How finding and buying life insurance online actually works in Canada

If someone depends on you financially, life insurance may be worth considering. But not everyone knows where to begin.

A good place to start is with PolicyMe, a Canadian insurance distributor that offers life insurance online to Canadians, with licensed advisor support available to those who want it.

If you’re thinking about life insurance, you probably have a few questions. With the help of PolicyMe, we’re breaking down some common questions about choosing coverage and applying online in Canada.

What exactly is life insurance?

Life insurance provides a payout to your beneficiaries if you die while covered, subject to the policy’s terms. It can help with financial obligations that would otherwise go unmet, such as supporting children, replacing income or paying off a mortgage.

There are two main categories: term life insurance and whole life insurance. Term life insurance is a type of policy that covers you for a set period of time, known as the term length. It’s ideal for Canadians with financial obligations that would go unmet if they were to suddenly pass away, such as supporting children, replacing income, or paying off a mortgage.

With a term life insurance policy, you pay insurance premiums for a certain number of years, and if you die during that time, your insurance provider pays out a single tax-free, lump-sum death benefit to your beneficiaries.

It’s different from whole life insurance, which is designed to provide lifelong coverage. Whole life insurance is generally more expensive and may best suit people with complex estate planning needs.

How much life insurance do I need?

Everyone’s needs are different, so it’s best to start by considering your financial obligations, how long you think they’ll last, and how much money your loved ones would need to cover them if you died.

For the term length, consider how long you’ll need the coverage. A 10-year term may suit shorter-term obligations. Young families and new homeowners might consider 20 years, while people with longer-term financial obligations may want 30 years. The right term depends on when you expect those responsibilities to end.

As for the coverage amount, start with your outstanding debts, including your mortgage balance. Add anticipated childcare and education costs, plus the income your family would need replaced over the years they would depend on it. Then subtract savings and existing life insurance available to meet those needs.

Or, use PolicyMe’s coverage calculator to help estimate your life insurance needs.

Can I apply for life insurance online in Canada?

Yes. For example, PolicyMe offers an online life insurance application in Canada, with licensed advisor support available if you need help. Start by getting an online, no-obligation life insurance quote.

A recent report by PolicyMe found that 30 per cent of uninsured Canadians cited cost as the reason they lacked coverage, so getting a quote can help you understand your estimated price before applying. Once you have your life insurance quote, you can decide what coverage amount, term length, and premiums are right for you, and apply online.

Now you have a baseline understanding of life insurance and how to apply in Canada. However, you probably still have some questions remaining. That’s why PolicyMe’s expert advisors are available to help answer your questions, choose the right coverage, or decide whether you need life insurance at all.

Visit PolicyMe to get your online life insurance quote, apply for coverage, and schedule a meeting with an advisor for expert advice.