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