Term Life Insurance Rip-Off

Is Term life insurance affordable insurance protection or just a band-aid solution? The answer is both. Term Life policies offer cheap premiums in the initial policy years, but the premiums rise significantly at the policy renewal.

Most term 10 life insurance policies offer premiums level for the first 10 policy years, but at the policy renewal premiums will increase anywhere from 300% to 800%. An example $500,000 Term for a 40-year-old male, non smoker with Canada Life is $385 a year. The renewal premium is $2500.

The question might be then, why not always take a Permanent policy? i.e. one with a fixed premium and lifetime time protection. The answer is:

1) the premiums may not be within the insured’s budget.

2) the insurance may only be required for a temporary period of time. Term policies can provide a great value if life insurance is needed for a mortgage, business loan or line of credit.

 However, if the life insurance policy is purchased to offset future taxes, or to enhance the insured’s overall estate, than a Term Life insurance policy likely would not be a good fit. The reason is the insured is likely to live beyond the initial term, and the renewal could make the premiums unaffordable later years, thus, not allowing the policy to fulfill its initial purpose.

For more details you can contact us at 1-866-899-4849 or visit our Term Life Insurance Instant Quote Page.

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Juliane
Juliane

There is certainly a lot to find out about this subject.

I love all of the points you made.

LSM Insurance
LSM Insurance

Thanks for the note. Yes Term Insurance is often misunderstood – so you’re right consumers and many brokers need to be educated.