Is Term Life Insurance A Good Idea To Invest?

Getting term life insurance is a question of debate for individuals. A massive population in Canada is still not aware of insurance plans and how these policies work. At the same time, some people are unwilling to purchase a term life insurance plan due to high costs.

Having term life insurance in Toronto is worth it to provide financial security to your family. The term life insurance plan can overcome outstanding debts, personal expenses, family finance requirements, and more. It’s a smart investment to enjoy financial freedom and help to combat sudden accident loss. Read on to know more about term life insurance and whether it is worth it.

What exactly is the term life insurance?

The term life insurance is one of the simplest forms of life insurance that lets you save money for the family or nominee you selected in unforeseen cases. An individual must pay for 10-30 years of term life insurance in Toronto. In case the policyholders die during policy time the beneficiary will receive cash benefits.

In short, term life insurance investment makes sense if you want to be financially secure for a set period. With a term life insurance policy, your investment will be summed up as death benefits for the nominee. This means beneficiaries will get large death benefits.

Who should buy a term life insurance plan?

It’s a basic life insurance plan ideal for everyone, especially families. Individuals contributing finance to meet financial requirements or having parents dependent on them must opt for term life insurance in Toronto. It ensures financial safety for the families after the demise of an individual.

What if someone has pre-existing medical conditions?

A person having a pre-existing medical condition can also get term life insurance. Moreover, individuals can also get insurance from a term life insurance agent in Toronto without any medical examination. However, you still need to answer numerous health-related questions and are likely to pay a high premium.

Benefits of investing in term life insurance

Term life insurance in Toronto is an excellent investment option if you want to support the financial requirements of your loved ones after a sudden demise. Another perk of investing in term life insurance policies than other insurance policies is as follows:

● Low premiums :  Term life insurance premium is comparatively less expensive than permanent or other insurance policies. That’s because the term life insurance agents in Toronto assume you have less risk of death since you will be insured for a limited time. Individuals can enjoy a low premium policy if they purchase it at a younger age.

● Flexibility of period : Another great advantage of opting for term life insurance in Toronto over others is people can choose the period or how long they need to be insured. For instance, if you need life insurance for around 20 years, term life insurance gives you the flexibility to get insured for a particular period.

● Convert into permanent insurance : Once a term life insurance policy comes to maturity, individuals can close it. They can convert to permanent life insurance coverage if they need to extend the policy further.

Tax-free income benefits

Individuals can yield tax-free income by claiming on the maturity of a term life insurance policy. Moreover, the beneficiary will also receive tax-free income for a particular period after your death.

How the term life insurance policy rates decided in Canada

In Canada, the policy rates will be calculated on certain factors such as personal characteristics, policy length, and coverage amount selected by the individual.

1. The coverage amount you opted :

Total coverage amount means the sum assured an individual wants their beneficiaries to receive. For instance, if someone chooses coverage of around $250,000, their beneficiary will receive $250,000 as one tax-free payment. The more coverage a person opts for, the more their nominee will receive after the policyholder’s demise. However, if someone wants maximum death benefit from term life insurance in Toronto, they need to pay a higher premium.

For instance, if anyone has opted for a $250,000 coverage amount, the individual needs to pay a sum of $24.00/month. Likewise, if someone wants coverage amount of $50,000, an individual needs to pay a sum of $39.99/month.

2. Insurance policy length selected

‍The length of policy means how long a person needs to cover from the current age. If someone’s coverage extends after a certain period, they must pay more monthly.

Suppose a person purchases term life insurance in Toronto at the age of 20 and needs coverage for up to 30 years; they need to pay more than if they opt to extend coverage for 10 years. To clarify, a $350,000 20-year life insurance in Toronto would cost an average of $34.77/month, whereas a term life insurance of $350,000 for 30 years would cost around $51.02/month.

3. Personal characteristics of an individual

In general terms, personal characteristics refer to age, health, gender, and others that show how riskier someone is to get insured. The premium of the policy will be calculated on these characteristics.

● Age: The premium amount of term life insurance in Toronto increases according to age. For instance, if someone purchases an insurance policy at the age of 45 and is likely to die during a 30-year term, they have to pay a big premium amount. But if they purchase the same policy at 20, they will likely pay less.

● Health: If someone is suffering from a deadly disease or any other pre-existing medical condition that increases the risk of death, such as heart problems, diabetes, and more, they need to pay a high premium to the term life insurance agent in Toronto for policy.

● Risky Hobbies: Individuals playing risky sports or involved in risky jobs where accident risks are high can opt for a term life insurance policy at a higher premium.

Bottom Line

Term life insurance in Toronto gives financial security to the family after your death. It helps your family to reduce the stress of financial requirements. Moreover, the sum assured amount can be beneficial to meet your family person’s requirements. Hence, investing in RBC term life insurance in Toronto is essential.

Still Two Minds on Term Life Insurance?

Let’s connect quickly with our term life insurance agent in Toronto. INSUREDCAN is here to answer your queries and help you find the best term life insurance to secure your family’s future.