Term Life Insurance
Term life insurance provides the most coverage for the least cost initially, but expires over time and does not accrue cash value.
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.
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.
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.
You have the ability to convert to a permanent policy should future circumstances require a more permanent life insurance need.
The option to design a policy that reflects your particular needs and situation.