TERM LIFE INSURANCE

Term life is the most basic of life insurance products because there is no savings component. It's main purpose is to provide low-cost insurance to cover high amounts of debt over a specific period of time in case of sudden death or rapid decline in health leading to death. Typically, you have this type of insurance to cover for debts that have a specific end date, like a mortgage, car loan, or student loan, etc.

It is called term insurance, because its purchased for a specific term (e.g., 10-years, 20-years, 30-years). Once the term is complete, it automatically renews at a higher monthly payment. You can keep costs as low as possible by getting a 10-year term after the previous 10-year term renews, but if your health declines in that period it will make the next term more expensive than if you were completely healthy.

One of the most common uses of Term Life insurance is as "Mortgage Insurance" which is offered by banks and large financial institutions to provide funds to pay off a mortgage in the even of premature death of a mortgage holder.

You may be interested to know that the vast majority of Canadians who purchase mortgage insurance from a bank don't fully understand what they're getting - and what they are NOT getting.

Term life can be purchased in many ways.

•  Your employer may offer term life insurance with special terms as a benefit to you and your family through group benefits. 
• Many affinity groups (alumni associations, professional groups, etc.) offer special products. 
• Independent financial advisors
• As an add-on with loans

Although term insurance may be available from many sources, getting an individual life insurance policy from an advisor provides the best features and flexibility, and its often at a better price.