6 Benefits of TD Term Life Insurance

Benefits of term life insurance

What is term life insurance?

Term life insurance is coverage over a defined number of years. A term life insurance policy pays out a tax-free lump sum amount to a beneficiary upon the death of the person insured. If the amount is handed over to an estate, it may not receive the benefits tax-free. When you apply for term life insurance, you get to choose the amount of time, or term, of coverage that you feel fits your needs. The policy may also be eligible for renewal.

Term life insurance can be a way to help safeguard the financial future of your family.

How does term life insurance work?

Term life plans offer coverage over a specified term. The term duration is the length of time premiums are locked in and are guaranteed not to change.

At TD Insurance, if you do nothing at the end of the term, the policy will automatically renew with premiums increasing to reflect your age at the point of renewal. Coverage expires when the person insured reaches an age stipulated in the plan or policy contract.

When you apply for coverage, you are required to answer questions which include:

  • Age
  • Sex
  • Smoker-status
  • Health, and
  • Lifestyle

In some cases, a medical exam may be required. This information, along with the amount of coverage and type of plan, is used by the insurer to determine your premiums. The death benefit outlined in your policy may be used in any way your beneficiaries choose. However, if you were to die after the policy expires, and the policy was not renewed, no death benefit would be paid out.

If you’re looking for lifetime coverage, permanent life insurance may be an option. Permanent life insurance is a type of life insurance that does not expire as long as required premiums are paid. For the Term-10 and Term-20 plans, you can convert to the permanent Term-100 plan with no health questionnaire or medical exam required with TD Insurance.

All TD Term Life Insurance plans offer:

  • Coverage up to $10 million
  • Guaranteed automatic renewal at the end of each term for 10-year and 20-year plans
  • Guaranteed premiums that remain the same for each term.
  • The option to convert 10-year or 20-year plans to the permanent Term-100 coverage any time before age 69.

What are some benefits of TD term life plans?

TD Insurance offers versatile plan options. The plan you select should be based on your needs. Here are a few benefits of selecting TD Term Life Insurance:

  • It’s simple

Term life insurance is one of the simpler forms of life insurance. You’ll know what you’re paying for, and what your beneficiaries can expect.

  • Predictable premiums

Your premiums are fixed and guaranteed not to change for the length of each term.

  • It’s flexible

You can also convert your TD Term-10 or TD Term-20 to the Term-100 permanent life insurance coverage before you turn 69 at any point.

  • It could be a good way to top-up existing group plans

Your life insurance coverage through a group plan may not be enough. Additionally, if you were to change employers, you may lose your coverage. Having your own term life insurance policy helps to provide continued coverage for your loved ones in the event of your death even if you change your employer.

  • Tax-free, cash benefit

If you pass away during the term of your policy, your designated beneficiaries will receive a tax-free, lump-sum death benefit.

  • You may get a discount1

Save 10% if:

  • You are a TD customer, which includes TD Auto Finance, TD Insurance Home and/or Auto, and TD Wealth; or
  • You complete your application online.

Or save 5% if:

  • You or your spouse is a graduate of an eligible Canadian post-secondary institution or a member of an eligible professional association.

Instant Approval Offer available on TD Term Life Insurance

You could be approved for up to:

  • $1 million if you are under 50 years old
  • $500,000 if you are 51 to 54
  • $250,000 if you are 55 to 60

Eligibility for instant approval is based on your health and lifestyle questionnaire which is part of the application.

Identifying the right amount of coverage for your life insurance needs.

To choose an amount of term life insurance, you may need to outline your current obligations and responsibilities.

  • If you have shorter-term financial responsibilities, such as a student or car loan, TD 10-Year Term Life could be right for you.
  • If you’re newly married, starting a family, or if you’ve recently bought a home , TD 20-Year Term Life could be just what you need.
  • And finally, TD Term-100 could be ideal if you want lifetime coverage where your premiums are locked in and guaranteed not to change.

Both 10-Year Term Life and 20-Year Term Life can be converted to the Term-100 lifetime coverage any time before the age of 69. Conversion is guaranteed and no health questionnaires or medical is required.

How much does TD term life insurance cost in Canada?

