What is term life insurance?
Simply put, all types of life insurance can help provide your loved ones with financial security when you die. One common type of life insurance is called term life insurance.
How does term life insurance work?
Term coverage provides protection for a fixed payment amount, for a given number of years. This could be 10, 15, or 20 or more years. You can choose the amount of time you need.
What happens if you were to die during this set time period? Then your beneficiaries – the people or person you want to leave money behind to – will get a tax-free death benefit.
- Do you know how much life insurance you might need to protect the people who depend on you? Try this Life insurance calculator for a quick estimate.
The death benefit refers to the amount of money your beneficiary gets when you die. The exact amount they get depends on how much life insurance coverage you buy.
Your beneficiaries can then use the money from that benefit for any reason. For example, they can use it to pay:
- the mortgage or rent,
- child-care costs,
- tuition costs,
- funeral costs,
- living expenses,
- and more
- Do you need mortgage insurance?
- When should you buy life insurance?
Why choose term life insurance?
Because of its affordability and flexibility, term life insurance can be a good solution to help you manage risk while providing for your dependents.
However, its true value lies in the peace of mind it can offer. It offers the assurance your loved ones can be financially supported at a time when they need it most.
Talk to an advisor to learn more about your insurance options
Unsure if term life insurance is right for you? Consider getting some advice. An advisor can explain your options, answer your questions and help you build life insurance into your overall plan.
- Most advisors now offer virtual services and provide consultations by phone or video chat. Find an advisor today.
- Want to apply for your life insurance online? You can, with Sun Life Go insurance. Get your personalized quote and apply.
Watch more from the Simply Put series: