Life insurance has become an important part of financial planning in the lives of people due to the uncertainty of death as well as many other unplanned events which can occur in our life. We often hear term-based life insurance is very similar to whole or permanent life insurance, except it is meant for only a specific term (Time). This term however can be mutually agreed upon by the individual and the company that insures him or her.
In this accord, financial advisors are able to help their clients breakdown the insurance costs and make a better decision when they are deciding on any type of life insurance. Financial advisors actually know the details and the terminology used with insurance policies. Therefore, when you hire a financial advisor they actually work to get you the most beneficial insurance policy which you may have minimal knowledge on. This blog post will help you understand some of the basic must knows for term-based life insurance available in Canada.
Term-based life insurance provides benefits to people who are actively covered but die due to any reason. The benefits will be given to the person’s family or the ones he or she designated when the insurance contract was signed. It is important that the person who is covered under the insurance policy died of the causes that are covered by the policy to simplify the insurance benefits process.
Policy Term Must Be Active At Time Of Death
The term or insured time selected for the insurance can be of 5 years or even 30 years. People that remain alive in the mentioned period of the term cannot avail those benefits if they die after the said time period. This is perhaps the biggest difference between the term-based life insurance and permanent life insurance which is covering the benefits for death at any time of life.
Most Convenient Life Insurance In Canada
Term-based life insurance is actually less costly if we compare it with permanent life insurance policies. The reason is that this policy is meant for a particular time period. If the person survives that time the policy will become void. However, there is no limit to the term set for the insurance policy and it works almost the same as any permanent insurance policy but has lower interest rates and monthly payments.
Term Must Be Specific Time Period
The term that is selected in the term life insurance should be fixed. It can be long or short but it must have a starting time and a concluding date. This way it will be fixed and the set policy benefits can be delivered as the case proceeds.
Gets Expensive As You Age
Term-based insurance policies gets more expensive as the person ages. It is important to know here that after the age of 50 this term insurance policy becomes really expensive and becomes almost equal to that of a permanent insurance policy. Therefore, most people consider getting permanent policy instead of the term based if they reach 50 years of age.
Increase The Term After It Expires
There is however room to continue the term-based insurance policy after it expires. People can easily increase the time of their insurance term. There will of course be additional cost for the difference of the time and the policy will again be active just like it was before expiration.
Extra Coverage Apart From Permanent Life Insurance
People sometimes use term-based life insurance as extra coverage once they have acquired a permanent life insurance policy. This further helps them gain more benefits in case of death of the policyholder.
Upgradable To Permanent Life Insurance
Term-based life insurance can be upgraded to permanent life insurance after the policyholder pays the difference of the amounts. This becomes another advantage for the term based policyholders as they have the choice of ending it, continuing it or even upgrading it into a permanent insurance policy.
Kewcorp Financial offers great insurance policies to their clients in Edmonton. We have the easiest client registration process and provide a free consultation to customers who come looking for advice. Being responsible financial advisors we always find the best solutions for our clients and serve them with one main goal in mind, client satisfaction. Visit our website for more information or call us at 780-449-6292.
Did You Know?
Financial Advisors are very familiar with the top insurance policies being offered by reputed insurance service providers. We can make sure you receive maximum benefits while paying the minimum costs to get the best life insurance policy available to you.
Click Here For More Information