If you’re considering options for purchasing insurance, you might want to think about term insurance. This type of life insurance offers guaranteed premiums and a tax-free death benefit for your beneficiaries. It’s affordable protection for your family’s future.
How term insurance works?
Term life insurance typically provides coverage that expires at a specific age or year. Premiums are guaranteed for a given time period, usually 10, 20 or 30 years, depending on the plan selected. At the end of that period, the policy either renews at a higher premium for the next payment period or it terminates. Most term plans can be switched to permanent protection to cover your long-term needs.
Why term life insurance?
Term insurance protects what’s important in life by providing for those left behind. Here are just some of the reasons people choose term:
- Ryan wants to ensure his mortgage is paid so his family can stay in their home.
- Amanda and Josh want to leave an education fund for their children.
- Samantha wants to replace her income so her family can continue to cover day-to-day expenses.
- Chris and Jessica want to ensure that funds are available to cover their final expenses.
- Ashley and Jennifer want to fund the buy-sell agreement for their business.
How much insurance do you need?
Use this calculator to help determine how much life insurance you may need.
Talk to your advisor about whether term life insurance is right for you.
*Glossary of Terms
Beneficiary The person(s) named on the life insurance policy who will receive the death benefit when you die. For example, you may want to name your spouse or child as the beneficiary of your life insurance policy. (Source: Government of Canada website)
Death benefit The amount of money that the insurer will pay your beneficiary or beneficiaries upon your death. This term is normally used with a life insurance policy. (Source: Government of Canada website)
Permanent Life Insurance A type of life insurance that provides coverage for the lifetime of the person insured provided the required premiums are paid. Permanent life insurance usually has a cash value. (Source: Canadian Life and Health Insurance Association)
Premium The amount you pay to buy insurance. The premium is usually paid monthly, quarterly or annually. The amount of your premium may change over time. (Source: Canadian Life and Health Insurance Association)