Customized Term Insurance Plans
Secure your family’s future with customized insurance plans from the dedicated professionals at Quantum Financial Planning. Throughout our lives, we are in constant danger of accident, illness and loss. Gaining security from this burden of risk is critical to ensuring your peace of mind and financial protection. Insurance has long been an important tool in helping you and your family overcome adverse situations. The GTA insurance professionals at Quantum Financial Planning are experts in customizing products to meet your unique needs.
We are well versed in term insurance coverage and invite you to read the following questions and answers for more information. Are you ready to speak with one of our professionals? Please call to book an appointment.
Q: What is term insurance?
A: You can customize your GTA term insurance to meet your unique needs. Common insurance terms are for 5, 10, 15, 20, 25, 30 and 35 years. You can also purchase term insurance that covers you up to a certain age – 65, 70, 75 and even 100. Your policy will have a face amount, which is the benefit payable to beneficiaries upon death during the term period. Your premium will be a level (constant) amount throughout your selected term. Of course, the longer the term, the higher your premium will be.
Q: What are the term periods?
A: You can customize your GTA term insurance to meet your unique needs. Common insurance terms are for 5, 10, 15, 20, 25, 30 and 35 years. You can also purchase term insurance that covers you up to a certain age – 65, 70, 75 and even 100. Your policy will have a face amount, which is the benefit payable to beneficiaries upon death during the term period. Your premium will be a level (constant) amount throughout your selected term. Of course, the longer the term, the higher your premium will be.
Q: What are the advantages, disadvantages and limitations of term life insurance?
A: Term life insurance is a cost-effective tool when compared with whole-life coverage. It can be used to pay off mortgages, loans and other short-term liabilities. It can also allow your children to pursue higher education. The primary disadvantage is that this type of insurance has an expiration date. If your goal is to leave funds for your beneficiaries upon your death, permanent life insurance may be a better option.
Term life insurance has limitations. All premiums must be paid within your specified grace period to keep the policy active. If you miss a payment, you will have to reapply and pay any premiums due. You may incur interest charges and have to submit evidence of insurability. Depending on the state of your health, an insurer may refuse to reinstate the coverage.
Q: Should I choose level term, increasing term or decreasing term life insurance?
A: You need to consider the amount of your liabilities. If your liabilities will not change over the term, a level term plan is appropriate. With increasing term plans, your coverage will increase by an agreed-upon fixed percentage or variable amount. Keep in mind your premium will also increase. If you own property that is likely to appreciate and you want to keep up with tax liability, an increasing term may be a wise decision.
As the name suggests, decreasing term coverage will decrease by a specified amount on each anniversary. Your premium will be determined when you take out the coverage and will likely not change. This type of coverage may be set up to decrease according to the amortization schedule of your mortgage principal.
Q: What is the difference between renewable and non-renewable term insurance?
A: With renewable term insurance, you can renew your coverage without providing proof of insurability. Your premium will be adjusted based on your age at the time of renewal. If you have non-renewable insurance, you do not have this option.
Q: What is convertible term insurance?
A: Convertible insurance policies give you the option to convert your term insurance plan to a permanent life insurance plan. This type of policy is useful if you are nearing the end of your term but your insurance risk still remains. Your new permanent plan may be expensive depending on your age.
Keep in mind, when you work with Quantum Financial Planning, you have options. Our skilled GTA financial advisors are here to work with you to make sure you get coverage that meets your exact needs. We offer guidance on everything from RESP plans to travel insurance.
Insurance
Our financial advisors are knowledgeable with the following types of products:
- Critical illness insurance
- Life insurance
- Disability insurance
- Mortgage protection insurance
- Travel & visitor insurance
- Health & dental insurance
- Non-medical insurance (guaranteed Issue)
- Long-term care insurance
- Estate planning