What is term insurance good for? Temporary needs. It is often the most inexpensive way to provide the needed cash in the short term. In other words, if the need for coverage is short term to cover a loan for 10 years, then a 10 year renewable term would make sense. Since your needs may change, renewal rates and availability of conversion to permanent insurance should be considered.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Term life insurance is good to pay large expenses that only last for a set length of time. A mortgage, small business loan, or tuition loan are some large liabilities that most people do not have the money saved up to pay off, if they should die prematurely. But they are expenses that will not last forever. Therefore, Term insurance is a low cost way to cover those large debts for a set period of time, without breaking the bank.
Another thing Term insurance is good for is raising a family. I recommend purchasing Term insurance long enough to get the youngest child to at least age 23.
Not in every case, but generally, I feel that Term insurance is not good for small face amounts. Most people who rely on life insurance to cover small debts, will also need life insurance to cover their final expenses. There are so many reasonably priced Whole Life policies that can be purchased in very small face amounts, and for persons of all type of health. And you can really save a lot of money on those policies by buying them at a younger age. Some can be paid up in a set number of years, and some have such good cash value that, if you decided to stop paying on the policy in the future, you would still have a decent sized paid up policy to hold onto.
Of course, Term Life is also not good for any need that does not end until death. E.g. Funeral costs, paying estate settlement costs, passing money to grandchildren, etc. Unless you know that you will have a large stream of money in the future so that you can afford to convert your Term insurance to permanent later on, you are usually better off just buying Whole Life or guaranteed no lapse Universal Life, to start with, for needs that do not end until death.
Those are my general opinions on what Term Life Insurance is good for, and what it is not so good for. There are many exceptions as each person's situation is different and policies can be set up to accomplish different purposes. Please do not hesitate to give me a call if you'd like to discuss this in person.
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What is term insurance good for? Temporary needs. It is often the most inexpensive way to provide the needed cash in the short term. In other words, if the need for coverage is short term to cover a loan for 10 years, then a 10 year renewable term would make sense. Since your needs may change, renewal rates and availability of conversion to permanent insurance should be considered.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Another thing Term insurance is good for is raising a family. I recommend purchasing Term insurance long enough to get the youngest child to at least age 23.
Not in every case, but generally, I feel that Term insurance is not good for small face amounts. Most people who rely on life insurance to cover small debts, will also need life insurance to cover their final expenses. There are so many reasonably priced Whole Life policies that can be purchased in very small face amounts, and for persons of all type of health. And you can really save a lot of money on those policies by buying them at a younger age. Some can be paid up in a set number of years, and some have such good cash value that, if you decided to stop paying on the policy in the future, you would still have a decent sized paid up policy to hold onto.
Of course, Term Life is also not good for any need that does not end until death. E.g. Funeral costs, paying estate settlement costs, passing money to grandchildren, etc. Unless you know that you will have a large stream of money in the future so that you can afford to convert your Term insurance to permanent later on, you are usually better off just buying Whole Life or guaranteed no lapse Universal Life, to start with, for needs that do not end until death.
Those are my general opinions on what Term Life Insurance is good for, and what it is not so good for. There are many exceptions as each person's situation is different and policies can be set up to accomplish different purposes. Please do not hesitate to give me a call if you'd like to discuss this in person.