Canadian Life and Health Insurance Facts -- 2018

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Contents View provincial data View historical data 9 2007 2009 2011 2013 2015 2017 Individual life insurance has grown faster than group in the past decade, accounting for 61% of the total, up from 55% in 2007. This is mostly driven by growth in individual term life insurance 45% 45% 43% 42% 40% 39% 29% 30% 32% 34% 36% 37% 13% 12% 11% 11% 10% 11% 13% 13% 14% 13% 14% 13% - $1T $2T $3T $4T $5T Individual whole life Individual universal life Individual term Group term Life insurance protection by product At the end of 2017, Canadians owned $4.7 trillion of life insurance protection. There are two basic types of life insurance: permanent and term insurance, with variations on each to meet specific consumer needs. Term insurance provides cost-effective, temporary coverage over an insured's younger years. Premiums typically increase over time in 5, 10 or 20 year "steps". Term insurance usually provides a right to convert to permanent insurance with the same insurer without further underwriting, providing consumers with the ability to adjust coverage features to address long-term needs. Permanent insurance meets life-long protection needs. In addition to death protection, cash values are accumulated and can be used for financial emergencies, or to supplement retirement income. Premiums can be paid over a set number of years or for life. Whole life insurance is the traditional form of permanent insurance where the insurer takes on both the risk related to death and the underlying investment risk. Under Universal life insurance, consumers select investment options and the insurer assumes the risk related to death.

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