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Multiple Uses for Term Life Policies

Written By ibnu hajar on Tuesday, May 17, 2011 | 10:46 PM

Figuratively speaking, term life insurance Ontario is by the far the easiest life insurance product to understand. Basically, the person requiring insurance will pay a low premium on an annual, semi annual, quarterly or monthly basis. The premium paid will be based on a portion of every thousand dollars worth of coverage. In the event that the person insured passes away during the coverage term, the life insurance firm will then divide the value of the policy between the listed beneficiaries to ensure that they are free from the financial burdens of having to cover final expenses. In order to fully comprehend the features and components of term life insurance Ontario it may be wise to review the following key points.
1. Term life insurance can be considered the purest form of life insurance as the person insured has purchased a death benefit. Unlike whole life insurance, there is no additional cash value with this form of insurance.
2. Term life insurance only provides coverage for a pre determined amount of time, in most cases not to exceed 25 years. Once the policy has been initiated, it only provides a payout within that set amount of time.
3. For the most part, term life insurance Ontario is renewable at the end of the policy, however, as the insured increases in age they may notice that their life insurance quote Ontario renewal rate increases gradually. In time, those insured may find that the cost of such renewals are greater than they wish to pay for a death benefit.
4. It is often possible to convert a term policy to a whole life policy within a certain number of years. Converting to a whole life policy should be something under consideration if the person insured intends to retain their coverage beyond the life of the term life insurance Ontario policy. It should be expected that life insurance quotes Ontario will increase as the life of the term policy expires, in order to mitigate this rising cost many will choose to convert their policy as time goes on. There are many reasons why one would consider a term life insurance policy. Most commonly, in order to protect family for the financial strains that can come as a result of death. These hardships include:
• The ability to free spouses and children from the cost associated with funerals and other final expenses.
• A requirement of Mortgage Insurance: Several lenders require mortgage holders obtain term life insurance coverage so that the value of their mortgages will be paid out in the event of their death. Such policies often dictate the lender as the beneficiary so that the mortgage will be paid out should the mortgage holder pass away before the home is paid in full. Resource Box It is often possible to convert a term policy to a whole life policy within a certain number of years. Converting to a whole life policy should be something under consideration if the person insured intends to retain their coverage beyond the life of the term life insurance Ontario policy. It should be expected that life insurance quote Ontario will increase as the life of the term policy expires, in order to mitigate this rising cost many will choose to convert their policy as time goes on.
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