Term Life Insurance

Protect Your Loved Ones

No one wants to think about his or her own mortality. But, if you have loved ones depending on you for financial support, you should consider the impact if you were to pass away suddenly. Life insurance is designed to help soften the financial blow to your dependents if the unthinkable happens.

Life insurance coverage comes in two main types: Term and permanent. Term insurance is used to meet immediate expenses like short-term debt obligations. Permanent insurance on the other hand, is intended to provide for long-term needs and final expenses.

Affordable Coverage To Offset Income Loss

Term insurance only provides protection for an established period of time or until a certain age. If you die within this period, your beneficiaries receives the insurance proceeds. However, if at the end of the term you are still alive, the policy terminates and the protection ceases. Some term policies may offer renewable and convertible options, allowing you to convert to a permanent policy or to renew your term policy for a specified period of time.

Term insurance is generally priced so that it is more affordable while you are younger and is best suited for families with young children as a way to meet their ongoing financial obligations. It's an ideal way to offset the risk of a family losing one of its key income earners.

A Range Of Insurance Solutions

We can work with you to determine how much insurance you need and which type of insurance is best suited to your needs. Together with Canada's leading insurance providers, we can find a term policy that works for you.

Finding What's Best For You

Determining which type of insurance you need is not always easy. Contact your CIBC Wood Gundy Investment Advisor, who can introduce you to a qualified Estate Planning Specialist (Financial Security Advisor in Quebec). To find out how we can help you, use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you.

Term insurance is usually recommended to meet the needs of families with young children as a way to supplement financial obligations. In particular, it is ideal for situations to offset the risk of a family losing one of its key income earners. If your insurance needs include immediate expenses, like short-term debt obligations, then term insurance is probably the right choice for you.

Term insurance only provides protection for an established period of time or until a certain age. If you die within this period, then your beneficiary receives the insurance proceeds. However, if at the end of the term you are still alive, then the policy terminates and the protection ceases. Most companies will allow you to renew your term insurance until age 75 or 80.

Term insurance is generally priced so that it is more affordable while you are younger. As each term expires, the renewal for the next term would be at a higher price. Therefore, the popularity of term insurance is "geared towards" younger age groups.

In assessing your short-term expenses and needs, you should also provide for all final expenses and any necessary income replacement needs. It may often be difficult to assess the exact amount of your personal debt, because it may vary from month to month. However, overall it would include any outstanding credit card balances and personal lines of credit. By using insurance to provide a lump-sum payment of cash to your beneficiaries, you'll be providing an alternate income source to meet these needs.

Finally, if the expense of insurance is an obstacle, you may want to consider a term policy to bridge the gap until you can afford either a longer-term policy or a form of permanent insurance. Additionally, if you've reviewed your needs and have determined you require coverage for such obligations as paying taxes or capital gains, then term insurance may not be an appropriate choice - you'll need to consider permanent insurance.

Determining which type of insurance you need is not always easy. A life licensed Investment Advisor could assist you to review your insurance options and determine which choices are the best for you.

Use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.