Term Life Insurance
Term life insurance is the most popular form of mortgage life insurance used by Canadian homeowners. It is there to protect your home and to cover other major financial obligations. These terms are specified by the insurance policy holder.
The intention of term life insurance is to cover the short-term financial obligations of the policy holder. This can be things like tuition, outstanding loans, income for dependent family members, and mortgage payments. These policies can be taken out for the amount of time where these things are most relevant.
This form of insurance offers both the assets and convenience when it comes to converting or renewing a plan. Term life insurance policies can be extended as you see fit or adapted to include new coverage. This generally happens when there are new assets or financial obligations.
Even if the policy holder becomes ill, their policy can still be renewed. Other life insurance products can be more restrictive or expensive when circumstances like these arise. Term life ensures that the policy holder’s loved ones don’t have to face the financial stresses that can come during an after a difficult time like this.
Life insurance also allows the policy holder to name their own beneficiary. Your mortgage won’t necessarily tied to the original lender for the life of the amortization. Your policy travels with your mortgage when it renews or refinances with a different lender.
Term life insurance is also convertible into a permanent life insurance policy, like permanent T100. Conversion into a into a whole life or universal life insurance policy is possible, too. Those offer tax-advantaged investment components, too.
Protecting your home and mortgage is important. Term life can provide a flexible, viable coverage option. Even better, you can select terms that line up with retirement, guaranteeing income and family protection should something happen to you.
An insurance broker can help select the right term life insurance product for you. A non-affiliated broker or agent will look through the Canadian insurance market for you and provide the best options on the market today.