Here are some Term Insurance Facts
     The premium remains level for the term selected. 
On renewal of the term, the premium will increase as per the contract and the renewal premium increase is substantially higher.

​     You have a few choices you can opt to when you need to decide when your term plan is nearing renewal. 
Choice 1.  Converting the term plan to a permanent plan without any medicals if you are within the conversion period.
Choice 2. Do nothing and continue paying the higher premium.
Choice 3. Cancel the policy if you feel the need for insurance does not exist.
Choice 4. Buy a new plan if you can qualify the required underwriting needs. Underwriting could require medicals or could be as simple as answering medical questions. 

​     The case study provided below is to give you an insight on how you could extend your term coverage for some more years, if you don’t have medical concerns, and don’t want to convert your plan to a permanent one. 

     John is currently 52 years of age. He has a 10-year term coverage of $500,000 with ABC Life Insurance and paying a premium of $ 57.00 per month. He had purchased this plan when he was 45 years of age. At age 55, his premium will increase to $ 355 per month. John can currently qualify for a new 10-year term for $109 per month, which will extend his coverage to age 62.

     With the new plan he will be paying $109 an extra premium of $52 for the next 3 years amounting to $1,872. Thereafter, he will be saving $246 per month for the next 7 years. Instead of paying the renewal $355 premium his new premium will be $109. This results to a substantial savings of $20,664.

​     This strategy saves John a whopping $18,792, after deducting the extra premium of $1,872 he paid in the initial 3 years. 

​     If you would like a no obligation analysis on your current plan, please email or call me.
     Francis D’Costa