Life Insurance Guide
How to buy a Life Insurance Policy
1. Assess Your Insurance Needs
1. Decide on Policy Duration:
Determine if you need a policy for a specific period
(Term Life) or a policy for lifelong coverage (Whole Life
or Universal Life).
2. Understand the Types of Life Insurance Available.
Term Life Insurance: Provides coverage for a set period
(10, 20, or 30 years). Typically the most aordable
option, but there’s no payout if you outlive the term.
Some Term policies include a severe illness payout
while you are still living.
Whole Life Insurance: Provides lifelong coverage with a
cash value component. More expensive but provides a
death benefit and savings that grow over time.
Universal Life Insurance: Flexible premiums and
coverage with a cash value component. It allows for
investment options within the policy.
3. Compare Life Insurance Providers
Online Comparison Tools: Use online platforms like
PolicyAdvisor, Manulife, or RBC Insurance to get quotesand compare life insurance plans from multiple
insurers.
Independent Insurance Brokers: You can work with an
independent broker like LEVPLAN (in NB Only) who can
access multiple insurers and help you find the best
policy for your needs and budget.
4. Application Process
Medical Underwriting: Most life insurance policies in
Canada require a medical exam. Some insurers oer
"no-medical" policies where you answer health-related
questions, but the coverage may be limited, delayed or
both.
Life Insurance without Medical Exam: If you’re in good
health and prefer not to undergo a medical exam,
certain policies don’t require one, though they might
come with higher premiums.
Health and Lifestyle Information: Be prepared to
provide detailed information about your health,
lifestyle, occupation, and family medical history.
Deception can void the policy under certain conditions.
5. Choose Your Policy
Review Terms and Conditions: Ensure the policy’s
terms align with your goals. Look for coverage details,
exclusions, riders, and the claims process.
Optional Riders: Riders can enhance your policy by
adding coverage for things like critical illness or
accidental death.
6. Application and Approval
Submit your application and go through the
underwriting process. Some insurers may approve you
immediately, while others may take longer to assess
your application.
7. Premium Payment:
After approval, you will need to pay the premiums,
which could be monthly, quarterly, or annually. Payment
can be done through direct debit, credit card, or
cheque.
8. TEN Day Free Look:
Even if you are approved for a
policy, you do NOT have to purchase it. You can refuse.
Even if you take it, you can look at it for 10 days and
receive a FULL refund if you change your mind.
9. Keep Your Policy Updated:
Review Periodically: As your life situation changes (e.g.,
marriage, children, career), update your policy to ensure
adequate coverage.
Beneficiary Updates: Ensure that the named
beneficiaries are up to date. Beneficiary selection can
have serious consequences, please review with a
licensed consultant.
2025 levplan.com
QVIZE Financial Planning LTD and Planification LEVESQUE Wealth
