Life Insurance

Life insurance plans

A life insurance plan involves the insurance provider paying a lump sum amount to the policyholder’s beneficiaries (i.e. the person(s) designated by the policyholder) when the policyholder dies or to the policyholder when the policy matures, whichever occurs first. There is no restriction on what the lump sum amount can be used for.

While there are many types of life insurance, the most popular (and affordable) one is ‘term life insurance’. As the name suggests, term life insurance offers coverage for a certain period of time and usually comes in lengths of 10, 15, 20, 25 or 30 years. It may also be possible to renew the coverage in increments of one year (known as guaranteed renewability) once the term of the policy expires.

Get life insurance quotes

Why should you secure life insurance

Whether you’re supporting your aging parents, raising young kids, servicing a mortgage, approaching retirement, or more, a life insurance plan gives peace of mind knowing that you and/or your loved ones will be financially protected.

Immediate needs

Your loved ones may need funds to pay for funeral costs, legal fees, credit card debt, etc.

Ongoing needs

The extra money can take the burden off living costs, medical bills, large one-off expenses, etc.

Future needs

Set the cash aside for your child’s tertiary education, you and/or your spouse’s retirement income, etc.

How to secure the best life insurance plan

When it comes to securing a life insurance plan, it’s important to make sure the insurer and plan chosen is compatible with you and your loved one’s needs, as well as your budget. Some helpful tips include:

Consider your current financial situation and the amount of coverage you’ll need
Understand what impacts your life insurance rate*
Shop around for the best quotations, but don’t just focus on the premium

*Typically, these will be health and age.

You can also use a life insurance broker like Pacific Prime Latin America who can guide you and help you apply for life insurance.