Term Life Insurance

Term life insurance is a life insurance product for those who are looking to save money but receive ample coverage in the event of a death.

Term insurance protects the insured for a specified time period. Terms can be obtained in quantities of 10-, 15-, 20-, or 30-year increments. Our brokers can help you find the right term insurance length and coverage type for you.

The pay out from a term insurance claim goes to your beneficiary tax-free. This ensures that costs such as:

• Funeral arrangements
• Living expenses
• Mortgage payments
• Childcare fees
• Vehicle payments

Unlike some other types of life insurance, like whole life, your term policy does not accumulate or allow you to borrow against it.

What Does Term Insurance Cover?

Term life insurance is there to give your loved ones a financial cushion and provide you with peace of mind in the event of your death. Term insurance can cover financial costs left behind by the insured party, such as funeral arrangements and residual debt. It can be used for your beneficiary’s future costs of living and education.

The amount left in your term policy depends on the amount of term life insurance you purchase. This could be anywhere from $25,000 to a few million dollars. The larger your policy, the more you will pay in.

Term life insurance is unlike other life insurance products, in that you cannot claim it if you fall ill or become disabled. Your beneficiaries are the only ones who will receive a payout, and only if you pass away.

There are two options for payouts for your beneficiary:

1. Lump Sum: The coverage amount can be paid to your beneficiary at once. This amount will be delivered tax free and can be used for purposes deemed beneficial following the payment of outstanding debt and funeral arrangements. Lump sum payment options are popular for families who have large costs, such as a mortgage on a home, or an outstanding vehicle debt to pay back.
2. Annual Payments: Ensures your beneficiary has a continued income after you are unable to help provide for them financially. This choice may be best if you have no large outstanding debt, and the term insurance is being used to pay solely for costs of living.

As your broker helps you narrow down term life insurance quotes, they will consider things like:

• Age
• Medical history
• Gender
• Marital status
• Occupation
• Current medications
• Lifestyle choices (including cigarettes, drugs, and alcohol)

As you determine the amount of coverage you require in a term policy, you may want to make a list of potential costs incurred by your family if you pass. This might include things like your rent or mortgage, vehicle costs, extracurricular activities, education, childcare, and future events for your children, such as weddings.