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The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

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Freedom 55 Financial is a division of The Canada Life Assurance Company and the information you requested can be found here.

What you should look for when buying life insurance

Key takeaways

  • Ensure your policy provides enough coverage to meet your family’s financial needs, including debts, future expenses, and income replacement.
  • Select a policy that fits your budget over the long term. 
  • Choose a reliable insurance company that can provide customizable and flexible options.

You’ve probably heard from friends and family that life insurance can provide your beneficiaries with money when you die. That could be important if you’re responsible for a lot of your household’s income.  

Buying life insurance for the first time can feel overwhelming. But it doesn’t have to be that way. We can make the process a lot easier with these helpful tips.

Remember why you need life insurance 

Life insurance can help financially protect those you care about when you’re no longer there to support them. It means there could be money when it’s needed the most, so your loved ones can spend more time helping each other through a difficult time, and less time focused on how to pay the bills. 

Life insurance can help:

There are 2 kinds of life insurance:

Term life insurance

Temporary insurance coverage that you buy for a set period (common terms would be 5 to 50 years.) When that time’s up, coverage can be renewed or converted without having to answer further health questions.  

Permanent life insurance 

This form of life insurance typically costs more but lasts a lifetime and includes features that can grow money inside your policy over time, called cash value. You can access this money while you’re alive or leave more money for those you care about. Once you know what type of life insurance you want, you’ll then want to determine how much your family will need to continue their lifestyle after you’re gone.

There are 2 basic types of life insurance coverage: term and permanent. Each has unique features designed to meet different needs. 

Get a quote for flexible and affordable Canada Life My Term™ life insurance plans that help protect the ones you love.

What to look for when buying life insurance

When buying life insurance, here are some important things to consider: 

Coverage amount 

Determine how much money your loved ones would need in case of your passing. This amount should cover debts, and funeral expenses, and provide financial support to your family.

To start, add up your:

With an idea of expenses for a full year, multiply that by how many years your loved ones would need to rely on this money. It’s a good starting point to get an idea of your insurance needs. An advisor can help you finalize this and help you better understand how much life insurance you'll need. 

Type of policy 

There are 2 primary types of life insurance: term life and permanent life. Term life insurance provides coverage for a specified term (e.g., 5 to 50 years), while permanent life insurance lasts your entire life. Choose the type that aligns with your needs and budget. 


Understand the cost of premiums for your chosen policy. Ensure it fits comfortably within your budget, as missed payments can lead to policy lapses. Additionally, your monthly or annual rates can fluctuate due to rate changes.  

Riders and add-ons 

Some policies offer additional features or riders, such as critical illness coverage or disability riders. Evaluate if these extras are necessary for your circumstances. 

Health assessment 

Be prepared for a health assessment, as your health can impact the cost of premiums. Quitting smoking or improving your health habits may lead to lower rates. 

Beneficiary designation 

Designate beneficiaries clearly and keep your policy up to date if your circumstances change (e.g., marriage, divorce, or the birth of children).

Find an insurance provider that meets your needs 

Your insurance is only as good as the company behind it. After all, insurance must be there when you need it – and that could be today or later. That’s why it’s important the company providing you with insurance is strong, stable and able to support their guarantees.

Canada Life has been in the Canadian insurance business since 1847. Contact an advisor if you’re looking for life insurance.

What's next?

  • Determine how much coverage your family would require maintaining their lifestyle, pay off debts, and cover future expenses.
  • Research different types of life insurance (term or permanent) and compare quotes.
  • Contact an advisor who can assist you with selecting the right policy for your family’s needs.

This material is for information purposes only and shouldn’t be construed as providing legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. All comments related to taxation are general in nature and are based on current Canadian tax legislation and interpretations for Canadian residents, which are subject to change. For individual circumstances, consult with your tax, legal or accounting professionals. This information is provided by The Canada Life Assurance Company and is current as of date of publication.