Term Life Insurance
What is term life insurance?
Term life insurance is an easy-to-understand and affordable coverage for Canadians. There are different terms that can be chosen such as term 10, 20, or 30 years.
Most insurance companies offer term insurance that is renewable and convertible.
This means that once the term has finished, you will have the option of either renewing your policy for another term or converting that policy into a permanent insurance policy regardless of any adverse health conditions that may have arisen during the term.
The premiums will be fixed and will not increase during whichever term you choose, however, once the term finishes then the insurance will renew at a much higher price.
How long should the term be?
When choosing the length of a term life insurance policy you want to ensure that your coverage will last as long as you need it.
Shorter length terms may seem more attractive initially as they are much cheaper than longer terms, however, you will not save any money in the long run.
Let's compare a few different life insurance terms for a healthy 25-year-old male with a need for $500,000 for 30 years.
|Years||0-10||10-20||20-30||Total Paid (After 30 Years)|
|Term 10 (Monthly)||$27.45||$65.25||$135.90||$27,432|
| Term 20 (Monthly)
|Term 30 (Monthly)||$36.90|| $36.90
Take our Recommendation Quiz and find out exactly how long your term should be.
Who should choose term life insurance?