Did you and your spouse or partner just buy your first home together with a mortgage that makes your eyes water? Or did you and your best friend plunge all your savings into a new business? Or maybe you hadn’t planned it for now, but you’re expecting a baby in 6 months? 

What’s the common thread here, besides excitement, joy and more than a little trepidation? It’s responsibility. Someone else — your spouse, your partner, your child — is depending on you for their financial survival.

With that great responsibility comes great power. You have the power to help safeguard the people who depend on you, with life insurance. Insuring your life is one of the wisest and most unselfish moves you can make. 

How can you get life insurance?

To get your life insurance in order, consider one of these 2 easy options: 

  1. Apply for life insurance online with Sun Life Go insurance: Get a free life insurance quote.
  2. Talk to a Sun Life Financial advisor who can help you understand your options: Find an advisor.

Why do you need life insurance?

In simple terms, life insurance helps protect the financial security of the people you love. How? By paying them a tax-free cash benefit when you die. Although you won’t be around to reap the benefits, it’s up to you to make sure you have:

  • enough insurance, and 
  • the right type of insurance to protect everyone who’s depending on you.

What type of life insurance should you get?

There’s no “one-size-fits-all” type of life insurance. The kind your parents have, or that your friend just bought, may not be the best kind for you. To help choose the right type of life insurance you need to look at: 

  • your personal needs and current situation, 
  • the stage of life you’re at, and 
  • what you can afford. (The cost of life insurance can vary based on your age, sex, health, lifestyle and medical history.) 

Not to mention, the best solution could even be more than one type.

Comparing life insurance

There are 4 main types of life insurance. Start by comparing them to see how they each work.

 

Term life insurance

Permanent life insurance Participating life insurance Universal life insurance

What do you get?

  • Temporary, renewable and flexible protection from the financial impact of your death, for those who depend on you.
  • The flexibility to convert to permanent, participating, or universal life insurance.
  • Lifelong protection from the financial impact of your death.
  • An opportunity for tax-preferred cash value growth.
  • Guaranteed lifetime protection.
  • Opportunity for tax-preferred cash value and death benefit growth.

Eligibility for dividends to:

  1. increase your coverage, 
  2. reduce your premiums, 
  3. leave on deposit to earn interest,
  4. or take as cash.
  • Guaranteed lifetime protection combined with tax-preferred investment options.
  • Opportunity for tax-preferred cash value and death benefit growth.

When does it pay?

If you die before expiry.

Whenever you die, with no time limit.

Whenever you die, with no time limit.

Whenever you die, with no time limit.

How does it pay your beneficiaries?

A tax-free cash payment.

A tax-free cash payment.

A tax-free cash payment.

A tax-free cash payment.

How do you pay for it?

  • Tends to be a less costly option.
  • The cost won’t increase for the length of the term but will increase if you renew your coverage at the end of the term.
  • Costs are guaranteed for life when you first purchase the policy.
  • Some plans allow you to pay for a guaranteed number of years, and then never again.
  • Costs are guaranteed for life when you first purchase the policy. Some plans allow you to pay for a guaranteed number of years, and then never again.
  • Choose how much you want to pay, as long as it’s enough to keep the policy in force.
  • Any amount over and above the cost of insurance is deposited into a tax-preferred account invested based on the options you select.

Who is it for?

It can be for people who:

  • Have a young family and/or a mortgage.
  • Are looking for the most affordable option.
  • Are a business owner who needs protection for a limited time.

It can be for people who:

  • Want affordable lifetime coverage with a guaranteed death benefit.
  • Like the idea of guaranteed cash value and premiums that won’t increase.

It can be for people who:

  • Want a guaranteed amount of coverage along with a guaranteed cost.
  • Want the opportunity to increase the death benefit over time to keep up with inflation.
  • Have maximized their RRSP and TFSA contributions and are looking for a tax-efficient strategy to grow non-registered investments.
  • Are business owners searching for tax-efficient ways to help protect their business value.

It can be for people who:

  • Want flexible lifetime insurance coverage with the opportunity for tax- preferred savings.
  • Have maximized their RRSP and TFSA contributions and are looking for a tax-efficient strategy to grow non-registered investments.
  • Business owners searching for tax-efficient ways to help protect their business value.

How can you sign up?

Talk to an advisor.

Get a quote online.

Talk to an advisor.

Get a quote online.

Talk to an advisor.

Talk to an advisor.

Still not sure?

Use our life insurance calculator to see how much protection you may need.

Definition of terms:

Beneficiaries are whomever you choose to receive the benefit or money from your policy after you die.

A death benefit is the money an insurance company pays your beneficiaries when you die.

Premiums are the annual or monthly fees you pay for having insurance. Most permanent products come with premiums that stay the same, guaranteed. But please note that some permanent products are adjustable. That means their premiums may change over time.

Dividends aren’t guaranteed. They may be credited to policies when the experience in the Sun Life Participating Account is better than the assumptions we made for factors like: 

  • investment returns, 
  • death benefits and 
  • expenses to support the guaranteed values in policies. 

If the Board of Directors determines there’s a surplus, a portion of this may be credited to policies in the form of policy owner dividends.

Tax-preferred means that any growth within the policy is tax-free. You may be taxed if you:

  • cancel your policy, 
  • borrow from your policy over a certain amount, or
  • cancel part of your coverage.

This article is meant to only provide general information. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.