How it works
You choose a coverage amount and a policy type, name one or more beneficiaries, and pay a premium. If you die while covered, the insurer pays the death benefit directly to your beneficiaries, generally tax-free. They can use it for any purpose, such as the mortgage, daily living costs, or children's education.
The main types
Term life covers a set period at a lower cost. Permanent life (whole or universal) lasts for life and can build cash value at a higher premium. Most families start with term during the years of greatest need.
Who needs it
Life insurance matters most when other people depend on your income, such as a spouse, children, or family you support. If no one relies on your income, the need is smaller.
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Book my free review →Frequently asked questions
Is the life insurance payout taxed?
A death benefit paid to a named beneficiary is generally received tax-free.
What are the main types of life insurance?
Term life covers a set period at lower cost; permanent life (whole or universal) lasts for life and can build cash value at a higher premium.
How much does life insurance cost?
Premiums depend on age, health, smoking status, the coverage amount, the term, and the policy type.
What happens if I miss a premium?
Policies usually have a grace period. If premiums are not paid, coverage can lapse, though some policies can be reinstated within a set time, subject to conditions.
This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.