It's popular among younger individuals including those that may have kids, debt (including mortgages), or other time limited obligations that they want to ensure they take care of in case they pass away.
Term life is the simplest and most affordable form of life insurance as it does not have an investment component. You can read more about the differences between term, whole, and universal life on our blog.
Walnut does not offer whole or universal life products, but you can talk to an RBC Insurance advisor who can provide those options.
Consider the obligations and individuals you may want to take care of. Are there debts, including mortgages, that you would like to cover in case you pass away? Dependents like spouses or children who depend on your income for everyday expenses or for education? Funeral and other final expenses? And then reduce that amount by any liquid assets like cash, savings, or other investments that could be made available to loved ones immediately.
Term life is the most affordable option to cover time limited obligations. Consider the length of your mortgage or the number of years a spouse may need income or how many years before your children would be independent.
Also consider your budget. The premium is the amount that you are paying for life insurance coverage. The term length determines the number of years that your monthly or annual premium will be fixed. Shorter term lengths will have lower premiums while longer term lengths will have higher premiums. Locking in a premium now for the next 20 years with certainty is a benefit, but comes at the cost of higher premiums for the same amount of coverage.
It's important to note that while you are selecting a term length, you are not forced to keep that coverage for the entire term. Your needs may change over time and you have the option to cancel your policy. Just keep in mind that you will never be as young as you are today and premiums rise as you get older, all things being equal.