A TD Term Life Insurance plan may cost less than you think. For example, a 30-year-old female non-smoker who is in good health could get $400,000 of TD 10-Year Term Life coverage for as low as $18.00 per month2. You can use the TD Life Insurance calculator to estimate how much your term life insurance plan could cost.

How to apply for TD Term Life Insurance online?

  • Visit the TD Term Life Insurance page
  • Learn more about Term Life Insurance and use the ‘Check my price’ button to get a quote
  • Once you’ve got your quote, select the coverage that best suits your needs and apply for coverage
  • You can also save your application and resume at a convenient time.

To be eligible, you must meet the following requirements:

  • Be a Canadian resident and fall within the age requirements for term life insurance plan you select.

— Update: 25-12-2022 — We found an additional article Term Life Insurance: What It Is, Different Types, Pros and Cons from the website www.investopedia.com for the keyword benefits of term life insurance.

Term Life Insurance

Term life insurance, also known as pure life insurance, is a type of death benefit that pays the heirs of the policyholder throughout a specified period of time.

Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to lapse.

How Term Life Insurance Works

When you buy a term life insurance policy, the insurance company determines the premium based on the policy's value (the payout amount) and your age, gender, and health.

In some cases, a medical exam may be required. The insurance company may also inquire about your driving record, current medications, smoking status, occupation, hobbies, and family history.

If you die during the policy term, the insurer will pay the policy's face value to your beneficiaries. This cash benefit—which is, in most cases, not taxable—may be used by beneficiaries to settle your healthcare and funeral costs, consumer debt, or mortgage debt, among other things.

If the policy expires before your death, there is no payout. You may be able to renew a term policy at its expiration, but the premiums will be recalculated based on your age at the time of renewal.

Term Life Insurance vs. Whole Life Insurance

Term life policies have no value other than the guaranteed death benefit. There is no savings component as is found in a whole life insurance product.

Term life is usually the least costly life insurance available because it offers a benefit for a restricted time and provides only a death benefit. For example, a healthy non-smoking man aged 35 could get a whole life insurance policy with a benefit of $500,000 for an average of $28 per month as of 2021. At age 50, the premium would rise to $71 a month.

Depending on the issuer, purchasing a whole life equivalent would have significantly higher premiums, possibly $200 to $300 per month, or more.

Most term life insurance policies expire without paying a death benefit. That lowers the overall risk to the insurer compared to a permanent life policy. The reduced risk allows insurers to charge lower premiums.

Interest rates, the financials of the insurance company, and state regulations can also affect premiums. In general, companies often offer better rates at the “breakpoint” coverage levels of $100,000, $250,000, $500,000, and $1,000,000.

Top-Rated Term Life Insurance Companies

Example of Term Life Insurance

Thirty-year-old George wants to protect his family in the unlikely event of his early death. He buys a 10-year, $500,000 term life insurance policy with a premium of $50 per month.

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If George dies within the 10-year term, the policy will pay George’s beneficiary $500,000. If he dies after he turns 40, when the policy has expired, his beneficiary will receive no benefit. If he renews the policy, the premiums will be higher than his initial policy because they will be based on his current age of 40 rather than 30.

If George is diagnosed with a terminal illness during the first policy term, he probably will not be eligible to renew the policy when it expires. Some policies offer guaranteed re-insurability (without proof of insurability), but such features, when available, come with a higher cost.

Types of Term Life Insurance

There are several types of term life insurance. The best option will depend on your individual circumstances.

The Level Term or Level-Premium Policy

These provide coverage for a period ranging from 10 to 30 years. Both the death benefit and the premium are fixed.

Because actuaries must account for the increasing costs of insurance over the life of the policy's effectiveness, the premium is comparatively higher than yearly renewable term life insurance.

The Yearly Renewable Term (YRT) Policy

Yearly renewable term (YRT) policies have no specified term but can be renewed each year without providing evidence of insurability.

The premiums rise from year to year as the insured person ages. There is no specified term, but the premiums can become prohibitively expensive as the policyholder ages, making the policy.

The Decreasing Term Policy

These policies have a death benefit that declines each year, according to a predetermined schedule. The policyholder pays a fixed, level premium for the duration of the policy.

Decreasing term policies are often used in concert with a mortgage, with the policyholder matching the payout of the insurance with the declining principal of the home loan.

