Friday, September 26, 2008

What is Canadian Term Insurance?

This article by Ivon T. Hughes discusses Canadian term insurance and what you should know. You may have heard it mentioned before that you can save when you purchase term life insurance instead of whole life insurance. Term life insurance can actually be a better option for many people for several reasons.

Term life insurance is in place for a set amount of time such as 1o years or 20 years or until the person reaches a certain age
Coverage amounts can be chosen to cover specific amounts for the family needs
Your premiums will never change
Term life is often more affordable with lower premiums than whole life insurance

The main difference in the two is that whole life insurance is in effect from the time the policy begins until the person dies and term life insurance is in effect for a specific period of time. This is usually why it is cheaper.

Otherwise, there are few differences and when your term life insurance policy is about to expire, you can renew it or extend it and keep the coverage and the same premium rate you’ve been paying.

Canadian term insurance is great for younger people, the sole breadwinner in the family and people in similar situations. If something unexpected happens to this head of the household, the family will have something to help them financially. Since your premiums never change, you always know how much will be due so it’s easier to budget for it as well.

If you decide you want to get Canadian term life insurance, you can begin searching for term life quotes in the comfort of your own home. Premiums for term insurance will vary according to different factors such as your age, health and lifestyle and more.


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