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Term insurance

Term Insurance

So, you need insurance. But you only need insurance for a specific amount of time – say 20 years or 30 years. Then you may want to consider a term insurance product. This type of insurance can provide low-cost protection on a temporary basis for a fixed amount of time, usually 10, 20 or 30 years. And term products from Transamerica Life Canada offer many ways to customize your policy so you can get exactly what you need, for as long as you need it.​

 

 

 Overview

 
​How can you use term insurance?

With Transamerica’s term insurance you get the flexibility to tailor your coverage directly to your needs. Let’s say you want low-cost protection for the next 30 years but you also have a mortgage with 10 years remaining. You can purchase a 30-year term policy and then add a 10-year term policy to it. This way you only pay for the additional coverage while you have the mortgage.  

 
Is term insurance right for you?

While anyone can purchase term insurance, it is a particularly good choice if you are young and in good general health because you can benefit from affordable rates and guarantee your future insurability. As well, if your need for protection is only temporary, then you should consider a term policy. Your advisor can help you decide if term insurance is right for you.

 

 How it works

 

How it works

Term insurance from Transamerica Life Canada
is a cost-effective way to get the protection you need for as long as you need it.
 
How term insurance works

Term insurance offers affordable protection for a specific period of time – usually 10, 20 or 30 years depending on your need. You pay a set premium only for the number of years you require coverage and when the time is up, you can choose from several options. Plus, at any time up to the policy anniversary closest to your 71st birthday, you can convert your term policy to a permanent form of insurance should your needs change!

What happens at the end of the “term”?

When the term of your policy is up, you can stop paying and cancel the coverage, convert your policy to a permanent form of insurance or allow your policy to automatically renew for another 10-, 20- or 30-year term. Each of these options comes with specific requirements. Your advisor can help you decide which option is right for you.

What if a claim is made?

Should the unexpected happen and you pass away, a term insurance policy will provide a tax-free death benefit for your loved ones. The proceeds from the policy may be used to replace lost income, cover living expenses or pay off debts, such as your mortgage.

Term insurance vs. mortgage insurance

Your home may be the single largest investment you will ever have. Protecting it through mortgage insurance or term insurance is something every homeowner should consider. Today, many people are opting for term insurance instead of mortgage insurance because it offers more flexibility, more guarantees and more protection – often for a better price. Ask your advisor how term insurance can provide flexible, affordable mortgage protection.

Should I consider a 30-year term policy?
For many people the answer would be yes. Sometimes you may want insurance to cover a short-term need such as the time when your children are young and living at home with you, but for many people, their financial obligations will extend beyond 20 years. A term policy of 30 years may provide a very cost-efficient means for protecting your family for situations such as:
  • Longer term debt
  • Mortgages of 25+ years
  • Income protection to retirement

Plus, a 30-year term policy automatically renews at year 30 into permanent protection for life, with premiums payable to age 100. Your advisor can help you decide if a 30-year term policy is right for you.

What if my situation changes during the 30 years?
Thirty years is a long time and it’s almost certain your life will be different in 30 years than it is today. That’s why 30-year term policies from Transamerica are the only T30 policies to have increased flexibility built right in. With a 30-year term policy from Transamerica you have access to the following flexible options between the 16th and 20th year:
  • Get paid-up lifetime final expense coverage
  • Stop paying premiums for the remainder of your 30-year term on a reduced coverage amount
  • Access the cash value of your policy
  • Convert to a universal life policy where your cash value will get you started on tax-deferred savings and growth

Your advisor can help you understand these options and how they can work for you.

What if I need a lifetime of coverage PLUS a term policy?

You may want to consider a solution called layered insurance. With layered insurance you can get permanent insurance protection layered with a boost of temporary insurance for when you need it.

 

 

 Benefits

 

Benefits

Term insurance from Transamerica Life Canada
offers flexible benefits to fit every budget and every need.
 

General benefits of term insurance

Term insurance, such as TERMSelect™ from Transamerica Life Canada, offers easy-to-understand, affordable protection for a specific period of time – 10, 20 or 30 years, depending on your need. Term policies can be converted to an eligible permanent insurance product at any time up to the policy anniversary closest to your 71st birthday should your needs change. Shorter-term policies for 10 or 20 years can be renewed up until the policy anniversary closest to your 80th birthday while a 30-year term policy renews at year 30 into permanent protection with coverage for life. Plus, you get guaranteed premiums and renewal rates for the life of your policy.

