Term life insurance is the most affordable when initially purchased and is designed to meet temporary needs. As the name implies, this kind of policy insures the individual for a fixed period of time. You are buying protection for a defined “Term” typically offered for 10, 20, or 30 years and pays a benefit (the Face Amount) only if you die during the term. This type of policy is a more economical option compared to other kinds of life insurance such as permanent life insurance. Term insurance makes sense if you want a large amount of coverage at a cheap price. For instance, you may decide that you only need coverage until your mortgage is paid off and the children graduate from college or university. The amount the insured is covered for remains the same for the chosen term as well the cost also remains level for the term.
Why Get Term Insurance
Term life insurance policies are suitable for those who don’t really need all the bells and whistles of other insurance plans and just want temporary coverage in the event something happens to them and they are no longer there to provide during the 10, 20 or 30 year term.
Choosing from among the various term life insurance plans available is a challenge all on its own. Each insurance company may offer different pricing, renewal and conversion options as well as other options that might be useful.
Term Life Insurance advantages:
- Can help you insure for specific needs like income replacement, mortgage protection, tuition or car loans.
- Can be converted into permanent life insurance without evidence of insurability if needed.
- Like most life insurance the Face Amount will be paid to the beneficiary(s) tax-free.
- Face Amounts are also credit protected eg. If the insured owed money to a third party when he/she died this money is out of reach from those seeking to be paid (unlike the estate)
Term Insurance is a great option for first-time insurance buyers because it provides a lot of coverage at an affordable price. To find out more about the benefits of Term Insurance, give us a call. One of our professional insurance advisors can help you out. You can also use our quick FREE quote form to get detailed pricing from all the insurance companies in Canada.
Trust Insurance Advantage
Use us to get the right kind of insurance that is specifically tailored to meet your lifestyle and budget. We’re one of the most knowledgeable and experienced life insurance brokers serving Oakville, Toronto and all of Ontario. Our partnership with the top insurance companies in Canada allows us to find the best policies and rates to suit our customer’s needs.
If you’re looking for term insurance or other types of life insurance, turn to Insurance Advantage. We can help you get the best rates to protect you and your loved ones. Contact us now to request a quote.