Term life insurance is a type of life insurance policy that provides coverage for a certain period of time, typically 10, 20, or 30 years. It is the simplest and most affordable type of life insurance, offering a death benefit in the event the policyholder dies during the term of the policy.
Term life insurance in Canada is designed to provide financial security for your loved ones in the event of your death. The death benefit pays out an agreed-upon amount of money to your designated beneficiaries if you die during the policy’s term.
The key benefit to term life insurance is that it provides coverage for a set period of time, with a fixed premium that doesn’t change during the term. That makes it ideal for those who want to provide financial coverage for their family but don’t want the added expense or complexity of other life insurance policies.
It’s important to understand the limitations of term life insurance. Unlike other types of life insurance, such as whole life or universal life, term life insurance does not build cash value. That means that when the policy expires, there is no payout, and the policyholder will not have the option to convert the policy to a permanent policy.
When shopping for term life insurance, it’s important to consider how much coverage you need and how long you need it for. It’s also important to find a reputable insurer and get quotes from different companies before making a final decision.