Canadians Should Learn More About Life Insurance in Toronto Online

Beneficiary, term life insurance, underwriter, premium, preferred risk. Do you know what these terms mean? If not, you may be among the majority of Canadians who have little or no idea about the basics of life insurance—it is easy to get a basic understanding. Try visiting the Canadian Life and Health Insurance Association website at http:/ or just Google: online life insurance in Toronto and find a top insurance website like Insurance Advantage where you can read about each type of insurance available and go through their FAQ (frequently asked questions) for answers.

Researchers have found that many Canadians pass off the opportunity to learn more about insurance policies for multiple reasons: they find the jargon too alien to them, they are embarrassed to ask an insurance agent to explain, or they’re simply not that interested. This lack of knowledge can be a problem in the long run, especially if you are considering buying life insurance or already have a life insurance policy.

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Here are some of the terms commonly used:


The beneficiary declared in Toronto term life insurance policies or any city for that matter is the person or entity who receives the Face Amount or the sum insured of a life insurance policy after the death of the insured. An insured person can name his or her spouse, children or favourite charity as a beneficiary for example.

The policyholder can declare more than one Primary beneficiary and can assign a percentage to each one. Most people choose their spouse as the Primary beneficiary and typically leave 100% to their spouse and will list their children as contingent beneficiaries in the event their spouse is no longer living.

Term Life Insurance

There are basically two types of life insurance: permanent and temporary. Term life insurance is the less-costly plan, where the duration of the insurance is limited. When the insured passes away within the period indicated in his policy, normally 10, 20 or 30 years, the beneficiary receives the proceeds tax-free.

Most term life insurance policyholders live through their insurance term and end up renewing their policies. However, the insured is now 10, 20 or 30 years older depending on what length of term was chosen and as such the rates will have gone up dramatically due to them being older. If an insured person feels they are going to require insurance it is always better to choose a longer term. It will be more expensive per month initially but will be cheaper down the road. Why buy three Term 10 policies over 30 years when you can just buy a Term 30 to begin with.

Insurance brokers in the Greater Toronto Area, such as Insurance Advantage, will be more than willing to explain the nitty-gritties of life insurance and guide them through various packages that will fit their needs and budget.