Term life insurance provides a large amount of coverage for a very low initial cost. When you are buying your first home or starting a family money can be tight. What if you had to get by without the income of the primary bread winner in your family? How would you pay the mortgage and other bills?
A lot of the time people just buy the coverage offered by the bank when they are arranging a mortgage. There are many reasons why you should purchase personally owned insurance rather than bank owned insurance. To find out more about bank owned mortage insurance view this CBC Marketplace Report "In Denial" or contact us for more details.
Term life insurance coverage provides peace of mind knowing that even if you die prematurely your mortgage or other debts will be paid off and your family will have income for living expenses. It provides this temproary protection and also provides the opportunity to change the policy (convert) to permanent insurance without having to answer any medical questions.
Term insurance is available for periods of 10, 20, or 30 years. The premiums does not change for the initial period. After the initial term the policy will renewed at a higher guaranteed premium - no new medical questions are required. However the renewal premium rates are high so if you can qualify for a new term policy it is better to re-apply and get the lower rates then cancel the existing policy.
You can purchase Term Life Insurance as the foundation of your financial protection plan, and later convert the policy to Permanent Life Insurance.
Term policies are available in different health classes based on such things as lifestyle, family history, height and weight, blood pressure etc. The healthier you are the lower your rates!
The face amount of the policy is paid tax free to the named beneficiary(ies). This can be a person(s) or a company.