Term Life Insurance For families

Term insurance is an affordable insurance solution that is ideal for families wanting the most coverage for the lowest premiums.

Types of term insurance: 

• Term 10 – means the coverage stays level but the premiums increase every 10 years to age 80. 
• Term 20 – means the coverage stays level but the premiums increase every 20 years to age 80. 
• Term 30 – means the coverage stays level but the premiums increase after 30 years. 
• Term 65 – premiums stay level to age 65. 
• Term 100 – means the premiums stay level to age 100. 

The word “term” in term insurance means the length of time that the premiums stay level. When the premiums increase at the end of every term the renewal is automatic and no medical is required. The renewal is handled differently with different companies. For example, with ivari’s Term 10 insurance on the renewal the premiums increase and then are again level for the next 10 years. With Manulife’s Term 10 insurance when the policy renews in year 11 the premiums increase every year thereafter.  

Term insurance is very affordable. For example:  

a male non-smoker age 35, 750,000 dollars of coverage would cost 37.47 per month for the first 10 years. 

A female non-smoker age 35, 750,000 dollars of coverage would cost 28.11 per month for the first 10 years. 

(these rates are correct on April 9, 2020) 

A few things to consider when looking at term insurance: 

All family members should have some life insurance that is personally owned. Often your employer might provide some life insurance with your group benefits. This is optional coverage, but you always must remember that if you leave your company you will lose your coverage. By having some provide life insurance the coverage is always with you protecting your family.

A few things to consider when determining the amount of life insurance, a family should carry: 

• The size of your mortgage? 
• Do you have other debts? 
• The age and number of children in the family? 
• How much money have you already saved? 
• What are the plans for the children’s university years? 
• Who is the main income earner?  
• Do you have family members outside your immediate family you might be supporting? 
• Do you have to equalize your estate between family members? 
• Do you have a disabled child? 
• How many years will an income be needed if one spouses passed away 

Once the amount of insurance is determined the next step is the type of policy you need. That might be determined by your budget. It is better to have the right amount of coverage then to worry about if you have the right plan. 

One question we are often asked is, “does my spouse need life insurance if he or she is not working outside the home.” The answer is always, yes. The reason the main income earner can work the hours he or she does is because someone is looking after the children at home. If anything should happen to the spouse at home the costs to the family are huge. And since term life insurance is very affordable the stay at home spouse should always have some coverage.