Benefits of Term Life Insurance

Term life insurance is attractive to young people with children. The parents can obtain substantial coverage for a low cost. If the payout is needed, the family can rely on it to replace lost income.

These policies are also well-suited for people with growing families. They can anticipate that coverage will be needed until, say, their children have reached adulthood and are self-sufficient.

The term life benefit, obviously, may be equally useful to an older surviving spouse. However, other options for providing for a surviving spouse may be preferable given the higher costs of the premiums to older policyholders.

Insurance companies set a maximum age for their term life insurance coverage. This ranges from about 80 to 90 years old.

Do I Need Term Life Insurance or Permanent Life Insurance?

The main differences between a term life insurance policy and a permanent insurance policy, such as universal life insurance, are the duration of the policy, the accumulation of a cash value, and the cost. The right choice for you will depend on your needs. Here are some things to consider.

Cost of Premiums

Term life policies are ideal for people who want substantial coverage at a low cost.

People who own whole life insurance pay more in premiums for less coverage but have the security of knowing they are protected for life.

People who buy term life are paying premiums for an extended period, and getting nothing in return unless they have the misfortune to die before the term expires. And, term life insurance premiums increase with age.

This means that term life premiums may cost more over the years than permanent life insurance premiums would have been. 

Availability of Coverage

Unless a term policy has guaranteed renewable policy, the company could refuse to renew coverage at the end of a policy’s term if the policyholder developed a severe illness. Permanent insurance provides coverage for life as long as the premiums are paid.

Investment Value

Some customers prefer permanent life insurance because the policies can have an investment or savings vehicle. A portion of each premium payment is allocated to the cash value, with a growth guarantee. Some plans pay dividends, which can be paid out or kept on deposit within the policy.

Over time, the cash value growth may be sufficient to pay the premiums on the policy. There are also several unique tax benefits, such as tax-deferred cash value growth and tax-free access to the cash portion.

Financial advisors warn that the growth rate of a policy with cash value is often paltry compared to other financial instruments, such as mutual funds and exchange-traded funds (ETFs). Also, substantial administrative fees often cut into the rate of return. Hence, the common phrase “buy term and invest the difference.” However, the performance is steady and tax-advantaged, a benefit when the stock market is volatile.

Other Factors

Apparently, there is no one-size-fits-all answer to the term versus permanent insurance debate. Other factors to consider include: 

  • Is the rate of return earned on investments sufficiently attractive?
  • Does the permanent policy have a loan provision and other features?
  • Does the policyholder have or intend to have a business that requires insurance coverage?
  • Will life insurance play a role in tax-sheltering a sizable estate?

Term Life Insurance vs. Convertible Term Life Insurance

Convertible term life insurance is a term life policy that includes a conversion rider. The rider guarantees the right to convert an in-force term policy—or one about to expire—to a permanent plan without going through underwriting or proving insurability. The conversion rider should allow you to convert to any permanent policy the insurance company offers with no restrictions.

The primary features of the rider are maintaining the original health rating of the term policy upon conversion, even if you later have health issues or become uninsurable, and deciding when and how much of the coverage to convert. The basis for the premium of the new permanent policy is your age at conversion.

Of course, overall premiums will increase significantly since whole life insurance is more expensive than term life insurance. The advantage is the guaranteed approval without a medical exam. Medical conditions that develop during the term life period cannot adjust premiums upward. However, the company may require limited or full underwriting if you want to add additional riders to the new policy, such as a long-term care rider.

The Bottom Line

Term life insurance is a good option for people who can't or won't pay the much higher monthly premiums associated with whole life insurance.

It's a bit like car insurance. It's statistically unlikely that you'll need it, and the premiums are money down the drain if you don't. But you have it just in case the worst happens.

— Update: 25-12-2022 — We found an additional article 10 advantages of term life insurance from the website www.thinkadvisor.com for the keyword benefits of term life insurance.

Keep in mind, term insurance, more than any other type of insurance, is pure death protection with little or no ancillary or lifetime benefits. Therefore, the two overriding considerations in the use of term insurance, regardless of the specific application, are:

    • Will death protection alone meet the need?
    • Will the coverage last as long as the need?

In short, with term life insurance — as with any other decision about appropriate coverage — the product must match the problem.

