The basics of life insurance policies are as you guessed it: you pay small amounts of money over a term, and when you die, the funds are left for your family. Term-life insurance is one of the types of life insurance available in the Maple-Leaf Country. It offers coverage based on a set time, usually a 10-year, 20-year, or 30-year term.

Most Canadian opt for this type of policy because it offers low-cost coverage for a certain amount of time. The approach is well-suited for covering debts with a known lifespan, like a mortgage. Generally speaking, premiums for this type of insurance can range from $13 a month to more than $100 a month for $100,000’s of coverage. However, this would depend on various factors, such as your age, health, and lifestyle. If you are a 30-year-old healthy individual, you may be closer to the lower end versus the other end of the spectrum as a 60-year-old smoker.

The several benefits of term life insurance

• Flexible: You can choose between any term from 10-30 years, and your beneficiaries receive the policy benefits completely tax-free.
• Simple: The premium amount and the coverage are guaranteed for your entire term, and you have the option of renewing your policy at the end of your time as well.
• Highly affordable: One of the primary reasons behind the popularity of this policy is its affordability; compared to other approaches, the premiums are very low for this one.
• Convertible: Convert your policy into permanent or universal life insurance until age 71, without health questions or a medical exam.

When would I need a term life insurance policy?

A term life insurance policy can give you financial freedom at critical points of your life. If you’re planning to start a family, it can provide income replacement to help your partner and kids. Your mortgage will also come under coverage if you’re buying a home. Also, if you’re thinking about the future, the policy funds can be used to cover education costs for your children as well as funeral costs. You will always have the option to customize your benefits as well. In a line, term-life is affordable coverage for your significant expenses, so your loved ones are protected when it matters most. If you want to know more, contact Harpreet Puri today, she will share all the details you need to know about term life insurance.