Life insurance offers essential financial protection by providing security for dependents, covering debts, and managing final expenses, thereby alleviating the financial burden on loved ones. For young families, it ensures stability for children and partners; single professionals may use it to settle debts or leave a legacy; retirees often view it as a tool for estate planning to avoid tax burdens on heirs. Business owners may need specialized coverage to protect their enterprises, while individuals with health issues should consider early application to secure better rates. Low-income Canadians might find affordable term policies accessible, and those without dependents can still benefit by covering final expenses or supporting charitable causes. Each Canadian's unique circumstances dictate the type and amount of coverage that best suits their needs.

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Term life insurance offers several advantages over creditor insurance, primarily in its flexibility and broader coverage. With term life insurance, policyholders can choose a specific coverage amount and duration tailored to their financial needs, ensuring that beneficiaries receive the funds directly to cover various expenses, such as living costs, education, or debts. In contrast, creditor insurance is designed solely to pay off outstanding loans or debts, providing less control to the beneficiaries over how the money is used. Additionally, term life insurance typically has lower premiums and can be renewed or converted to a permanent policy, while creditor insurance often lacks customization and may only be available when taking out a loan. Overall, term life insurance provides a more comprehensive safety net, offering financial protection that extends beyond just debt repayment.