A plethora of questions may come to mind when contemplating on whether to buy insurance. Accordingly, we have compiled a list of those “frequently asked questions” and answered them.

A: Life insurance is a way to make sure that your family and dependants don’t suffer financially when you die. Life insurance can be used to pay for a funeral, pay off debts (including your mortgage), pay for your children’s education, and help your family maintain their standard of living when they no longer have you to support them.
A: There’s really no magic number for this. A life insurance agent will make recommendations based on your individual needs by conducting a financial assessment to evaluate your current situation, your financial needs, responsibilities, and your future goals. You can tell an insurance agent what you can afford and they can put forward solutions for discussion that suit your finances. There are a lot of different life insurance policies to choose from and you can usually arrange to make affordable monthly payments (premiums).
A: The amount of insurance you will need is a highly personal decision. A life insurance agent will look at your assets, debts, personal situation, financial goals, and your family’s needs so they can make recommendations tailored to you. Remember, your needs might change throughout your life so it’s a good idea to review your policy at milestone events (e.g., marriage).
A: Life insurance works by spreading the financial risk among a large group of people, who pay into a pool or fund. This minimizes the costs for those who suffer an unexpected event like death. Think of it like depositing money into a safety net that will safeguard your loved ones, your investments, and repay your debts when you no longer can.
A: If you’re young and have no dependents, you may not need life insurance yet. However, if you’re planning on getting married, having kids, or buying a home, you should probably start to think about it. You will want to make sure that your family is provided for and can pay off your debts after you’re gone. Moreover, getting life insurance while you are still young and healthy can result in LOWER premiums, as you pose a significantly lower risk.
A: One big benefit is that the younger and healthier you are, the lower your premiums will probably be.
A: Life insurance is a major financial commitment that deserves careful consideration. You are unique, and when it comes to buying life insurance, you want to find the policy that meets your individual needs – for the rest of your life. Just as you would shop around for the best internet provider or your first home, you should also shop around for life insurance and make sure you’re getting the insurance policy that’s right for you. You can contact us through phone ((416) 498-1688) or email (info@carelifeinsurance.com) and we will be happy to answer any of your question.
A: Yes, your age can affect your premiums. A "risk" evaluation will be conducted and you will be assigned a ‘risk grouping’. Usually the younger you are, the lower premiums you will have to pay (the younger you are, the healthier you are, the lower the risk you pose, the lower the premiums that you have to pay). Although, keep in mind that age is only one factor.
A: When you buy your policy, your life insurance agent will work with you to make sure that important expenses are covered by your death benefit. Make sure your beneficiaries know how you want the death benefit used (e.g., including if you want it to cover your funeral expenses), or make provisions in your will to ensure your wishes are met. Be sure to keep the beneficiaries section in the policy up to date as the years go by.
A: We recommend calling your life insurance agent or company to answer any questions you may have. They should be able to provide you with answers in plain language so you can understand your policy.
A: If this is the case the policy has reverted to the insurance company that issued it. We recommend you call the insurance company that issued your policy to see if another life insurance agent can be appointed to your policy.

These answers were derived from the Financial Services Commission of Ontario. If you have any other questions feel free to send us an email at info@carelifeinsurance.com.