Term Life Insurance Made Simple
Those on the receiving end of Toronto life insurance sector have a plethora of options to sift through. Be it permanent life insurance, term life insurance, universal life insurance or critical illness insurance, long term care insurance, health insurance and even group insurance. Jack Bendahan your Toronto life insurance broker can explain it all. With over 10 plus years in the financial industry speaking to Jack has been described as a breath of fresh air without any of the high pressure sales tactics you would normally expect. This Life Insurance Expert uses an education based approach and offers even beforehand a You Tube Channel which allows for free education on life insurance by video without even meeting with him. This allows his soon to be clients to get to know him without even formally speaking to him. That way when they are ready to meet, they already feel comfortable with the type of broker they are meeting with.
The Term Insurance Simple Formula
Jack often summarizes that Term life insurance simply refers to insurance policies whose premiums remain constant for a set period of time. This insurance coverage can be bought for periods of 5, 10, 15, 20, 25, 30 and 35 years, even 40 years where the premiums can remain level cost. A good example s Jack explains is if you purchase term 10 insurance with the monthly premium being charged of $50, you will have to pay the same premium for 10 years, regardless of any changes in the insurance provider’s policies, market values or your health.
Term 10 insurance is useful to coverage you if you have mortgages, business loans or credit lines to think of, but it is otherwise considered too short a period of time to be of any real help. At the end of the ten years, you can always apply for an extension, but it will prove to be an expensive deal. This is because no medical test is taken when you apply for a renewal of your term 10 insurance, and the premium is usually hiked by 4 to 6 times. However, this insurance option is a good deal if your health is deteriorating. As no medical test is taken when you seek renewal, even if you are struck by illness such as cancer or AIDS, which would otherwise render you ineligible for insurance cover, your premium will not be affected.
Term 20 insurance offers protection for a period of 20 years, after which you can choose to renew your insurance. The pros and cons of taking out this form of insurance cover are similar to those listed for term 10 insurance. All the same, term 20 insurance is a better option than term 10 as it provides you will be protected at the same premiums for a longer period of time. If you have kids to think of or other economic constraints, term 20 insurance is a good way of keeping yourself insured without straining your budget.
Term 30 insurance is the insurance that keeps you covered for a period of 30 years. Renewal of term 30 insurance is move that will cost you dearly – the premium you paid for the term will be hiked anywhere between 12 and 15 times. A benefit of choosing this form of term life insurance is that term 30 insurance can be converted, in part or in whole (depending upon the insurance provider) into a permanent insurance product. A permanent insurance product requires you to pay the same premium for till the product expires. This is a beneficial option because renewal could mean considerably higher premiums because of deteriorating health and age-related issues.
Contact a Toronto life insurance broker like Jack the Lifeman Bendahan to make an informed decision on the type of term life insurance to purchase so as to best serve your interests.