Term Life Insurance Quotes
Term life insurance provides affordable financial protection for a set period. If you die while the policy is in force, your beneficiaries receive a lump-sum death benefit that is generally tax-free.
It can be used to replace income, pay off a mortgage or other debts, fund children’s education and protect your family during the years they depend on you most.
At A Glance
- Protect your family with a lump-sum death benefit if you die during the term
- Choose the coverage amount and term based on your financial obligations and how long protection is needed
- Keep premiums predictable with many level term policies offering guaranteed premiums during the term
- Compare options from multiple insurers to find coverage that fits your needs and budget
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My Simple Process
1. Learn
Arm yourself with the knowledge you need to make the right decision and learn all there is to know about term life insurance.
2. Consult
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3. Apply
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4. Servicing
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The Basics
What is term life insurance, and how does it work?
Term life insurance—also called term insurance for short—is the simplest form of life insurance coverage. It pays a tax-free lump sum to your chosen beneficiaries if you pass away during a set period, usually 10, 20, or 30 years. It’s an affordable choice, as it has guaranteed level premiums during the term, and does not have extra savings or investment features.
After the term, coverage ends unless you renew it at a higher premium or convert to a permanent plan. Term life insurance is popular for covering short- to medium-term needs like a mortgage or raising children.
Learn more about what term life insurance is and how it works.
How much term life insurance do you need?
The amount of coverage you need depends on your income, debts, mortgage, savings, future expenses and the financial support your family would need if you died.
A proper needs analysis can help determine an appropriate amount rather than relying on a simple rule such as buying five or ten times your income.
How much does term life insurance cost?
The cost depends on factors such as your age, health, smoking status, lifestyle, coverage amount and term length.
Term insurance is generally less expensive than permanent life insurance because it provides temporary protection without a cash-value component.
How long should your term life insurance last?
Your term should generally match the period during which your financial obligations or dependents would need protection.
For example, you may choose a term based on the length of your mortgage, the years until your children become financially independent or the number of years until retirement.
Learn more about choosing the right life insurance term length.
What happens when your term ends?
When your term ends, your options depend on the policy. You may be able to renew the coverage, convert it to permanent insurance, purchase new coverage or allow the policy to end.
Renewing can be significantly more expensive because premiums are based on your age at renewal, so it is important to understand your options before the original term expires.
Is the death benefit tax-free?
Yes, the death benefit from a term life insurance policy is typically tax-free for beneficiaries in Canada. This is because the premiums are paid with after-tax dollars, meaning taxes have already been deducted from the funds you use to pay for the policy.
As a result, your beneficiaries receive the full death benefit without tax deductions, allowing them to cover expenses or debts without additional tax liabilities. This tax-free benefit is one of the key advantages of life insurance, providing financial support in a straightforward and effective way when it’s needed most.
Learn more about whether life insurance proceeds are tax-free.
Dive Deeper
What are the pros and cons of term life insurance?
Term life insurance’s main advantages are affordability, simplicity and the ability to secure a large amount of coverage for a defined period.
The main limitation is that coverage is temporary and the policy does not build cash value. If you outlive the term, there is no payout.
Should you get term life insurance or mortgage life insurance?
Both can provide protection against the financial impact of death, but they work differently. With individual term life insurance, you own the policy, choose the beneficiary and determine the amount of coverage.
Mortgage life insurance is generally tied to the mortgage and is designed primarily to repay the outstanding loan. Compare the ownership, beneficiary, coverage, premiums and portability before choosing coverage.
Here’s a table summarizing these and other benefits of term life insurance over mortgage life insurance.
