TERM LIFE INSURANCE
Term insurance is the most affordable option when it comes to insuring your loved ones.
Term insurance is also referred to as temporary insurance because it is designed to give you coverage for a limited time. Today most policies cover the insured for 10, 20 or 30 years. At the end of the term, the cost to own the coverage will either increase or your policy will be terminated.
Canadian life insurance companies have a pre-determined age where they will no longer insure you if you have Term insurance. For most companies today it is when the insured becomes 80. This is why many people will look to having some permanent coverage, so the benefits will still payout even past the age of 80.
Coverage amounts can range depending on what you need the coverage to do. The average Term insurance policy has increased over the years because Canadians take on more liabilities now than they did 30 years ago. Coverage amounts under $300,000 are applied for without any medical requirements. As you increase the amount of coverage you are looking to apply for, expect to have to do some sort of medicals. Such as a saliva kit test, blood work or urine sample.
In addition, majority of Term life insurance policies offer the option to renew the coverage at the end of the term without the need for a medical exam. Moreover, many Term policies include a conversion option, allowing the policyholder to convert the term policy into a permanent life insurance policy without undergoing additional medical underwriting.
Term insurance is best for people who have an outstanding liability that they are currently paying off. For example, your mortgage. For many Canadians, if one person were to unexpectedly pass away the surviving partner would not be able to afford the cost of their mortgage. Term insurance can be used to pay off the mortgage to help the surviving partner maintain their current living standards.
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