Death of a Key Person – Life Insurance Solutions

In the last article we saw how to determine the amount of coverage. Now we'll look at the types.

This is straightforward – in almost all cases the correct solution is a 10 year term life insurance policy.

10 year term life insurance has premiums that are level for 10 years. In years 11+ the premiums increase to the point of being nonsensical making the coverage practical for 10 years, but no longer.

In the world of business and key person life insurance, 10 years is an eon – we aren't generally planning longer than that. So 10 year term is the lowest cost way to get basic key person life insurance. Put the coverage in place and sometime in the next 10 years when it's no longer required, simply cancel it. There are no other financial considerations or benefits with term 10 life insurance – it's like the car insurance of the life insurance world. Pure insurance coverage, level premiums guaranteed, and that's it.

You can use our Key Person Life Insurance Quotes online calculator to shop 10 year term life insurance online now and see prices from about 17 Canadian life insurance companies.