The fact is, if you’re thinking about life insurance, it’s time to take the next step and get coverage. The quickest and most affordable insurance to get in Parksville is term insurance.
The following is an overview of term life insurance and answers questions that are frequently asked:
What is Term Life Insurance?
Term is temporary insurance that provides protection for a set amount of years. Thus, if you buy a 10-year term policy and you pass away within the 10 years, a death benefit will be paid to your beneficiary. If you don’t pass away, the insurance policy ends and not money is paid. (Or the policy is renewed at a very high premium)
Why Should I get Term Life Insurance?
Term insurance has lower premiums than permanent insurance and it offers the largest immediate cash payout (death benefit) for each premium dollar. To use a cliche, it gives you the biggest bang for your buck.
When Should I Purchase a Term Life Insurance Policy?
Term insurance if for when you want to make sure your dependents are financially secure until a specific time, should something happen to you. Some examples are, to replace income if your death occurs before you retire, before your children graduate from college, or before your mortgage is paid.
What’s the Difference Between Term Life and Permanent?
Permanent life insurance provides protection for your whole life; not just a set time period. The premiums are higher initially than term insurance. A portion of your premiums with permanent insurance go toward an investment component and builds up cash value. You can take a load against the cash value and use it for whatever you choose.
If the money is not repaid, it will be taken out of the death benefit your beneficiary receives.
Are There More Options With Term Life Insurance?
Yes, there are three types of policies with different payout and premium options:
- Level Term: The death benefit stays the same for the term. The premium you pay can stay level, remain level for a set time, or increase over time.
- Decreasing Term: The amount of the death benefit will decrease over time; but premiums stay the same for the term. This is typically what the bank will offer you for a mortgage.
- Annual Renewable Term Insurance: The death benefit protection stays the same for the term, but your premiums will increase every year of the term.
Now you know what term insurance is, how it protects you, how it compares to permanent insurance and why you should consider it. If you have other questions, please call us to speak with a term life insurance professional.
At Shelter Bay Financial Corp., we love to help protect Parksville residents with life insurance. We’re an online life insurance brokerage firm, so you can have your ‘appointments’ with us on the phone, via texting, on your laptop or tablet or even using our great shared screen technology.
You can get insured without having to leave your beautiful view of the beach. We will help you choose the best term life insurance policy for your situation.
To learn more, please call toll free to 1.888.498.5288.