Coverage for those you love and care about.
How important is to you to protect the people who depend on you?
Having the right type of life insurance can do the job! It may have an enormous impact on your life and the lives of those you love and care about.
Let’s consider a few scenarios:
- If you were to die prematurely, life insurance can help cover final expenses and pay off debts such as lines of credit, credit cards, car loans or even mortgage.
- It can provide income for your family and make sure your loved ones are able to maintain a comfortable standard of living that they are used to, for example children can continue to enjoy their favorite activities such as gymnastics or hockey.
- It will help ensure your children can continue their education and focus on the achievement of their life goals.
Now obviously all of us have many other financial priorities and oftentimes life insurance is (unfortunately) not at the top of the list however many people do not realize that a basic life insurance policy is very affordable and what is even more important brings a peace of mind to the household.
A good example is buying a term life insurance policy where you can get very affordable coverage for a lower initial cost than permanent life insurance.
If you pay your monthly premiums when due, your death benefit is guaranteed!
There are different types of term life insurance
Such as term 10, term 20, term 30, and term 40. There is even term 100! The type of term insurance you have depends on your needs. For example many people buy term 20 or term 30 to cover their mortgage.
In Term 10, your premiums remain level for 10 years after which you can let your policy renew automatically, without proof of insurability and lock in your new premiums which reflect your new age, for another 10 years.
Many people keep renewing until their policy anniversary is nearest to their 85th birthday depending on the term they selected.
Health status is a major reason for renewing
For many people, health negatively changes with their age and oftentimes they become uninsurable.
Because term renews without proof of insurability, they can continue relying on this important coverage even though they could not be considered for a new policy because of their health status.
The same benefits apply to a Term 20 policy. The only difference is the renewal period falls every 20 years.
What is 'Conversion Privilege'?
A great feature that term life insurance offers is the conversion privilege where you can convert from Term 10 to Term 20 which allows you to save a substantial amount of money, depending on the situation.
For example a young family bought a term 10 policy because they could only afford it for income replacement purposes. In year 9 just before it renewed, they made the decision to take advantage of the conversion privilege because their financial situation improved. Term 20 gave them the ability to enjoy coverage for another 20 years and save money, avoiding having to renew in another 10 years.
Upon conversion, they didn't need a medical exam. Their insurability was already guaranteed from the time they purchased the initial term 10. On top of that they kept the same risk class they had with their original Term 10 policy.
Which type of term life insurance is right for you?
Life insurance companies, in a gesture of goodwill, reach out to many uninsured Canadians by offering them a temporary insurance agreement which provide instant coverage (before any underwriting is completed) to an applicant as long as they answer 3 questions and submit the first premium cheque with the application.
If you would like more information, please contact Matt Maslowski, Life Insurance Specialist at Bethel Insurance Brokers at 416-802-5187 or mmaslowski@pbnet.ca
Together we can create a plan that provides you and the people you care about with the right type of life insurance protection that fits your budget and lifestyle.