When you shop for life insurance, it’s important to ensure that you understand everything about the policy you purchase. Whether you opt for a whole life insurance or term life insurance plan, it’s imperative that the policy you choose fits your budget, your lifestyle, and your financial needs.
Most people assume that a term life insurance policy simply expires should the insured outlive the selected term. However, this is not always the case. With no cash value, term life insurance is often more affordable than whole life insurance, making it one of the more popular forms of life insurance in Canada. However, before investing in a term life insurance policy, you’ll want to be sure you understand what happens should you outlive your plan:
What happens at the end of the term?
Before you choose a term life insurance plan, be sure to ask about what happens upon expiration of the term. In some cases, the policy remains in effect, but with dramatically higher premiums. If your term plan simply expires, you’ll need to reapply for coverage should you still require life insurance. Depending on your age, health and the policy you choose, this too can result in higher insurance costs. Therefore, while term life insurance may appear to be more affordable than whole life insurance for the short term, it may not always be the best solution for those relying on an insurance benefit to provide for their loved ones after they pass on.
Choosing between whole and term life insurance.
When shopping for life insurance, it’s important to consider more than just the annual premium payment. There are many more differences between whole and term life insurance, and we’ve outlined a few of them our ‘What’s the Difference Between Whole and Term Life Insurance’ blog post. Ultimately, you should take your short term and long-term financial goals into consideration when choosing a life insurance policy.
Canada Protection Plan is a leading provider of No Medical Life Insurance. Call 1-877-851-9090 now to find out whether a whole life insurance plan or term life insurance plan is right for you. Your call is free, and you are under no obligation to purchase.
