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Term Life Insurance

If you’re looking for basic insurance coverage for a specific period of time, term insurance is a good place to start. It’s a cost-effective and simple plan, with some flexibility to adapt to your long-term goals.

Over time, your needs may change. Term life insurance offers affordable and flexible protection you can customize to attend to temporary and growing needs you may have, whether you are looking to protect your family or your business.Term life insurance gives you coverage for a pre-determined period, at an affordable price. If your death occurs during the chosen period, your loved ones receive a tax-free benefit.Term life insurance can evolve with your needs by providing options to extend your coverage period or even to transfer to a permanent life insurance solution.

Term life insurance is well-suited to meet high, short-term protection needs for the lowest initial cost.

  • You can pay off existing debts – like your mortgage
  • It ensures you maintain a comfortable lifestyle
  • Even allows for you to invest in other Long Term Educational Plans or RSP’s

Term life insurance coverage can do a good job of meeting immediate needs and may provide the opportunity to later move or convert to permanent life insurance without providing proof of health.Low cost, temporary protection for times of high financial risk (e.g. a mortgage)

Term plans may also be renewable after 5, 10 or 20 years without providing proof of health. The price increases as appropriate for your age at renewal. You can convert a term 10 plan to a term 20 plan between the first and fifth policy anniversary or the insured’s 65th birthday, which-ever is earliest.
You can purchase term life insurance as an initial step before purchasing permanent life insurance.

What is the monthly premium for a term life insurance ?

Well the monthly premium for a term life coverage depends on a few factors. These factors are

  • Amount of coverage
  • Age of the applicant
  • Smoker or Non Smoker
  • Health condition

The best way to get a quote is to call one of our advisors and get a free quote. Our phone no is 416 839 4561

How much coverage should be enough for me ?

As every client situation is different and therefore the coverage needs are also differnent. You can call us for a free needs analysis workbook to calculate the amount of coverage required.

Why should I deal with a Life insurance broker and not with a Bank ?

Well you can always go to your Bank for your Life insurance needs. The coverage the most Banks offer covers the amount of mortgage you owe. In fact your life insurance needs might be more than you think, You should consider to cover other expenses to be taken care of in the event of your death such as

  • Kids Education
  • Income Shorfall in the family
  • Chidcare Expenses
  • Final Expenses and estate taxes

My Bank or Lending institution is convincing me for mortgage insurance  Should I get it?

A lot of time your Lending institution tries to sell a mortgage insurance. You have to ask a question to yourself. Would I name the bank or the lending institution beneficiary or should I name my spouse or loved one name as beneficiary. It is always recommended to get a personal Life insurance policy with your loved ones named as beneficiary.

What is the difference between mortgage insurance and life insurance?

There are a few differences between mortgage insurance and life insurance

  • In mortgage insurance your Bank is the beneficiary while in Life insurance you can designate beneficiary of your choice
  • In mortgage insurance the coverage amount is depleting. What that means is eg if you have 500k coverage and you paid the premiums for 10 years. After 10 years lets say the outstanding mortgage balance is $250k the discharged amount will be $250k and not 500k, while you paid the premium for 500k. In life insurance or in term life insurance the coverage amount is level for the period of the term.
  • The mortgage insurance is a post claim underwritten policy. Once the claim comes on the policy the insurance company starts underwriting and verify the questionnaire which you filled at the time of application. In Life insurance the questionnaire is verified at the time of application and before the policy is issued. The claim process with Life insurance is much smoother.

What type of term insurance coverages are available?

Typically Term 20 coverage is the most common coverage that almost all the insurance companies offer. Apart from that you can get a Term 10, Term 15, Term 25, Term 30 and even Term 40. But so many things depend on the particular situation of the applicant and the best way to understand your requirement is to call us.

Other advantages of term insurance

Business owners can use term insurance for

  • Insure one of your key employees
  • Finance a buy-sell agreement
  • Meet the demands of your creditors concerning your financial obligations

Things To Consider with Term Insurance:

There are two potential problems with term insurance. Firstly, term insurance gets more expensive the older you get. Often this makes term insurance cost prohibitive at some point in time in the future. Secondly, term insurance will eventually run out. In fact, you may wind up paying for premiums and never collecting a benefit of any kind.

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