TERM LIFE INSURANCE
The uncertainties of life and the unforeseen may interrupt the course of life for your family members. You would obviously want your family to enjoy the same lifestyle and facilities in your absence. Term life insurance is one of the most widely trusted insurance schemes for the financial stability of your loved ones after your untimely death. Term Life insurance can also help your family pay back the debts, college fees and mortgage. It is the most affordable and practical insurance scheme for substantial death benefits during the term or period. Your absence can never be compensated but you can at least secure the future of your immediate family members.
What is Term Life Insurance? It is known as the purest form of Life Insurance with a duration limit on the coverage period or rather known as “Term” in this case. In case of untimely death, the beneficiary gets the insured amount within the term only. After the completion of the term you can either renew the policy or terminate the coverage. The premium amount and the duration are the two main parameters to review while purchasing a Term Life Insurance. In contrast to Permanent Life Insurance policies, Term Life has a lower initial premium values. It is an ideal financial tool for protection against liabilities like Loans and Mortgages. Finally, you also get a tax benefit from the Government if you are a citizen of Canada and invest in a Life Insurance Policy.
At a Glance
Here are the pointers which will help you choose the ideal policy:
- How much should one invest?
You should analyze your future needs like clearing up the debt or college fees for your children. Based on the amount you can easily look for a suitable plan for yourself.
- What should be the ideal Period/Term?
The risk of dying increases as you grow older hence you will have to pay more when you will be in your 60s than your 30s. It is advisable to purchase at a younger age for a longer period of time as you then know the amount that you have to pay.
- What about policy renewal?
Ensure while choosing a term plan that you can renew your policy, even in case of poor health. Also keep into account that the premiums paid each time you renew are guaranteed and outlined term-by-term in your policy.