Term life insurance is an affordable insurance solution that is ideal for professionals 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, 2-million dollars of coverage would cost 76.95 per month for the first 10 years.
A female non-smoker age 35, 2-million dollars of coverage would cost 59.80 per month for the first 10 years.
(these rates are correct on April 9, 2020)
If you are incorporated with a professional corporation it might be wise to make the professional corporation the owner and beneficiary of the policy. The premiums will be paid with after tax PC money making it cheaper than paying the premiums personally with after tax personal money. Every situation is different and should be discussed with an insurance professional to confirm one strategy over another.
A term life insurance policy has the option to convert the term insurance to a permanent plan, like universal life or whole life in the future without having a medical. When you are young applying for life insurance is quite easy because your health is typically good. As you get older it is more difficult to pass the medicals. With a term insurance policy in force you can always convert your plan to permanent coverage with no medical required.
The type of policy you choose might have to do a lot with your budget. Young professionals might have student loans to cover let alone a mortgage and a family to protect. If you are more established your reasons for wanting the coverage might have to do with new loans, mortgages and business investments. In all cases protection for your family will be your foremost reason to have Term life insurance in force.