We’ve Got The Answers: What is Term Life Insurance?

Posted on July 5, 2017 and updated January 22, 2019 in Life Insurance Canada News 2 min read
What-Is-Term-Life-Insurance

Today’s Question: What is term life insurance?

Life Insurance can generally be broken down into two categories: term insurance and permanent insurance. With term life insurance, the premiums start off at a lower cost, but increase as you get older. Whereas with permanent life insurance, the premiums start off at a higher cost, but remain level for life. The type of insurance that best suits an individual depends solely on that individuals needs.

Considering a term life insurance policy? Here is a premise of what it entails. Term insurance policies are generally used to cover temporary costs or temporary debts such as a mortgage, a line of credit, and student loans. With these types of costs and debts, you typically require coverage for a shorter period of time.

The longer the term, the higher the initial premium; conversely, the lower the term, the lower the initial premium. A ten year term is going to cost you less in terms of a monthly premium as oppose to a twenty or thirty year premium. The length of the term depends on what finances you need the coverage for and for how long. 

If you are unsure about what type of policy works for you, it is best to speak to a broker who has a vast knowledge on all the policy types and who works with a plethora of companies, so you can get the coverage you need for a comfortable cost.

Do you have more life insurance questions? We have more answers here!

avatar