Life Insurance

Absolutely. Adding a secondary beneficiary to your life insurance policy is possible and can be approached in several ways, tailored to your specific goals.

The structure of beneficiaries in life insurance policies typically includes Primary Beneficiaries and Contingent Beneficiaries.

Primary Beneficiaries are the initial recipients of the insurance proceeds upon the insured individual's demise. You have the flexibility to appoint either a single primary beneficiary—who would inherit 100% of the proceeds—or multiple primary beneficiaries, allowing you to distribute the proceeds among them in any proportion you decide (for example, dividing equally among two beneficiaries would allocate 50% of the proceeds to each).

Contingent Beneficiaries, often referred to as secondary beneficiaries, are the alternative recipients of the proceeds if the primary beneficiaries are deceased at the time of the insured's passing. This scenario is particularly considered in cases of simultaneous or closely timed deaths, such as in a common disaster. Similar to primary beneficiaries, you can determine the exact share of the proceeds each contingent beneficiary receives.

This layered beneficiary designation ensures that your life insurance proceeds are distributed according to your wishes, providing you with peace of mind and offering clear guidance on the allocation of your assets.

Age is a significant factor in determining life insurance premiums. Generally, premiums increase as you age, since the risk of death is higher. It's often more cost-effective to purchase life insurance at a younger age.

Yes, you can get life insurance with a pre-existing condition, but it may affect your premiums and coverage options. Insurers may offer standard, rated, or guaranteed issue policies based on your health status, with varying premium rates and coverage limits.

Generally, life insurance premiums are not tax-deductible for individuals in Canada. However, if you are a business owner or use life insurance for certain business purposes, premiums may be deductible under specific conditions.

The amount of life insurance you need depends on your personal and financial circumstances. A general guideline is to have coverage that's 5-10 times your annual income, but consider debts, dependents, and future financial obligations for a more accurate estimate. A professional advisor can assist you in calculating appropriate amounts based on your unique personal circumstances.

In Canada, the main types of life insurance are Term Life Insurance, which provides coverage for a specific period, and Permanent Life Insurance, which includes Whole Life and Universal Life, offering lifelong coverage and potential cash value accumulation.