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Term Life Insurance in Toronto
Term Life Insurance Plan – is temporary life insurance which provides coverage for a certain number of years for a specified premium. This plan is usually less expensive since it does not accumulate cash value and all premiums paid are used to cover the cost of insurance. The term may be 5, 10, 20 years or longer.
How does term life insurance work?
Term Life Insurance covers you for a set number of years. This is called the term. You can get a policy to a certain age, usually 75-85.
- • Monthly premiums stay the same for a stated term and rise significantly for the next term.
- • When the term ends, your insurance renews automatically, unless you take steps to stop it. In most cases, your policy simply continues for another term at a higher cost.
- • You can convert a term plan to permanent plan but the premiums will be based on your age at the time of conversion.
- • This policy pays cash to your loved ones only if you die before the term is up. The lump sum cash payment is called the death benefit. Your loved ones do not pay tax on the money they receive.
- • If you cancel term policy before the term expires, all premiums paid are forfeited.
Who needs term life insurance?
- 1. Clients with limited budgets, for instance, young families with small children and big financial liabilities.
- 2. Clients who need to cover a temporary insurance need, such as a mortgage, line of credit, loans, or other financial obligations.
- 3. Business owners who have taken business loans for a certain term.
