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You should have life insurance in Manitoba if you have dependent children or others who depend on your financial support. A term life insurance policy will ensure your loved ones receive a tax-free lump sum (a death benefit) if you pass away during a certain period of time. They can use this death benefit for everyday expenses, paying the mortgage, post-secondary education for your children and more. Bottom line: life insurance helps you and your family have financial protection.
Your employer may offer optional life insurance for eligible employees that you can consider as well.
Life insurance is not taxable in Manitoba. When your beneficiaries receive your death benefit, they will receive the expected amount in full. A death benefit is taxable in certain specific situations, such as:
In Manitoba, life insurance can cover anything your family needs, including everyday expenses and unexpected ones. They can use the death benefit to pay for funeral costs, groceries, mortgage payments, etc.
The point of life insurance is to help your family maintain their standard of living if you’re not there to financially support them. So think about what expenses your family would have if you passed away. And keep those expenses in mind when considering your life insurance coverage options. For example, if you have debt and children who will attend post-secondary education, a sufficient insurance policy will cover these different expenses.
Term life insurance is better than whole life insurance in Manitoba. This is because monthly premiums are usually lower for term insurance policies. Plus, if you don’t need life insurance for the rest of your life, then term insurance is ideal. You decide how long you want your policy to last and pay premiums only during that period.
Whole life insurance is better for people who need coverage for the rest of their life rather than during a specific period. You can also get single-premium whole life insurance. With this insurance, you pay a single lump-sum premium instead of monthly or periodic payments. This option is much more expensive but comes with some benefits. For example, you don't have to worry about future monthly payments and you can build cash value on your policy.
In Manitoba, you should get life insurance when you need it or think you’ll need it. If you have people who depend on your income, you should think about getting life insurance. Life insurance will help them financially support themselves in the event of your death.
Applications for insurance will ask about your age and the older you are, the higher your premiums will likely be. So, there’s no time like the present to get life insurance if you need it!
