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The Gold Standard
They are the Gold Standard of Client Experience. The whole process was simple, hassle-free, uber transparent and all of this at no cost. Our advisor’s knowledge and attitude reeled us in from the first call. We felt as if we were premium clients.<...
Lipika
Knowledgeable and helpful
Very knowledgeable and helpful in determining the best plans for my son and I and he took the stress out of the process. Fully explained all of the options available to me, and answered all of my questions. I know that I made an informed decision ...
Franz T
Skeptical to believer
First I was skeptical about high reviews but anyways PolicyAdvisor. I could see that they are trying to give best details they have and guide us to choose policy rather than selling it. Rarely I type in reviews. I can say that PolicyAdvisor is wor...
Meenakshi N
Excellent service
Thank you for the excellent customer service. You’ve been very supportive in all our questions. After the video call, he didn’t really push to sell. We appreciate your time, and support in giving us updates and follow-ups and phone calls until we ...
Jessa Y
Genuinely Cared
My advisor genuinely cared about making sure I was comfortable and informed throughout the process, and patiently answered my many questions. He also always followed up to make sure I was up to date on my application process.
Jessica F
Simpler than expected
Answer all our questions in a timely manner, and the process was much more simple than I was expecting. We had our life insurance sorted and approved within a few days. I really like that they did the comparisons of policies for us.
Joanne V
Life Insurance made easy
Was looking for a life insurance policy and the search was exhausting by conventional means, until I found PolicyAdvisor. My representative was excellent, and explained all my options and preferred quotes. Life Insurance made easy, thank you all a...
Pedro
Unbiased advice
If you’re looking for best rate and an advisor, I would highly recommend PolicyAdvisor. They are expert in finding the best insurance provider. They are reliable and give unbiased advise. I’m glad I came across Policy Advisor online as they helped...
Zeny D
A walk in the park
I was able to derive a personalized quote within a minute. From there on it was as smooth as taking a walk in the park. I did not have to wait in long lines, could chart my progress, and had full control of my application.
Mayank
Super easy
I’d previously reached out to one of the big insurance companies directly but found them so unresponsive and uninterested. I’m glad we found PolicyAdvisor. They made comparing options easy so we found something that worked for our need...
Lindsay
What is term life insurance?
Term life insurance is a type of life insurance that lasts for a specific period of time, which can be a fixed number of years or until you reach a certain age. You pay a level premium to the insurance company until the expiry of the term.
In return, your beneficiaries are entitled to receive a tax-free, lump-sum death benefit if you die within the term of the policy. Once the term ends, your coverage also expires and you can stop paying premiums.
The term in term life insurance refers to the exact time period you are covered.
Some typical terms are:
- 10-year term
- 20-year term
- 30-year term
- Until age 65
Additionally, some insurance providers let you pick your own term between 5 and 40 years that best suits your needs. These are all examples of level term policies where the death benefit and monthly premium remain the same through your chosen term.
Lastly, there are specific term policies for unique applications:
- Annual Renewable Term: A short-term life insurance policy that locks in your premiums for one year and can be optionally renewed at the end of each year. Sometimes referred to as Yearly Renewable Term.
- Decreasing Term Policies: A form of term life insurance where the death benefit decreases in later years of the policy.
How does term life insurance work?
Term life insurance is a contract between you (the individual being insured) and a life insurance company (the insurance provider you choose). The insurance company agrees to make a lump sum, tax-free payment to a beneficiary should you (the insured individual) die during the entire term of the policy.
Life insurance providers use detailed statistics and actuarial models in the application process to determine the premiums for this coverage. Premiums are the monthly or annual fees you pay to ensure your policy is in force. Insurance companies use this data to assess life expectancy and the likelihood they will have to pay out the full death benefit. If the likelihood is higher, the premium rates are higher. If the likelihood of a payout to your beneficiaries is lower, the premiums are lower (or you may even qualify for preferred rates).
A beneficiary is a person (or people) the policyholder chooses to receive their death benefit. While they are typically a spouse, partner, or children, the beneficiary can be anyone you choose, including charities or trusts.
In some cases you may need to go through a medical exam to qualify for your term life insurance policy, but there are no-medical insurance options for those who wish to skip medical underwriting.
Unlike other types of life insurance, term policies hold no cash value or savings component. This is one of the reasons why term life insurance is one of the most cost-effective insurance plans for Canadians.
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What does term life insurance cover?
A term life insurance policy can cover any expense or lost income that disappears when an insured individual dies.
For example, the death benefit from term life insurance coverage can pay mortgage payments, outstanding loans and credit card debt, children’s education costs, income replacement, cost of living expenses for dependents, and funeral costs and expenses.
The lump-sum payment from a death benefit can be used however the beneficiary chooses to help them grieve or retain their quality of life after the loss of your income.
Does term life insurance cover accidental death?
Simply put, term life insurance pays out for most causes of death and does not differentiate between natural death, one due to terminal illness, or accidental death.
With that in mind, it is important to know that some policies contain exclusions for life insurance payouts. These exclusions can include deaths that occur in certain restricted geographic locations, if it’s discovered you lied on your application, if the death occurred during an illegal activity, and others.
