3 Reasons to Consider Term Life Insurance Today

ByGlenn Stewart

Dispelling Misconceptions: The Affordability and Importance of Term Life Insurance in a Post-Pandemic World

The pandemic has had a devastating impact over the past year, but it has also made people think more about their mortality and financial security. This has led to more people getting life insurance to safeguard their families.

However, many people wrongly believe that life insurance is much more expensive than it actually is – they think it costs three times its real price. This misunderstanding, along with prioritizing other expenses like home and car insurance, leaves many families at risk of financial difficulties if someone in the family suddenly dies.

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Life Insurance Canada

The pandemic has been tough, but it made people realize the importance of life insurance for their family’s security. But, there’s a problem – a lot of folks think life insurance is far more costly than it actually is.

Now, let’s dive into an interesting bit about life insurance. There are two main kinds – term and permanent. Term life insurance is like renting a house. You pay for protection for a certain number of years, and when that term ends, so does your coverage. It’s typically cheaper and simpler, making it a popular choice.

On the other hand, permanent life insurance is like owning a home. You’re covered for your entire life, as long as you keep paying the premiums. It’s pricier but comes with added features like a cash value component that can grow over time.

Understanding these two types can help families make better financial decisions and protect their future.

Greater accessibility and speed make buying term insurance easier today than it was in the past. With many insurers, term insurance can be obtained by talking with a broker online today the policy is delivered on your Computer. Today many insurers’ online tools and resources offer accelerated application processes, faster underwriting, and more efficient application processing.

Term insurance can also be a central pillar of a long-term financial plan. It can lock in your insurability — the ability to qualify for insurance — at the same time it locks in affordable death benefit protection for a set period.

A closer look at locking in future insurability with a term life insurance policy reveals three significant benefits.

Term Life Insurance

1. Protection through health changes.

As people age, they are more likely to develop health problems that could make life insurance more expensive or even disqualifying. Most term life policies have a conversion feature, which allows a policyholder to convert their term policy to a permanent policy before it expires without going through another medical exam, regardless of health changes. This ability to lock in insurability is advantageous given the many health changes you might experience throughout your life.

2. Protection through job changes.

A lot of workers lost employer-provided life insurance coverage as a result of the pandemic. Even those with employer-provided group coverage often overlook the employee-paid, Optional Term Life plans during the open enrollment, leaving them with inadequate protection. While it’s ideal to have a combination of coverage individually and through your employer, term insurance offers higher levels of coverage and more stability during employment disruptions.

3. Protection against debt and final expenses.

Life insurance can help your loved ones pay off debts while maintaining their lifestyle and forging ahead in pursuit of their hopes and dreams.

FAQ Frequently Asked Questions about Term Life Insurance

Here are some frequently asked questions and their answers to provide additional clarity on the subject of term life insurance.

Term life insurance is a type of life insurance policy that provides coverage for a specific period, or term. If the policyholder passes away within this term, the insurance company pays a death benefit to the designated beneficiaries.

The length of a term life insurance policy can vary, but common terms are 10, 20, or 30 years. The policyholder can choose the term length that best fits their needs and financial planning goals.

Term life insurance is often more affordable than other types of life insurance like whole life insurance. It can be a good option for those who need coverage for a specific period, such as until children finish school or a mortgage is paid off.

At the end of a term life insurance policy, coverage ends. However, many term life policies have a conversion feature that allows the policyholder to convert their term policy into a permanent one without going through another medical exam.

How and Why to Buy a Life Insurance Policy?

Yes, many insurance companies offer term life insurance policies that do not require a medical exam. It’s important to note, however, that these policies may come with higher premiums.

If you lose your employer-provided life insurance due to job changes, a term life insurance policy can provide stability and ensure continued coverage.

If the policyholder passes away, the death benefit from a term life insurance policy can be used to help pay off debts and cover final expenses, easing the financial burden on loved ones.

Remember, it’s essential to discuss your individual needs with an insurance professional to determine the best type of life insurance for you. With the right coverage, you can rest easy knowing that your loved ones are protected.

For more information about term life insurance in Canada, feel free to reach out to us. We’re here to answer any questions you might have and help you find the right insurance coverage for your needs.

Why Everyone Should Get Life Insurance In Canada For A Better Future

Home Office Insurance Broker Glenn Stewart

Call Glenn Stewart Life Insurance Broker, Advisor at 519-896-9970