Although some agents and advisors believe that whole life insurance is always a superior product, term life insurance does have an important roll to play in a client’s financial plans. Keep reading 10 reasons why a client may want to consider a term life insurance policy, from the 6th Edition of “The Tools & Techniques of Life Insurance Planning” (2015, The National Underwriter Company).

Advantages of Term Life Insurance

    1. Greatest Death Benefit for Lowest Premium OutlayTerm Life Insurance Advantage No. 1:

      Term insurance allows a person to acquire the greatest death benefit for the lowest premium outlay when the policy is first issued. However, this does not mean that term insurance is necessarily the least expensive form of insurance over the full duration of needed coverage. Because term premiums increase at each renewal, at the later ages the premium cost will far exceed the level premium that would have been charged for an ordinary whole life policy issued at the same age as the original term policy.

      See also: Your 5 best arguments for life insurance (besides the death benefit

    2. A Term Policy Is the Best Alternative for Temporary and Short Time Frame Needs: 

      Term insurance is the best alternative for temporary life insurance needs. Usually term insurance is the best alternative if protection is needed for less than ten years. Conversely, some form of cash value life insurance will generally be the best alternative if protection must continue for 15 or more years. If the duration of the needed protection is between 10 and 15 years, the best alternative depends upon the facts and circumstances of the case. As a general rule of thumb, term insurance will tend to be better than cash value insurance at issue ages below age 45, and worse at older issue ages if the length of the need for protection is between 10 and 15 years.

      See also: Planning for the modern family: 3 life insurance scenarios

    3. Younger Clients May Acquire More Coverage at Lower Immediate Cost: 

      Younger persons may acquire substantial face amounts of coverage at relatively low immediate cost, perhaps more than their immediate needs, and thereby guarantee that they will have the necessary level of coverage when their needs and family obligations increase in the future, even if this means they become uninsurable.

      See also: 6 ways to market life insurance to millennials

    4. Conversion Features of Renewable or Convertible Policies Provide Higher Future Death Protection: 

      The conversion feature of renewable and convertible term policies allows those covered to enjoy higher death protection than they could otherwise afford and later allows them to lock-in their premiums and build cash values when their ability to pay premiums increases.

      See also: 6 guaranteed minimum living benefit riders

    5. Term Policies Can Be Combined to Serve the Specialized Needs of Individual Policyholders: 

      Various types of term insurance — level, decreasing, and increasing — can be combined as riders with other types of permanent insurance to create a package that meets a person’s special death protection, savings, and affordability needs.

      See also: How more regulation can help the insurance industry

    6. Proceeds Can Be Paid to the Beneficiary Without Delay: 

      Life insurance proceeds are not part of the probate estate, unless the estate is named as the beneficiary of the policy. Therefore, the proceeds can be paid to the beneficiary without any delay caused by administration of the estate.

      See also: 6 reasons why probate isn’t that bad

    7. Preserves Confidentiality: 

      There is no public record of the death benefit amount or to whom the death benefit is payable (if paid to someone other than the deceased’s estate). This helps to preserve confidentiality for the beneficiary of the policy.

      See also: 5 questions life insurers should ask to prevent fraud

    8. Beneficiary Proceeds Are Not Subject to Federal Income Taxes: 

      The death benefit proceeds are generally not subject to federal income taxes and are not counted as taxable income.

      See also: 3 reasons life insurance should be viewed as an asset

    9. Death Benefit Proceeds Are Exempt From Estate Taxes in Certain Situations: 

      In cases where the beneficiary is a surviving spouse, the money is exempt from estate tax. This scenario can help the widow or widower and keep them from having to shell out large sums of the proceeds to the federal government. However, if beneficiaries of the policy are children or siblings of the deceased, proceeds are not exempt from estate taxes.

      See also: The 10 best & worst states to pay taxes

    10. Policies Can Be Used as Collateral for Loans: 

      Life insurance policies can be used as collateral or security for personal loans. Although lenders generally prefer permanent types of policies because of the cash values, a term policy is often sufficient if the borrower is a good credit risk and the loan is very likely to be repaid unless he or she dies.

      See also: Not all life insurance loan provisions are created equal

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What Are Some of the Disadvantages of Term Life Insurance?

