January 6th, 2012 | Author: Mitch Reynolds

Life Guard Insurance’s Video about Term Life Insurance

A Look at Term Life Insurance

Our latest video is about term life insurance, the most affordable form of life insurance in Canada today. This video explains how to design term insurance, when to buy longer terms vs shorter terms, and the cost of renewal.

With no cash value inside term life insurance it is like renting the risk protection you need for the term length of time you need it for. You are free to cancel your term life insurance at any time.

We hope you enjoy this short three and a half minute video.

Transcript – A Look at Term Life Insurance

Did you know there are several kinds of life insurance? Each with different features and benefits?

Term life insurance is the most cost effective form of risk protection available to Canadians today, especially if you’re on a tight budget.

It’s designed for short and medium term needs. So it’s the ideal plan for young families. They have a long career ahead. But they are also taking on a lot of debt and financial responsibility — buying their first home, raising children and buying cars. And should be thinking about planning for their retirement.

As you age, your financial risks will go down — and so should your insurance.

That’s what makes term life insurance so cost effective. It’s like renting your insurance. Premiums for term insurance are the lowest in Canada. You’re paying only for the pure risk protection you need today.

You set up your plan on a 10, 20 or even 30 year term.

During this time, this price is held level. You can renew the insurance at the end of the term. At that time the price will step up.

The shorter the term you buy now, the cheaper it will be. But 10 years can come pretty fast. Keep in mind that term insurance premiums can rise 4 to 5 times on renewal.

There’s no cash value in the plan, so if you cancel it in the future, you don’t get any money back. The bonus is, there are no cancellations fees, so you can stop a term insurance plan at any time.

You might hear about “renewable” and “convertible” features of term life insurance products.

When renewable term insurance ends in 10 or 20 years, you are guaranteed to be able to keep the product. But the price is much higher. You can keep renewing until age 80 or 85, depending on the insurance company.

But the price often gets uncontrollable.

Convertible means you can switch all, or a portion, of your term insurance into permanent life insurance such as universal life or whole life. On most policies, you have until age 70 to convert. When you do, it’s like you are starting your permanent insurance policy at the age you are in the future, but you don’t have to qualify medically for the coverage.

Never, ever buy term insurance without renewable and convertible features. You don’t know what the future may bring. Things may change, and you always want options with your insurance.

As you can see, term life insurance is somewhat simple but there are some complexities.

Take time to choose a plan that’s right for you – giving you the length of time you need, and the right amount of insurance to protect your risks — within your budget

Contact us at Life Guard Insurance — we can build you the perfect term insurance plan to protect your and your family. Get started by clicking below to receive your free instant life insurance quote now.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about A Look at Term Life Insurance would be very much appreciated.