Posted on February 25, 2023
The Basics of Term Life Insurance: What You Need to Know
Term insurance is a type of life insurance policy that provides coverage for a specific period of time, usually between one and 30 years. Unlike permanent life insurance, term life does not build up cash value. Instead, it provides a death benefit—a lump sum payment to your beneficiaries if you die during the term of the policy. You can also browse the internet if you want to know more information about term insurance in Canada.
Term insurance is an affordable way to provide financial protection for your family in case of your death. Because it is a temporary policy, it typically has lower premiums than permanent policies. If you are looking for life insurance but don’t want to commit to a policy for the long term, term insurance is a good choice.
When you buy a term life policy, you choose the amount of coverage you need and the length of time you want the policy to last. Most policies are renewable, meaning you can extend the coverage at the end of the term if you choose. The cost of the policy will depend on your age and health at the time of purchase, as well as your lifestyle and occupation.
Term life insurance is a good choice for those who are looking for temporary protection. It can provide financial security for your family if you pass away during the term of the policy, which can help them cover final expenses, mortgages, and other debts. It can also be used to replace lost income in the event of your death.