What to know before choosing a plan
Plain-language information, designed to help you compare meaningful differences.
When term insurance works well
Term insurance is often used when a family needs a larger amount of protection during mortgage years, while raising children or while business obligations remain. The policy pays a death benefit only if the insured dies during the in-force term.
Term insurance generally has no cash surrender value. Its initial premium is usually lower than an equivalent amount of permanent insurance, but renewal premiums can rise sharply after the initial term.
10, 20 or 30 years: selecting the term
Match the term to a liability instead of guessing: a short mortgage balance or business loan may point to a shorter term, whereas young children or a new mortgage may warrant a longer period.
Compare the premium for longer guaranteed periods against the flexibility to convert, renew or reduce coverage. Do not assume every insurer offers identical term lengths or conversion rights.
Individual term versus mortgage lender coverage
Under individually owned term life insurance, you generally select the beneficiary and the benefit may remain level while the policy stays in force. Some mortgage creditor policies pay the lender and reduce in benefit as debt falls.
Review definitions and underwriting practices for each type. The best answer depends on needs, eligibility and contract details.
How to compare quotes
Use the same coverage amount, term, risk classification and payment mode across insurer illustrations. Confirm whether quotes are provisional and what medical underwriting is required.
If your budget is tight, an advisor can discuss covering immediate risks first, then reviewing the plan after major life events.