What is an Online Term Life insurance?

What is term life insurance?

Far be it from me to make you life insurance experts, it is always a good idea to have at least a little knowledge about the product you are shopping for exactly like when you are looking to buy a car. Even though I know absolutely nothing about engines, I do know, however, that I need an automatic car because I don't know how to drive stick 🙊

In insurance, the principle is the same: there are several types of products that can meet several types of needs depending on what your situation requires.

Let's discover the different types of needs together to determine which product best applies to your situation.

Simply put, there are two types of insurance: term and permanent insurance. Since we could say a lot about each of them, we've chosen to deal only with term insurance in this article. 🤓

Why buy term life insurance?

Term insurance, as the name suggests, is used to cover a temporary need. Among other things, term life insurance can help protect your family against a sizeable debt of varying lengths.

For example, consider a mortgage. Repaying a mortgage is a big chunk of the monthly family budget. The good news is that generally, you only finance the house for 25 to 30 years, and after that, POOF! 🥳 No more payments!

But until then, the mortgage remains the biggest monthly expense for many families.

With term life insurance, you make sure you leave a lump sum - a payout from the insurer - to help your family and estate make mortgage payments.

In several cases, the insurance benefit has helped many families keep their homes and considerably lightened their financial burden.

It acts as a lifeline for the beneficiaries because it makes it much easier for them to manage their family budget.

Because let's face it, we rarely plan on buying a home in anticipation of one of the household incomes suddenly disappearing. Prevention, as they say, is the best medicine.

Another important example of short- to medium-term needs is the education of your children.

And yes, term life insurance coverage can secure your children's future by ensuring that in the event of your death, they will have the means to maintain their quality of life and continue their schooling.

Well, now we know what the purpose of term insurance is, but do we really know what it is?

What is term life insurance? 🤔

Term life insurance is simple and much more affordable than you might assume.

Seriously, it is possible to get several thousand dollars worth of coverage for premiums as little as $9 a month! With term insurance, you set the amount of coverage, and choose the duration.

Terms typically offered are 10, 20 or 30 years and this coverage can be renewed at a higher premium afterwards, or cancelled if you feel you no longer need it.

It, therefore, provides you with temporary coverage that you can modify as your needs change. It's a flexible and affordable solution 😇

However, it is important to know that this type of product is not renewable indefinitely. Insurers generally do not allow the policy to be renewed past 85 years.

It is also necessary to plan for a fairly significant premium increase with each renewal. So if you want to keep this product until you're fairly old it may not be the ideal product for you.

What is an online term life insurance?

Online Term Life Insurance has all the benefits of term insurance but also allows you to buy 100% online by chatting with a specialist who will help you create customized coverage.

It's fast, secure and, frankly, enjoyable.

What are the advantages of term life insurance?

👍 It's cheap!

If you're looking for the most affordable insurance product on the market, term insurance is for you.

Be careful not to confuse affordability with low quality. On the contrary, the price-quality ratio is one of the "must-haves" of term life insurance because it gives you the security you are looking for at a great price.

You could be eligible for term life insurance coverage starting at $9/month if you are in good health.

Complete our questionnaire to determine your eligibility.

👍 Custom coverage

The amount of insurance can be perfectly adjusted to your needs.

Coverage amounts range from $10,000 - which can be sufficient for someone whose goal is solely to cover funeral expenses - to several hundred thousand dollars for someone whose goal is to ensure the financial security of their loved ones or to leave them an inheritance.

👍 You can convert your policy.

As we now know, life insurance needs are different from one person to another and vary over time. For example, you can buy a term life insurance policy when your needs are great (young children, mortgages, etc.), and at renewal, when your needs have changed, you can convert your policy to permanent life insurance for an equal or lesser amount.

👍 You can enhance your insurance policy

It's possible to add extra coverage to your main policy almost as easily as it is to add extra bacon to a pizza. These additional features add value to your core product and customize it to better suit your needs. For example, you can add a rider to insure your children and add another for critical illness or disability coverage.

As you can see, you have a wide range of possibilities among the many choices available to you.

That's why it's recommended that you talk to one of our experts about your situation so that they can tailor your coverage to meet your needs.

What are the disadvantages of term life insurance?

👎 Premiums increase upon renewal

At the end of your policy term, premiums increase as they are re-evaluated based on your age at that time.

The older you are, the closer you are statistically to death, the more expensive the premiums become.

If you wish to have a fixed premium for life, it is preferable to choose permanent life insurance. Premiums will be more expensive in the early years and much less in the latter.

👎 It's not forever

Generally, term life insurance is not renewable past your 85th birthday. Therefore, you should consider permanent coverage to protect you beyond that age limit.

👎 It does not offer some of the benefits of permanent life insurance

Some permanent insurance products offer a savings component to the contract. If you want to use your life insurance policy to save, see our Universal Life Insurance article.

In short, online term life insurance allows you to protect your family, at low cost and in a personalized way, in the event of an untimely death. All of this can be done entirely online and very quickly with Emma 😇.