A lot of Canadians rely on their group life insurance benefits. To protect their loved ones in the event of the insured’s death. The question is though, does this type of life insurance create false security?

There are several questions that you should ask yourself about your group life insurance that you have through your work. One of the biggest questions should be what happens to this life insurance when I am between jobs? There are no guarantees that you are going to remain in the same employment forever. Your company could downsize, and you could get laid off. Or, you could decide that the company is no longer a good fit for you. In these situations,  there are more questions that need to be raised and answered.

What is Temporary Life Insurance?

Insurance

Temporary life insurance is also called term life insurance. It is a type of insurance that gives peace of mind. When it is needed when individuals are at certain places in their life. One of the advantages of this type of insurance is that it is flexible. It is also is less expensive.

Flexibility

It is flexible in that it can be bought to cover a certain number of years. It can be the type of insurance that one wants to keep in place during their working years. If one is in between jobs, they still have the comfort of knowing they have some life insurance in place.

There are options for term life insurance. Such as it can be purchased on an annual basis or in five-year increments. It can be kept in place up until the age of seventy-five. In fact, some insurance companies are now extending coverage up to the age of eighty-five.

Another area where it is flexible is the various amounts that it can be purchased in.

Can I Qualify for Temporary Life Insurance?

You are going to have to meet the criteria to qualify for temporary life insurance. Just like you would for any other type of life insurance. Some of the key factors the term life insurance company may look at is;

  • Your gender
  • The age you are at when applying
  • How much term life insurance you want
  • Your health history
  • The status of your health now
  • When you are a smoker or non-smoker
  • If you consume alcohol
  • The health history of your family
  • Your lifestyle

Where Can I Buy Temporary Life Insurance?

You can buy term life insurance through several of the different life insurance companies in Canada. Many of which have different types of term life insurance packages to choose from. Here are some examples of some of the top insurance companies in Canada that sell temporary life insurance aka term life insurance.

Manulife:

Offers  a few choices for term life insurance

  1. Cover Me Term Life Insurance
  2. Manulife Quick Issue Term Insurance

Great-West Life:

This insurance company has kept their term life insurance offerings simple.  Offering ten or twenty-year terms. With the option to convert at the end of the term.

IA Financial:

This well-known insurance company offers three choices in term life insurance;

  1. Access Life T20 – a simple and basic term life
  2. Pick a Term – offering more choices for personalizing
  3. T10 and T20 – traditional type term insurance

These are just a few examples of many different types of temporary insurance that is available. Which offer protection for those who are concerned about a lapse in their employment.

How Much Is Temporary Life Insurance Going to Cost Me?

The answer to this is going to depend on who you buy your term life insurance from in Canada. There are many top insurance companies to choose from. Here is an example of five well-known term life insurance providers and how their offers differ.

INSURANCE           COMPANY COVERAGE        AGE       MONTHLY PREMIUMS

Manulife                              $150,000                                 42M       $27.

State Farm                          $250,000                                 25F         $15.30

RBC                                      $100,000                                 37M       $12.67

These are just rough examples, with many variables attached to them. For example, being nonsmokers, and the length of term. Also, other conditions that applicants would have to meet.

How Will Temporary Life Insurance Benefit My Family

Family

Temporary life insurance is going to benefit your family as your beneficiaries in many different ways. Such as;

  • Paying for the outstanding mortgage.
  • Providing funds to make up for lost income as the result of the death of the insured.
  • Clearing off joint credit card debt.
  • Taking care of car loans.
  • Paying for the children’s education.

The money from the term life insurance can be used in whatever way the beneficiary feels is best.

These are all good reasons to have term life insurance. It can be devastating to be in between jobs. Having the extra stress of not having proper life insurance coverage just makes the situation worse.

Finding temporary life insurance options can be quick and easy. The ideal way is to get some online quotes. Then the insurance shopper can compare rates, terms, benefits, and premiums. It is a quick way of getting the proper amount of temporary life insurance. With as little hassle as possible.

A lot of employers include life insurance in their benefits package. This is often one of the enticements for workers to join a company. Even smaller companies offer this type of insurance. Statistics show that companies between one to forty-nine employees make up about 11% of the insurance market. When it comes to life insurance and accidental death and dismemberment the market share is about 9%.

So it is not uncommon for many individuals to end up in a situation with their life insurance between employment.

Take the Time to Shop for Temporary Life Insurance

employed

It is common for people to put things off. It is much better to shop for this temporary insurance while you are still employed. Then if unemployment does occur there is one less worry. It only takes a few minutes to get some online temporary life insurance quotes. Then a bit more time to review them. Finally, it will then just come down to choosing the best option.

Resources

https://frasergroup.com/assets/files/GUR/GUR-Public-Release-Canada.pdf
https://www1.manulife.com/Can/affinity/affinity.nsf/public/gp_t5_checkrates
https://www.statefarm.ca/insurance/life/term-life
https://www.rbcinsurance.com/life-insurance/term-life-insurance.html
https://www.manulife.ca/for-you/insurance/explore/life-insurance/term.html
https://www.greatwestlife.com/you-and-your-family/products/protection-for-your-life/term-life-insurance.html
https://ia.ca/term-life-insurance