Term Life Insurance

Term life insurance covers you for a set amount of time like 10, 20, or 30 years and your premiums remain stable during the term.  It is the most affordable type of life insurance and can work to cover the years during which a mortgage loan is outstanding or throughout your children’s college years.

Why choose term life insurance:

Simplicity
Term life policies tend to be much easier to understand than permanent life policies. You choose a set death benefit, along with a set term period.

Long-term Flexibility
With term life insurance, you generally have options to covert the plan (to permanent life insurance) or renew it when expiration nears.

Level Premiums
In a standard term life insurance policy, your premium won’t change within the entire term duration – you won’t need to worry about a rate increase due to health status or old age.

Affordability
A term life insurance policy is much cheaper than a whole life one – this is because your insurer may not need to payout the death benefit.

Tax-free Benefit
Like all types of life insurance, term life benefits are tax-free. Your beneficiaries won’t need to pay taxes on the lump sum amount.

Peace Of Mind
This also goes for other life insurance products, but a term life policy can provide you with peace of mind while you need it. It’s nice knowing your kids will be covered while they’re still growing up.

When do you need Term Life Insurance

Term life insurance covers a policyholder for a limited period of time (with the exception of Term 100, which is actually a form of permanent insurance). Term insurance is optimal when:

• You want protection for a pre-defined period of time to protect yourself and your family (e.g. paying off a mortgage).
• You want to make sure your kids are being taken care of until they can live on their own.
• You want to minimize your life insurance premiums (thought it is important to know that these will significantly increase when you renew your policy).
• You need pure life insurance coverage because you invest elsewhere, and you are not interested in leveraging the value accumulation component of permanent life insurance.

How does Term Life Insurance compare to other life insurance products?

To know more differences between term life and whole life insurance, see Frequently asked questions.