Term Life Insurance Snapshot:
Term Life insurance is guaranteed protection for which Canadians pay a
fixed amount (premium) to an insurance company for a set period of time
(term) of 10, 20 or 30 years.
The amount to be paid by the policy-holder (the premium) will not increase
during the term.
Upon the insured’s death, the insurance company promises to pay
the agreed upon amount (death benefit), if death occurs while the policy
is in effect.
To help your loved ones (beneficiaries) carry on after your death by providing
funds to handle large financial burdens such as the mortgage, as well
as one-time costs such as your funeral arrangements.
Who would need it:
Most Canadians, especially those starting a family, a serious relationship,
or with a home, would benefit from a Term Life Insurance policy.
Canadian Term Life Insurance
About Canadian Term Life Insurance
What is Term Life Insurance?
Term Life Insurance refers to an arrangement between you and
your insurance company, whereby you pay a fixed amount of money per month
(called a premium), for a term of 10, 20 or 30 years. In return, if you
die during the policy’s term, the insurance company will pay the
death benefit, i.e. $250,000, tax-free, to your spouse, partner, or whomever
you have chosen as your beneficiary, to help take care of financial obligations
such as your mortgage, bank loans and funeral expenses.
Term Life Insurance is a sound and safe way for Canadians to ensure that
loved ones are taken care of in the event of your death.
How much does term life insurance cost?
The most important factor that determines the annual cost (premium) is the amount of coverage that you choose. If the payout is higher the premium will be higher. Other factors include the age, sex, family medical history, whether the insured smokes and other such factors. An interesting fact is that the cost is generally lower for females as their life expectancy is higher.
See our infographic comparing death causes for men and women in Canada. -->
How much life insurance do I need?
The amount of life insurance to buy depends on a number of factors, including
your current debts, your family’s other sources of income, potential
future expenses, and the number of years you wish to continue providing
funds for them. The best rule of thumb is to ask yourself this question:
“How much money will my family need in order to keep living as we
Basically, the purpose of life insurance is to help keep your family’s
lifestyle going smoothly even in the case of your death. How much life
insurance you need, and which type of insurance might be right for you
are decisions best made with the help of a Canadian Life Insurance professional.
Should I get term or permanent insurance?
There are many different types of life insurance, including Term Life
Insurance and Permanent Insurance, and your decision as to which type
to choose will be influenced by factors such as your age, your state of
health, your income and budget, and your life situation i.e. Are you married?
Do you have children, or are you planning to have children?
a family is usually a major turning point for many people in view of life
insurance. With dependent children to care for, the significance of providing
enough resources to see them through to adulthood becomes very real. Many
insurance experts suggest that life insurance coverage be maintained until
your last child turns 18. So, depending on your youngest child’s
current age, you could choose a term policy that lasts until he or she
turns 18, or you could choose shorter, renewable term policies.
Alternatively, you could choose Whole Life Insurance, a form of permanent
insurance which lasts your entire life and has a cash surrender value,
that is, not only does it insure your life, but it also offers an asset
which accumulates in value and can be used as collateral to borrow against.
Your life will change as time goes by - priorities, needs and financial
situations change. So, the type of insurance you need today may differ
greatly from what you will need 20 years from now. Again, a Life Insurance
professional is your best source of guidance regarding the ideal choice
of term insurance for you.
Why should I think about life insurance at all?
For most Canadians, life insurance is not a pleasant or interesting topic
of conversation. We do not want to think about illness, injury or dying,
nor do we like to spend money on something that is not tangible. But should
bad things happen, as they often do over the course of one’s life,
your sound investment will pay off.
How can I learn more about Life Insurance?
This site is here for you. It addresses the topic of Term Life Insurance
in Canada, giving you a quick, no nonsense understanding of what it is,
why you need it, and how much it costs. It also enables you to compare
it to other types of insurance that might interest you.
It’s your money, and it’s your life. We just want to make
sure you get the full benefit from both.
Learn about the types of life insurance
beneficiaries. When you take out a life insurance policy,
you must determine who will receive the benefits of the policy upon your
Also learn about estate planning in Canada. What exactly do you need to know?
Term Life Insurance vs Permanent
Life Insurance – Which is Better?
Is Joint Life Insurance
an Affordable Option?
The Benefits of Family Life Insurance
Naming a Life Insurance Beneficiary or Estate
Medicare: Canada’s Public Health Insurance Plan