Term Insurance: What You Should Know

Term life insurance

When it comes to Life Insurances, it doesn’t always have to be a life-long commitment. There are several policies that you can choose from and term insurance is an ideal option. It offers affordable coverage for your significant expenses, so your dear ones are financially protected when it matters.

As a Life Insurance product, it guarantees a death benefit payout to the stated beneficiary in the contract within a specific period, generally 5-40 years. When you purchase this policy, your coverage amount and premiums get lock-in for the entire Term of the policy’s tenure. Additional benefits include the payout being completely tax-free. If you want to know more about Term Insurance, read on.

How does Term Insurance work?

The first step is always to do your market research and find a company that can help you make the right decision and meet your insurance requirements. You can get in touch with Canadian L.I.C., and we will be more than happy to help.

  • Now once you have made your contact, discuss your needs with the Advisor and then choose the coverage amount and Term length you want
  • Tailor the terms and conditions of the contract as per your requirement with additional benefits, make sure you get the best deal available
  • After the paperwork is complete, the Life Insurance coverage kicks in, you will have to pay monthly premiums, and when the Term is about to end, you can either renew or convert it to a long-term plan
  • If you pass away when the policy is active, the person/family member you named as beneficiary will receive a tax-free payout

Some factors that may affect the Insurance cost

Compared to whole life insurance, Term Life Insurance is more affordable. However, certain factors can affect the expenses of the policy, and these would include:

  • Age: You pay less for your insurance if you’re young
  • Health: If you’re in good health and your family doesn’t have a history of chronic diseases, then the policy may cost less
  • Lifestyle: The way you live your life also plays a role in dictating your insurance costs. If you smoke, consume alcohol, you may have to pay more
  • Occupation: If you have a dangerous job, then the prices would go high.

Why would you need Term Insurance?

Term Life Insurance can act as a financial safety net for your family. In the situation of your untimely death, the pay-off can cover your mortgage balance, pay the education costs of your children, and much more. You can find out more about the advantages of Term Insurance by getting in touch with the team at Canadian L.I.C., and they are experts in the field.

They can also help you with several other insurance policies such as Critical Insurance and Disability Insurance; give them a Call.