Term life policies are great in certain situations but not right for everyone. See these additional resources to help understand some of the risks of purchasing term life insurance.

  • What Is the Risk of Buying Term Life Insurance?
  • 7 Things You Need to Know About Term Life Insurance
  • 6 Reasons to Convert That Term Life Insurance Policy

— Update: 25-12-2022 — We found an additional article How term life insurance works: The basics from the website www.guardianlife.com for the keyword benefits of term life insurance.

Term life is typically less expensive than a permanent whole life policy – but unlike permanent life insurance, term policies have no cash value, no payout after the term expires, and no value other than a death benefit. To keep things simple, most term policies are “level premium” – your monthly premium stays the same for the entire term of the policy.

Here are three key questions you should answer before you get a policy:

  1. How does a term life policy work?
  2. What are the different types of term policies?
  3. How much term life insurance coverage do you need?

How a term life insurance policy works

It’s a contract. At its most basic level, a term life policy is an agreement between the person who owns the policy (the owner) and an insurance company: The owner agree to pay a premium for a specific term (usually between 10 and 30 years); in return, the insurance company promises to pay a specific death benefit in cash to someone (a beneficiary) upon the death of someone else (the insured). That benefit is usually tax-free (unless the premiums are paid with pre-tax dollars).

There’s an application process. You may have seen or heard ads that say things like, “A male non-smoker in his 30s can get a 20-year $500,000 term policy for under $30 a month.” Some people can get that much coverage for under $30 – but it’s not automatic. Before they give you a policy, the provider needs to assess how much of a risk you are to insure. This is called the “underwriting” process. They’ll typically ask for a medical exam to evaluate your health, and want to know more about your occupation, lifestyle, and other things. Certain hobbies like scuba diving are deemed risky to your health, and that may raise rates. Likewise, dangerous occupational environments – for example, an oil rig – also may raise your rates.

You need to choose a term length. One of the biggest questions to ask yourself is, “How long do I need coverage for?” If you have children, a popular rule of thumb is to choose a term long enough to see them out of the house and through college. The longer your term, the more you’ll typically pay each month for a given coverage amount. Nevertheless, it usually pays to err on side of getting a longer-term policy than a shorter one because you just never know what the future holds and it is generally easier to get insurance while you are younger and in good health.

Decide how much of a death benefit you want. You should consider getting enough coverage to care for your family’s needs if you’re not there to support them; in section 3 we’ll tell you a few different ways to figure out how much that is. Whatever coverage amount you need, it will likely cost less than you thought: A recent survey found that 44 percent of millennials believe that life insurance is at least five times more expensive than the actual cost.1

Name your beneficiaries. Who gets the benefit when you die? It doesn’t all have to go to one person. For example, you could give 50% to your spouse and divide the rest between your adult children. And while beneficiaries are typically family, they don’t have to be. You could choose to leave some or all of your benefits to a trust, a charitable organization, or even a friend.

The different types of term policies you can buy

As you shop around and start talking to companies or insurance agents you may hear about different kinds of term policies. They all provide a specific benefit over a specific term but may have very different bells and whistles and costs.

  • Level premium: Also called level term; this is the simplest, most common type of policy: Your premium stays the same for the entire term.
  • Yearly renewable term: Also called an annual renewable term. This policy covers you for a year at a time, with an option to renew without a medical exam for the duration of the term – but at a higher cost each year. Compared to a level term policy, your premiums will be slightly lower at first, but over a full 10, 20, or 30-year term you will pay more than you would with a level premium policy.
  • Return of premium: This type of term policy actually pays back all or a portion of your premiums if you live to the end of the term. What’s the catch? Your premiums could be 2-4 times higher than with a level term policy. Also, if your financial status changes and you let the policy lapse you may only get a portion of your premiums returned – or nothing at all.
  • Guaranteed issue: These policies are easier to get because they don’t require a medical exam and only ask a few simple health questions at most. This also means that the insurance company has to assume that you are a risky prospect who has health issues, so your premiums may be much higher than they otherwise would be. Also, the policy might not pay a full death benefit for the first few years of coverage. If you have health issues but are able to manage them, it will usually be worth your while to get a conventional term life policy that is underwritten (i.e., requires a medical exam).

