Term Life Insurance is designed to provide protection for a fixed period of time – usually 10 or 20 years. With a Term 10 or Term 20 Life insurance policy a couple is able to purchase a significant amount of coverage at a lower cost than almost any other type of insurance. We would argue that a couple’s most critical years are when their children are young and their debt is high – Term Insurance is a great fit.
Which Term Policy is right for me?
Term 10 Life Insurance is the most popular term insurance, and contributes to over 50% of all term insurance sales in Canada. Term life insurance is designed to cover relatively short-term insurance needs, and Term 10 plans offer protection for 10 years.
A Term 20 Life Insurance policy is ideally suited for people with young families and new mortgages. Term 20 Life Insurance is very similar to Term 10, only the term is 20 years. One of the attractive features of a Term 20 Life Insurance policy is that it can be issued on a joint first-to-die basis. This option allows two people (usually, but not always spouses) to both be insured under one contract, with the face value of the insurance paid out upon the death of the first spouse on the policy.
- Your premium will remain the same for the duration of the term – guaranteed!
- When the initial term is over, a renewable policy will allow you to renew for another term (10 or 20 years) with no medical exam
- Should your needs change, most Term Insurance policies can be converted to a Permanent Life Insurance policy. Policy must have the “conversion” option.
- Most Term Insurance policies are renewable until age 80 or 85 for most insurance carriers.
- Some Term 10 policies will allow you to exchange to a new Term 20 policy within the first five years without any medical underwriting.
Our role as your consultant is to review your policy with you on an annual basis to ensure the policy continues to meet your needs.
Term 100 Life Insurance
Term 10 and 20 Life Insurance plans offer protection for the short-term, however, many people need their life insurance to last for their entire lifetime. As a result of this need, some insurance carriers offer a Term to 100 Life Insurance plan. Almost everyone has at least a small need for Term 100 or Permanent Life Insurance – to cover off funeral expenses.
Term 100 policies have level premiums for the life of the contract meaning that the premium amount will never increase.