Term life insurance is the most basic, straight forward and affordable type of life insurance.
Basic means that the two biggest decisions you will have to make are how much coverage you would like and for how long. Insurance companies refer to this length as a term, hence the name. Coverage depends on your life situation and your reasons for buying life insurance.
Straight forward refers to the details of your policy. Basically, if an insured individual were to die while covered by a term life insurance policy their beneficiaries would receive a death benefit. Unlike other types of policies that have death benefits that can decrease over time, term life insurance is very easy to understand.
Affordable because there is no return on your money. Unlike whole life insurance policies which have a “built-in savings” component, term life insurance owners receive none of the money they pay into their premiums back. But, comparatively to the cost of whole life insurance, term life offers substantially more coverage for the price.
Term Life Insurance May Be A Good Choice For:
- Young families just starting out looking for affordable coverage.
- Those with mortgages looking to protect their investment.
- People looking to supplement their whole life insurance policies during times of extra financial support would be need (ie: supporting a child during their post secondary school educaiton)
If you’re looking for affordable coverage, with a policy that is straight forward then term life insurance is probably ideal. With that in mind, it is always important to speak with a broker first before deciding on any policy. Because a broker is a licensed professional who works for you, they can help guide you through the often complicated issues that arise with respect to life insurance.
LifeInsuranceCanada.org is supported by licensed independent brokers who help simplify the process of buying life insurance. If you’d like to speak to a broker for a free comparison quote to better understand your options we can help. Simply start by filling out a quote request form. After we review your information we will connect you directly with a licensed broker in your area.
