D. Alan Swan, B.A., B.Ed., CIP Ruth E. Swan, B.Sc., B.Ed., CIP
Serving
Clients in Nova Scotia and New Brunswick, Canada
INSURANCE AND INVESTMENTS SINCE 1985
"Our goal is to provide quality products and service at a competitive price."
Homepage Your Privacy Contact Us Company Links Special Links Forms Read Our Blog
INFORMATION OPTIONS
INSURANCE
GUARANTEED ISSUE LIFE INSURANCE
INVESTMENTS
TERM LIFE INSURANCE
Term Life Insurance is a contract that is issued for a term or period of
time.
The most common term is 10 years - called 10 Year term Insurance.
There are other terms available, such as One Year Term, Five Year Term,
20 Year Term, Term to Age 65, etc.
Most group insurance programs that contain life insurance use One Year
Term insurance. If you have life insurance on a 5 year mortgage, it is
probably 5 Year Term Insurance.
How can I tell if it is Term Insurance?
The two outstanding features of Term Insurance are:
1) It expires at the end of the term with no cash surrender value.
2) The cost is based on your age at the beginning of the term.
Can I renew my coverage at the end of the term?
Many, but not all, Term Insurance policies can be renewed for an
additional term without any medical or other questions, but it should be
noted that:
1) the cost will be based on the age of the insured at the date of
renewal.
2) the policy will have an expiry age or date beyond which the policy is
not renewable or not in force.
Why would I buy Term Insurance instead of Permanent Insurance?
Term Insurance is used when:
1) the need for insurance is only temporary (even if temporary is 15-20
years)
2) the insured needs long term coverage but is not able to pay the price
of Permanent Insurance at the time of application.
