Applying for whole life insurance is a more complicated process than buying term life insurance. This is because the coverage you receive with whole life insurance is much more comprehensive as it has the addition of a savings component. Therefore, the application is more involved compared to the relatively straight forward process of getting covered with a term policy making comparing prices difficult to do instantly. A term policy provides only life coverage, whereas the investment portion of a whole life means that you must decide on how involved you would like to be in where your “savings” are invested.
For most, a whole life policy may not be your best option if your looking for an investment. Because whole life insurance sells itself primarily as a way of saving money, then it would be wise to explore other savings options before signing on the dotted line. Often times, for those looking for a savings vehicle and life insurance, the best option is to get term coverage and invest the difference. On average, your return with other options, such as a mutual fund, will be much higher than with a whole life policy and therefore a much smarter investment.
Deciding to purchase any life insurance is a major financial decision, especially considering the consequences of not getting sufficient coverage. Speaking with a professional insurance advisor can help you better understand your options about getting the best coverage at the best price available. LifeCover.ca works with a network of Canadian licensed insurance brokers who are just as committed as us to seeing you get the best deal out there. See how easy insurance shopping can be with us and find out why more Canadians are turning to us everyday for help with insurance shopping.