Canadian Life and Health Insurance Facts -- 2019

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1 3 Notes 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. How Canadians purchase life insurance polices $ 22.2B 2018 life insurance premiums Individual: 80% Group: 20% Most life insurance policies are purchased by individuals through an agent or advisor. A relatively smaller amount is purchased as part of a group policy through an employer or as members of an association. Individual life insurance in-force has grown faster than group in the past decade, accounting for 62% of the total, up from 55% in 2008. This is mostly driven by growth in individual term life insurance. Individual term Individual universal life Group term Individual whole life 2018 2016 2014 2012 2010 $ 5T $ 4T $ 3T $ 2T $ 1T Universal life insurance is a flexible form of permanent life insurance where consumers select investment options and the insurer assumes the risk related to death. Eighty per cent of life insurance premiums are paid to purchase individual policies 44% 31% 42% 33% 41% 35% 40% 36% 38% 38% 11% 11% 11% 11% 11% 2008 45% 29% 12% 14% 14% 14% 13% 13% 13% Contents View provincial data View historical data

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