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Term Life Insurance

What is Term Life Insurance?

Term life insurance provides high, short-term protection at the lowest cost for a set period of time. Term insurance is a very affordable option and suited to young families on a tight budget or to homebuyers holding a large mortgage.

Often you can extend your term insurance at the time of renewal – at a rate that is suitable for your age. The new rate can be much higher than your original policy. At a certain point, you won’t be able to renew your term insurance.

You’ll pay premiums on a monthly or annual basis. There is no cash value to term life insurance.

When Should You Buy Term Life Insurance?

You should buy term life insurance long before you need it. Term insurance gives you the comfort of knowing that your debts will be paid and you have provided financial security for those important to you. Term life insurance is a popular choice for people who :

Have a mortgage or other large debts;
Want flexibility – term life insurance can be converted;
Need loss-of-income protection;
Are concerned about affordability – term life insurance is the least expensive option;
Want to cover their children’s post-secondary education;
Run small businesses with complex situations or significant start-up debt.

Advantages of Term Insurance

Term insurance costs the least of all life options initially
Strong, temporary protection during times of high financial risk
Time limited term so if you’re financial situation has changed, you don’t have to renew
Flexibility to renew if you still require short-term coverage
Low-cost protection and income security for partners, spouses or children

What Term Life Insurance Does For You

Term life insurance provides financial security for you and your family at a cost that you can afford. Term life can :

Provide an immediate infusion of cash for an estate
Pay final expenses such as funeral or unpaid taxes
Provide an income for your loved ones
Pay off your outstanding debts – mortgages, business loans and taxes
Ensure a comfortable living standard for those you leave behind