| Individual Term Life Insurance | Mortgage Life Insurance | |
|---|---|---|
| Ownership | You are the owner | The lender is the owner |
| Beneficiary | You can choose the beneficiary | The lender is always the beneficiary |
| Portability | Because you own the policy, you can keep it no matter who your mortgage is with | Once you switch lenders, you'll have to qualify for coverage again |
| Death Benefit | Level over the life of the policy | Decreases as the mortgage is paid off |
| Underwriting | Occurs at the time of application so your coverage is guaranteed | Post-claim underwriting means the lender can review your application after your death to determine if you qualify for coverage |
| Licensed Agent | Yes, only licensed life insurance agents can sell term insurance | No, it is not mandatory for bank representatives to meet licensing or education requirements |
| Expiry | Expires at the end of your chosen term, or sooner should you want to cancel it | Expires when the mortgage is paid off without an option to keep it for a longer period |
| Cost | Less expensive | More expensive |
| Guaranteed Rates | Yes, the premium is guaranteed for the duration of the policy | No, the lender can raise the premium at any time |
| Amount Of Coverage | You can choose how much coverage to buy | The coverage must equal the mortgage balance |
| Preferred Rates | If you are healthy, you can qualify for preferred rates | Preferred rates aren't available |
| Conversion | You can convert a term policy into permanent insurance | Not convertible |
| Riders | You can add riders to customize your policy | Riders aren't available |
| Payment Frequency | You can choose how often payments occur | The premium is embedded into the mortgage payment |
| Major Medical Conditions | You can still qualify for insurance but likely at a higher rate | You are declined coverage |
Do you need term life insurance if you're already covered through your employer?
Employer-sponsored life insurance can provide valuable protection, but it may not be enough to cover your family’s financial needs.
Consider the amount of coverage, portability, conversion options and what happens if you change jobs. An individual term policy can help fill gaps and provide coverage that stays with you when your employment changes.
Are there any benefits or riders you can add to your term life insurance policy?
Many term policies offer optional riders that can customize your coverage. Depending on the insurer, these may include guaranteed insurability, disability waiver of premium, child coverage or other additional benefits.
The availability and cost of riders vary by insurance company, so it is worth comparing them when choosing coverage.
What are your options for term life insurance as a couple?
As a couple, you have two main options for term life insurance: purchasing individual term policies or opting for a combined joint first-to-die policy. With individual policies, each person is covered separately, and both policies pay out when each insured person passes away.
By contrast, a joint first-to-die policy covers both of you under one policy and pays the death benefit upon the first death. You can choose this option to cover shared financial obligations, like a mortgage, since the payout can help the surviving partner manage immediate financial needs.
Do you have to name your spouse as your beneficiary?
No, you don’t have to name your spouse as your beneficiary on a term life insurance policy. While it’s common to name a spouse, you can choose other beneficiaries such as your children, grandchildren, siblings, or parents.
Minor children can’t directly receive the death benefit, so it’s important to designate a trustee to manage the proceeds until they reach the age of majority. Selecting an appropriate beneficiary ensures that your intended recipients will have financial support when it’s needed most.
Can you buy term life insurance for your spouse or children?
Yes, it is possible to purchase life insurance on a spouse or child when there is an insurable interest and the insurer’s requirements are met.
Standalone term coverage for children is not commonly available from every insurer, but child riders or other types of coverage, like whole life insurance, may be available.
Can you have multiple term life insurance policies?
Yes. You can own multiple term life insurance policies, and some people use a strategy called life insurance laddering to match coverage to different financial needs.
For example, a shorter policy could cover temporary debt while a longer policy provides income replacement while children are dependent.
What is the difference between level term and decreasing term life insurance?
A level term policy has a fixed death benefit throughout the policy’s duration, while a decreasing term policy’s death benefit gradually reduces each year.
Decreasing term insurance is more affordable and may be ideal if you’re on a tight budget with a need for coverage that declines over time, such as paying down a mortgage or other debts that diminish gradually.
Is term life insurance available for business protection purposes?
Yes, term life insurance can be used for various business protection purposes. It’s commonly purchased to fund a buyout of a deceased partner’s share, which helps maintain business continuity and avoids ownership disputes. It can also cover business loans or other debts, ensuring these obligations are met even if a key person passes away.
Additionally, term life insurance can provide a financial cushion to stabilize the company if a vital shareholder dies, giving the business time to recover without facing immediate financial strain.
Can you get term life insurance if you have health problems?
Yes, depending on your circumstances. The insurer will consider factors such as your diagnosis, treatment history, current symptoms, medications and overall health.
Depending on the risk, coverage may be offered at standard rates, with a higher premium (rated), with an exclusion in certain situations, or may be declined.
Some insurers also offer simplified or guaranteed issue term policies, which involve fewer health questions but typically come with higher premiums and lower coverage limits.
Can you get term life insurance if you have hazardous hobbies?
Yes. Insurers can consider activities such as skydiving, scuba diving, backcountry activities, aviation and other higher-risk hobbies when underwriting your application.
Depending on the activity and your level of participation, the insurer may charge an additional premium or apply an exclusion.
Learn more about how hazardous hobbies affect life insurance.
