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What is Term Life Insurance in Canada?

To the point Learn About Term Life Insurance and Its Usefulness

If you have been looking into getting life insurance in Canada, then chances are that you have heard about term life insurance. That would be because it is the most common form of life insurance that you can find in the country.

There are things that you should take note of when looking into getting term life insurance. We have compiled a quick guide for what term life insurance is and some guidelines for getting it and other helpful tips.

What Exactly is Term Life Insurance?

With so many different forms of insurance, specifically life insurance, available for purchase, it is best to know what each one is and what it entails. Among the various types of life insurance is term life insurance.

By far, the most common form of life insurance here in Canada is term life insurance. This life insurance product is meant to cover you for a specified period of time, thus the usage of “term” in the name.

The coverage of a term life insurance product generally spans from as short as only 5 years to up to 30 years. Term life insurance is a great option for individuals who want to get the same protection as a permanent insurance policy but would rather not have to pay as much.

It is important to note that while term life insurance policies are cheaper than permanent policies, the life insurance policies’ prices scale with your age. While permanent policies do not have a changing cost on their premium no matter what age you are, getting a term policy when you are older will be quite a bit more expensive than getting one when you are still young.

This is because older individuals are at a higher risk of accidents, serious medical issues, and other afflictions than those who are younger and, oftentimes, healthier and at a lower risk of an accident.

Once the term for your life insurance policy expires, you will likely have the option to renew it, albeit at a costlier premium, or you can allow your coverage to expire. Some policies let you convert your term life insurance into a different life insurance type before your coverage period ends.

When choosing your term life insurance, you also have the choice of term length. This all depends on your preference and can help to make your life insurance fit your preferences.

When Is a Good Time to Buy Term Life Insurance?

Choosing when to get term life insurance depends on an individual’s preference and what they think they will need in the years to come. In general, you will probably want to get your term life insurance if you are still young or think that you will only need your life insurance temporarily.

Of course, “temporary” may not be for just a short time. Following are just a handful of examples that may warrant getting term life insurance.

If you have a family and a mortgage to pay off

Individuals who have a mortgage on their home and want to ensure that their family will have the money to pay the mortgage off, even if they die, may want to avail of term life insurance. This is assuming that you do not already have mortgage life insurance.

You or your partner is returning to school

Getting term life insurance for yourself or your partner when they return to school is a smart move if you want to make sure that a steady cash flow is readily available in case of an untimely passing.

In most cases, getting a 5-year plan for term-life insurance, either for you or your loved one, is a great idea as it will ensure the financial stability of either one of you should anything unexpected happen.

If you plan on retiring

Getting term life insurance when you are looking to retire is also a good plan. This works out well if you did not previously have any insurance policies and want to get coverage for just the years left that you expect to work for.

If you get a term life insurance policy when you are 40 years old, then you can choose to get a term of 25 years on your policy and cover yourself for the rest of the years you plan on working.

Getting coverage through to your retirement ensures that you will be safe during the times where you will be raising your kids and paying your mortgage, both critical times in any person’s life.

If you have young children

Anyone with kids should definitely look into getting life insurance. Having term life insurance to cover yourself until your children are grown up and on their own is a wonderful way to ensure that they will be provided for, even if the unexpected occurs.

Even if you are not around to provide for them yourself, your life insurance can sustain them and pay for their education.

Getting Term Life Insurance

Now that you know about term life insurance, you may be interested in looking to get a policy of your own. Of course, affordability and getting a tailored plan are of utmost importance, so when looking for term life insurance online, you will want to get the very best.

Sun Life offers some of the best term life insurance in Canada that is personalized to fit your lifestyle and give you the best coverage possible. You get up to $1 million of term life insurance online while your monthly costs stay unchanged for even up to the first 20 years.

Individuals between the ages of 18 and 69 looking for affordable and personal temporary life insurance will be more than happy with the service at Sun Life. Easy renewals and excellent coverage mean that you won’t have anything to worry about once you get your term life insurance.

Contact the professionals at Sun Life if you want to get the best term life insurance possible from a company that has served Canadians for over 150 years. Take your life into your own hands and get the coverage that you need today.

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