 
Specific benefits of TERMSelect
TERMSelect can be purchased as a 10-, 20-, or 30-year policy. With TERMSelect30, you get the benefit of SelectOPTIONS – additional, automatic features that have been built right in to adapt to your changing needs throughout the life of your policy.
 
SelectOPTIONS
Available between the 16th and 20th year of a TERMSelect30 policy, these options include:
  • Select30 – allows you to stop paying premiums and reduce the amount of insurance coverage for the remainder of your 30-year term, after which the policy terminates.
  •  
  • SelectLIFE – provides paid-up lifetime final expense coverage with the ability to stop paying premiums, reduce the amount of your insurance coverage and extend your coverage for life.
  •  
  • SelectVALUE – lets you surrender or decrease your coverage and access your policy’s cash value by either converting to one of our eligible universal life policies or taking the value in cash as a taxable disposition.
 

Your advisor can help you understand these SelectOPTIONS and how they can best be used to achieve your personal financial and protection goals.

Save a bundle!
You know that you can save a lot of money when you buy in bulk. This benefit is not only for cookies and ketchup; you can also save when you “bundle” your insurance protection. Simply put, the more insurance protection you combine in one policy from Transamerica, the more you save. This is because you will only pay one policy fee on the whole “deal” and benefit from volume discounts while still taking advantage of the highly competitive rates Transamerica offers.*
  
*As riders are dropped off, any premium discounts resulting from combined banding may result in an increased premium amount for the remaining face amounts or riders as the drop may cause the policy to be in a different premium band. 
 

 Optional benefits

 

Optional benefits​

 

With term insurance from Transamerica Life Canada
you can add optional benefits to create a policy that meets your specifics needs.

 
Optional benefits

Optional benefits let you tailor a policy by layering additional features and benefits onto your base term policy. Let’s take a look at some of the various optional benefits you can add to your term policy.

 
Term Riders:
  • These offer an affordable way to add additional, temporary insurance protection for 10-, 20- or 30-year terms.

  • These can be added to an existing universal life policy or a 30-year term policy.

Children’s Insurance Rider:
  • A low-cost way to provide your child with valuable insurance coverage today along with the ability to guarantee their insurability, should they want to purchase their own coverage when they become adults.
AD&D – Accidental Death and Dismemberment Rider:
  • Provides an additional benefit in the case of dismemberment or death resulting from an accident.

  • In the case of accidental dismemberment, an AD&D Rider can help you cope with loss of income and/or extra expenses not covered by provincial health care programs.

Waiver of Premium:
  • In the case of a disability before the age of 65, this rider maintains your coverage at no cost to you.

  • By letting you leave your retirement savings untouched, this type of optional benefit is important to ensure your coverage remains in place should you suffer a loss of income or experience high health care costs if a disability is incurred before the age of 65.

Multiple coverages:
  • Allows you to cover up to 17 lives on one policy and pay only one administrative fee, which can save you a significant amount of money.

  • A multiple coverage can be split into separate, individual life insurance policies if your needs should change while the term coverage is in effect.

Your financial advisor can help you decide which optional benefits are right for you.

 

 How much insurance do you need?

 

How much insurance do you need?

This used to be a tricky question that required a lot of charts and graphs and endless questions but not anymore. Now there’s LifeScripter® from Transamerica. Whether you are focused on saving for your future or paying down your debt…or both, LifeScripter can find the right solution for you.  

Have you tried LifeScripter?

The online LifeScripter tool from Transamerica lets you quickly and easily find out exactly how much coverage you need – now and for the future. On your own, or with the help of your advisor, simply answer a few questions and LifeScripter will analyze your needs and create a solution just for you. This solution can be used as the basis for discussions with your advisor about the right mix of products to best meet your needs. 

So…do you still need the help of a financial advisor?

In a word, yes. Like doctors, lawyers and other professionals, a financial advisor is a highly skilled and well-trained licensed professional. You can expect a financial advisor to make your individual financial interests a top priority, from helping you to understand how much insurance you need to finding the right products to meet those needs. Prior to your initial meeting, your financial advisor may recommend that you use an online tool like LifeScripter which will provide a starting point for your discussions.  

® LifeScripter is a registered trademark of Transamerica Life Canada.
 
 

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