What is Term Life Insurance?

Term life insurance provides temporary coverage with a tax-free payout to your beneficiaries if you pass away during the term you choose. This payout can be used for anything—paying bills, covering the mortgage, funding your children’s education, or keeping your business running.

 

Key Benefits:

• Affordable: Fixed premiums for the length of your term.

• Flexible coverage: Choose the amount and term that suits your needs.

 

How Does It Work?

1. Choose your coverage: Select the amount and term length you need.

2. Customize your policy: Add optional benefits, like critical illness coverage or premium waivers.

3. Pay your premiums: Monthly or annually, based on your budget.

4. Stay protected: If you pass away during the term, your beneficiaries receive a tax-free payout.

 

When your term ends, you can:

• Renew: Automatically renew on a yearly basis or for another term.

• Convert to permanent insurance: Switch to lifelong coverage with potential cash value growth.

• End your policy: Let it expire if coverage is no longer needed.

 

How Much Coverage Do You Need?

To ensure your loved ones are financially secure, consider:

• Your income

• Net worth

• Family needs

• Debts

• Other insurance you already have

 

Options When Your Term Ends

Renew Your Policy:

• Most policies renew for the same term, though some, like Canada Life My Term™, renew yearly at a lower initial rate.

Convert to a Longer Term:

• Extend your coverage with a term 10 years or more beyond your original. Premiums increase gradually.

Convert to Permanent Insurance:

• Opt for lifetime coverage with potential cash value and tax advantages. Your premiums will reflect the coverage you choose.

 

Why Choose Term Life Insurance?

Term life insurance is an affordable and flexible way to protect your loved ones financially during key stages of life. It’s ideal for covering temporary needs like mortgages, education costs, or business obligations.