Term Life Insurance
Term insurance is a straightforward type of coverage that is easy to understand. It is often chosen by people who are juggling career, home and family responsibilities and are interested in affordable life insurance to protect the people they care for most.
What is Term Life Insurance?
Term life insurance gives you coverage for a certain period of time. You can buy coverage for five, ten years or more. During this time, the insurer charges you the same rate for your coverage – your premiums do not increase as long as your policy remains in effect.
If you die while your policy is in force, the insurance company will pay your beneficiaries a lump sum equal to the amount of your coverage. This payment is tax-free and can be used to pay for any of the following:
- Funeral expenses
- Pay off debts
- Income replacement
- Children’s postsecondary education
What Happens when the Term Expires?
At the end of the term you have specified, you can:
- Renew your policy by agreeing to a new term of insurance with the same company.
- Convert your term insurance to permanent life insurance if your provider gives you this option.
- Buy a new term insurance policy with a different insurance company.
Is Term Life Insurance the Right Coverage for You?
This product may be the right solution for you if:
- You are young and healthy.
- Affordability is important.
- You want insurance for a set time in your life, such as when you have young children or elderly parents to support.