Term insurance is generally the least expensive type of life insurance available. It's a flexible plan designed to meet traditional family protection needs, such as income replacement, mortgage and debt coverage, final expenses and funds for children’s education.
How term life insurance works
With term life, you purchase a policy for a specific amount of time, and if the person named passes away during that term, it offers a payout at face value (subject to policy terms and conditions). It means you get exactly the amount of coverage you need for the time your family needs it.
- Coverage options can be changed and amounts can be increased or decreased according to your needs
- Your coverages and premiums will remain the same for 10 years
- The policy is renewable each year
- You're not left with any equity, or cash value, in the end, but have the option to convert your plan to a permanent, lifetime policy.
How is term life insurance different from permanent life insurance?
- Term life is for a limited amount of time
- Term life provides income to your loved ones to pay off debts such as a mortgage or final expenses such as funeral costs; whereas permanent life can provide coverage for more diverse needs such as starting a business, retirement and education funding.
How is term life insurance different from mortgage insurance?
- You own the policy, and choose your beneficiaries; whereas with mortgage insurance, the beneficiary is the bank funding your mortgage.
- Your coverage limit remains the same; whereas with mortgage insurance the coverage amount declines as the mortgage is paid off.
Have one of our Life Advisors contact you
Contact a Life Advisor if you are interested in a Life Insurance product or have a question about one of our Life products.