One more thing to look for in a term policy: Convertibility

Convertibility is a policy provision that lets you change your term insurance into a permanent whole life policy later on – without having to get a new medical exam. It’s a feature offered by almost all major insurance companies that let you change your type of life insurance. Guardian, for example, lets you convert level term insurance coverage at any point in the first five years to a permanent life policy – and even offers an optional Extended Conversion Rider which lets you do so for the duration of the policy. 2

Why would you convert to a whole life policy from term? If you’ve had a serious health problem – for example, a heart attack – it may be very difficult to get another policy. Another reason: you’re attracted to the cash value component of a whole life policy. Or maybe you want permanent life-long coverage. A term policy may well be your best choice now, but things can change.

Look for an insurer that offers the option to convert from term to a whole life policy without taking another medical exam, which would likely increase your cost. The chart below lists some of the important differences between a term life policy and whole life insurance, but if you want to find out more, talk to an insurance agent or financial representative.

Policy featureTerm life insuranceWhole life insurance
Initial costTypically, lower than whole lifeGenerally, 6x – 10x more expensive than term for the same death benefit; but as cash value builds it can be used to supplement premiums.
Cost over timeRenewal cost increases with ageCost stays the same for life
Permanent coverageNoYes
Length of coverageTypically, 10 – 30 yearsLifetime coverage (as long as payments are made)
PremiumCan be level or increase over the length of the policyLevel – stays the same every month
Heath exam requiredIn most casesIn most cases
Cost can decrease over timeNoYes – cost can be offset as cash value builds (typically after 12+ years)
Cash valueNoYes – accumulates over time 3
Ability to withdraw cash value during life of the policy 4NoYes – withdrawals and loans are allowed (but if unrepaid, this will diminish the policy values and death benefit)
Guaranteed death benefitYesYes
Policy structure and provisionsRelatively simpleMore complex

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How to determine the amount you need – and where to get it

If you have a young family, it will take many years of income to pay to feed, house, clothe, and educate your children through to adulthood. If you’re not there to provide for them, life insurance can help with those costs – but you have to make sure your policy’s death benefit is enough to do so. Here are a few general rules people use to help determine how much they need:

  • Get 10x your salary: This is one of the simplest rules to follow, and it can provide a useful cushion for your family – but it doesn’t take all your actual expenses and needs into account.
  • Get 10x your salary, plus college expenses: If you add $100,000 – $150,000 for each child, that can help ensure they can achieve more of the opportunities you want for them.
  • Use the DIME formula: DIME stands for Debt, Income, Mortgage, and Education. Total your debts, mortgage and college expenses, plus your salary for the number of years your family needs protection (e.g., until the children are out of the house), and that’s your coverage need.
  • Some financial representatives calculate the amount you need using the Human Life Value philosophy, which is your lifetime income potential – what you’re earning now, and what you expect to earn in the future. In its simplest form the philosophy suggests that you multiply your income by a variable based on factors such as age, occupation, projected working years, current benefits, etc.. As with every individual the amount of insurance you should purchase depends on many factors but a simple way to get that one number is to multiply your salary times 30 if you are between ages 18 and 40. The calculation changes based on your age group so refer to the chart below for your age group.
AgeMaximum Life Insurance
18-4030 times income
41-5020 times income
51-6015 times income
61-6510 times income
66-701 times net worth
71-751/2 times net worth

Any of those methods is a good start, but it also makes sense to talk with an experienced professional who can guide you through the process of calculating your actual need.

Where to get term life insurance

If your company offers group life insurance as part of your employee benefits package, that can be a great place to start. Because the company is buying for a large group of people, the premiums are typically lower than for an individual policy. Your employer may also subsidize a portion of the premiums or even provide coverage equal to your annual salary at little or no cost. On the other hand, the total amount of coverage you can get may be limited, for example to three times your salary. And if you leave the company you could lose your coverage.

Even if you have some coverage thorough work, it may not be enough for your needs. The good news is, term life insurance is generally easy to shop for: Many companies, including Guardian, will give you an instant online quote.

Compare insurance rates from a couple of sources, and before you make a choice consider the company you’re buying from. You’re looking to have a long-term relationship with that company, so look for the following qualities.

