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Read the Vistaplan Financial Group blog: Universal Life Insurance, Term Insurance, Disability Insurance, Critical Illness Insurance, Super Visa Insurance.
Posted: Mar 01 '22
If you have a family, you may often ask yourself, “How can I support them long after I’m gone?” Term life insurance is a safety net for people with dependents who want to provide funds for tuition, mortgages, and other expenses. Call a Vistaplan advisor today for more information.
If you’re new to term life insurance, you may ask yourself, what does it mean. Term life insurance is an agreement between you and the insurance company where you pay a premium. In turn, the insurer pays a death benefit to your named beneficiaries.
When purchasing term life insurance in Edmonton, there are two primary considerations. First, how long is the term, and how much does it cost? Usually, term life insurance lasts for an extended period, such as 10, 20, 30, or 100 years.
With level term life insurance, the annual premium remains consistent throughout the term period. However, once the period is over, you have to renew the life insurance but at a higher premium. Usually, the policy expires at the end of the agreed term or around age 85.
Several factors go into determining your eligibility for life insurance, including:
Most people get term life insurance to replace the income they provide after their passing. Selecting term life insurance ultimately depends on your financial needs. If you have a mortgage, debts, or children in college, you’ll want a policy that covers these expenses.
For example, if you picked a 20-year mortgage plan, your term will be at least 20 years long. On the other hand, if you have children in college for 10 years, your term will be at least 10 years.
The insurance benefit covers the expenses that were paid for by your income. If you want to replace your income, it’s best to calculate your family expenses and find the amount your family needs to maintain their living standard.
The coverage varies per company and per area. For example, if you live in an expensive city you might need more coverage than policy sizes in rural areas where living costs are lower. As a rule of thumb the amount of life insurance coverage should be some place between 7 and 10 times your income.
Term life insurance is an affordable coverage choice with many options to customize your policy to suit your needs. Speak to a Vistaplan advisor today about building the best life insurance policy for your family.
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David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their
families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance
products they are purchasing, so they can make the right choices for their budgets, plans, and futures.
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