Term life usually consists of a finite set of years chosen by the policyholder. Should he or she die within this specific time span, then only then could the family receive payment from the insurance company. This is usually offered for 5, 10 or 15 years and may even be renewed or continued if the specific amount lapses. Some policies allow for conversion to other life plan types should the policyholder choose to do so. There are three key factors to be considered in term insurance: Face amount (protection or death benefit), Premium to be paid (cost to the insured), and Length of coverage (term). Various insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or increase. Common types of term insurance include level, annual renewable and mortgage insurance.
If you have further query please contact Canada Insurance Plan.