If someone will suffer financially when you die, you need life insurance. It provides money to your family after your death. This insurance policy will replace your income and can help your family meet important financial needs like funeral costs, daily living expenses, and college funding. It will also protect your family from being burdened by your debt.
Although there may appear to be a vast array of life insurance policy types available, they all consist of one of two basic forms: Permanent insurance and Term insurance. As the names imply, permanent insurance is permanent (for life) and term insurance is temporary. Most people require a combination of the two types to fit their needs. Examples of permanent needs are funeral expenses, survivors' income, taxes at death on capital gains, taxation of RRSPs and RRIFs and charitable bequests. Examples of temporary needs are mortgages, children's education and business loans.