There are so many different kinds of life insurance products available in the market today. Selecting the perfect insurance policy means you have to first assess your individual situation and evaluate which policy might work best for you and whether term insurance would suit your needs. You must make sure that the life insurance that you choose matches your requirements or it should be customized accordingly.
Dissimilar to the whole life insurance, term insurance is bought in order to provide cover for a limited period or term. With term insurance the insured sum gets paid out only when the insured person passes away during the time span of the policy. The term policies do not build up any cash value. So if you live past the period of the policy then you will not receive any money. For this kind of life insurance the premiums are not necessarily fixed and could increase over time. To prevent this from happening make sure you select a guaranteed level premium term life insurance policy. This kind of policies ensures a level premium all through the term period.
Term insurance brings you a lot of advantages. It covers the optimal insurance for your money. It is of great benefit to those families who have more financial obligations than they do assets. One of the advantages of this kind of life insurance is that the premiums are very affordable against high death benefits. It is also the simplest form of life insurance that is currently available in the market.
Since the nature of term insurance is simple, comparing them becomes a lot easier based on the price and the features. Hence it is very appealing in nature. The term life insurance policies also provide you the options of renewability or convertibility. At the end of the term you can renew your policy without having to undergo a medical exam again. The convertibility feature permits you to convert your term insurance policy into a corresponding whole life policy which adds cash value in case you decide to change to a permanent life insurance policy.
Another feature of the term insurance is the waiver of the premium which means the insurance company may waive your payments for a predetermined period of time if you are unable to pay the premiums as per the circumstances that are laid down in the term life insurance contract. But you must note that this comes at an extra charge.
If you are looking for short term coverage then you should opt for term insurance. If your mortgage needs to be paid up in ten years then you might like to select a term policy over ten years. The majority of people do not imagine needing life insurance in their old age so a term life insurance policy may be your best bet when it comes to financial planning for the short term.
Resource Box: So whether it is term insurance or mortgage insurance that you might be looking for, you can find a wide variety of life insurance Canada policies available right here!