Simple & affordable term life insurance for families and small businesses in Canada
Term life insurance might be an ideal solution for you. Are you a young family with lots of monthly expenses? Do you need financial risk protection, but don’t want to break the bank to afford it? You will be surprised at how affordable Term Life Insurance can be. Try our Instant Life Insurance Quote tool to find out how affordable Term Life Insurance can be.
How Does Term Life Insurance Work?
Term Life Insurance is designed to give you affordable insurance protection for a set period of time. The term or number of years your premium is set at is usually 10, 20 or even 30 years. Your premium will remain level for this entire period of time. Of course, the longer term you choose the higher the monthly premium.
Once your term ends, say 10 or 20 years from now, your policy will automatically renew. This means there is guaranteed NEW premiumfor the next 10 or 20 years that you will be paying, if you choose to keep your policy. These guaranteed renewal premiums are often more expensive than if you were to buy a new Term Life Insuranceplan at your then age (10 or 20 years in the future). This is because you might have developed some illness and no longer qualify for standard insurance rates, or could have become uninsurable (have a major illness that would make you ineligible to buy life insurance). If you were still in excellent to good health, applying for a new Term Life Insurance policy would be a lower cost for you. This is why you should review your Term Life Insurance about a year or two before it renews.
Term Life Insurance is also Convertible into permanent life insurance (typically before age 70). This means if you needed some permanent life insurance for your estate plans you could flip all or a portion of your Term Life Insurance plan into a Permanent Life Insurance policy, like a Whole Life Insurance or Universal Life Insurance plan. This is done easily, and without having to go through the trouble of submitting Medical Evidence again, saving you a lot of hassle.
What Would Your Term Life Insurance Policy Be Used For?
If you were to die, your beneficiaries would receive the entire Term Life Insurance policy’s death benefit TAX FREE!This money could be used by your family or business in many ways, like:
- Maintain the current standard of living they are accustomed to.
- Pay for your children’s post-secondary education.
- Pay off major debts, like your mortgage or business loans.
- Cover final expenses like funeral, legal/estate costs and capital gains taxes.
- Fund a businesses Buy-Sell Agreement so your heirs can be compensated for the value of your business.
Selecting The Term Life Insurance That’s Right For You.
You should choose a Term Life Insurance policy that covers your major risks for as long as they will be outstanding. For instance a 20 year Term Life Insurance policy is not long enough if you have a 30 year mortgage on your house. If you have small children, when will they become financially independent? In 10, 15, 20 years or longer? You should choose the term length that best fits the length of time your financial obligation will last, and then that Term Life Insurance policy could expire and be dropped away (if you so choose).
Making Sure People In Canada are Protected
Term Life Insurance provides simple and affordable coverage for Canadians. If you have not yet looked into personal life insurance, you will be surprised at how affordable a term life insurance plan can actually be. It is a documented fact the people in Canada do not have adequate life insurance protection. Buying a Term Life InsurancePlan can off-set major financial risks, and give you peace of mind, knowing your family are protected in case something happens to you. Remember, you life is very valuable to those you love – as a financial provider and a care-giver. High mortgages, higher wages, and generally a higher cost of living in Canada means you need to carry more life insurance, and a Term Life Insurance plan can be an affordable way to add this into your financial plan.