Can you get term life insurance if you are a smoker?
Yes, but smokers generally pay significantly higher premiums than non-smokers because smoking increases the insurer’s assessment of mortality risk.
If you stop smoking and remain tobacco-free for a year, you may qualify for a non-smoker classification depending on the insurer’s rules.
Can you get term life insurance if your are self-employed?
Yes. Without access to employer-sponsored benefits, it’s essential to purchase term life insurance to ensure your family is financially protected.
In addition to term life insurance, disability and critical illness insurance are critical, as these will help safeguard your income in case of illness or injury, providing a financial cushion when you’re unable to work.
Can you get term life insurance if you are unemployed?
Possibly. Insurers will generally consider your financial circumstances and the amount of coverage requested when determining whether there is a valid insurance need.
The amount of coverage available may be limited while you are unemployed, depending on the insurer and your circumstances.
Can you get term life insurance if you are retired?
Yes, but the need for term insurance often changes after retirement.
You may still need coverage for a mortgage, dependent family members, business obligations or other temporary financial needs. If the need is expected to continue for life, permanent insurance may be worth considering.
What is the underwriting process for term life insurance?
The underwriting process starts with your application and questions about your health, medical history, lifestyle and other factors that affect your risk.
Depending on your answers and the amount of coverage requested, the insurer may ask for medical records, an exam, blood or urine testing or other information. An underwriter then reviews the evidence and decides whether to approve the application and at what rate.
What is no medical life insurance?
No medical life insurance is a type of life insurance that does not require a medical exam to qualify. It’s designed for people who want a faster, simpler application process or have health concerns that might make traditional life insurance harder to get.
There are two main types of no medical life insurance:
- Simplified issue life insurance: This option skips the medical exam but still includes a short health questionnaire with basic yes-or-no questions. It’s ideal if you’re in fair health and want a more affordable premium than guaranteed issue coverage.
- Guaranteed issue life insurance: This is the easiest policy to qualify for—there are no medical exams and no health questions at all. It’s intended for those with serious health issues or advanced age who might not qualify for any other type of life insurance.
Because insurers take on more risk with no medical policies, the premiums are generally higher than fully underwritten plans, where detailed health information is collected. Also, coverage amounts are typically lower, often capped between $50,000 and $750,000, depending on the policy type and provider.
No medical life insurance can be a smart solution for people who need quick coverage, are uncomfortable with medical exams, or have been previously denied for traditional life insurance.
| Feature | Simplified Issue Life Insurance | Guaranteed Issue Life Insurance | Fully Underwritten Life Insurance |
|---|---|---|---|
| Plan Types Available | Term and permanent | Term and permanent | Term and permanent |
| Cost | Moderate | Highest | Lowest |
| Maximum Coverage Amount | $750,000 | $100,000 | Over $5,000,000 |
| Medical Exam | No | No | Sometimes |
| Medical & Lifestyle Questions | Yes | No | Yes |
| Medical Report | No | No | Sometimes |
| Guaranteed Acceptance | No | Yes | No |
| Speed Of Approval | Instant to a few days | Instant | A few days to over a month |
| Waiting Period | None | Two years for non-accidental death | None |
How can you lower your term life insurance premiums?
The best way to lower your term life insurance premiums is to buy a policy while you’re young and healthy, as this is when life insurance is most affordable. If you wait, health issues may arise, which can lead to higher premiums.
Additionally, you can consider selecting a shorter term length or opting for a lower coverage amount, while ensuring the death benefit is sufficient to cover your financial obligations.
Some insurers also offer discounts if you bundle multiple coverages, like life and critical illness insurance, under one policy.
How long does it take to get a term life insurance policy?
Some applications can be approved within days, while others can take several weeks or longer.
The timeline depends on factors such as the amount of coverage, your health history, whether medical testing is required and how quickly the insurer receives any requested information.
How can you get term life insurance quotes?
Term life insurance premiums depend on your age, health, lifestyle, smoking status, coverage amount and term length, so a personalized quote is more useful than a generic online price.
You can request a term life insurance quote by completing the quotation form or contacting me directly at info@briansoinsurance.com. I can compare options from multiple Canadian insurance companies and help you understand the differences before you apply.
How do you compare term life insurance quotes?
For an apples-to-apples comparison, start with the same coverage amount and term length.
Then compare premiums, insurer financial strength, conversion options, renewal provisions, riders, underwriting requirements and other policy features. The lowest premium is not necessarily the best fit if the policy offers less flexibility or different contract features.
