What is Life Insurance?

By June 12, 2024 July 2nd, 2024 Advisor, Blog, Consumer, News
Couple looking at forms.

Are you worried about how your family would manage financially if you weren’t around anymore? It’s a tough question, but it’s important to consider. Life insurance provides a straightforward solution to these fears so your family can maintain their lifestyle even without your income.

So, what is life insurance in Canada? Life insurance is a product designed to help provide financial security to your loved ones in the event of your death. When you purchase a life insurance policy, you agree to pay regular premiums to an insurance company. In return, the insurance company promises to pay a specified amount of money, known as the death benefit, to the beneficiaries.

With the Canada Protection Plan, your commitment to the future doesn’t end, even if the unexpected happens. Let us help you answer the question, “What is life insurance?” so that you can clearly understand solutions that align with your life goals and aspirations.


Compare our rates with similar plans and benefits.

What is Life Insurance, and Why Do You Need It?

Life insurance can be a safety net to help protect your family financially if you’re no longer there to provide for them. It pays a sum of money to your beneficiaries, helping them manage financially after your loss. Life insurance is helpful in these circumstances:

Supporting Loved Ones

You need life insurance if your family relies on your income. It helps ensure they can continue to pay bills, cover living expenses, and maintain their standard of living. Especially if you are the primary earner, life insurance can act as a form of income replacement, helping your family until they can adjust to the change in financial circumstances.

Covering Debts

Consider life insurance if you have significant debts like a mortgage, car loans, or personal loans. It can help prevent these financial obligations from becoming a burden to your loved ones.

Planning for Education

If you’re planning for your children’s education or want to leave behind a legacy, life insurance can provide the necessary funds to support these goals without financial strain.

Need Estate Planning

Life insurance can be an integral part of estate planning, by helping ensure that your heirs have the funds to pay estate taxes without having to liquidate other assets.

Require Business Protection

If you own a business, life insurance ensures your business operations continue smoothly. It also facilitates a smooth transition by providing funds for your partners to buy out your share, thus maintaining the business’s continuity.

Want to Leave a Legacy

Life insurance can also be used as a tool for charitable giving, allowing you to contribute to a cause important to you even after you’re gone.

Looking for Tax Benefits

Depending on your jurisdiction, life insurance payouts may be tax-free, providing your beneficiaries with the full financial benefit of the policy without tax deductions.

Canada Protection Plan Life Insurance Options

Canada Protection Plan is a premier provider of No Medical1 and Simplified Issue Life Insurance in Canada, making it easy and quick to secure life insurance coverage. With us, you can quickly get coverage without the need for medical exams. We offer a wide variety of plans that cater to individuals with serious medical conditions as well as those in good health, providing high coverage amounts at competitive rates. Our goal is to offer accessible, comprehensive insurance solutions to everyone, regardless of their health status, age, or income. If you are wondering what is life insurance offered by Canada Protection Plan, here are the basics.

Term Life Insurance

What is term life insurance? Term insurance provides coverage for a specific period, paying a death benefit if the insured dies within that term without accruing cash value. Canada Protection Plan offers term life insurance that can help provide financial security to your loved ones, and peace of mind, regardless of your health, occupation, or preferences about medical exams.

Adaptable Coverage

Whether you’re in excellent health, manage medical conditions, frequently travel, or engage in high-risk occupations, we have a plan tailored to your lifestyle and budget.

Leading Provider

We specialize in No Medical and Simplified Issue Term Life Insurance, making us a leading choice in Canada for those seeking hassle-free coverage.

Term Flexibility

Our policies cover periods such as 10, 20, 25, or 30 years, ensuring your beneficiaries receive a tax-free lump sum if you pass away during the term, helping with expenses, debts, or future plans.

Affordable Options

Term life insurance is ideal for those seeking cost-effective, flexible coverage that can evolve with their life changes, with options to convert to permanent insurance if needed.

Simplified Processes

Enjoy up to $1 million in coverage with no medical exams or needles for most plans, benefiting from a fast and easy application process.

Customer-Centric Benefits

Competitive rates, guaranteed premiums, and trusted service come standard, along with amazing optional riders and add-ons.

Complimentary Extras

As a member, gain access to unique benefits2 like Foresters Go™, a wellness app that rewards you with savings on everyday items as you stay active and engage with your community.

Whole Life Insurance

What is whole life insurance? Whole life insurance offers lifelong coverage with fixed premiums, a guaranteed death benefit, and a cash value component that grows over time. Canada Protection Plan’s whole life insurance is designed to provide you with coverage for your entire lifetime.

Permanent Coverage

Whole life insurance offers lifelong protection, ensuring you’re covered no matter how long you live.

Flexible Coverage Options

Choose from a variety of coverage levels, from $5,000 up to $1 million, to match your financial goals and needs.

No Medical Exams Required

Most plans do not require a medical exam or involve needles, making the application process simple and stress-free.

Competitive Pricing

We offer competitive rates with guaranteed premiums, so you know exactly what you’re paying for without any surprises.

Customizable Plans

Enhance your coverage with amazing optional riders and add-ons tailored to meet specific aspects of your lifestyle and health needs.

Trusted Expertise

As a leading provider of No Medical and Simplified Issue Whole Life Insurance in Canada, we are renowned for our reliable and professional service.

Additional Member Benefits

Enjoy exclusive perks like Foresters Go™, a wellness app that rewards you for staying active and contributing to your community, helping you save money on everyday purchases.

What is universal life insurance, and how is it different from whole life insurance?

Whole life insurance offers lifelong coverage with fixed premiums and a guaranteed death benefit, plus a cash value component that grows at a predetermined rate. Universal life insurance also provides permanent coverage but adds flexibility in premiums and death benefits, allowing you to adjust these as your financial circumstances change. Plus, universal life has a cash value that can be invested, offering potentially higher returns but with more risk compared to the stable accumulation of whole life insurance.

If you would like to learn more about what is life insurance—term or whole life—we invite you to schedule a free consultation with one of our knowledgeable agents. This is a great opportunity to ask questions, receive personalized advice, and ensure you’re making the best decision for your financial future and the well-being of your loved ones. Contact us today.

Canada Protection Plan is one of Canada’s leading providers of No Medical and Simplified Issue Life Insurance. Our mission is to provide reliable protection and compassionate service from coast to coast with easy-to-purchase life insurance, critical illness insurance and related products. Our expanding product choices will help you get the coverage and peace of mind you need for a better financial future. Canada Protection Plan products are available through over 25,000 independent insurance advisors across Canada.
  • 1 Insurability depends on answers to medical and other application questions and underwriting searches and review.
  • 2 Description of member benefits that you may receive assumes you are a Foresters member. Foresters Financial member benefits are non-contractual, subject to benefit specific eligibility requirements, definitions and limitations and may be changed or cancelled without notice or are no longer available.

423573 CAN (06/24)

To learn more about Canada Protection Plan and our line of comprehensive No Medical and Simplified Issue life insurance solutions, call Broker Services at 1-877-796-9090 and we will be happy to assist you or put you in contact with Sales support in your region.

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