Term life insurance is a type of life insurance that covers you and protects your loved ones for a specified period of time – the term.

The goal of term life insurance is to help put your mind at ease. Should you pass away during the term of your policy, your family and loves ones will receive a lump-sum payout to help ease their financial burdens. It can serve as a financial safety net to cover the mortgage or rent payments, your funeral costs and education costs for kids.

When you buy term life insurance, you typically select a term ranging from 10 to 30 years. Term life insurance is designed to offer financial protection during a specific period of time, when you may have greater levels of financial responsibility.

You’ll find that term life insurance is a popular choice for families with children, mortgage payments or other financial dependencies. Here are five key benefits of term life insurance you should know about.

1. You can customize your term and coverage
   Term life insurance isn’t one-size-fits-all, which is why most policies are personalized based on your budget and the unique needs of your family.
   
   You will have the ability to customize the length of your term and the amount of coverage you need. This flexible nature means you can get coverage when you really need it the most.
   
   But, just because you’ve chosen a 30-year policy, doesn’t mean you’re stuck with that term. You have the option to reduce your coverage over time if your financial obligations change. Alternatively, if you find yourself needing more coverage than you initially thought, you can do what’s known as laddering – when you purchase another policy to increase your financial safety net.
2. You get affordable rates that don’t change
   A common misconception about life insurance is that it’s expensive. But for most people in BC, term life insurance is more affordable than you might think.
   
   Plus, once you buy a term life insurance policy, your rates won’t change for the entire term of your policy. You’ll pay the same amount throughout the duration of your predetermined term, making budgeting and planning much easier.
   
   For that reason, it’s best to get lower rates while you can. Typically, the younger and healthier you are, the lower your insurance rates will be. You keep those low rates for your entire term, as long as your policy is active.



3. It’s simple and straightforward
   Life insurance can seem more complicated than it actually is. While some types of life insurance have more nuance and can be tricky to understand, term life is generally straightforward and easy to understand.
   
   You can enjoy total peace of mind knowing exactly what you and your family are getting.
4. Significant tax advantages
   If you have a term life insurance policy, should you pass away, the pay out is not taxable. This means your beneficiaries will receive the full coverage amount and they won’t have to pay tax on their payment.
   
   On the other hand, permanent life insurance policies can have tax implications that reduce the amount that your beneficiaries ultimately receive.
5. It gives you financial confidence
   One of the greatest benefits of life insurance is that it helps put your mind at rest. In an ideal world, you will outlive your insurance policy term. However, having term life insurance lets you breathe easy, knowing if anything unexpected happens to you, your loved ones will be taken care of financially.

Interested in protecting your family with BCAA Term Life Insurance? Discover how you can put your mind at ease with affordable life insurance coverage that protects your loved ones through every stage of life.

BCAA Members save 10%, plus couples can save an additional 10% in their first year when applying together. If you have children, our policies include $10,000 of coverage for each of your children. Learn more about BCAA Term Life Insurance and get an online quote today!