Basics

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BASICS
REVIEWS
COMMON INQUIRIES
IN THIS ARTICLE

  • What Is A 5-Year Term Life Insurance Policy

  • Why Choose a 5-Year Term Life Insurance Policy?

  • Common Struggles When Deciding on 5-Year Term Life Insurance

  • Key Features of a 5-Year Term Life Insurance Policy

  • Who Can Benefit from a 5-Year Term Life Insurance Policy?

  • Comparing Term Life Insurance Rates in Canada

  • What Sets Canadian LIC Apart?

  • Factors to Consider Before Choosing a 5-Year Term Life Insurance Policy

  • How to Get Term Life Insurance Quotes in Canada

  • Real Success Stories from Canadian LIC

  • How Does a 5-Year Term Life Insurance Policy Compare to Other Term Lengths?

What Happens After 15 Year Term Life Insurance?

Canadian LIC
Canadian LIC

By Harpreet Puri

CEO & Founder

  • 11 min read
  • January 27th, 2025

SUMMARY

 The blog discusses what happens after the completion of a 15-year Term Life Insurance Policy. It talks about renewal of the policy, conversion into a permanent plan, or buying a new one. It further discusses factors affecting premiums, cash value for permanent policies, and other tools that include the calculation of cost, like Term Life Insurance calculators. The blog also shares the expertise of Canadian LIC, providing insights into Term Life Insurance rates to help clients make informed decisions.

Introduction

Life is unpredictable. It’s enough to cause headaches in planning anything for the future. You would have been judicious by opting for a 15-year Term Life Insurance; you ensured your family’s financial future was economically settled. The policy is now to be closed down, and questions start coming about the next step: renew or convert or allow it to lapse. That’s the dilemma so many face. Canadian LIC has dealt with over a thousand similar clients who found themselves in similar predicaments. Let’s explore it.

The Nature of a 15-Year Term Life Insurance Policy

Canadian LIC

A 15-year Term Life Insurance provides cover for a specific period. It is the simplest product that attracts the attention of those who wish to provide cover to their loved ones for the critical financial years. For example, many customers at Canadian LIC prefer this cover when they have young children or are paying considerable debts such as a mortgage.

Unlike permanent life insurance, term life does not invest or generate a cash value component. This can be a good feature for people who want coverage with higher payouts at a lower premium. Tools like a Term Life Insurance Calculator Canada are often helpful in determining the costs of such policies. But what happens when the term ends?

Options After the Term Ends

There are a number of choices once your 15-year Term Life Insurance Policy matures. Each option has its pros and cons. Let’s go through each of them one by one:

1. Renew the Policy

The most widely used is a renewal of the existing Term Life Insurance Policy. Most of the policies allow automatic renewal without a medical test; however, the renewal is also associated with the disadvantage that the premium increases very highly with age.

For example, Canadian LIC just helped a customer who used to pay $30 monthly for his $500,000 policy. When he renewed it, he was surprised when the premium doubled to $150 monthly. It’s because your age and health determine the renewal premium at the time of renewal.

If renewals are on your mind, then tools such as a Term Life Insurance calculator in Canada will help you calculate the new Term Life Insurance Premiums.

2. Convert to a Permanent Policy

It is possible to convert your Term Life Insurance into a policy with Permanent Coverage. For instance, Permanent Life Policies carry lifelong coverage and gather cash values with time. In contrast to the premiums, this kind of policy attracts people who would like certain coverage and to save.

Many of the clients of Canadian LIC do this, particularly if their good health has deteriorated, and it may be challenging for them to purchase a new policy. The bright side? The majority of Term Life Insurance Policies are convertible without a medical examination.

3. Purchase a New Term Policy

You could actually buy a new policy if you are still healthy and you have to renew for another term of the insurance. You may then buy another 15-year Term Life Insurance, but you can be given options on 20 or 30-year terms as per your preference.

Working with Term Life Insurance Agents can make things easy. They can help compare term life quotes online and get a policy tailored for you.

4. Let the Policy Lapse

Some people simply allow their Term Insurance to lapse when there are not nearly as many significant financial responsibilities around. Perhaps their children are raised, or a mortgage is fully paid off. It can mean you can save money on premiums but weigh that against how much your family may still require financial safety.

Factors to Consider When Deciding

Choosing what to do after your 15-year Term Life Insurance Policy ends requires careful thought. Here are some key factors to weigh:

Your Financial Obligations

Consider your current situation. Do you have anyone who relies on the money coming in for their welfare? Is any outstanding debt, like a house or school loan? Then, you must retain some type of life insurance coverage.

