Find out more about your life insurance options:

Term Life Insurance
Should I consider term life insurance?
How does term life insurance work?

Whole Life Insurance
Should I consider whole life insurance?
How does whole life insurance work?


Universal Life Insurance Level

Should I consider universal life insurance?
How does universal life insurance work?

Consider term life insurance if you're a :

family

  • Arrange a financial lump sum so your family can maintain a similar lifestyle after you're gone.
  • Allow your mortgage or other loans to be paid down if one spouse dies.

business

  • Ensure your business will continue by arranging a buy-sell agreement, in which each partner takes out insurance policies on the other to provide money to purchase a deceased partner's shares.
  • Create business continuation insurance so that, if a significant partner in the company dies (e.g., the brains behind a software company), you'll have the money to identify and hire a replacement.
  • Supply the funds to cover your monthly business overhead until a replacement starts.

Term life insurance introduction

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How does term life insurance work?

Term life insurance is less expensive than the other types of insurance because it covers a fixed period of time. The odds are that the insured will outlive the policy term. As a result, the insurance company's risk is minimal, resulting in lower premiums for you.

The cost of your term life insurance will increase yearly. An insurance company that insures 10 people for $1000 each will start the premium at $100. If statistics show that one person is likely to die in the coming year, the next year's premium will be $111 ($1000 divided by 9), etc.

If you'd like a guaranteed rate for a longer period of time (10 or more years), insurance companies offer a set rate (based on the average) for that time frame.

Term life insurance is usually offered in 5, 10, 15, and 20 year terms, or to age 65, age 75 or age 100. The longer the period, the more you'll pay. However, it's usually more affordable to buy 20 year coverage than to buy two consecutive 10 year plans.

You can also use your term insurance policy to insure more than one person (multi-life). If you insure your spouse and children under the same policy you'll save money over the cost of several individual policies.

Term life insurance introduction

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Term Life Insurance Terminology

Convertible Term insurance that can be exchanged (converted), at the option of the policy holder, for a form of permanent insurance. Even if you are terminally ill at the time of conversion, the new permanent policy will be issued at standard rates.

Non-Convertible Term insurance that requires you to submit to a medical exam in order to upgrade to a permanent insurance policy.

Renewable You have the right to renew the policy after the selected term has expired without proving that you are healthy.

Non-Renewable The policy terminates at the end of the selected term. If you wish to continue with life insurance, you must reapply and requalify for the new policy.

Waiver of Premium If you are disabled and can't earn an income, the insurance company will waive your premiums after six months, so you won't lose your term life policy because of disability.

When we give you a quote, we always assume renewability and convertibility. These are important features that don't affect your cost significantly.

 

 

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