Term life insurance provides the most coverage for the least cost initially, but expires over time and does not accrue cash value.
Key benefits |
Why is this important? |
| Death benefit protection | If the insured dies within the term period, the insurance company pays a death benefit that can be used to pay for funeral expenses and outstanding debt. |
| Income protection | A portion of a life insurance death benefit can be used to replace the income that is lost when a loved one dies. |
| Business insurance needs |
Key man insurance, Buy/Sell agreements and business loan protection are all popular uses of term life insurance. |
| Tax advantages |
Life insurance death proceeds are paid out income-tax free and the term policy’s benefit is paid out income-tax free, an important feature when you consider how taxation can have an adverse effect on your savings growth potential. |
| Conversion options | You have the ability to convert to a permanent policy should future circumstances require a more permanent life insurance need. |
| Customizable |
The option to design a policy that reflects your particular needs and situation. |
