Term Life Insurance 101
Term Life Insurance OverviewToronto life insurance is a field that boasts of an assortment of insurance policies that cater to specific and general needs. And an honest Toronto life insurance agent may make or break the deal for you. A Captive life insurance agent is one who works for a particular insurance provider, and advises clients regarding the policies his/her company provides. A life insurance broker, on the other hand, is one who does work for any one particular company, and is thus more reliable when it comes to assessing the market to zero in on the insurance provider whose policies offer the coverage you need at a price that is within your budget.
FAQ on Term Insurance
A question that plagues just about every newbie on the lookout for insurance is the term life insurance vs. permanent life insurance dilemma. Term life insurance lures takers because it requires its owners to pay up the same small amount decided upon till the insurance expires. Even the 30-year term insurance (the most popular short term life insurance with a longer time frame) is in vain as you beneficiaries do not receive any protection after the expiry of the policy. The only advantage is that the policy keeps you covered for a pittance and your beneficiaries receive financial help if you meet with an accident or pass away when the insurance is still active.
A professional Toronto life insurance Broker will inform you of the dynamics and properties of a term life insurance product. Be it Term 10 insurance, Term 20 insurance or Term 30 insurance, they all share the same features. When a term life insurance product is purchased, the policy owner is required to pay a uniform amount for the term of the insurance, and when the insurance is about to expire, the owner may choose to renew it. However, renewal is an expensive act as the premium is hiked because no medical examination is taken when you apply for renewal. In the case of Term 10 insurance, the premium is hiked by 4-6 times, and in the case of Term 20 insurance, the premium is hiked anywhere between 14 and 16 times. Term life insurance is a good option for those who are susceptible to contracting serious illness that would hinder acquiring a life insurance, or make it extremely costly for them.
All the same, term life insurance is not without its set of disadvantages. There is no cash value for this form of insurance. Universal Life (UL) insurance and permanent life insurance accumulate cash value, and one can even borrow against them, but the owner of a term life insurance can’t enjoy this benefit. UL insurance comes with a greater set of advantages than term life, but both policies serves purposes in their own way.
AXA Canada, Equitable Life Insurance and Assumption Life are a few companies whose term life insurance agents you might want to communicate with. And if an able Toronto life insurance broker is who you seek, here is a popular choice.