Canada Life introduces My Term insurance – term life insurance to meet your unique needs
Traditionally, life insurance companies have offered 10-, 20- and 30-year term products, as well as term to age 65. The idea behind the product is to provide affordable insurance with a higher death benefit that will pay off your mortgage, vehicle loans and other consumer debt, and act as income replacement for a surviving spouse, when compared to the more expensive participating and whole life products. Typically, as you get older, higher coverage may no longer be needed because your mortgage and other debts have been reduced
Term insurance renewal premiums can be significantly higher, so clients will usually apply for a new term policy if they still need the coverage. The downside to this is if you apply for a new policy, you’re subject to your current age rates which will be higher than they were when you wrote your initial policy and you could have experienced a change of health, making you subject to a medical rating.
As advisors, we’ve struggled with this because when we do a needs analysis with our clients, we determine exactly how long they need the coverage for, but can’t offer them a product that will provide coverage for exactly that period of time.
Canada Life now offers a solution to that problem – Canada Life My Term insurance. My Term offers term length options between 5 and 50 years, and at the end of your term, instead of renewing for the same term length at a high premium, it offers yearly renewable term insurance to cover off any remaining years of coverage needed.
This allows your advisor to determine exactly how long you will need the coverage and offer you a product that will provide coverage for entire time it is required. If you have 6-year business loan, purchase 6-year level cost term insurance. If you have a 31-year mortgage, then purchase 31-year level cost term insurance.
Key highlights:
- Flexible term lengths – between 5 to 50 years
- Yearly renewable term structure – coverage renews yearly at the end of the initial term period.
- Premiums in the renewal period will see a gradual yearly increase until expiry at age 85
- Customization – customize your clients’ coverage with optional benefits
- Convertible – convert to longer term or permanent policy without new evidence
With My Term from Canada Life, we now can find you coverage for the exact time period that you need, which will help us build an affordable coverage plan that meets your budget.