- Term policies cover you for a specific period of time.
- An inexpensive way to ensure your dependents are covered until they can provide for themselves.
- Term Life Insurance policies have no cash value.
myLIFE CANADA ~ Mr. Dempsey
Term Life Insurance is low-cost insurance valid only for a stated period of time and has no cash surrender or loan value. Term Life Insurance is usually sold in 10 and 20 year terms to age 65, 75 or 100.
There is a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the Term Life Insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance (whole life policies), in which duration extends until the policy owner’s death.
Term Life policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the stated benefit, unlike permanent life insurance policies, which have a savings component that can be used for wealth accumulation.