Canadian Term Insurance Explained

Published: March 8, 2018

Updated: May 15, 2018



Canadian term insurance may sound like a new idea for individuals who consider whole life insurance to be policy which you pay for all through your life time; however, term insurance is really a better alternative for many persons for a lot of reasons.

Basically, term life insurance is an insurance policy that spans a specific period of time. Whole life insurance policies continue from the time they are purchased until the death of the policy holder but Canadian term insurance could last for a period of 10 years to up to 100 years. Although this may sound similar, the premium you will pay will be much lower but with higher coverage when you purchase term insurance from any of Canada’s major insurers.

Term life insurance is a great protection for breadwinners and younger people because the coverage amount can be selected to cover the amount of car loans, family mortgage, current debts and other problems that you would not want to bother your loved ones with should an accident occur.

When an unforeseen event happens to the breadwinner of a family, the adverse economic implication can be debilitating; but a term life policy can be the help your family needs at such moments. Your premium will not change during the coverage period of your policy so you will always know the exact amount you owe to maintain a good standing with your policy.

Term insurance premiums vary with your age, health, and lifestyle determining what amount you will pay. You can however, use the internet to request for a term life insurance quote to obtain the lowest possible premium. You will get quotes from all the insurance companies so that you can do your own comparison yourself and choose the policy and premium that suits your requirements.

The difference in quotes can be amazingly wide depending on the Canadian life insurance firm and the type of policy or product you are interested in.

Even when all the necessary determinants are equal, some whole life and term rates can still be up to double the rate of the same product offered by another Canadian insurance company.

The fact is that many Canadians with term life or whole life policies from top rated firms in Canada are paying more than is required. Many unknowingly think they have a cheap rate when they could have gotten a cheaper one. For example, a greater percentage of Canadians really qualify for a better health class rating than what they currently have in their present policy. A better health class rating in some policies can drastically affect whole life insurance rates.

Another area where most Canadians are paying excessively is when they buy mortgage coverage from their lenders. Mortgage rates for lenders in Canada are not always priced competitively; so if you’ve got mortgage insurance via your lender, contact an IDC agent/broker to learn how you may save.

Get whole life and term rates for the following territories and provinces:

  • Prince Edward Island
  • Alberta
  • Ontario
  • Manitoba
  • Nunavut
  • Newfoundland and Labrador
  • Yukon
  • British Columbia
  • Saskatchewan
  • Nova Scotia
  • New Brunswick
  • Quebec
  • The Northwest Territories