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How to Get a Term Insurance Policy That Meets Your Future Needs
January 17, 2022
Getting life insurance is one of the most important things you can do to make sure that your family is financially protected in the event of your death. Term insurance in Mississauga is a popular choice among many young families because of its affordability. But how do you know that your term life insurance is actually going to meet your needs?
Understand What Term Life Insurance Is?
When you apply for term insurance through your insurance broker in Mississauga, it is important to have an understanding of the product that you are buying.
Term life insurance only lasts for a specific term – usually ten or twenty years. After the term is expired, most policies give you the option to renew, but you do so at an increased age which means the policy will be considerably more expensive if you do renew.
Term Life Insurance for Temporary Needs
Term life insurance policies are ideal therefore, when you have a need that will only last for about the length of the policy. For example, if you have twenty years left to pay off the mortgage on your house a Term-20 policy may be used if you want your family to be able to pay off the house in the event you pass away before the mortgage is paid. Or if your kids are ten years old and you want to make sure there is protection in place for them to pay for university should you pass away, then a Term-10 life insurance policy may be the best solution.
Term Life Insurance for Permanent Needs
Another reason why some people choose term life insurance is that it is more affordable (initially) than permanent insurance and they reason that – even though their need is a permanent one (like final expenses or providing an income for their surviving spouse), it is better to have term insurance than no insurance at all.
If you are purchasing term life insurance for a permanent need however, it is important to have a plan. One option is to save as much money as you can in order to meet that need. You should also talk to your insurance broker in Mississauga, as they may be able to help you come up with another solution (such as purchasing a combination of term and permanent insurance).
It is possible to cover many of your future needs through term life insurance, and working with your insurance broker in Mississauga is the best way to make that happen.
If you are in the market for term life insurance or you would like to speak with one of our brokers to determine your insurance needs, then give us a call today.