Life insurance 101
If you’re new to life insurance, it can be overwhelming to sift through all the information. Learn the basics and find out what you need to make an informed decision.
What is term life insurance?
It’s a simple, affordable way to provide financial protection for the people who depend on you.
Term life insurance can give you peace of mind knowing your family is covered. A life insurance policy ensures that if you die, the people you love will receive a lump-sum payout, known as a death benefit.
With term life insurance:
- You choose how long your coverage will last (term length) and the coverage amount your loved ones would receive if you pass away.
- You pay a monthly or annual price for your policy (your premium) for the duration of your term.
- If you die during your term, your beneficiary can use the payout for what they need. People typically use it to help cover expenses like a home mortgage, lost income, and children’s college tuition.
Wonder how much coverage you need?
Our coverage calculator helps estimate how much coverage you need to protect your family.
Permanent versus term life insurance
These are the two main types of life insurance. Each has pros and cons, but term life insurance tends to be more simple and affordable.
Permanent (whole or universal) life insurance
- This type of coverage can last your whole life. It often accumulates a cash value that may increase the death benefit, or be accessed early.
- In exchange for the length of coverage and cash value accumulation, premiums for permanent coverage are typically 10-15X higher than those for term life insurance.
- If the higher premiums are within your budget, permanent life insurance can be an option for those interested in insurance that accumulates a cash value and does not end after a specific term.
Term life insurance
- Term policies last for a specific amount of time (your term), and have no cash value accumulation. You choose the amount of coverage paid out to your beneficiaries if you pass away before your term ends. If you die after your term ends, no death benefit is paid.
- Term life insurance premiums tend to cost 10-15X less than permanent life insurance, making it an affordable option.
- Term life insurance can be a good option for those who are interested in cost-effective coverage for a specific term, without the high expenses associated with a cash value policy.
Employer-sponsored (group) life insurance
Group life insurance typically comes in the form of an employer-sponsored life insurance policy. You might already have some coverage provided to you as an employee benefit.
This type of policy might only provide a fraction of the coverage you need. For this reason, we recommend an individual term life insurance policy to supplement any coverage received through work.
How do you get term life insurance?
The process of buying a term life insurance policy can vary based on the insurance company you choose, but it generally involves the following steps:
Identify your needs
Are you getting a house? Starting a family? Let us know.
Number crunching
Our platform provides you with the right quote via email. If you have questions, or a more complicated need, we’re here to help.
Proposal
We will provide you with a custom proposal that covers what’s most important to you.
Get an instant quote
The traditional paper process can take weeks, even months. Dundas Life speeds up this process, saving you time and money.
The right quote, quickly
Our intelligent quoting platform works without agents to deliver the right solution straight to your inbox
The right quote, quickly
Our intelligent quoting platform works without agents to deliver the right solution straight to your inbox