Your Health Status

Health is the other area where your choices play a role. If your health has worsened, a renewal or conversion of the existing policy might be easier to apply than a fresh new one.

Your Age

Age affects the cost and availability of life insurance. With age, premiums increase, and some policy types become unavailable. Calculators such as a Term Life Insurance calculator in Canada may help determine the true costs better.

The Role of Cash Value in Permanent Policies

Among the most common questions asked of Canadian LIC, we find inquiring minds that want to know about Term Life Insurance Cash Value. While Term Life Insurance doesn’t help build cash value, conversion to a permanent form of policy may prevent this facility from being able to do so. It can be used in various ways to supplement retirement incomes or fund key expenses.

For those who converted their policies, the introduction of cash value was a complete change. It doesn’t just ensure financial security but provides flexibility in the financial planning arena.

Why Seek Professional Guidance?

There are not many one-size-fits-all decisions regarding life insurance. In fact, experience with seasoned Term Life Insurance Agents can be invaluable. Such people know their stuff and will find you a way to pursue that which fits your objective.

At Canadian LIC, we have personally guided hundreds of customers through the maze of Term Life Insurance terminations. From comparing online quotes for Term Life Insurance to explaining the benefits of converting to a Permanent Plan, our team is dedicated to helping you make informed decisions.

Term Life Insurance in Ontario, Canada

There are not many one-size-fits-all decisions regarding life insurance. In fact, experience with seasoned Term Life Insurance Agents can be invaluable. Such people know their stuff and will find you a way to pursue that which fits your objective.

For instance, a family based in Toronto needs to be saving for the sky-high cost of living, while a retiree in a small town needs to protect his savings. Through our services across different parts of the province, Canadian LIC was able to meet these diverse insurance needs.

Real Client Experiences

We have lately supported a client who was about to end his 15-year term policy. His main concerns were the higher Life Insurance Premiums, but still, he wanted the spouse to be covered. Based on his goals, we transferred the term policy into a Whole Life Insurance Contract. The new policy enabled lifetime coverage, plus it accumulated cash value.

There’s another case: a young professional in Ontario chooses to buy another new 20-year Term Life Insurance Policy because the term ends. He also used a Term Life Insurance calculator in Canada, thereby finding an inexpensive premium to cover his budget.

Making the Right Choice for You

It’s not the end of your financial planning journey with the end of a 15-year Term Life Insurance Policy. It is the opportunity to review your needs and choose a path that will continue to secure your loved ones. Whether it is renewal, conversion, or exploring new options, the key is to act in time.

Taking Action with Canadian LIC

At Canadian LIC, we are here to help guide you through these vital decisions. From comparing Term Life Insurance Quotes Online to calculating the premiums with our Term Life Insurance Calculator Canada to finding policies suited to your particular needs, we have experienced Term Life Insurance Agents to guide you through it.

Consider your situation now. Have you got some person who depends on such money coming to sustain his life? Is there any such outstanding debt, such as a house, school loan, etc.? Then, it is necessary for you to continue some form of Life Insurance Coverage.

More on Term Life Insurance

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FAQs About What Happens After a 15-Year Term Life Insurance Policy

The Term Life Insurance will end when the 15-year term ends. You have options to renew, convert it into a permanent policy, or purchase another Term Life Insurance. Renewals often cost more than the initial cost, so it’s useful to know how much the Term Life Insurance rates are to plan ahead.

Yes, almost all Term Life Insurance Policies permit renewal. Nevertheless, the renewed premiums are pegged on your current age and health. The rates will, therefore, be higher compared to what you paid during the original term. Comparing quotes for Term Life Insurance online can give you the best choices.

Conversion into a Permanent Policy might be a very good option if lifelong coverage is what you need or you build up cash value. Many of the clients coming to Canadian LIC find this useful as they would not have to renew term cover after some years, which they want not to think about any longer. Let’s discuss with the agents selling Term Life Insurance as they can advise better.

Use the Term Life Insurance calculator in Canada to estimate what the new premium would be according to your age, health, and coverage amount. It is extremely useful in preparing for higher premiums at the end of the term.

Age, health condition, and coverage amount are deciding factors of Term Life Insurance rates. Pre-existing health conditions or smoking increases premiums significantly. Term Life Insurance Agents working for Canadian LIC are always there to guide clients in making the proper choices.

