Term Life Insurance is the simplest and most affordable type of life insurance. It provides temporary protection for a predetermined period of time, usually 5, 10 or 20 years. Your coverage never decreases and the premiums are guaranteed for the length of the term you subscribed for.
The purpose of this type of coverage is to protect your beneficiaries by providing a tax free benefit that can assist with short term needs such as:
- Children’s education
- Loans and other debts
Term Life Insurance can also assist with longer-term needs such as:
- Financial support for your beneficiaries when you pass away
- Funds to cover financial obligations, and pay other expenses
- Capital gains taxes on your assets (property, investments, etc.)
Term life insurance policies do a good job of meeting immediate needs and are renewable for another term period without providing proof of health. The price will increase so that it’s appropriate for your age at renewal, and the increase in premium can become substantial in later years. Coverage ceases for the majority of term contracts once you reach the age of 75 or 80.
Term life insurance provides the option to later move, or convert to a permanent life insurance policy without providing proof of health. However, this ability to convert to permanent life insurance often expires around age 65 or 70. When purchasing term life insurance, you need to understand your conversion options. Note that term life insurance, unlike permanent life insurance, does not accumulate cash value, hence you will not be entitled to any of the money you paid as premiums for the policy.
We at Polar bear create a plan that is tailored to suit your budget, lifestyle and needs at every stage of life – offering the flexibility to make changes as your needs evolve. Explore our range of insurance options that can help give you the security and freedom you need to live the life you want.