Term insurance

Protect your loved ones.

Term Insurance

Term life insurance provides protection for a limited period and pays benefits only if the policyholder dies during the specified time. The major benefit is the reduced cost compared to permanent insurance. Term policies often act as a supplement to permanent insurance, providing a large amount of coverage for the lowest possible cost. While term policies are in force, the policyholder is offered the right to convert to a permanent policy without evidence of insurability. (Evidence of insurability is the statement of information required by insurance companies that proves the policyholder is an insurable risk).

Term policies are available on a renewable or level term basis. Renewable policies can be issued on a 1, 5, 10, 15, 20 or 30-year renewable basis. These policies can be renewed at guaranteed increasing rates related to the current age at renewal, but as specified in the original policy document. Typically, they may continue until age 80, and are convertible up to age 70. Level term plans are offered in terms, to age 65, 70, 75 and age 100.

In the short term, term insurance plans are very low cost but over the longer-term premiums can escalate significantly. Historically and statistically only a small percentage of term policies are in force when policy owners die. It is for this reason that the policies are marketed for such low premiums.

It is usually possible to add a variety of additional riders, such as accidental death and dismemberment, disability premium waiver, and even critical illness insurance coverage to these plans depending on the company. Term Life Insurance is available either as a stand-alone product or supplementary to permanent life assurance policies like Universal Life or Whole life.