Life Insurance

Do you need life insurance?

Would your dependents face financial hardship if you were to pass away unexpectedly? Life insurance can help protect them financially. At Merit Insurance, our brokers will assess your needs and guide you in determining the right coverage amount. We’ll also consider any existing coverage you may have through work to ensure your loved ones are adequately protected.

Did You Know?

“Your work life insurance coverage typically ends when you leave your job.”

What is Life Insurance?

Life insurance offers financial protection for your loved ones, ensuring their security if you’re no longer around. It provides a tax-free lump sum to your beneficiaries, which can be used to:

Replace lost income to maintain living standards
Cover children’s education expenses
Pay off debts, including mortgage (explore the difference between mortgage life insurance and life insurance for mortgage debt)
Cover final taxes and funeral costs

While some purchase life insurance through financial institutions for mortgage coverage, it’s important to consider key differences when choosing between mortgage insurance and life insurance.

Key Differences between Life and Mortgage Insurance

Mortgage life insurance is typically offered by banks, while independent life insurance is available through life insurance agents.
Mortgage life insurance is priced based on your age and mortgage amount, while life insurance pricing depends on your age, coverage amount, and health condition at underwriting.
A key disadvantage of mortgage insurance is that the death benefit decreases as you pay down your mortgage, while premiums stay the same. In contrast, life insurance offers a fixed death benefit.
With mortgage insurance, the death benefit goes directly to the lender to cover any remaining debt, whereas life insurance pays out to beneficiaries to use as needed.
Mortgage life insurance might be more suitable for borrowers with poor health or medical histories.

The 2 Main Types of Life Insurance

Term Insurance

Designed for short-term or temporary protection, term insurance offers a variety of terms from 5 to 20+ years.
Benefits:

Predictable premiums – Fixed premiums that won’t change for the duration of the term.
Convertibility – Convert a 10- or 20-year term policy to permanent life before age 69.
Tax-free cash benefit – Beneficiaries receive a lump sum, tax-free, if you pass away during the term.

Whole Life

Whole life insurance offers lifelong protection with a guaranteed death benefit and level premiums. It grows in value over time, with potential investment gains or losses.

Make well-informed decisions with your Merit Broker. There is no cost to talk to our life insurance specialists to make sure you get the right type and amount of life insurance for your loved ones’ needs.

Click here to get a Life Insurance quote or contact Merit Insurance Brokers to learn more.