Term insurance is a great way to get affordable coverage when you need it. You can pick the coverage amount and duration of coverage – for 10, 20 or 30 years, or to age 65. The premiums stay the same throughout that entire period, the coverage can renew automatically, and you have the option of converting all or a portion of that coverage to a permanent whole life policy with no medical underwriting required.
Different stages of life require different coverage amounts. A term policy is a great way to provide coverage to pay off your mortgage and debts, offer income replacement to your spouse and family, pay for final expenses and fund a child’s education. As you get older, your mortgage will be lower or paid off, your kids may be out on their own or you might be close to retirement, so you may not need as much coverage. When your term policy is up for renewal, you can re-asses your coverage needs and make changes to your policy to fit your current circumstances.
Term insurance is very popular as a replacement for traditional, lender-provided, mortgage insurance.
Mortgage insurance is designed to pay off your mortgage if you die, and the death benefit is always payable to the institution who holds your mortgage. As you pay down your mortgage, the amount of coverage provided by your mortgage insurance decreases, but your premiums remain the same. And if you were to change lenders, you will lose your coverage and must re-apply with your new lender.
Term insurance is a policy owned and controlled by you. You decide who receives the death benefit, and the coverage won’t decrease as you pay down your mortgage. You can change your term policy or convert it to permanent whole life coverage, which isn’t possible with mortgage insurance.
Are you looking for more coverage, and want to explore the options provided by a term policy? Now’s a great time to do it! Canada Life is offering 4 months free premiums on any approved 20-year, 30-year or term to age 65 application received before December 1st of this year. Email us requesting our Needs Analysis calculator to figure out how much coverage you need, or speak with one of our advisors and complete the Needs Analysis with them.