When we start to talk about term life insurance, it’s normal to get a yawn. Insurance talk is boring; call it a necessary evil if you will.
But to put it simply, anybody without a life insurance will surely leave after death complications and financial problems that his family will need to deal with. That’s not exactly being responsible or loving.
People buy life insurance because they worry about what will happen to their family if something unexpected happens to them. They want to make sure their loved ones don’t have to struggle with bills, mortgage and other financial difficulties when they can’t provide anymore.
So how do you plan to provide for your children and other loved ones if you were to suddenly become ill or die? It’s not a pleasant thought but it is a reality we all need to think about.
We can’t wait for savings in 10 years or 20 years as we don’t know what tomorrow will bring. The best solution to bring you complete peace of mind – term life insurance.
When you are young and independent, making final preparations is the last thing on your mind. If you don’t have a spouse or dependents, don’t have a mortgage or other debts, you probably don’t need to buy life insurance.
However, that is not something that happens very often. Single people do get married, have children, buy a home, or take on huge financial responsibilities as they get older.
Term life insurance is offered in specific terms usually 10, 20, or 30 years. Similar to how auto or home insurance works, you pay monthly or annual premiums to get protection in case something happens. At the end of the term, you have the choice to renew your insurance, usually at a higher cost.
Once the term of your insurance expires, all the money you paid is gone. Unless you die during the period of cover, no benefits are due to your beneficiaries.
Single at 30 and enjoying a good income? You just don’t know when you’ll meet a partner and decide to have children. You also don’t know when you could develop a medical condition that could change your life. The only sure thing is that life insurance premiums cost significantly less at 30 years of age than they would when you are 40 or older.
Spouses and parents have many compelling reasons to buy term life insurance. The beginning to the middle years of any marriage usually entails financial responsibilities and debt – mortgage, education, children. The loss of any one spouse can be terribly difficult, not to mention financially devastating, to a spouse and children.
Term life insurance pays a death benefit to beneficiaries that can take care of final expenses, living expenses, and debts to ensure financial security for loved ones.
As an entrepreneur or self-employed worker, you won’t have access to a benefits package that regular employees have. It is up to you to create your own benefits, starting with term life insurance.
You should consider purchasing an affordable life insurance policy from a trustworthy insurer to make sure your loved ones are financially secure if you should die unexpectedly.
While it is normal to expect that people ready to retire are debt-free and have sufficient savings, studies show that many Canadians still carry debt into retirement. This can still pose a significant risk to the surviving spouse or family members.
While it isn’t easy to get life insurance for seniors, premiums have decreased in the last decade as insurers are taking a closer look at travel and lifestyle. With some insurers, you can obtain life insurance up to age 85.
The best time to buy term life insurance is now, not later. The younger you are, the lower the cost of insurance and you can lock-in that low rate for the next 10 years or more.
Because you just don’t know what will happen in the future, term life insurance is important for planning what you will leave to your loved ones.
Much of the stress we experience daily comes from worrying about the future.
Imagine how much relief you can feel when you know the future is taken care of because you have the right insurance for the family’s financial security.
Before you buy term life insurance, it is important to truly understand how it can benefit you. You need to be sure that it is the right solution for your financial goals.
Term life insurance is just that; it is not a savings or investment. It works like your car insurance – you pay premiums in case you get into an accident but you don’t benefit if nothing happens. There is nothing to get if the term is over and you are still alive. For this reason, many people consider it to be a waste of money if you they don’t die because they spent money on premiums and received nothing. But to be alive is so much better, right?
Even though term life insurance does not have cash value compared to other insurance types, it does offer other benefits. For one, it is significantly cheaper than permanent life insurance. It is pretty straightforward and you never have to worry about an investment or savings component. It works the way it is meant to – provide death benefits to take care of your loved ones.
One disadvantage of term life is that it doesn’t last forever. It is designed to cover a specific period – 10, 20, or 30 years. There is no guarantee you’ll be able to renew the policy and not at the same price. If your term life insurance expires when you are 60, your insurance might become very expensive.
It pays to know that term life insurance can be converted to whole life insurance when you need to. If you are obtaining term life insurance now because you can’t afford permanent cover, you have the option to do so at a later time. The important thing is not to delay getting protection today.
Many experts from the industry will be quick to concede that not everyone needs life insurance. However, they will also be quick to point out that if there is someone who depends on you, or if there is someone you want to secure financially, you should consider life insurance.
Life is full of unknowns and it is smart to protect your income and the future of your loved ones.
You could become unqualified for life insurance if you wait too long. After the age of 60, insurance premiums become very expensive. Some companies won’t provide insurance after age 75.
After working hard for so many years to make sure your loved ones are well-provided for, you would want to continue to provide for them if the worst should happen.
Below is a sample of what premiums could cost for term life insurance.
** Sample premiums are monthly, for 10-year term
It’s quite easy to see that life term insurance can be very affordable if you obtain it at a younger age and if you are not a smoker. This table shows that smokers’ premiums dramatically increase as an individual ages.
Many financial experts recommend term life insurance because of its innate affordability, transparency, and simplicity compared to other types of life insurance.
For instance, a 43-year old man who is a non-smoker will pay $39.69 monthly for a 10-year term life insurance for $500,000 while the cost for whole life insurance for the same cover could cost him over $200 a month.
A simple term life insurance policy is generally sufficient for many individuals who desire death benefits for their dependents.
For more info on life insurance costs, click here.
Many people just don’t like taking medical exams or going to a hospital. Some think they are too busy to bother with a medical just to obtain life insurance.
Today, you can get no medical life insurance cover. But you will be paying a lot more for the coverage. You have to consider if the reasons for not going through a medical are worth the higher premiums.
If you hate going to the hospital to get a blood test, live with it. Don’t have time now for a medical? You could apply now for the no medical coverage but convert to an underwritten policy as soon as you can.
Determining how much term life insurance to buy can be difficult. But the most important thing is to find out why you need life insurance and to calculate based on your needs.
If you really want financial security for your family, it is important to answer these 3 questions honestly and accurately. You might think $250,000 is adequate but that may be far from being enough.
You want to get just enough term life insurance cover so you don’t overpay for insurance. As a rule of thumb, if you are able to save money, you won’t need to replace all your income so you can buy less term life insurance.
And because situations in life change, it is important to periodically reassess if you have too much or too little insurance cover.
Leading insurers make it easier to get a ballpark estimate of how much insurance to buy with online insurance calculators.
If you are looking for the best term life insurance policy, it pays to compare offers to save on cost.
When you request for your free insurance quote with our short online form, you will get help from one of our partners – that are all certified insurers and insurance brokers.
Whether you are single looking for life insurance cover or a husband and wife desiring joint cover, our partner can help you compare your options to find the right life insurance product for you.
Obtaining term life insurance protection has never been so easy.
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