How much insurance coverage do you need?
Ideally, you want to make sure your debts are covered, so you don’t leave major expenses behind for your loved ones.
Here are a few things to consider:
- Your income
- Net worth
- Family needs
- Debt
- Other insurance you have
- You’re not sure what life milestones lie ahead, so you need flexibility. (You’ll be able to renew or extend your coverage later.)
- You’re looking for a low-cost insurance policy.
- You want to take advantage of your younger age and health to get a good rate.
- Your mortgage took longer to pay off than you planned, or your kids aren’t financially independent yet, so you need coverage to bridge the gap.
- You’ve chosen a shorter amortization period on your mortgage, or you’re already several years into your mortgage.
- You want to provide protection for your children until they’ve finished school or start working full time.
- You’re looking for coverage for a longer period, to cover you through milestones like getting married, having children or buying a house.
- You’ve bought a house and want the insurance coverage for the duration of your mortgage, instead of buying mortgage insurance.
- You have young children and want to make sure they’re taken care of until they’re financially stable.
- You want coverage that lasts until you retire, and you want premium payments that stay the same throughout your working life.
The goal of term life insurance is to help protect your loved ones if you die, and there’s a lot to consider when choosing your coverage.
Your age and your goals for the next few years may affect your choices, as well as whether you have a mortgage, other debt or kids.
Here are a few things to consider when choosing the best term length for your unique situation.
We’ve been looking out for the financial, physical and mental wellbeing of Canadians for the past 175 years. Last year alone, we helped families cope with loss by paying out more than $2.1 billion in life insurance benefits.
We’ll email your quote details along with next steps for buying term life insurance.