How often should you review your term life insurance coverage?
Review your coverage when a major life event changes your financial responsibilities.
Common triggers include marriage, divorce, having a child, buying a home, starting or selling a business, taking on significant debt, changing jobs or approaching the end of your policy term.
Can you change your term life insurance policy if your needs change?
Yes. If your life’s circumstances change, you can update beneficiaries, reduce your coverage or cancel the policy without penalties or fees.
However, increasing coverage will need evidence of good health, requiring you to undergo medical underwriting again.
Can you extend your term life insurance?
Yes, you can extend your term life insurance policy by exchanging it for a longer term within a certain timeframe, usually within the first 5 to 7 years, depending on the insurance company.
This option allows you to increase the length of your coverage without undergoing medical underwriting, which is beneficial if your health has changed since you first purchased the policy.
Can you get a refund on premiums if you cancel your term life insurance policy?
Term life insurance generally has no cash value, so cancelling the policy does not create a refund of the premiums you have already paid.
If you have paid a premium in advance, you may be entitled to a refund of an unused portion depending on the policy and timing of cancellation.
Learn more about cancelling your term life insurance policy.
Frequently Asked Questions
Is term life insurance worth it?
Term life insurance can be valuable when your family depends on your income or you have financial obligations that would be difficult to manage after your death.
It provides a large amount of protection at a relatively low cost for a defined period, making it particularly useful for mortgages, income replacement, education costs and dependent children.
What is the difference between term life insurance and permanent life insurance?
Term life insurance provides coverage for a specific period, while permanent life insurance is designed to provide lifetime coverage.
Term insurance is generally less expensive and is often used for temporary needs such as income replacement or mortgage protection. Permanent insurance costs more but can be used for lifelong needs such as estate planning and final expenses.
Does term life insurance offer a cash value or investment component?
No, term life insurance does not offer a cash value or investment component; it is designed purely for financial protection over a specified term. Unlike permanent life insurance products, such as whole life or universal life insurance, term policies do not build cash value over time.
This focus on protection alone makes term life insurance more affordable, as premiums are solely allocated toward the death benefit rather than accumulating savings or investment value.
Learn more about whether term life insurance has a cash value.
What is the best age to buy term life insurance?
There is no single best age. The need for term insurance often arises when you have dependents, a mortgage, significant debt or other financial obligations.
Buying earlier can also help you secure coverage while you are younger and may have fewer health issues, which can affect premiums and insurability.
Do you need to undergo a medical exam for term life insurance?
Not necessarily. Some term life insurance applications can be completed without a medical exam, while others may require additional testing based on your age, coverage amount, health history or application answers.
Simplified and guaranteed issue policies offer alternatives when avoiding a medical exam is important, although these policies can have higher premiums and lower coverage limits.
Can you convert term life insurance into permanent life insurance?
Yes, you can convert term life insurance into permanent life insurance, usually up to a certain age, like 71, depending on the policy. One key benefit of conversion is that it doesn’t require new medical underwriting, meaning you won’t need to go through a health exam or answer medical questions.
This option can be valuable if your health has declined, as it lets you secure lifelong coverage without facing higher premiums due to health changes. A permanent policy can be beneficial if you find you need long-term protection for estate planning, final expenses, or other permanent financial needs.
Learn more about converting your term life insurance policy.
Why Work With An Independent Insurance Advisor
Buying term life insurance isn’t simply about finding the lowest premium. Different insurers can offer different premiums, underwriting outcomes, conversion options, policy features and contract provisions.
As an independent insurance advisor, I can help you:
- Assess how much coverage you may need based on your income, debts, family responsibilities and financial goals
- Compare term life insurance solutions from multiple Canadian insurance companies
- Understand the differences between policies, including term lengths, renewal provisions, conversion options and level versus decreasing coverage
- Compare premiums and policy features, including riders and guaranteed insurability options
- Identify insurers and products that may be better suited to your health history, lifestyle and financial needs
- Navigate the medical underwriting and application process and help you understand what information the insurer may require
- Review your coverage over time as your family, finances, employment and insurance needs change
The goal isn’t simply to find a term life insurance policy. It’s to help you understand what you’re buying and how the coverage fits into your overall financial protection plan.
What's the next step?
You can request a personalized term life insurance quote or book a free, no-obligation consultation to discuss your coverage needs.