Your Insurance, On Your Terms

There have been many clients who have contacted us recently wanting to gain a quote for Term insurance. As our clients become savvier in their purchase, they want to compare mortgage insurance with term insurance. The main selling feature of a personal policy is that the coverage does not decrease, and the client is the policy owner, but did you know that not all term policies are the same?

10-year term policies are often the first personal product that is offered to clients. While it may look cheaper than mortgage insurance, the rates jump up considerably every 10 years. With some policies these rates aren’t even locked in, so you won’t know your renewal rate until it’s time to renew! A typical mortgage will go for 25-30 years so you will need a policy that is affordable the whole way through!
We find many clients are surprised to know that we carry Term products that allow coverage of 20 and 30 and even 100 years because often, their mortgage broker will only offer 10-year terms if that.
 
What is the benefit of choosing a longer term?

1. Your rates are locked in for the length of the term, which is hugely beneficial for young, first-time homebuyers as within 20 years their mortgage should be paid off, or almost paid off.
2. While after 20 or 30-year term your rates will increase, if your home is paid off, you can reapply for a lower amount of coverage or even convert to a 100-year policy before age 65.
3. There is no medical underwriting required at the time of renewal, so you don’t have to go through the whole underwriting process again, think of how beneficial that will be after a period of 20 or 30 years!

 
As you can see from the chart below, the rates for a 20 or 30-year Term are much better for your needs in the long-term. The premiums below are based on that of a 30-year-old male non-smoker for $500,000 who’s mortgage will be paid off in 25 years.




 
While at first glance it may seem cheaper to take a 10-year term; keep in mind that with a 20 or 30-year term you are paying the same rate for those 20 or 30 years which makes a 30-year term more cost affordable in the long run!  When your term comes up for renewal, they always have the option of renewing at a lower term or amount depending on when they will have their mortgage paid off. 
Our friendly staff will help you navigate the different insurance options out there and make sure you make the best decision for your family!

To request a quote on the products we offer, click here.
Alternatively, call: 1-877-242-8820 and press 3 to speak with an insurance coordinator. 

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