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Term Life Insurance

Term life insurance from Life Tides Financial Inc. is a simple and affordable way to help provide financial security for your loved ones. Term life insurance has premiums that are level for specific periods of time. The period of the time is the term. At the end of the period, most term life insurance policies have premiums that increase to a new level, then are again level for another term. For example, 5 year term would have premiums that are level for 5 years, increasing every 5 years.

You can think of term life insurance premiums as having premiums that look like a staircase, with steps going up every 5 or 10 years (or whatever the term is). The difference between most term products is how the premiums are structured - not the coverage.

Renewable and Convertible Term Life Insurance

Term life insurance is often referred to as renewable and covertible term life insurance, where the renewability and conversion are two specific features common to most (but not all) term life insurance polices in Canada.

Renewable term policies are policies that automatically renew at the end of the term. For 10 year term life insurance, in year 11 the insurance will automatically renew for another 10 years (though at higher premiums). Previously renewability was an important feature of term life insurance, however it has become less important in the last 15 years.

Expiry Date

Term policies also have an expiry date, a date past which the coverage is no longer available. With increasing premiums over time and an expiry date, term insurance is a viable option for those seeking life insurance for a specific period of time, say 10,20, or 30 years. Term life insurance will provide lower cost insurance over those periods of time than other alternatives.

Types of Term Life Insurance

Term life insurance products are available in a variety of terms. Common terms are 5 year insurance, 10 year term insurance, 20 year term insurance, and 30 year term insurance.

Ideally the best term to choose is the period that best reflects how long you expect to keep the insurance. If you intend to keep the insurance for 20 years, then 20 year term should be the product you would consider.