Living in Toronto means balancing a lot of expenses from day to day. People have to consider rent or the mortgage, bills, groceries, not to mention other things like daycare and even that cup of coffee in the morning. As a result, those who are looking to get life insurance tend to want something that’s inexpensive but will also give their families what they need should anything happen to them.
So, is Term Life Insurance the best option for Torontonians? Let’s find out:
First, it’s important to know what types of insurance are typically available in the area. There is permanent life insurance, whole life insurance, universal life insurance, and finally, term insurance.
Permanent life insurance is the antithesis to what term life insurance is. This form of life insurance is one that you take out and keep for the rest of your life. Permanent life insurance never expires and never has to be renewed. In contrast to term life insurance, permanent life insurance is one that you never have to worry about again, but it can also be more expensive.
Term life insurance does expire after a term, but those terms offer flexibility to the client who may only want it for one year, but may want a policy for as long as twenty.
A form of permanent life insurance, Whole Life Insurance has a set payment, or premium, that doesn’t change for the rest of your life. In addition to having a reliable, and set, payment it also has one advantage that term life insurance doesn’t: it has a value.
Term life insurance ends and that’s it. If a person decides to sell their whole life insurance policy, which they can do, then they can actually get the value that they’ve built up in the policy back. One drawback to term life insurance is that it can change depending on when you get it.
A person who decides to get a five-year plan when they’re twenty, for instance, has a very low chance of something happening to him and will pay little. A person, however, who is seventy years old and decides also on a five-year plan is more likely to develop health issues, and therefore, the premiums on that plan will be higher.
Universal Life Insurance is for people who like to not only have a life insurance policy but also want to divert some of that monthly payment into premiums. Like permanent life insurance, this is for life and accumulates value. The advantage of this one is that it also allows the policy owner to accumulate a financial portfolio as well.
The biggest drawback in contrast to term life insurance is that universal will almost certainly be more expensive seeing that one is contributing to a more than a simple policy.
Overall, term life insurance is the best choice for those who are in Toronto and need a policy on a budget. For those with money to spend, permanent life insurance might be more up your alley.