You might think that term life insurance is only for people with kids, or people who have a spouse that depends on their income.
This isn’t the case. After all: We all have something worth protecting. Maybe it’s your business. Maybe it’s your family, or the home you share with your partner.
What is term life insurance?
Term life insurance, like Canada Life’s My Term™, is coverage you can customize. With term lengths from 5 to 50 years, you chose the term that fits your unique needs. Your premium payments stay the same for the length of your initial term. And, when you pass away, your insurance payout goes to the people you choose – tax free.
Who needs term life insurance?
In general, you might be a good fit for term life insurance if:
- You’re looking for a low-cost insurance policy.
- You have a mortgage to pay off.
- Your kids aren’t financially independent yet.
- You’re looking for coverage that will last you through life’s milestones, like marriage, having children, buying a home.
- You want coverage that lasts until you retire, with premium payments that stay the same.
- You have debt, and you’re worried about how it would be paid off if something happened to you.
- You want to make sure you don’t leave your loved ones with a financial burden if you pass away suddenly, like paying for your funeral.
What are the benefits of term life insurance?
Term life insurance is simple, affordable insurance that you can customize. You choose the coverage amount and the length of time that you need it. You can choose monthly or yearly payments, too.
If you’d like to see how much term life insurance could cost you, you can get an online quote for Canada Life’s My Term insurance in just a few minutes.
You can also choose to extend your coverage when your term is done, or convert it to permanent insurance. This means you have the flexibility to modify your coverage as your life changes – and because you’re already insured, you will not have to requalify or undergo any medical testing unless you increase your initial coverage.
What are some of the myths about term life insurance?
There are a few common misunderstandings about term life insurance. These could include:
It’s only for people who have children.
We all have something to protect. If you don’t have children, you might have a partner who wouldn’t be able to pay the mortgage without you, or a parent who would have relied on your support as they age.
It’s not for young, single people.
Term life insurance can be a great way to prepare while you’re saving to buying a house, or planning for getting married or having children.And, because your premiums are usually more affordable when you’re younger and healthier, it can be a way to lock in lower payments now.
You don’t need additional life insurance if you already other coverage, like through your workplace benefits.
Life insurance through your employer is a great benefit – but it’s also tied to your employment. This means that if you lose your job, you also lose that coverage.
What are some examples of people who may need term life insurance?
Here are a few fictional examples of real-life scenarios where term life insurance could be a good fit.
You want to plan for future commitments
It’s a myth that you don’t need life insurance if you’re young, single, child-free and renting. Getting term life insurance when you’re younger – which means your premiums may be lower – could be a way to lock in lower cost coverage now.
This means that when some of life’s big commitments come along, like kids or a mortgage, you’re already covered – at a lower cost than you would pay if you purchase life insurance when you’re older.
If you have student loans or debt from a line of credit or credit cards, life insurance could help to pay this off if you were to die before you were able to pay them off.
You’re a business owner
If you own your own business, there are a few reasons why you might think about term life insurance.
If you have a business partner, you could make them the beneficiary of a policy that will give them the money to buy out your share of the business.
Or, if you’re the only owner, term life insurance could help your beneficiaries – like a family member – as they make the transition without you leading the business.
You’ve got a mortgage or other big debts
If you’ve got any kind of significant debt, a term life insurance policy can help pay it off when you die.
If you and your partner share a mortgage, for example, your term life insurance policy could help pay off the balance. This could help ease the financial impact of your lost income.
Or, if you’ve got credit card or student loan debt, a term life insurance could help pay it off when you pass away. That could mean more in your estate for your loved ones, not your creditors.
You’re looking for coverage until you retire
Sometimes you only need coverage for a short amount of time, like if you’re retiring in a few years and just want to make sure your spouse or kids are covered for your potential lost income until then.
Term life insurance, which can be purchased for short terms like 5 or 10 years, can be a flexible and more affordable, way to get the coverage you need.