Compare the best term life insurance quotes in Canada
In just a few clicks, we'll help you shop the term life insurance market as we connect you with rates from some of Canada's top term life insurers – your best rate is only a few steps away.let's get started
How to get term life insurance with Ratehub.ca
Tell us a bit about yourself
Start the process by filling out our request form – life insurance is specific to you, so we'll need a few details to customize your policy.
Speak with an insurance broker
We can connect you with over 20 top providers, so a broker will be in touch to help you choose.
Finalize your policy selection
Depending on your situation, you might need a doctor's note or medical exam. Don't fret – you'll be guided through the entire process.
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What is term life insurance?
Matt Hands, VP, Insurance and MoneySense
A term life policy is an insurance product that guarantees a death benefit payout to a stated beneficiary during a specific period time, typically ranging between five to thirty years. So if you pass away during the set term, your loved ones can use this money for whatever they wish – including paying off the mortgage, replacing your income, and financing their education, When you purchase term insurance, your coverage amount and premiums are locked in for the entire length of the policy.
When the term expires, you have the option to either renew our policy for a higher cost or let your coverage expire. Some policies also let you covert the term life insurance to whole life insurance or universal life insurance, typically between one and five years before the term ends.
When you bind your term life policy, you choose the term length (also known as how long you want to be covered for), as well as your coverage amount (also known as how much out want your beneficiary to receive after you die). Only if you die within the term does your life insurance company pay out the death benefit.
When to buy term life insurance
Term life insurance is best for those that have a temporary need for coverage. And this temporary need can extend for many years – in most cases, you can renew your policy for another term or convert it into a whole life plan before it expires. Here are a few situations in which a term life insurance policy could come in handy.
If you have an unpaid mortgage you should definitely consider a term life insurance policy. You want to make sure you can leave your family with enough money to pay off the remainder of the owed mortgage. For example, a typical mortgage term is 25 years, so a term 25 life insurance policy would be a suitable form of coverage length and is a much better insurance option than a mortgage life insurance policy. A house is one of life's biggest investments, it's best to make sure that investment is protected so that your family can continue to benefit from living there after you're gone. Keep in mind, your spouse may not be able to make the mortgage payments without your income, so a life insurance policy will cover that for you - it makes it easier for you loved ones to move on.
How much term life insurance do I need?
One of the most important decisions you need to make when purchasing life insurance is the coverage amount on your policy. To determine the right number, there are three different factors you should consider – your family situation, your debts, and your income. Visit our blog on this topic to learn more about calculating your term coverage needs.learn more
Types of term life insurance in Canada
Term life insurance is a relatively simple product when compared to other types of life insurance, but it's still important to learn about the options you have when shopping around for your policy. So here's a brief overview of three popular types of term insurance plans in Canada.
Level term insurance
Yearly renewable term insurance
Decreasing term insurance
Choosing your term insurance length
So how long should your term life insurance last? While plans typically range between five to thirty years, the right term for yourself will depend on your personal needs – here are a few factors you should consider.
Age & retirement
Mortgage & debt
Common term life insurance coverage additions
Some term life insurance providers allow you to purchase extended coverage – or riders – to protect you against special circumstances. Here are a few examples you can ask your broker about:
- Critical illness insurance – Pays out if you develop a life-threatening illness (e.g. cancer, stroke).
- Disability insurance – Provides a payout in case you're unable to work for a long period of time.
- Accidental death – Pays an additional benefit if your death is the result of an accident.
- Disability waiver of premium – Allows you to stop paying premiums if you become disabled.
- Children’s rider – Pays out in the event your child dies (added as an extension on your policy).
Find your best term insurance quote with us today.
How much is term life insurance in Canada
So what is the average cost of term life insurance? While rates vary on a case-to-case basis, here are approximate premiums for a healthy, non-smoking 35-year-old in Canada. Keep in mind that you won't know the exact price you'll be paying until you compare term life insurance quotes with us – we can help you find your cheapest rate today.
What factors affect term life insurance premiums?
The older you are, the more expensive your term life insurance will be – that's why it's often a good idea to bind your term policy while you're young.
Statistically speaking, the life expectancy for females is longer than the expectancy for males, so your term life rates will reflect this.
Pre-existing conditions, family medical complications, and habits such as smoking excessive drinking lead to higher premiums.
Participating in high-risk activities on a regular basis, such as skydiving, can lead to higher term life insurance premiums.
If you work in a high-risk industry, such as roofing or logging, you may need to pay more for your term policy.
More coverage and longer terms result in higher term life premiums – you'll need to pay more for the additional peace of mind.
What is term life vs whole life insurance?
Does term life insurance expire?
Oftentimes, the death benefit of a term life insurance policy won't be paid out – this is because the coverage can expire if you don't pass away during the set period. If you want to extend your policy term, you can look into renewable and convertible life insurance.
A convertible life insurance policy gives you the option to convert your term policy into a permanent policy. The primary benefit of having a convertible policy is that you won’t have to pass a medical exam to get permanent coverage. So if you’re diagnosed with a serious illness while you have an active convertible term life plan in place, you can still get permanent coverage that may not otherwise be available to you.
Ready to speak with a broker about term life insurance?
Frequently asked term life insurance questions
What term life insurance is best?
What is the most popular term life insurance?
Is term life insurance better than whole life?
Can I sell my term life insurance policy in Canada?
How much term life insurance should I buy?
Can I cash in my term life insurance policy?
Does term life insurance cover accidental death?
Does term life insurance cover disability?
What do I do when my term life insurance expires?
Can I cancel my term life insurance policy?
How do I buy term life insurance online?
When does term life insurance payout?
Is term life insurance tax-deductible?
All about your Ratehub.ca term life insurance quote
Securing your term life insurance online with us is simple – in just a few steps, you can bind your policy from one of Canada's top providers for the best rate possible. Here are our most frequently asked questions about the process, answered.
Ratehub.ca works with partners to help you compare term life insurance quotes from over 20 of Canada's top providers. You won't need to visit multiple brokerages or insurers in order to find the cheapest option for your needs – we shorten the process for you in one go.
Each quote is calculated using the life insurance company's own underwriting process, so you can receive an accurate estimation based on your individualized profile.
Matt Hands, Business Director of Insurance
With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read more