If you’ve been considering life insurance in Canada, chances are you’ve heard of term life insurance. In fact, it is the most common form of life insurance available in Canada.
There are a few things you should consider when looking for term life insurance. We’ve put together a short guide to what term life insurance is, along with instructions on how to get it and other helpful tips.
What exactly is term life insurance?
There are many forms of insurance, includinglife insurance, that can be apply for. So it’s best to know what they are and what they entail. Among the different types of life insurance is term life insurance.
Term life insurance is by far the most common form of life insurance in Canada. This life insurance product is intended to cover you for a specific period of time, hence the use of the term “term” in its name.
Term life insurance coverage usually extends from as little as 5 years to as much as 30 years. Term life insurance is a great option for people who want the same coverage as a permanent policy, but prefer not to pay as much.
It is important to note that while term life insurance policies are less expensive than permanent policies, life insurance prices increase with your age. While permanent policies have no variable cost on their premium, regardless of your age, apply for a term policy when you are older will be much more expensive than apply for one when you are still young.
Older people are at greater risk of accidents, serious medical problems and other ailments than younger people, who are often healthier and less likely to have accidents.
When your life insurance policy expires, you’ll likely have the option of renewing it, for a higher premium, or letting your coverage lapse. Some policies allow you to convert your term life insurance to another type of life insurance before your coverage period ends.
When you choose your term life insurance, you also have a choice of length of coverage. It all depends on your preferences; it is possible to tailor your life insurance to your situation.
When is the right time to apply for term life insurance?
When to apply for term life insurance depends on your preferences and what you think you will need in the years to come. In general, you’ll probably want to apply for term life insurance if you’re still young or if you think you’ll only need your life insurance temporarily.
Of course, “temporary” may not be short-lived. Here are some examples of why you might want to application term life insurance.
If you have a family and a mortgage to pay
People who have a mortgage on their home and want to ensure that their family will have the money to pay off the mortgage, even if they die, can use term life insurance. This assumes that you do not already have mortgage life insurance.
You or your partner are going back to school
Buying term life insurance for yourself or your partner when one of you goes back to school is a wise decision if you want to be sure you have a steady stream of cash in case of an untimely death.
In most cases, apply for a five-year term life insurance policy for you or your loved one is a great idea, as it ensures financial stability for either of you in the event of an unforeseen event.
If you are planning to retire
Buying term life insurance when you’re considering retirement is also a good plan. This is a good idea if you didn’t already have an insurance policy and only want to be covered for the remaining years you plan to work.
If you buy term life insurance at age 40, you can choose a 25-year term for your policy and cover yourself for the rest of your working years.
Being covered until you retire gives you security during the critical times of raising your children and paying your mortgage.
If you have young children
Anyone with children should definitely consider life insurance. Buying term life insurance to cover you until your children are grown and on their own is a great way to make sure they’re taken care of, even if something unexpected happens.
Even if you are no longer there to support them, your life insurance can help them live and pay for their education.
Getting term life insurance
Now that you know what term life insurance is, you may want to consider apply for your own policy. Of course, affordability and getting a custom plan are of utmost importance. So when you’re looking for term life insurance online, you’ll want to get the best on the market.
Sun Life offers one of the best term life insurance plans in Canada, customized to fit your lifestyle and provide you with the best coverage possible. You get up to $1 million in term life insurance coverage while your monthly costs remain the same, even for the first 20 years.
People between the ages of 18 and 69 who are looking for affordable, personal term life insurance will be more than satisfied with Sun Life’s service. With easy renewals and excellent coverage, you’ll have no worries once you purchase your term life insurance.
Contact the professionals at Sun Life if you want the best term life insurance from a company that has been serving Canadians for over 150 years. Take control of your life and get the coverage you need today.