Life insurance is not one of those things you can put aside. But many keep thinking whether it's worth the monthly premiums. Why do we need life insurance anyway? Let’s find out.

Key Takeways :
01. Whether or not you need life insurance depends on your individual finances as well as the length you'll need for coverage.
02. You can buy term life insurance if you want to be covered for a set time period, while permanent life insurance gives a coverage for life.
03. The investment portion of permanent life insurance grows tax-free. You are allowed to borrow against the cash value to buy a house or pay for your children's college costs, tax-free.
04. Alternatively, a term life insurance, put all your payments toward the death benefit for your beneficiaries, with no cash value and, therefore, no investment component. This means small premiums in exchange for a large death benefit.

Types of Life Insurance :
When deciding whether to invest in life insurance, it's important to know the types of policies. Though there are several variations of life insurance plans, they generally have two categories: permanent and term.

Term life insurance gives coverage for a set term, hence its name. These policies have similarity to other types of insurance policies you may carry, like car insurance. You need to pay a premium each month, and if something bad happens—in this case, your early death—there's a benefit paid out.

Permanent life insurance gives coverage for life as long as your premiums are paid. Certain types of permanent life insurance can also have an investment component for policyholders to accumulate a cash value. If a financial adviser or a life insurance agent is advocating for life insurance as an investment, he is talking about the cash-value component of permanent life insurance and the ways you can invest and borrow this money.

Life insurance canada is a help for your loved ones to deal with the financial impact of your death. The death benefit they get from a life insurance policy is a tax-free, lump-sum amount that can be used to: replace your income to help your family maintain their standard of living. provide for your children or dependents.

For more details, Visit : https://www.einsured.ca/life-insurance/