When people speak of term life insurance, chances are they are referring to level term life insurance. As the original form of life insurance, level term life insurance provides coverage for a period of time at a fixed premium. As an example, an individual may get insurance for a 20 year term with a death benefit of $250,000. In this example, the premiums amount to $25 per month, which is guaranteed to never increase for those 20 years. The “level” refers to the fixed components over the fixed time period. If the insured individual were to die in those 20 years, they would be guaranteed that benefit provided their premiums were paid.
Term Life Insurance policies are the most straight forward type of coverage, and because of this, a very popular one as well. Many people opt for this form of life insurance as it can provide protection for a limited amount of time (ie: the length of a mortgage) at a fraction of the price of whole life insurance.
The major difference between level term life insurance and whole life insurance, is that whole life insurance never expires and it also has a built in savings component. A popular alternative for many is to forgo this “forced savings” and invest the difference of premium they would otherwise pay for whole life. It is important to remember that although this strategy may be suited for some, it is best to speak with a financial professional about your own individual circumstances.
LifeCover.ca makes getting the advice you need about life insurance easier. Although the internet can be a great resource when it comes to researching the basics of life insurance, your unique circumstances and how it applies to getting the most appropriate coverage is best discussed with an insurance professional. LifeCover.ca does the shopping part for you, and makes the brokers work for you.
Answer a few questions and get access to Canada’s largest network of independent brokers at no cost to you. Based on your insurance needs, we match you with a professional best suited to prepare you a thorough and accurate quote. Trust us, we know life insurance shopping can seem confusing, but we can make this easier. Actually, that’s all we do and we like to think we’re pretty good at it.