What Is The Difference Between Term And Whole Life Insurance?

Whole life is often referred to as permanent life insurance. There are different types of whole life policies with different types of benefits. Some benefits do not require that the policy holder has died. A whole life policy will build up a "surrender value" over time. If the policy holder chose to cash in the policy, then this is the amount that would be paid.

Term insurance is for a specific term. To collect on this policy then, the policy holder has to die. Term insurance is usually inexpensive when a person is under 60. Since the policy pays out when the person dies, then the older the person is then, the greater the risk so the prices go up.

There are subcategories for both types of insurance, with options under each type.

If you have determined a financial plan, then you should be able to find the right "fit" for your needs. You can research this information, and then work with a broker licensed as a Canadian Life Underwriter (CLU). Some brokers or agents have included training on financial planning, and will have a CFP or ChFC designation. The important issue, is that you work with someone you trust.