Term Life Insurance Vancouver

Highlights:

All insurance policies are based on cost of insurance ( COI).
The cost goes up every year because your risk of dying is higher as you get older.
It is also based on your health. For Example, whether you smoke or not affects your rate.
And if you are a female, your rate is lower due to having better life expectancy.
Some refer to it as temporary insurance because it has a term or set period of coverage.
And you have different kinds of terms. Generally, there are 3 kinds of Term Insurance.

Decreasing Term Or Mortgage Insurance

The premium cost will not increase during the entire life of the mortgage. The death benefit will pay off the balance of the mortgage. Thus, if something happens to you, the house will be paid off for the surviving spouse. Sounds good right?

Mortgage life insurance is still Term life. However, since the balance of the loan will decrease every year, the benefit decreases accordingly. Thus, you’re buying a decreasing term.

Make sure you look at the cost. Quiet often, you can get better rates with Level Term, and the benefits will remain constant- and not decrease during the term.

What is Term Life Insurance?

Life Insurance is simply a binding contract between an individual and a Life Insurance company. This contract states that in return for a Premium paid every month, the Life Insurance company will pay out a lump sum to any of the individual’s loved ones upon their death. You get various kinds of Life Insurance, but the most popular Life Insurance in Vancouver is the Term Life Insurance.

Term Life is the cost-effective and simpler version, which is also the one that does stipulate certain time frames. You sign the contract with the Life Insurance company at an agreed-upon rate. You pay this premium for a set period of time, after which you’ll have to renew your contract for another year.

How does Term Life Insurance work in Vancouver?

The whole idea of Life Insurance is being able to be prepared for your death, making sure the people you love most are going to be okay financially and will have the means to cope. Of course, some of the Life Insurance options available can be quite impactful on your wallet; and this is where Term Life Insurance makes sense.

You approach someone like the Life Insurance Expert who will get you various quotes from different companies on your premium. Your premium will be decided by factors such as your weight, age, sex, and smoker status. You then agree upon a set Premium rate and a time period as well. Over that time, you will pay that Premium monthly, and if your death falls within that period, the Insurance company will pay a lump sum of money to any of your agreed-upon beneficiaries.

If your death does not fall within that period, you will have the opportunity to extend your Term Life Insurance in Vancouver.

Example

Various life factors can influence the Premium you end up paying for your Life Insurance, and there needs to be a quotation done to find the rates you will be paying. For example:

If you were a healthy, 40-year-old female, who doesn’t smoke, you could easily get a 20-year Term Life Policy with a $200 000 face value at $15 – $20 per month. Of course, your individual situation will differ quite a lot, as all the little things will play a role.

It is important to contact someone who is able to get you the best options available, someone like the Life Insurance Expert.

Types of Term Life Insurance

As with most things in life, it is important that you understand which option would work best for you. For Term Life Insurance you have the following options available:

Level Term: Both the death benefit and the Premium are set, and this coverage will typically last between 20 and 30 years. Because Life Insurance typically gets more expensive as we age, this option tends to be quite a lot more expensive than yearly renewable Term Life Insurance.

Yearly Renewable Term (YRT) Policies: Essentially, you renew your contract every year. This means that while you are not signed for a long period, your premiums will increase every year as you age. This happens due to the fact that the older you get, the greater risk you have of death.

Decreasing Term Policies: This is a specific coverage in which the death benefit decreases every year, and this allows for the Premium to be quite low compared to other options.

Benefits of Term Life Insurance

The greatest benefit of Life Insurance, in general, is the fact that your loved ones will be taken care of. You can lay your rest easy at night knowing that there will be money for them when they need it most. The main benefits of Term Life Insurance are:

The most cost-effective of all the Life Insurance options, meaning you will still have ample money left to live your life fully
Your Premium will not change for the period of your coverage, meaning your planning for life will be easier to do
When your coverage ends, you have the ability to extend it for another set period of time

Term Life Insurance vs Permanent Life Insurance

As you’ve probably picked up in the article so far, Term Life Insurance is not the only option available. There are others available, the most common being Permanent Life Insurance.

Permanent Life Insurance is simply coverage for life. A premium will be calculated based on your current life scenario, and you will pay this to receive the death benefit. A bonus of this option is that your money will grow as an investment throughout your life.

The main difference between the two is that Term Life Insurance is only for a certain period of time and that the Premium is set.