  • Financial strength 6: First and foremost, you want to be confident that the company will be around when your family needs a payout years or decades down the road. The best way to do that is to look for companies with strong Financial strength ratings. That includes a rating of at least “Superior” (A+) from A.M. Best (the insurance industry’s number one rating agency), a “Very Strong” (AA-) from Standard & Poor’s, or an “Excellent” (Aa1) from Moody’s.
  • A company that underwrites its own policies: Some companies act as middlemen who sell policies from another insurer, and this can add costs to your premiums. It can also add an extra layer if you want to change your policy – or down the road when your family needs a payout.
  • Guaranteed term renewability: If you become critically ill near the end of your policy’s term, you’ll want to be able to renew without taking another medical exam. Some companies offer this on a year-to-year basis – and while you can expect your rates to rise substantially, it may be worth it for your survivors.

Another way to compare insurance companies is by looking at online customer reviews. While these aren’t likely to tell you much about a company’s financial stability, it can tell you how easy they are to work with, and whether claims servicing is a problem.

Want to talk things over with someone before you buy term insurance? That’s a great idea. Guardian can connect you with a financial representative who will listen to your needs, tell you about the best ways to meet those needs within your budget and types of life insurance policies available, then will help you decide. Whichever way you decide to buy, consider doing it soon. Remember: the longer you wait to get life insurance, the more you’re likely to pay.

— Update: 25-12-2022 — We found an additional article 3 benefits of term life insurance from the website www.cbsnews.com for the keyword benefits of term life insurance.
Benefits of term life insurance
Term life insurance is one of the most well-known and popular life insurance types, largely due to its unique benefits.  Nicolas Hansen/Getty Images

Life insurance comes in all shapes and sizes. Depending on your personal financial situation, long-term goals and beneficiaries, however, there may be one type that’s more advantageous.

While policies range from term to whole to universal and variable, it’s the first on this list that many find to be the most cost-effective and reliable.

Term life insurance policies are limited to a select time frame of the policyholder’s life. Terms can be 15, 20, 30 years or some other agreed-upon time frame. If the policyholder dies during one of these periods then the policy is paid out to the beneficiaries. If they don’t, and the policy isn’t upped for another term, then no payout will be issued.

Term life insurance is one of the most well-known and popular life insurance types, largely due to its unique benefits. If you think you would benefit from getting a term life insurance policy then reach out to an insurance expert. Get started with a free quote. 

3 benefits of term life insurance

Here are three benefits of term life insurance policies to know. 

  1. Cost
  2. Flexibility
  3. Easy to understand


Term life insurance is perhaps best known for its reasonable cost. For a relatively inexpensive monthly fee (think less than $50, typically) policyholders can sign up for one of the aforementioned time frames. 

Term life insurance is generally less expensive because it doesn’t have a cash option. There’s also a chance you’ll outlive the specified term and not renew, which means the insurer won’t have to pay out anything. Compare that to whole life insurance, which is more expensive, but will cover the policyholder for their full life span. These differences will be reflected in a lower rate.

Explore your term life insurance options now by using the table below.


Maybe you only need (or want) life insurance for the next few years. Maybe you need it for the next few decades. Either way, you may not need it forever. Term life insurance gives you the flexibility to have coverage as long as you want. 

With terms ranging from one to 30 years, there’s a whole spectrum of coverage options to choose from. Just make sure to start early. Term life insurance is often more beneficial for younger people when rates are low and health issues are minimal. 

Easy to understand

Life insurance policies, costs and coverage options can quickly become confusing. This is especially true for those with cash and investment options. While these may be beneficial, once a substantial amount of money has been saved they can be stressful to manage.

Variable life insurance policies permit you to invest your cash value in various securities and stocks, which allows you to grow your account and death benefits over time.

But this can also become burdensome to track, particularly in a volatile stock market.

Term life insurance is simple. It will protect your beneficiaries in the event of your death. You just pay the insurer to keep coverage and don’t need to worry about anything else. And you won’t be tied to it longer than you need (or want) to be.

The bottom line

Life insurance is advantageous for a variety of reasons. However, benefits are specific to your individual circumstances. If you want a cost-effective, reliable and simple-to-understand life insurance plan, term life may be your best bet.

Speak to a life insurance expert today who can help you get started with a free quote. 


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About the Author: Tung Chi