Does term life insurance cover disability?
Term life insurance policies do not cover disability by default. You can add disability riders to many insurance policies to cover circumstances where you are injured or ill and are no longer able to earn an income. For more robust disability coverage, you can purchase an individually owned disability insurance policy that can be tailored to your needs and income level.
How much does term life insurance cost?
The cost of a term life insurance policy depends on personal factors and the details and depth of your desired coverage. Age, smoking status, and health are some of the biggest personal determiners of the cost of a term life policy.
A term policy is less expensive when you are younger, non-smoking, and in good health. Generally, term life insurance costs less than permanent policies. While we can’t give you a one-size-fits-all premium payments cost here for different amounts of coverage, an experienced advisor (like us) can help you find the best coverage within your budget. You’re in the right place to find affordable life insurance to secure your dependents’ financial future!
Pro tip: You can save on insurance coverage if you opt for annual premiums: paying your premium yearly instead of once a month. The annual cost can be 10-15% lower than if you pay your premiums monthly. Ask your advisor about it!
Get complete details about the cost of life insurance in your 20s, 30s, 40s, and 50s.
| Age | Male | Female |
| 25 | $31 | $22 |
| 35 | $33 | $26 |
| 45 | $75 | $54 |
| 55 | $223 | $155 |
| 65 | $716 | $487 |
Term life insurance premiums, $500,000 death benefit, non-smoking, 20-year term
What happens after your term life insurance ends?
Depending on your policy, you may have four options for how you proceed with coverage when your initial term life insurance policy ends.
What to do when your term life insurance expires?
1. Let your coverage lapse: If you decide you no longer need life insurance coverage, you can let your policy expire and go on without an active policy
2. Renew your coverage: If you opted for renewable term life insurance coverage with your current provider, you can renew coverage without a medical exam or medical questions – but at a higher premium
3. Convert your coverage: You may also have the option for convertible term life insurance – turning your current coverage into a permanent life insurance policy
4. Get a brand new life insurance policy: If you are at the end of your term and still need coverage, applying for a brand new term or permanent policy may be the least expensive way to continue your coverage
What’s the difference between term life insurance and whole life insurance?
Term life insurance and whole life insurance are different ends of the protection spectrum. While we’ve already described term life insurance’s temporary nature, whole life insurance offers coverage for life. It is a lifelong policy and is in force as long as your policy premiums are paid.
While term life insurance provides coverage for temporary needs like diminishing mortgage debts and providing for dependents, whole life (or permanent) insurance can provide for permanent needs and cover you for your entire life. This can include providing for final tax expenses, funeral arrangements, or leaving a tax-advantaged legacy behind for children or grandchildren.
Read more about term versus whole life insurance or other types of life insurance like universal life insurance and term-to-100 insurance.
Frequently asked questions
Almost all life insurance companies offer renewal options as one of the benefits of term life insurance policies. For example, if your term life policy is for 10 years, the coverage automatically renews at the end of the term for another 10 years, unless you specifically cancel your coverage. However, the renewal is subject to a higher premium (and many Canadians can still get approved for a lower premium by applying for brand new coverage).
Most companies allow for renewal of the policy up to a certain age, such as 70 or 75 years old. Once you reach that age, the policy can no longer be renewed and the coverage expires.
PolicyAdvisor helps Canadians find the best life insurance policy for their needs. But let’s be frank. There is no best insurance provider. There is – however – the best insurance provider for you.
The country’s top insurance companies offer unique policies to fit every Canadian’s individual coverage needs. What helps is having the choice and knowledge to pick the policy and provider that’s right for your situation.
That’s why PolicyAdvisor partners with 30+ of Canada’s top insurance companies – the most by any online broker. We make sure you have the greatest number of options when choosing the insurance company to protect yourself and your loved ones. We can help you obtain a life insurance plan from Assumption Life, BMO Insurance, Canada Life, Canada Protection Plan, Desjardins, La Capitale, Empire Life, Equitable Life, Foresters, Humania, iA Group, ivari, Manulife, RBC, Sun Life, SSQ, and Wawanesa.
As mentioned above, the main factors by which all life insurance providers determine their premiums are age and health. Considering those criteria, the earlier you apply for life insurance coverage, the better! Applying while younger is also advantageous as it is less likely any health conditions have affected you, which would further drive up the cost of your premiums.
Anyone with dependents or loved ones needs life insurance, but due to their circumstances single parents often bear a greater responsibility in the raising and protection of their children and that extends to life insurance and financial protection.
Yes, you can buy insurance for your loved ones but not without their consent or without their knowledge that their life is being insured. The only exception would be in the case of children below the age of consent where you are their legal guardian. In short, we’ll need to speak to anyone you intend to insure - including your loved ones.
How long your term life insurance policy lasts should correlate with your life insurance needs.
A 30 year term life insurance policy can help cover a new mortgage. A 20 year term life insurance policy can provide financial security for a new family. A 10 year term life insurance policy can be used by a senior to cover final expenses or replace income for those they leave behind. You have the flexibility with online term life insurance to choose the length of policy you need, like those above, or other term lengths like 25 year term life insurance, 40 year term life insurance, or something in between.
