Term life insurance
Term life insurance is the most common type of life insurance in Canada, but there are important things to consider before you make a purchase.Compare quotes today
What is term life insurance?Term life insurance is a life insurance product that covers you for a specific period of time, typically from 5 to 30 years. When you buy term life insurance, you lock in your premium and coverage for the entire term. When your term expires, you may have the option to renew your policy at a higher cost premium or let your coverage expire. Some policies also let you convert to whole life insurance or universal life insurance, typically between one and five years before the policy ends. When you buy term life insurance, you choose the term length (how long you want to be covered for) and your coverage amount (how much you want your beneficiary to receive when you die). If you die within the term set out by your policy, your life insurance company will pay the coverage amount, also known as the death benefit, to your beneficiary.
When should you buy term life insurance?Term life insurance is best for people who have a temporary need for life insurance. Some examples include:
- If you have a mortgage, and want to leave your family enough money to pay it off if you die (assuming you don't have mortgage life insurance).
- If you have young children who need to be provided for.
- If you’re planning to retire and only need coverage for as long as you expect to work.
- Your family situation: If you have young children, how much money would it cost to raise them?
- Your debts: How much do you owe on your mortgage and other loans? Who will be responsible for making payments if you pass away?
- Your income: How much do you make after-tax each year? How long will your family need your income to be replaced?
- Critical illness provides payout if you develop a life-threatening illness like heart disease, stroke, or cancer.
- Children’s term pays out in the event your child dies.
- Accidental death pays an additional benefit if your death is the result of an accident.
- Disability waiver of premium allows you to stop paying your premiums if you become disabled.
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Term life insurance rates can vary wildly, and you can't know what you're eligible for until you get a quote. Receive multiple quotes today so you have all the information you need.