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Okay, straight to the point, here are some distinct advantages of term life insurance:
1) It is much more affordable than whole life insurance. Term life insurance is the one that offers the most affordable premiums against high death benefits.
2) The simplicity of term life insurance is not comparable. While some policies make it complex in what they cover and how it is covered, term life is the simplest life insurance product available in the Vancouver market.
3) Since term life policies are simple in nature, they can be easily compared on the basis of price and features. This makes term life insurance an appealing commodity in a very competitive market.
4) Term Life policies may include “renewability” and “convertibility” options, and is therefore very flexible to suit all types of situations. The renewability feature enables you to renew your term policy at the end of the term, without having to undergo a medical exam. A convertible feature allows you to convert your term life policy into an equivalent whole life policy, which accrues cash value, should you feel the need to switch to a permanent policy.
5) There is an additional optional feature called “waiver of premium” (comes with extra charge), that allows, in the event you can’t pay for the premiums due to circumstances specified in the term life insurance contract, the insurance company to waive payments for a set range of time. Even though it does cost more money, should a situation come up during your coverage period that you can’t afford the premium payments, this feature really becomes a life-saver.
6) Lastly, the best advantage of them all is the possibility of short term coverage. For example, say you have a mortgage that you need to pay off and you project you can do this in 10 years, you may want to choose a term policy for ten years. Most people do not foresee requiring life insurance in their senior years, so a term life policy makes sense for short term financial planning in most cases.
Now that you know of the advantages in term life insurance, hopefully this will help you when you talk to a life insurance agent in your local Vancouver area.
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