What You Need to Know Before Purchasing Life Insurance

Buying life insurance is one of the most important financial decisions you may make. With many options available, most Ontarians rely on life insurance agents to help select the right products for them and their families. While agents can certainly assist, consumers have a role to play in making informed decisions. Know what to expect from your agent and ask the right questions to avoid getting coverage that simply doesn’t fit.

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Know Your Insurance Agent

  • The agent holds a licence to sell life insurance in Ontario.
  • The agent discloses to you in writing the insurers they represent and the products and services they are authorized to sell.
  • The agent discloses to you in writing if they have any relationships or personal, financial or professional interests that could compromise their ability to make recommendations based on your needs.

Know What You are Buying

  • Some products are designed for higher-net wealth individuals that have maximized their contributions to RRSP, TSFA, and RESP accounts. Make sure the products you purchase meet the needs of you and your family.
  • If you have high interest debt, paying off debt may be better than committing to insurance products with an investment component.
  • If you cannot commit to paying regular premiums for many years, permanent life, universal life, or whole life policies may not be right for you. Ask your agent for options.