Making the decision to purchase life insurance means finding the right life insurance product that fits your lifestyle and need. Luckily, there are many options to choose from. A good starting point in determining the type of life insurance that's best suited for you is to figure out how long you're likely to need it.
Term 10 life insurance
Term insurance is intended to cover relatively short-term insurance needs. If you believe your need for life insurance is between 12 - 14 years, a traditional Term 10 life insurance policy that is renewable and convertible is your most cost effective option. This coverage is best suited for those who have teenage children and/or a mortgage on a home or vacation property that is well under control yet still needs protecting.
Term 10 life insurance is the most popular term insurance representing about 70 to 75 per cent of all term insurance sales in Canada. A Term 10 life insurance policy:
- Offers an initial 10-year term premium that is fully guaranteed (that means your premium will not change over the 10 years)
- Can be renewed when the initial 10-year term is over for an additional 10-year period
- Is renewable until age 80 or 85 for most companies
Term 20 life insurance
Term 20 life insurance is similar to Term 10. You still have guaranteed premium levels, but the term of coverage is for a longer period of time. The Term 20 life insurance policy is well suited for people with young families and/or new mortgages where: