How does life insurance work in Canada?

Life insurance is something you can purchase to help your loved ones financially after your passing. The “death benefit” that a life insurance policy provides is a tax-free, lump sum amount that is paid to your beneficiary. Life insurance in Canada can be used in order to help replace your income so your family can maintain their standard of living, pay for any funeral expenses or pay off outstanding debts. A life insurance pay out can even as a charitable donation. Your life insurance can also be left to your estate or to a trust. How a beneficiary uses a life insurance pay-out is usually completely up to them. To learn more about how life insurance works in Canada, please speak with one of our brokers.