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Term Life Insurance

Ensure loved ones don’t face unexpected financial stress

Ensure your loved ones don’t face unexpected financial stress after you’re gone by taking steps to secure protection now.

Putting plans in place before tragedy strikes can alleviate the burden on those closest to you, whether it be covering a mortgage debt or taking care of funeral arrangements. Investing a little time today could make all the difference later for those grieving your loss.

When we look to arrange your Term Life insurance policy, the provider will determine the monthly premium and terms offered based on your medical application. You will be asked a series of questions about your health, lifestyle, and occupation.

When you purchase a term life insurance policy, the coverage ends at its expiration date and is not extended to your death. However, if the policy expires before that time then you have an opportunity to renew but the premiums will be recalculated based on your age at the time of renewal.

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Term Life Insurance VS Whole of Life.

Term life insurance policies have no element of investment or saving component built into them as can be found in some Whole of Life policies.

Most term life policies expire before without the provider having to pay out making the overall risk lower for the provider to pay the claim. A Whole of Life policy is designed to cover you for your entire life and with death being inevitable, the provider will pay the policy at some point.

What is Convertible Term Life Insurance?

Convertible Life insurance is a policy that includes a conversion rider. The rider guarantees an in-force policy that is due to expire, can be converted into a permanent plan without undergoing any underwriting checks. There should be no restrictions around this conversion benefit when it comes to converting.

The main feature of this benefit is it allows you to proceed to a permanent plan, based on your original underwriting when the policy was initially taken out. You also have the ability to make changes to how much cover you would like. The premium is recalculated and is based on your age at time of conversion.

Types of Term Insurance

This type of policy as the name suggests remains level, which means the amount you wish to pay out, will stay the same until either point of claim or the policy ends. The term of the policy is usually anywhere between 10 to 40 years depending on your circumstances.

This type of policy is usually matched with an Interest Only mortgage. This is because, with an interest-only mortgage, each month you make a payment you are only paying the interest, and the loan amount owed remains the same. This type of policy could pay out sufficient funds to be sure the interest-only mortgage would be repaid in the event of your death.

This type of policy has no specified term but can be renewed each year without providing evidence of insurability.
Depending on your age, you will find the premium rises each year. The older you get, you may find the premiums significantly higher.

This type of policy reduces each year according to a predetermined schedule. The premium has already been calculated to anticipate for the reduction, therefore the monthly cost remains fixed for the set term period.

This type of policy is usually matched with a capital repayment mortgage. This is because as your make payments to your mortgage each month the balance of the loan reduces, which is similar to this decreasing term policy.

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