Term vs Whole Life Insurance
Choosing between term and whole life insurance is one of the most common questions Canadians ask when starting their financial planning journey. Both have their place — let's break down the differences.
Term Life Insurance
Term life covers you for a set period — typically 10, 20, or 30 years. It pays a tax-free death benefit to your beneficiaries if you pass away during the term.
Pros:
- Affordable premiums, especially when you're young and healthy
- Straightforward and easy to understand
- Ideal for covering temporary needs (mortgage, children's education)
Cons:
- Coverage ends when the term expires
- Renewing later in life can be expensive
- No cash value accumulation
Whole Life Insurance
Whole life is permanent coverage that lasts your entire life. It also builds cash value over time, which you can borrow against.
Pros:
- Lifetime protection that never expires
- Builds tax-advantaged cash value
- Premiums stay level for life
Cons:
- Significantly more expensive than term
- More complex to understand
- May be more coverage than some families need
Which Should You Choose?
Most Canadian families benefit from a layered approach: start with affordable term coverage during your highest-need years (mortgage, young children), then add permanent coverage as your budget allows. The right mix depends on your income, debts, dependants, and long-term goals.
Book a free consultation to discuss your specific situation — I'll help you find the right balance at a competitive rate.