Term Life Insurance provides coverage for a specific period of time. Terms typically range from 10-30 years, depending on the term insurance purchased. Term 100 is a form of permanent Life Insurance but costs more than a typical 10 or 20 year term since it’s a form of permanent life insurance. The longer the term, the higher the rates will be. Rates are level for the term and are guaranteed to renew when the policy is up for renewal without any medical evidence required. Rates increase only at time of renewal if the policy holder chooses to renew and the premiums are based on the age of the policy owner (Life Insured) at time of renewal.
The death benefit, premiums & continued coverage is guaranteed. Most term policies expire at age 80 or 85. The coverage is convertible into permanent life insurance before the age of 65. Empire Life offers Term Insurance Plans in Canada till age 100.
Term Life Insurance is the lowest priced Insurance available on the market today but not necessarily the best type of Insurance for your needs. Again as the old saying goes ‘You get what you pay for’. It is most suited for those who have consistent debt or a need for income over a specific period of time. In such conditions where the main wage earner dies, the people in the family may not be able to meet the financial obligations and expenses that are required. During such time of grief after the death of a loved one, a term insurance policy eases the financial burden and takes care of it.
Those who are in excellent health and lead a low risk lifestyle may qualify for better rates, better known as ‘Preferred’ rates. Any quotes we provide you with are based on standard health class rates since preferred rates can only be determined after the underwriting has been completed. You can customize your Life Insurance plans to include various Benefits and Riders such as:
- Accidental Death & dismemberment
- Disability waiver of premium
- Guaranteed insurability
- Child Life & Critical Illness Rider
- Business growth protection rider
TERM CONVERSION INTO PERMANENT LIFE INSURANCE
Most Term Life Insurance plans have a conversion privilege which allows the Insured or owner of the policy to convert their coverage to an eligible permanent Life Insurance plan with the same Insurance company. You can usually excercise this conversion before the age of 70 for most plans or 75 with others. The premiums will be based on age at the time of the conversion. The longer you wait, the higher you’ll pay for permanent life insurance premiums when you convert. The conversion is guaranteed and there are no medical questions asked at the time of conversion.
WHY IS CONVERTING TERM TO PERMANENT BENEFICIAL?
For existing Term policy holders, they may not qualify for coverage and wish to purchase permanent Life Insurance. The conversion allows them to convert to permanent Life Insurance without having to apply for coverage. Your health may have changed from the time you purchased your term policy or you may have certain health conditions that do not allow you to qualify for the amount of coverage you require. The conversion option allows you to convert all your existing coverage or part of it into permanent Life Insurance. The permanent Life Insurance options will vary from Whole Life, Universal Life or Term 100. This will all depend on the Plans available with the carrier that you purchased the coverage with. Please keep in mind that the longer you wait to convert your coverage, the more it’s going to cost. Your existing term may also be up for renewal and will more than likely expire at age 80 or 85. Should your term expire, you will no longer be covered. This is why the conversion privilege should be very carefully considered for those who wish to be covered for the long term. This will ensure that your final expenses will be covered.
If you wish to ask about converting your Term and would like to know more, please call us Toll-Free at 1-888-968-9188 and one of our Advisors will be happy to assist you. Please note that We cannot provide you with any recommendations without properly assessing your Insurance needs and finding out more about your circumstances.