What are the benefits of term life
Term life insurance provides flexible, affordable coverage for people seeking low cost life insurance
Term life insurance is the product of choice when considering low-cost insurance, large face amounts and a predetermined duration.
Typically, people buy term insurance to protect their family during times when they have important financial obligations. For example, a mortgage, young children to care for or a business loan.
With term life insurance, you can balance immediate needs with ongoing goals.
term insurance is appropriate for someone Low-Cost insurance protection for a predetermined period
With term life insurance, you can choose exactly how long you will be covered. Some of our clients find it helpful to match their coverage length with various milestones, like paying off a mortgage or seeing their children through college. Whatever your needs are, you can build a custom term policy and convert to a permanent policy later.
Do you get money back at the end of term life insurance policy?
Term insurance is the most affordable type of life insurance but it does include a savings component, so when the policy is surrendered you get nothing in return.
Which is better: term insurance or whole life insurance?
Term life insurance is the product of choice for people seeking a large sum to be insured, low cost coverage and insurance protection during your active working years.
Term insurance gets more expensive as you get older. Permanent life insurance provides guaranteed lifetime protection. Its more costly that term, but your premiums remain constant for life.
At some point it may be cheaper to pay for whole life insurance than it would be to purchase more term life insurance.
To learn more about permanent life insurance click on the link provided below.
How does term life insurance work?
You can select a product that best suits your pocketbook and goals. Flexible options, you can lock in premiums that are guaranteed to stay the same for a predetermined term of your choice . Or you can start with smaller premiums that increase every year. That could be a good choice if you plan to convert to permanent insurance relatively quickly. term plans offer options allow you to construct a strategy to fit your family’s needs and budget.
To choose the best length for a term insurance policy, consider the length of time you’ll need the insurance coverage for. For example, if you’re buying term life to cover the years until your children graduate college, and that’s in nine years, you might choose a 10-year term insurance.
If you just bought a house and took on a 30-year mortgage, you’re likely to opt for a 30-year term life insurance. Term life insurance to cover mortgage provides better protection at cheaper rates.
Click on the link below to compare mortgage insurance vs life insurance:
What is mortgage insurance and how does it work
Term life insurance questions
It’s an excellent idea to compare term life insurance proposals to begin your life insurance shopping journey. You may be tempted to focus on cost primarily when you’re choosing an insurance carrier. Look for insurance companies that offer a good price but include important policy features.
Types of term life insurance plans and important policy features
The most common term life insurance policy purchased is 20-year term but if you’re in your working years a 30-year term or longer might be a better option as people are more active and indebted during their latter years.
- Does the insurance company offer a variety of term options? Some insurance carriers offer 10-year or 20-year term insurance. Others offer 10, 15, 20, 25, and 30-year term insurance plans.
- Do they offer critical illness insurance? These allow you to access your own death benefit in cases of a life threatening illness. You can access the money to pay for medical expenses, or anything else.
- Is the policy guaranteed to be renewable? This allows you to renew the policy (at a higher price) once the specified term runs out. It can be useful if you’re health changes and you still require insurance.
- Can you convert the term policy to a permanent policy? This allows you to switch to a permanent life insurance policy without any new underwriting. But there’s usually a deadline for doing it, most often by age 71.
- Can you lower the policy face amount? If your life insurance needs change in the future, can you can reduce the sum insured? Usually you can but you cannot reduce it below the insurance carriers minimum amount, for example for many insurers the minimum amount is 100k but more flexible carriers allow for a reduction down to 25k.
- Can you exchange the current term for a longer term? If your life insurance needs change in the future, you can opt for a longer term without any underwriting requirements. So if you currently have a 20-year term you can exchange it for a 30-year term at a higher price.
How much term life insurance coverage do you need?
Preferably, you want to make sure your debts are covered, so you don’t leave important expenses behind for your loved ones.
Here are a few things to consider:
- Your income
- Net worth
- Family needs
- Debt
- Other insurance policies in-force
There are 4 types of life insurance policies to consider:
- Term Life Insurance
- Permanent Life Insurance
- Participating Whole Life Insurance
- Universal Life Insurance
Click on the link below to learn more about permanent life insurance policies.
What is permanent insurance and how does it work?
What life insurance product is right for you?
The right insurance product depends on your unique situation. So it helps to speak with a professional, a licensed Financial Security Advisor, in other words a life insurance advisor, for guidance.
Connect with one of our insurance advisors and he or she can answer your questions, explain the products in further detail, help build a personalized insurance plan to address your financial needs and concern.
Best of all it’s free and you are under no obligation to pursue further..
Ready to get your life insurance settled?
Groupe Financier Unibec has been servicing Quebec residents living in the greater Montreal area since 2004. We do not work for a particular insurance company, but rather work with numerous insurance carriers, giving us a free hand in presenting clients with the best insurance proposals.
