The most popular life insurance in Canada seems to be term life insurance. It is not surprising that term insurance would be the most sought after type of life insurance. Most life insurance companies sell a lot more term life insurance than they do any other type, which is surprising since most life insurance agents don’t really like to sell it
the reason most life insurance agents prefer to sell other types of life insurance such as whole life insurance or universal life insurance is because of higher commissions that these other products pay. However because most consumers these days are more and more financially savvy and are capable of doing their own research on the Internet, it is today’s life insurance shopper that dictates what types of policies are being sold in Canada.
Canadian life insurance companies have no problem in selling a lot of term insurance in Canada. In fact I believe they like it because of the high profitability of term life insurance. The very nature of term insurance in Canada is that most of the policies will expire way before the insured dies. When that happens, the life insurance company does not have to pay out any claims on those policies. Sure, when there is a claim, it is usually very large, because most term life policies in Canada that are sold, are $100,000 at a minimum or much more in many cases.
Another reason why term life insurance is the most popular type of insurance in Canada is the low cost. Most people now, finally are able to buy the amount of insurance that they truly need. With the cost of term insurance being so low, there is virtually no excuse for anyone in Canada not to have as much life insurance as needed.
As a life insurance broker for the last 20 years I have noticed that more and more people, even older Canadians, are favoring term insurance over the traditional permanent life insurance products. They are finally realizing that it is more important for them to be covered now for large sum of money rather than later for smaller sum of money.
Term life insurance is truly the answer to most people’s life insurance problems. It has many bells and whistles, things like Ra the fact that it is renewable and convertible. So even that it is a short term solution, it could also become a long-term solution as well. All someone would have to do is to convert it to a permanent policy and there you have your permanent solution.
the reason most life insurance agents prefer to sell other types of life insurance such as whole life insurance or universal life insurance is because of higher commissions that these other products pay. However because most consumers these days are more and more financially savvy and are capable of doing their own research on the Internet, it is today’s life insurance shopper that dictates what types of policies are being sold in Canada.
Canadian life insurance companies have no problem in selling a lot of term insurance in Canada. In fact I believe they like it because of the high profitability of term life insurance. The very nature of term insurance in Canada is that most of the policies will expire way before the insured dies. When that happens, the life insurance company does not have to pay out any claims on those policies. Sure, when there is a claim, it is usually very large, because most term life policies in Canada that are sold, are $100,000 at a minimum or much more in many cases.
Another reason why term life insurance is the most popular type of insurance in Canada is the low cost. Most people now, finally are able to buy the amount of insurance that they truly need. With the cost of term insurance being so low, there is virtually no excuse for anyone in Canada not to have as much life insurance as needed.
As a life insurance broker for the last 20 years I have noticed that more and more people, even older Canadians, are favoring term insurance over the traditional permanent life insurance products. They are finally realizing that it is more important for them to be covered now for large sum of money rather than later for smaller sum of money.
Term life insurance is truly the answer to most people’s life insurance problems. It has many bells and whistles, things like Ra the fact that it is renewable and convertible. So even that it is a short term solution, it could also become a long-term solution as well. All someone would have to do is to convert it to a permanent policy and there you have your permanent solution.
