Term Life Insurance facts

Term Life Insurance facts

As we know, Term Insurance covers you for the duration of the term at that cost. So if you are buying a Term 20 life Insurance, it means that your premiums will remain the same for the first 20 years and then that cost would change.

Now you’re finally ready to take a closer look at the following factors and features that come with buying Term 20 Life Insurance:

The “20” in Term 20 means that the premiums are level for the first 20 years of the policy.

1. The “20” in Term 20 means that the premiums are level for the first 20 years of the policy.

2. Beware of the renewal premium. Some companies offer a lower intial premium than their competitors, but offer a much higher renewal premium. The renewal premium is important to consider. As an approximation, a 20 year term would renew at about 8-10 times the cost. It is usually done without any further underwriting or declaration of insurability.  Due to high renewal costs, a term policy is usually considered expensive upon renewal to be extended.

3. Make sure the policy is convertible. Most Term 20 policies in Canada are convertible to permanent plans without a medical, but, some companies, including Primerica, and some of the direct sellers, like HSBC, do not offer conversion for their Term 20 Plans. Conversion, whole or partial, can be a great way to buy permanent insurance.

4. Choose a Term 20 carrier that offers preferred rates. Preferred rate plans are given to individuals in very good health who have a very good family health history. If you qualify for preferred rates, it could mean up to a 30% savings. There are insurance companies that do not offer preferred rates or present them with certain conditions. You are advised to work with a broker who is qualified with the knowledge to offer the right product in term insurance.

5. Shop around. Term 20 rates can vary widely between companies, so please visit us and we can help you shop around through Get a Quote. A savings of $10 a month can translate to $2,400 in savings over the 20 years of the policy.

Term Life Insurance is an extremely cost effective way to insurance yourself when your temporary ( or time bound) needs for insurance are high. The cost of insurance ( or the premiums) are constant for the duration of the term. Policies are renewable and convertible. 
For more information on life insurance for kids, please contact us at 1 416 509 2540 or visit us at Request for a Life Insurance Quote for a family’s protection.

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