Term life insurance in Canada
It’s never easy to think about death and taxes, but if you have dependents, it’s essential to be prepared. Life insurance benefits can provide financial support to your loved ones by covering day-to-day expenses, funeral costs, education plans, mortgages, and other debts. To ensure that your family is taken care of, it’s important to consider the different types of life insurance policies available.
Term life insurance is one such option. This type of life insurance policy pays a death benefit if the insured person passes away during a specific time frame. Once the policy’s term ends, the policyholder can choose to renew it, convert it to a permanent policy, or let it lapse. However, leaving your loved ones without any coverage can leave them vulnerable.
Before making a decision about your life insurance coverage, we recommend speaking with an Experior expert. Our associates can help you determine the right coverage and type of policy for your needs, ensuring that your family is taken care of in the event of an unexpected loss. Contact us today to discuss your options and take the first step towards securing your loved ones’ future.
How Term Insurance Works In Canada
When you purchase a term life insurance policy, your age, gender, and health condition will be assessed by the insurance company to determine the coverage rates. Depending on the policy, a medical exam may also be required. Other factors, such as your driving record, medication use, smoking status, career, hobbies, and family history may also be taken into consideration to assess the level of risk associated with insuring you.
If you pass away within the policy term, your beneficiaries will receive the face amount of your coverage. They can use this benefit to cover medical and funeral costs, personal debts, mortgages, or any other financial needs or wants they have. While term policies can be extended beyond the initial term, premiums will be adjusted based on your current age at the time of renewal. Keep in mind that unlike permanent life insurance policies, term life insurance does not offer any savings features.
Term life insurance is typically the most affordable type of life insurance as it has fewer features than other types of policies. It is ideal for younger families or individuals on a fixed income who need insurance coverage for a specific period, such as to cover a 25-year mortgage.
Benefits of Term Life Insurance in Canada
Term life insurance is an excellent option if you’re looking for coverage that won’t break the bank. One of the significant advantages of term insurance is that it offers a lower premium than other types of life insurance policies. In addition, the younger you are, the more affordable your premiums will be.
The death benefit payout from a term life insurance policy is tax-free and is paid out to the beneficiary. You can use the benefit for any purpose, such as paying off debts, covering medical expenses, or providing for your family’s future needs. If the beneficiary is a minor, a trustee must be appointed to manage the funds, and the use of the funds will be guided by the terms of the deceased’s will.
You can also add riders to your term insurance policy to enhance its coverage options. By paying an extra fee, you can strengthen your policy with riders that offer additional benefits. For example, you can add critical illness coverage to your policy, which will help cover the costs of treatment for any critical illness that you may face in the future. This can help give you peace of mind, knowing that you’ll be covered in case of unexpected health issues.
Benefits of Term Life Insurance in Experior Financial?
Experior Financial has streamlined the process of comparing term life insurance policies, making it easy for customers to obtain quotes at no cost. Our insurance associates have access to a proprietary life insurance calculator and Expert Financial Analysis tool that provides a comprehensive solution for Experior customers.
To ensure that our customers get the most competitive rates, we partner with insurance providers that offer a diverse range of options. Our commitment to customer satisfaction is evident in our business practices, making us a top choice in the region for life insurance comparison services.
Term Insurance FAQ
Is it better to buy term life or permanent life insurance?
Both coverages are good if they meet the needs of the client. Term life is price effective if a disciplined client buys a policy and has investments as well. But if a client doesn’t have the discipline, or is not going to invest their money, purchasing permanent life insurance may be the best option. A small whole life policy can be combined with term life insurance to provide coverage the family needs and keep it cost-efficient.
What if my term life insurance coverage expires?
If the client outlives the term of the policy, there is no coverage, and the policy lapses.
Should I get a 20 or 30-year term life insurance as a Canadian resident?
Term life insurance contracts are often issued for terms of 10, 15, 20, 30, or even 40 years, Term to 65, Term to 75, and Term to 100. Finding a term policy that lasts long enough is not difficult. However, 20-year coverage can be a good option because it provides long-term protection at a low cost, it always depends on your entire picture.
What is the cost of a $500,000 Term life insurance policy?
We would need to perform a financial needs analysis first to determine the best quote. The cost is mostly determined by the client’s needs, age, gender, and health conditions. An Experior associate will be able to provide this quickly and accurately.
Is there a Relationship Between Income and Insurance rates?
You may have children who look to you for a variety of things, including financial stability. Although your income isn’t taken into account when an insurer calculates your premiums. Health is one big factor that is considered in determining premiums.