Here's where you find out about the different types of life insurance, and discover details about the popular choice of term insurance.
Types of life insurance
There are two kinds of life insurance: term and permanent.
Term insurance is the least expensive of the two. It's called term insurance because it protects you for a specific amount of time -- the term of the policy. The most common term policies at Kanetix 10, 20 and 30 years in length.
The premium on term insurance stays the same until the term period of the policy expires. Then when you renew the policy, the premium will increase. That's because as you age, your chances of passing away are greater. A death benefit is only paid if the person insured dies during the term of the policy.
Permanent insurance provides a lifetime of insurance protection, cash values, level or flexible premiums, and level or flexible death benefits. It's more expensive than term insurance, because it offers lifetime coverage as well as savings and investment benefits.
There are many other life insurance products on the market, including Permanent Life Insurance, and Disability insurance. If you're interested in a life insurance product that you don't see on the Kanetix site, we may still be able to help you. Submit your query online with a description of the coverage you have in mind and your phone number. We will have a licensed life insurance advisor give you a call. If you wish to speak with someone right away, give us a call at 1-888-854-2503 and we'll transfer you to one of our life insurance advisors featured on the site.
Advantages of a term life insurance plan
Once of the nice things about a term plan, is that you can get a large amount of coverage at a low cost. That means you can buy higher amounts of coverage when your need for protection is often the greatest.
Disadvantages of a term life insurance plan
Each time you renew your term plan, your premiums get higher. Why? Because as you age, your chances of passing away increase. At some point, the premiums may become higher than you want to pay. And term policies usually don't offer a cash value or paid-up insurance.
A Renewable Term Insurance Plan
When you have a renewable term plan, you can renew your policy at the end of the Term, usually without the need for a medical exam. So let's say you have a Term 10 plan. At the end of 10 years, you can renew your policy, with an increase in your premiums (based on your age at the time of renewal), without having to provide more medical information.
A Convertible Term Plan
Some term plans are convertible. So you can convert your term policy into a permanent insurance policy that has a cash value component. This can usually be done without having to do any further underwriting.
You'll probably need to have a medical examination or paramedical procedure when you apply for life insurance. But it all depends on the amount of insurance you want, and which insurance company you deal with. For a small amount of coverage, many insurance companies simply ask you to fill out a short medical questionnaire.
What Kanetix offers
Using the Kanetix insurance comparison service, you can receive a quote and even apply for Term 10 (a 10-year policy), Term 20 (a 20-year policy), Term 30 (a 30-year policy) or Term to 100 (a policy where you're insured until you're 100) without leaving the comfort of your home.
Life insurance quickguides
- Introduction to life insurance in Canada
- All about term life insurance coverage
- Life insurance: Dollars & sense