Life insurance in Alberta can cost around $22 per month, which is the average cost in Canada for a 20-year term.
A misconception about life insurance is that it’s expensive. But for the average, healthy Alberta applicant, their monthly premiums cost less than their cellphone bill!
It’s worth getting life insurance in Alberta because it offers financial protection to your loved ones and peace of mind for you. If you have someone who relies on you for your financial support, life insurance is worthwhile.
In the event of your passing, if your dependents would need help with everyday living expenses, mortgage costs, debt payments, paying for education, or funeral expenses, life insurance will help. You can look at life insurance options that work with your budget and find affordable coverage.
Life insurance policies in Alberta are an agreement between you (the policy owner) and the insurance provider. You pay a monthly premium to the insurer. Then, if you pass away during the policy term, the insurer will give your beneficiaries a lump sum tax-free payment (a death benefit).
Your monthly premium will be taxed depending on your province’s tax rates. In Alberta, your life insurance premium is taxed at 3%.
Mortgage life insurance is not mandatory in Alberta. It also tends to be less beneficial to your family compared to term life insurance.
This is because the funds from a mortgage life insurance policy will go to your bank or mortgage lender, not your beneficiaries. A term insurance policy that covers the value of your mortgage will help you and your loved ones feel financially secure.
In Alberta, life insurance can cover suicide depending on the suicide clause in the policy. Usually, this clause states that if the insured person dies by suicide within two years of the policy issue date, the policy will become void. In this case, the beneficiaries will receive a refund for the premiums already paid.
After two years, the life insurance policy will be valid. If you have a history of mental illness, you will not have a different suicide clause compared to someone else. But, each life insurance company will have different clauses so you can compare policies before buying one.
Oil and gas and mining are the top industries in Alberta, which are all typically considered “high-risk occupations” by insurers, meaning you may have to pay more or even be declined coverage. In this case, it’s especially important to shop around as prices and exclusions will differ between insurers.