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Life insurance is all about protecting the people you love. If you have a partner, kids, or aging parents who depend on you for financial support, it’s smart to buy life insurance to protect them. 20-year-life insurance term happens to be PolicyMe's most popular term length (we offer 10 to 30-year terms).
Term life insurance pays out only if you die within a specified timeframe.
A 20-year term life insurance policy will pay out only if you pass in the next 20 years, as long as you keep paying your premiums.
Both term and whole life insurance benefits are paid in one full lump sum when you die. But with term life insurance being more affordable, it is better relative to the cost of life insurance in Canada.
If your policy provides $500,000 of coverage, your beneficiaries will receive $500,000 all at once, and it’ll be tax-free.
This gives your family the option to use the money however they want to. Some people use it to pay off a mortgage. Others use it to continue making rent payments.
And in many cases, people use life insurance to care for children, fund educational expenses, and cover day-to-day living costs.
Most parents plan to financially support their kids until independence. If your youngest child is a toddler, you’ve got to cover their expenses for about 20 years until he or she graduates from university (seems like forever, doesn’t it?). A 20-year policy is likely to make a lot of sense in this case.
It may seem counterintuitive to spend on life insurance when you have debts to pay off. But it’s even more important to have life insurance while you have that debt.
Protecting your family with life insurance until your mortgage is paid off is a good way to ensure they won’t be left with any crippling debt or mortgage payments if anything happens to you. And the good news is that once your mortgage is paid off, you may not need life insurance anymore. That's one of the advantages of going with term life insurance.
We strongly believe that having life insurance is much less important once you’re no longer earning an income. At this point, your kids will probably be financially independent (fingers crossed!) and your spouse may be able to live comfortably off your joint savings, so why purchase an extra lump sum for them? In this case, a 20-year term life insurance policy may be a good fit.
Balancing the cost of life insurance can be challenging for families on a tight budget. A term-to-65 term life insurance policy offers more protection, but the costs can be significantly higher.
In comparison, a 20-year, $500,000 term life insurance policy costs around $35/month for a healthy 30-year-old. For a lot of people, this may be the best choice based on what they can afford.
Wondering if a 20-year term life insurance policy is right for you? Use our life insurance calculator to figure out how much life insurance you need to protect the ones you love. In just 5 short minutes, we’ll assess your needs. The result? You get the protection that’s just right for your family.
You can also use our life insurance quote tool to get your price now.
