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Everything you need to know about 15-Years Term Life Insurance

/ Life Insurance / Jul 6, 2021

A 15-Years Term Life Insurance Plan is one of the most affordable life insurance options to go for in Canada. You may also opt for the 10-years Term Life insurance plan that is available at a lower premium in comparison to the 15-years Term Life plan. In fact, the longer the term period, the higher the premium rate.

The premium amount for a 15-Years Life Insurance policy is level for 15 years. The coverage amount is also level. At the end of the term period (15 years), the policy typically renews (depending on your choice and requirement) at a higher cost (higher premium), which is again level for 15 more years. This process can go on until the policy expiration date.

The Advantage of a 15-Years Term Life Insurance Plan in Canada

  • It is one of the most affordable life insurance options.
  • It can provide peace of mind in terms of giving you financial security, knowing that your beneficiaries will receive a tax-free lump sum amount in case of your death.
  • The premium rates of the policy are guaranteed to be level for the entire term period of 15 years from the date of purchase.
  • The policy can be customized according to the requirement of you and your family.
  • There is a renewable option offered by most 15-years Term Life Insurance plans after the completion of the term period.
  • There is also a conversion policy available that is offered by most major life insurance companies.

An Explanatory Example

Say, for example, you have opted for a 15-years Term Life policy for CAD 700,000. The premium rate will stay the same for the entire period of your 15 years and so will be your coverage amount of CAD 700,000 until the end of the term.

Then, if you choose to renew, the premium rates will increase by a reasonable amount.

Who should go for a 15-years Term Life Insurance Plan?

A 15-Years Term Life Plan should normally be purchased by individuals in their 20s or 30s when their income is low because of its affordable option.

Individuals looking to cover their mortgage, short-term debts such as credit card debts, student loans, etc. should opt for it until they or their children/spouse becomes financially self-sufficient.

It can also be purchased by young business owners looking to cover the outstanding debts of their business. In fact, the younger you are, the better it is because you simply cannot beat the premium rates you are going to get in your 20s and 30s.

Renewability

Most 15-years Term Life Insurance plans in Canada come with a renewability option.

As we said above, at the end of the term period (15 years), you can renew your policy at a higher premium that is again level for 15 more years. This process can stay continuous till the expiry date of the policy (which is normally at the age of 75 years).

Note: If you are in fine health and in need of a policy at the end of the 15 years’ term period, we recommend you to go for an alternative policy as per your requirement and budget, This is because as you have aged, your responsibilities and requirements may vary.  

The Option To Convert

This is where you can opt to convert your 15-years Term Life Insurance plan to a Permanent Life Insurance Plan (such as Universal Life, Whole Life Insurance, etc.) without any medical examination or health verifications.

You will just have to do some paperwork for a change in policy as per your choice, based on your smoking/drinking status and age.

This is an excellent option that can become very valuable in case you are diagnosed with any health condition while having the 15-years Term Life plan making you unable to purchase any other insurance in the future. The conversion option would allow you to switch easily to a permanent plan no matter what your health conditions are.

Consult our experienced financial advisors for the best 15-years Term Life Insurance Plan in Toronto and Mississauga, Canada

Our expert insurance advisors can help you determine the appropriate coverage amount, considering a number of factors like your income, debts, net worth, existing plans, current health conditions, etc.

At Trust Life & Investments, we are all about providing affordable term life insurance options for our customers in Canada. We have over 30 years of experience providing expert insurance and investment advice for both businesses and individuals. Get in touch with our expert financial advisors to know more about the best and affordable Term Life Insurance Plans in Toronto and Mississauga.