Yes. You may obtain a new Term Life Insurance Policy if you still require coverage. It might be cheaper to renew the policy if you are quite healthy. Many clients use Term Life Insurance Quotes Online to compare different options and then select a new policy that suits their requirements.

Most Term Life Insurance covers start immediately following approval. Nonetheless, the process of applying often involves a medical exam and underwriting, taking some time to complete. An individual can quicken the process by consulting Term Life Insurance Agents.

Since your personal finances may have changed, for example, you may no longer have dependent children or have paid up your mortgage-you probably no longer need life insurance. Most of the clients with Canadian LIC reassess their current situation to determine whether continuing Term Coverage is still necessary.

Permanent Life Insurance Plans accumulate a cash value that can be drawn upon in retirement or to pay for other needs. The benefits are generally much more valuable than the additional expense for most clients.

Online Term Life Insurance quotes are good estimates of costs but may not include all factors, like a patient’s medical history. Canadian LIC agents recommend the use of quotes as a starting point for consultation with a professional for detailed analysis.

Assess your financial goals, dependents, and liabilities. A Term Life Insurance calculator in Canada helps the person to know an estimate of the coverage he requires. Canadian LIC agents would guide clients through this process to make an informed choice for them.

This means you may have an opportunity to reduce premiums if you opt for a smaller coverage amount or select the coverage term. You may also find cheaper Term Life Insurance rates by comparing them and working with agents who understand your needs.

In Ontario, Canada, Term Life Insurance offers competitive rates but is primarily dependent upon the individual basis. Most customers use Term Life Insurance Quotes Online to evaluate the unique options created in their location and according to their needs.

Canadian LIC’s experienced agents meet with clients daily to discuss Term Life Insurance plans, compare online quotes, and make the right choices. The personalized approach guarantees you find the right coverage for your family’s needs.

Your coverage will lapse if you miss the renewal period. You may need to apply for a new Term Life Insurance plan, involving a medical exam and paying higher premiums. Always act soon so you will not end up losing your coverage.

get Term Life Insurance Quote

Sources and Further Reading

Government of Canada – Life Insurance Information
https://www.canada.ca/en/financial-consumer-agency/services/insurance/life-insurance.html
This resource provides a comprehensive overview of life insurance options in Canada, including term policies and their features.

Insurance Bureau of Canada – Understanding Life Insurance
https://www.ibc.ca/on/insurance-101/types-of-insurance/life-insurance
The Insurance Bureau of Canada offers insights into various types of life insurance policies, helping consumers make informed decisions.

Canadian Life and Health Insurance Association (CLHIA) – Resources for Consumers
https://www.clhia.ca/web/clhia_lp4w_lnd_webstation.nsf/page/FAQ-InsuranceProducts
CLHIA provides answers to frequently asked questions about life insurance products, including term and permanent policies.

Financial Consumer Agency of Canada – Managing Life Insurance
https://www.canada.ca/en/financial-consumer-agency/services/insurance/managing-life-insurance.html
This guide helps Canadians understand how to manage their life insurance policies effectively, including what to do at the end of a term policy.

Key Takeaways

  • Options After a 15-Year Term Ends: When your 15-year Term Life Insurance Policy ends, you can renew it, convert it to a permanent plan, or purchase a new policy. Each option has its own benefits and considerations.
  • Renewal Increases Premiums: Renewing your policy often leads to higher premiums due to age and potential health changes. Use a Term Life Insurance Calculator Canada to estimate costs.
  • Permanent Policies Build Cash Value: Converting to a permanent life insurance plan offers lifelong coverage and the benefit of cash value growth, which can be used for future financial needs.
  • Affordability of New Policies: If you’re in good health, purchasing a new Term Life Insurance Policy can be more cost-effective than renewing the old one. Comparing Term Life Insurance Quotes Online helps find the best deals.
  • Customized Coverage for Ontario Residents: Term Life Insurance rates in Ontario, Canada, vary widely. Tailor your policy to meet your financial obligations, whether you’re supporting dependents or managing debts.
  • Guidance is Essential: Working with experienced Term Life Insurance Agents simplifies decision-making. They can help you evaluate Term Life Insurance rates and recommend plans suited to your needs.
  • Plan Early for Coverage Gaps: Avoid coverage lapses by acting promptly when your term ends. This ensures your family’s financial security remains intact.
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