Term Insurance - The Maritime Financial Group
term-insurance

Term Insurance

What is Term Insurance?


Term Insurance is temporary life insurance designed to provide coverage for a limited period of time, typically for 10, 20 or 30 years. It is a life insurance product that is typically considered the most cost effective form of life insurance. However, there is no build up of a cash value, like with a permanent life policy, and the benefit is payable only when the insured dies and the policy is in force.

The policy owner has the right to convert the term policy to a permanent life plan of insurance. This is not an automatic conversion. The conversion period is spelt out in the policy. Even if your health has deteriorated to the point that you may be uninsurable you can still obtain lifetime coverage, since evidence of insurability is not required at the time of conversion.

Most individuals purchase term insurance because of its affordability, as a requirement by lending institutions such as banks, and to complement other insurances such as permanent life.

T-Life is a term insurance plan that provides coverage for death during the term of the policy.

The main features of this plan include the following:

• Premiums are payable over the full term of the policy
• Significantly lower premiums than a permanent life insurance plan
• Accumulates no cash value
• The benefit of converting to a permanent life plan at any time during the convertible period without providing evidence of insurability (medicals)
• The policy terminates at the end of the payment period
• This policy is available as stand alone plan or could be added as a rider to other plans