Life Insurance

The type of coverage available is known as term insurance, and has no investment component. You're buying life protection that lasts for a period of time and is renewed annually, providing you continue paying premiums.

When one is young, premiums for term insurance are very inexpensive; however, they increase dramatically when moving into the older ages. This premium structure is commonly referred to as Stepped premiums, where the premiums increase each year.

There is an alternative option to the Stepped premium structure known as Level Premiums. The cost is higher at inception, but becomes less expensive as the contract runs. Level Premiums revert to Stepped premiums (with all companies) at the age of 65.

The purpose of life insurance is to provide a cash lump sum to the beneficiaries of the insured person in the event of his/her death. There are a variety of reasons and applications where life insurance can be used. For example, Personal Family Protection, Extinction of Loan Guarantees, Shareholders Protection and Key Person cover. 

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