Term Life Insurance

Understand the need

When investigating term insurance to buy understand why it is needed, for how long and does the need change over time. Taking the time will save premium dollars and this could be in the thousands over time. Quality time spend with a qualified advisor assessing the need is important so go through a financial needs analysis to get a solid direction. This means personal detailed information such as income, dates of birth of all involved, knowledge of assets, liabilities, insurance in force, length of dependency period, education needs, final expense needs, income need after any dependants have left home, personal interests, potential inheritances, and any documentation regarding government benefits such as CPP is suggested to be made available. There is a lot to it most times but other times it is a simply as covering a specific debt.


Buy the product that fits the need

Once you understand the need then buy the product or products that best fit the need. This will save money and as an example for a young family to analyze the need and then to forecast the future need you will learn that as the children get older the dependency period decreases which often results in less life insurance being required. Term insurance covers a specific period of time, 10 years, 15 years, 20 years, to age 65 and so on, and when the term ends normally the product will renew. This usually is a negative event as the premium will most likely go through the roof. Be the boss of your term insurance and do not let it control you.