Best Term Life Insurances for Canadians
The best term life insurances for you may well be the ones that offer an option to convert to a whole life policy.
Most term life insurance policies are renewable after the term of the policy expires. You can usually buy a policy for 5, 10, 15 or 20-year terms at a time. Once that term is up, you may have the option to renew.
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Certain conditions may apply. If you have suddenly developed a critical illness or disability that prevents you from working, the insurance company may refuse to renew your policy.
What a Term Life Insurance Policy is Designed to Do
A term life insurance policy is designed to replace your income and to help your family with living expenses if you die unexpectedly. If you do not have an income to replace, the company may deem it unnecessary to provide coverage for you.
With a convertible policy, you have the option of transferring all or part of your policy into a permanent life insurance policy any time during the term, without a physical exam.
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You will, however have to pay whatever the premiums are when you convert. If you received preferred rates on your term policy, you be eligible for preferred rates on the new policy, as well.
The option to convert comes at a higher price, which is normally included in your cost, but the extra expense is well worth the additional benefits such a policy provides.
Money Saving Tips for Life Insurance Quotes
There are a few simple things you can do to lower your premiums.
- Buy a policy without the conversion option. It is better to have the conversion option, but if you need lower premiums, you may want to forgo this type of policy.
- Try to get the preferred rate. Find out if there are some lifestyle changes you can make to qualify for a preferred rate, rather than paying the standard rate, which is quite a bit higher. Usually quitting smoking is a good step towards lower rates.
- If you only smoke an occasional cigar, find a company that does not count that as being a smoker.
- Lock your premiums in for 20 years. You will get lower premiums for shorter terms at first, but with each renewal, these premiums rise. In most cases locking in for twenty years will save you money in the long run. Buying shorter terms assumes one of two things – you will not need insurance coverage after this time, or you will be young and healthy enough to secure a cheap policy with another company. Both options can be risky.
- If you do think you may need to renew after your term is up, find out what the new rate will be. Then find a company with the lowest renewal rates. Alternatively, you can buy a new policy with a different company.
- If you are covered by a group policy through your employer or some other association, consider replacing it, either partially or entirely with your own personal policy. This will save you money since the cost of these policies increase significantly as you age, just when you need the coverage the most. Also, if you leave the association or place of employment, you lose the coverage. In some cases you may be able to convert it to a different policy, but this is usually very expensive. The best option is to have a policy of your own in addition to your group policy. This way if the policy becomes too expensive or you leave your job, you are still covered at an affordable rate.
Gathering Quotes For the Best Term Life Insurances
The quickest and easiest way to gather term life insurance quotes is to go online. Calling insurance companies directly will land you in hour-long conversations with insurance salespeople that do not want to let you go until they make a sale.
Simple, online quotes will give you a general idea of what you can expect to pay. Once you are armed with this information, you are in a better position to get the policy you want, without being coerced into buying more than you need.
With one search, you can get quotes from several different companies. Just keep in mind, there is more to finding the best term life insurances than just the price of the premium. Find out exactly what you get for your money.
There are a few things to keep in mind while gathering and comparing quotes. Most importantly, you have to know exactly what to look for. Study the details of the policy you are considering to get a good idea of the types of coverage and service available.
Only look into reputable companies. The insurance companies should be ones that you can trust, so that you will know the services they provide to you will be of high quality and reliable. Avoid any add-ons or extra features you do not need. This will only unnecessarily increase your monthly premiums.
Definition of Term Life Insurance
Term life insurance is not too difficult to understand.
As the name suggests, it is a type of insurance coverage that lasts for a specified amount of time, which is typically thirty years broken up into shorter terms.
After each term, the policyholder has to renew the policy. If you die during this term, the face value of your policy is paid to your beneficiary. This type of policy does not have any cash value, is not a savings or investment plan and is not considered part of the policyholder's estate.
When you are looking for the best term life insurances, you need to look at several different companies. Don't just look at the cost of premiums, you need to compare the services and features that come with the policy to see if the low premiums give you what you need.
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Finding the best term life insurance policy for your needs involves a bit of shopping around. A quick internet search will show you the best term life insurances available.
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