Term Insurance Canada Quotes
When shopping around for life insurance in Toronto and Canada at large, Toronto residents may notice that life insurance is split up into two broad categories: term and permanent also known as whole life insurance. Term life insurance quotes are life insurance quotes that supply you with coverage for a specific time frame. This is the “term” of the life insurance. Term life insurance is different from permanent life insurance in that, it contains level premium or monthly costs for a specific duration of time. After that frame of time (the time frame is usually 5, 10, or 20, years) those premiums usually increase.
Therefore term life insurance quotes will tell how much per month you must pay in order to be provided with life insurance coverage. Because term life insurance can only cover for the duration of its term, this type of life insurance is usually most desirable for short-term coverage. This is because after it’s expiry date, term life insurance must then be either renewed and therefore restarted for another term, or converted into a permanent policy.
Benefits of Term Insurance
One thing that term life insurance has over permanent of whole life insurance is the cost. Term life insurance, sometimes combined with permanent, will allow you to be covered at a decent premium rate. Contact Jack Bendahan, the Lifeman for up-to-date and customized term life insurance quotes for more specific rates. In short, term life insurance is cheaper than permanent insurance because its premiums are temporary while permanent’s are lifelong. Term life insurance is also easily customized. Policyholders can choose the duration of their term to best suit their unique needs. An example of this life situation could be middle aged parents who seek coverage to help them pay off their mortgage while their children go to college and would like to retire soon. For this example, a 10 year term life insurance quote would likely be considered. This will allow the parents ten years to pay inexpensive premiums till they retire and can enjoy their coverage that’s paid up in full.
Disadvantages
For those who prefer long term investments versus short term ones, term life insurance may not be the soundest option. Despite the fact that term life insurance quotes contain a level premium, they do expire and therefore term life insurance is only a temporary solution. The issue with term life insurance, particularly, renewable term life insurance is that as soon as the term life insurance expires policyholders must then renew their policy. When they do, they are susceptible to having to pay higher premiums as inflation rises and they are much older and therefore much more risky in the eyes of life insurance companies. Think of term life insurance as an escalating staircase. As premiums hit their expiry date, premiums rise steadily as time goes by.
So ask your LifeMan, Jack Bendahan for information on which type of life insurance best suit your current financial situation. Or ask him for a free quote. Contact Jack Bendahan at 905-761-9986 or 416-995-8705 or visit www.lifeman.ca for a free quote.
