Now, for the details…
Key Features of Term Insurance
- Most affordable life insurance option - premiums are lower than permanent insurance
- Premiums are level and guaranteed not to increase for a set term (typically 5, 10, 20 years)
- At expiry of the set term, coverage is renewable for another term at an increased premium.
- Term insurance has no cash value and no benefit payout at cancellation
- Many term insurance policies include a conversion option that allows all or part of the coverage to be converted to permanent insurance without further evidence of insurability.
Term Insurance is most often used as:
- Protection for a specific financial obligation that will be in place for a set period of time. For example: a mortgage, instead of lender-supplied insurance.
- An affordable, basic insurance solution that provides financial security today and can be converted to permanent insurance at a later date when budget allows