Within each of these two insurance categories, there are various types of policies. The type of policy you select will depend on your specific needs and goals.
Who needs term life insurance?
Term life insurance can be a great choice for people who want affordable coverage for a set period of time. It’s ideal for young families, homeowners with a mortgage, and business owners.
As an example, let’s say you bought a 30-year term policy because you wanted your family to have financial protection for a few decades. If you died during this 30-year period, your family would receive a death benefitThe death benefit is the tax-free payment that your beneficiaries receive after you die..They can then use the money from the death benefit for any reason, such as paying off debts, mortgage/rent, the cost of child care, etc.
If you’re alive and well when the 30-year term ends, then you can reassess your options. By this time, your mortgage or other debts may be paid off and your kids may be all grown up. So, you may decide you don’t need a life insurance policy. Or, you may still need coverage – in which case, you can let your policy automatically renew or convert to a permanent policy.The option to renew a policy may not apply to all term policies. Talk to an advisor for more detailed information.
Sun Life offers term life insurance products with coverage from $50,000 to $25,000,000.
Who needs permanent life insurance?
Permanent life insurance is a great choice for people who are looking for lifelong coverage. It’s also helpful for those who want to have cash value within a life insurance policy. Cash value can grow over time and you can always borrow or withdraw money from it.It’s important to note that withdrawing from your cash value may reduce the amount of money in your policy’s death benefit. Cash value may be available depending on the type of policy you choose.
