Rest in peace: Weigh your needs when considering to buy life insurance

Linda Nguyen, The Canadian Press

TORONTO - Death isn't a topic people like talking about, but keeping mum and failing to prepare financially for the inevitable can have a lasting impact on loved ones.

So where to begin when digging through the array of life insurance options out there?

"It's not sexy, but financially, (buying life insurance) might be the wisest decision you'll ever make," said Mark Coutts, a certified financial planner at Sun Life Financial.

"Insurance is always something, in hindsight, that seems like a great idea."

Generally, there are two main types of life insurance — term life policies and whole life policies.

Term life insurance is the more popular option because it allows policyholders to buy it for a specific time period — for example, 10 to 25 years. They're guaranteed to have coverage for that period at a set monthly premium. After the term is over, holders can sign on for a new term (if they are still in good health) but at a new, usually higher rate.

A whole life policy can also be purchased for a set period at a set price. But once payments are completed for that time period, the policyholder will stay covered for the rest of their life, however long that may be.

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