Life Insurance: Term, Permanent – or both?

Life Insurance: Term, Permanent – or both?


Understanding the difference between permanent and term life insurance will help you choose the protection you need – and prevent regrets in the future.

How would you feel 20 to 30 years after buying a product that has done exactly what it was supposed to do? Pretty good, right? No regrets?

Not so fast.

“I’ve been a financial advisor for over 22 years and I sometimes get calls from clients who bought term life insurance through me 15 or 20 years ago. And you know what? If term insurance is their only life insurance, some of them are no longer happy.” So says Mark Coutts, CFP, CHS, CFDS, RPA, FCSI and president of Coutts Financial Services Inc. in Toronto.

“Twenty years ago, they chose not to buy permanent life insurance. They chose term insurance. So, the reason they’re sometimes unhappy after 15 or 20 years is that the ‘term’ of their term insurance is about to expire and if they want to renew their coverage, the cost is 3 or 4 times what they’ve been paying. They’re not happy, but that’s how term life works and I explained that to them when they bought it, but now they’re facing reality.”

So how do people handle buyer’s remorse after such a long time?

Sadly, some cancel their term policies and lose that protection, so they’re leaving their family’s finances at risk…

To continue reading this article by SunLife, CLICK HERE. As always please contact Harry or David with any inquiries.