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The different types of life insurance and how they work

Parent and child smiling at each other.

Many people feel overwhelmed when it comes to buying life insurance, but there really is no need to be, especially when you choose Cover Direct. That’s because our Canadian-based team of insurance professionals is always happy to help answer any questions you might have, get you a free quote, and help you get the right coverage for your needs.  
One of the questions we get asked a lot is about the different types of life insurance available from Cover Direct. In Canada, the two main types of life insurance are term life insurance and whole of life insurance, which is also known as permanent life insurance. At Cover Direct we also offer Children’s Coverage and Critical Illness Insurance, which we will talk about later in this article. In the meantime, let’s talk a little about the two main types of life insurance. 

For a more in-depth discussion about life insurance and to help find answers to questions such as why choose Cover Direct, how much does life insurance cost, and how much life insurance you need, visit our life insurance page.  

What is term life insurance and is it right for you? 

Term life insurance is a type of life insurance that provides coverage for a fixed period of time, or until you reach a set age.When you take out a term life insurance policy with Cover Direct your coverage will remain in place for the length of the term and so long as you continue to pay your premiums.Your premiums will vary depending on factors such as your age and how much coverage you decide to take out.  

What is whole of life insurance? 

Also known as permanent life insurance, whole of life insurance is a type of coverage that remains in place for as long as you are alive, provided you keep paying your premiums. Life insurance premiums usually increase as you get older, and it provides stability for those who like constants in their life. The minimum and maximum amounts of life insurance you qualify for will vary depending on your age, and it is always a good idea to contact Cover Direct to help determine what life insurance policy is right for you and your loved ones. 

Other types of Life Insurance offered by Cover Direct   

At Cover Direct we have a reputation for being a life insurance company that does things a little bit differently. As such, we like to think that we offer different types of life insurance that meets the needs of the modern Canadian. So, in addition to life insurance policies such as term life insurance and whole of life (permanent) life insurance, we are happy to offer add-ons that work alongside your regular life insurance policy. These include:

Children’s Coverage

As Canadians who are just like you, the team of trusted advisors at Cover Direct can certainly empathize with your needs. That’s why we are proud to offer children’s coverage. Raising a little person is often the most challenging job in the world. It is also the most rewarding, and we want to make it easier for you and your family to get to focus on that. 

Cover Direct offers a benefit amount of $30,000 and is available to insure your child up to the age of 21. Your child will be eligible to apply up to the age of 17. It will pay out a tax-free lump sum amount if the insured child passes away or suffers a life-altering illness or injury.   
The cost of children’s coverage is mostly determined by the age of your child. In other words, premiums for $30,000 worth of coverage for a 12-year-old will typically be more than premiums for a 3-year-old.   
To find out how affordable children’s coverage from Cover Direct is, give us a call or enter your contact details on our get a free quote page.   

Critical Illness Insurance  

Life is full of constant surprises, some of them wonderful, some of them not so much. The best any of us can do is hope for the best and prepare for the worst. Critical Illness Insurance from Cover Direct can help you protect against any eventuality. Many of us may associate this add-on with insurance we might have with our employer. But in a post-pandemic world and in a new reality, it makes so much sense to take out critical illness insurance. With this optional extra, you'll receive an additional coverage amount of $50,000, with cover for heart attack, stroke, and coronary artery bypass, as defined in the policy terms and conditions. It's just one more way to protect your family, enjoy peace of mind, and live your best life possible.  

Critical illness insurance could be a good option for people who rely upon their paycheques to cover living expenses such as their mortgage or rent. It can mean that your family is taken care of financially should you suffer a heart attack or stroke or are diagnosed with cancer. Critical illness insurance can also be used to cover medical care that may not be covered by insurance.   
To find out if critical illness insurance from Cover Direct is right for you, just get in touch with our team of experts.

Give Cover Direct a call to talk about the types of life insurance we offer

We’ve only just scratched the surface in this article about the different types of life insurance. You probably have lots of questions, so why not get in contact with us? We’re happy to answer all your questions about the different types of life insurance we offer, whether you are interested in term life insurance, whole of life insurance, or any other life insurance.  

Call us today about Life Insurance


Where the child’s death occurs within 90 days of the accident as per definitions provided and in accordance with policy terms and conditions.