Term Life Insurance

Term life insurance is suitable for more temporary needs or expenses that have a foreseeable end like your mortgage or putting your children through university.

Permanent life insurance is typically used to cover needs that will always be there such as funeral expenses or supplemental income for your survivors.

You can often purchase a combination of policies to suit your individual needs. Beacon Insurance can help you find the right balance.

Term insurance covers you for a specific period of time, and has an expiry date. It is suitable for more temporary needs or expenses that have a foreseeable end like your mortgage, putting your children through university, or business obligations like training your successor or buying out shares. Term insurance is usually purchased in terms of one, five, ten or 20 years, or to age 60 or 65.

If you die within this time, your beneficiaries receive the death benefit. If the specified time period ends within your lifetime the coverage expires, there is no death benefit payment, and you cannot claim the premiums you already paid. Term policies:

  • don’t include cash values, so you cannot borrow against the policy or receive cash back if you cancel the policy.
  • may be renewable at a higher premium when they expire.
  • usually have lower premiums than permanent policies. Premiums are set by the insurer for the length of the term, and may increase if the term is renewed.

Term to 100 policies

Term to 100 policies provide life insurance coverage through to the age of 100 but usually do not have cash values. Their premiums are usually lower than whole life policies.

Term Life Insurance for Couples

Couples need to consider what coverage they may already have through group policies provided by their employers, as well as coverage they may have purchased while single. Make sure you weigh the options carefully, considering all the pros and cons.

If you get married and both parties have life insurance policies, contact your insurance agent or company to find out what options you may have. Ask if the existing coverage can be increased and if evidence of insurability is required. Also consider naming your partner as your beneficiary.

“No Medical Exam” Life Insurance

Some insurers offer “No Medical Exam” life insurance that may or may not require you to complete a questionnaire about your health. Coverage may be limited in these policies and may feature higher premiums.

ref: fsco