Term Life Insurance
Term life insurance can play an important role in your life, both in the early stages while building your financial security and later in life when you are planning for your estate. If you're building your wealth or transitioning to a different phase of life, term insurance can provide peace of mind with lower life insurance rates.
Frequently Asked Questions
What is term life insurance?
Traditionally, term insurance is used to gain access to a large amount of coverage while you are still young and building your wealth. Term life insurance provides you coverage protection for a specific period of time (the term), typically for 5, 10 or 20 years. The term of the life insurance that you select usually depends on your age at the time of the term insurance quote. For most people, the purpose of term insurance is to pay off any debts and leave funds behind for final costs.
As the main income provider for my family, will term life insurance help them?
Term insurance can replace your lost income if you are the primary income provider and die before your financial plan is complete. It depends on the specific policy, but term life insurance typically provides your surviving family with an income to stay in the same house and continue living the way they are used to – at least until the kids are out of school. The ages and plans for your kids are often important factors that insurance providers consider when preparing a quote for life insurance.
How is the premium calculated?
The premium (or payout) of your term life insurance is calculated based on the amount of coverage you need, your health and your lifestyle risks. Naturally, needs, health and lifestyle risks vary between families, so premiums are calculated when you receive term life insurance quotes.
How do I know how much coverage I need for my term life insurance?
Sometimes it is difficult to know how much coverage you may need from your term insurance. To find what amount of coverage you will need, it is important to assess your goals and quantify the amount of money (or lump sum) required to allow your family to reach those financial goals.
Is term insurance expensive?
Term life insurance is the lowest cost of life insurance. Once you have determined how much coverage (including the term and premium of the life insurance) is needed, a request for a quote can be made to all insurance providers who offer term insurance. The life insurance cost will depend on the term you choose and the premium you request.
How can term insurance help me later in life?
When looking at the life insurance cost, you also want to keep in mind how the right product and term of life insurance may positively impact your future planning needs as well. Choosing an insurance provider that has a full suite of products that you can transition to later in life is beneficial.
Let's navigate your options for term life insurance together.
Get in touch today to see how we can help you plan your future.