Parents know how important it is to make sure family is taken care of if something unfortunate happens. Protecting your family starts with making sure you have the proper life insurance policy. Unfortunately, there are many myths about term life insurance that can get in the way of getting the best coverage for your family’s life insurance term needs.
In this article, we will go into detail on the biggest myths about term life insurance so you can make an informed decision on what type of insurance policy you need to protect your family.
Table of Contents
What is Term Life Insurance?
Term life insurance is a type of life insurance policy that covers a specific period of time, or “term”. If something were to happen to you within this specified period of time, your beneficiaries would receive a tax-free death benefit payout.
It is typically the most affordable type of life insurance month-to-month. Moreover, it comes with a range of insurance benefits tailored to meet your life insurance needs.
Benefits of Term Life Insurance
One of the biggest benefits of term life insurance is that it offers affordable and flexible coverage.
You can choose how long you want your insurance policy to cover you for – from just 5 years up to 100 – and you have the option to add additional coverage options such as critical illness and accidental death and dismemberment protection. This makes it much more affordable than other types of permanent life insurance policies.
When you have young children at home, a term life insurance policy can provide financial security in case they need assistance with paying for college or university in the future.
Another benefit of term life insurance is that you can use the death benefit from a properly structured term insurance policy for any purpose! Paying off debts, fund tuition fees or put money in investments are just some example. In short, your children will not have to worry about financing their education on their own.
With the right term life insurance plan in place, they will be able to maintain their lifestyle if anything should happen to you during the insurance period.
Common Myths About Term Life Insurance Coverage
There are many misconceptions about term coverage that can lead people away from getting adequate insurance coverage for themselves and their families. Here are some common myths about term life insurance plans:
Myth #1: It’s Expensive
Many people believe that purchasing a good life insurance term policy will cost more than they can reasonably afford each month – but this is not always true!
While some term insurance plans may have higher premiums than others – especially depending on age and health conditions – there are many term life insurance products that offer affordable life insurance coverage rates for quality coverage and peace of mind.
- KEEP READING: How to Save Money on your Term Life Insurance
Myth #2: It’s Too Complicated
Some people find themselves scared off by all the paperwork involved in purchasing an insurance policy. However with a bit of research, it doesn’t have to be difficult!
There are plenty of online resources and helpful articles such as this one which provide all the information needed for understanding what type and how much coverage suits your needs best.
- KEEP READING: Does your Family Need Life Insurance? How to Know.
Myth #3: Other Types Of Life Insurance in Canada Are Better
There are many different types of life insurance available (including permanent insurance). As such, many people mistakenly believe these types offer better protection than term policies. But this isn’t necessarily true.
Term policies offer flexible coverage options tailored specifically towards family needs at a competitive rate. Oftentimes this makes them better suited than other types of life insurance for parents looking for adequate protection without breaking the bank each month.
Myth #4: The Death Benefit Is Too Low
Some people mistakenly believe that the death benefit of term life insurance is too low to be of any real use.
However, depending on your policy, the death benefit can range anywhere from $50,000 to $2 million. Plus it’s sent directly to your beneficiaries as a tax-free lump sum payment. With the right policy, it’s easy to make sure your family stays financially secure.
- KEEP READING: Insurance for Parents: Why Your Kids Need You Protected
Myth #5: My Employer-Provided Insurance Policy Is Enough
Remember that employer-provided insurance policies are usually limited in their coverage and duration. In other words, if you lose your job, you lose your coverage too.
In addition, employer-provided plans are often one-size-fits-all…and life insurance coverage is often an afterthought. So chances are, while it may be enough for a single bachelor with no children, it may simply not be sufficient for someone with children or a stay-at-home partner.
By having your own life insurance protection, you provide comprehensive protection for your family. No matter what happens to you, your family is safe.
Conclusion
Term life insurance policies provide invaluable protection for Canadian parents. They cover families no matter what happens during their specified term.
These policies offer comprehensive term life insurance coverage at an affordable cost. Plus they have an array of flexible features catered towards individual life insurance needs. This makes them an ideal choice for many looking for reliable financial security!
Find Your Perfect Policy in Minutes!
It’s easy than ever for Canadian parents to find the perfect term life insurance policy for their families.
Click the button below to get started now. In just a few clicks, your family can have complete financial security should the worse happen.
