a lifelong cover, which does make it more expensive. It does, however, come with added benefits such as the fact that your money will grow as an investment. 

Universal Life Insurance has great flexibility over the aforementioned options. You can change your premiums monthly and even chose to not pay if you’re facing financial problems. You can also adjust your death benefit to suit life-changing conditions. 


Term Life Insurance

Whole Life Insurance

Universal Life Insurance

Premium Payment

Increases Yearly



Policy Period

Set Years 


As long as premiums are paid


Income Tax Benefits 


Funds build value

Set Premiums 

Flexibility of Premiums 

How to buy Life Insurance in Vancouver

This can all be hard to understand, and no wonder – there is a not to take in. The easiest way to buy life insurance in Vancouver is to contact a Life Insurance Expert for all the advice you may need. From there you can make an informed decision on which options would be best for you and your loved ones. 

How to use a Life Insurance Broker to Get the Best Solution for Life Insurance?

Life Insurance Broker is an expert in this part of life. Your premium can be influenced by a great variety of things, something as small as your smoker status can change it dramatically. Contacting a Broker such as the Life Insurance Expert will allow you to hear all the options you have available and have a conversation about which would be best for you, in your current environment. Sometimes it is best to just say “I’ll ask the Expert”.

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