When you buy life insurance, there are two main types to choose from:
- Term life insurance
- Permanent life insurance
Each type meets a different need and has a different cost. As a rule, term life insurance is best for short-term protection. It costs less than permanent insurance. You buy permanent insurance for long-term needs. Make sure you understand how both types of insurance work before you buy a policy.
Also, don't confuse life insurance with accidental death insurance or critical illness insurance. Both of these types of insurance cost a lot less than life insurance, but they only cover you for specific reasons.
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Read more about term life insurance
Read more about permanent life insurance
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.