Compare Term Life Insurance Premiums

Due to their massive popularity, 20 year term life insurance policies are the most cost-effective choices in the insurance industry. Virtually every company offering insurance in Canada offers a 20 year term, and competition for the consumer is fierce. Because of how easily Term 20 can be underwritten (approved), depending on your health, most insurance companies will waive the medical exam on policies under $500,000.

• The most popular life insurance term.
• Level insurance premiums for 20 year terms.
• Only slightly more expensive than Term 10 policies.
• Most cost-effective policies in the industry, with quick and easy approval processes.

This type of insurance is typically used to cover short term debts, such as car loans, mortgages, business loans and credit card debt. Term 10 offers some of the best flexibility of all policies. These policies are typically convertible as well, which means prior to the end of the term you can convert the policy to universal or whole life insurance. Like Term 20, some insurance companies will issue Term 10 on amounts up to $500,000 without a medical examination.

• 10 year life insurance is the second most popular policy type.
• These products are nearly universally available from insurance companies.
• Term 10 has extremely flexible policies, with the best premiums.
• Some providers offer Term 10 insurance, up to $500,000, without a medical examination.

Term 100 is meant to simplify the application of permanent life insurance. It doesn't have the complicated investment component of its permanent life insurance counterparts. Because of this, paying into Term 100 doesn't build equity, and there is no cash surrender value to the policy. Term 100's simplicity keeps its monthly premiums down, and it keeps the policy focused on its sole purpose: Ensuring the persistence of your interests after your death.

• Classified as a permanent life insurance product because of the length of its term.
• Less expensive than other permanent insurance
• Available from virtually every insurance company in Canada

Here's a great example of using Term 100 to leave a legacy and preserve your estate:

Thomas wishes to leave a legacy to the Canadian Cancer Society when he dies. Rather than tie up any other estate assets, he purchases a Term to Age 100 life insurance policy on his own life and names the charity as the beneficiary. Upon his death, the benefit of his policy will be paid tax free to the charity, ensuring that they receive the full benefit. Also as an important side effect, due to Thomas' province of residence, his estate is able to use the death benefit as a charitable gift, which creates a tax write off for his estate and offsets potential estate taxes payable.

Here's an example of when a 5 Year Term Life Insurance policy is attractive:

Peter and his wife Mary borrow $100,000 from his parents to establish a small business. The couple is determined to repay Peter's parents in 5 years from their business. Because the money borrowed came from their parents' retirement, Peter feels it's very important to insure it in case of his or his wife's death. So the couple purchases a $100,000 joint first to die policy, the beneficiaries of which are Peter's parents. This way, both Peter and Mary are insured against an untimely death, and if one of them dies, the other can live on without worrying about hurting Peter's parents' retirement.

• Available for single life, multi life or joint life coverage.
• Term 15 insurance is generally renewable and convertible.
• The slight difference in price between T15 and T20 generally makes T20 a more attractive option.

An example of when 15 Year Term Insurance might be used:

Bob is a small business owner. He's secured a 15 year bank loan for a small business expansion, intending to grow his business for his son, Michael, to one day to inherit. As the key owner, Bob feels obligated to protect the loan from his death, so that he doesn't pass any unnecessary debt to his son. So Bob protects his loan with a 15 year term life insurance policy.

If Bob passes away in the next 15 years, the death benefit ensures that the remainder of his loan is paid in full. Any remaining benefit is paid directly to his contingent beneficiary (Michael) tax free, and can be used as a jump start, to get the business back on the road, as well as to cover any costs incurred because of his passing.

If 15 years pass and Bob does not die, because his term life insurance policy is renewable and convertible, he has many options to choose from. He can renew the policy, no matter how his health is, or he can convert the policy to a more permanent life insurance policy, such as whole life or universal life. As the policy owner, he can also decide to change the beneficiary to anyone he wishes.

Term 25 exists to fill a niche where longer term insurance is required for a specific purpose. It can be used to cover the loss of income, funeral expenses or estate taxes payable on death.

The following is an example of the use of Term 25 life insurance:

Dean and Deanna are both 60 years of age and are married with three kids and 4 grandkids. They are excited about being 5 years away from retirement as they have amassed a decently sized retirement nest egg. Being very family focused, they want to protect their estate against taxes in the event of their death, especially so that they can leave an inheritance to their kids and grandkids. So Dean and Deanna purchase a 25 year term life insurance policy, which covers them to their approximate life expectancy of age 85, providing them with the most tax-efficient way to preserve their estate.

If either of them passes away in the following 25 years, the death benefit would pay a tax free amount to their beneficiary. The death benefit could be used to pay any estate taxes, leaving a larger inheritance.

35 Year Term Insurance is typically only used to cover a specific debt obligation such as a long-term loan. Term 35 was once used to cover 35 year mortgage amortizations, but because of recent changes to mortgage guidelines, 35 year amortizations are no longer available, and this term of life insurance is fading into obscurity.

Monique is a single mother who is 50 years old and she's thinking about retiring soon. She has a 20 year old son who is studying at university to be a Doctor, in a program that will last 8 years. Her mortgage is nearly paid off, and she is saving more and more for retirement. She's worried that should she pass away, her son having no real savings of his own, would need to use her estate proceeds or sell their house to pay for his schooling.

At the advice of her broker, Monique purchases a 35 year term insurance policy and names her son the beneficiary. Should Monique pass away in the following 35 years, the policy's death benefit would ensure that her son would receive enough money to finish his school and become a doctor. The remainder of the benefit could be used to preserve her estate.

While Canadians don't have access to 40 year amortizations anymore, there are several other uses for this long-term life insurance. For instance, a Term 40 policy can be used by a 45 year old as an effective means of estate preservation upon death.

Brad is 45 years old and is just now thinking about life insurance, as he and his wife, Cheley, just had their first child. Brad wants to ensure that they have an efficient way to transfer their estate to their newborn son when they die. So Brad takes out a 40 year term life insurance policy on himself and his wife, covering both to their life expectancies, and makes the beneficiary their child.

If they die in the next 40 years, Brad and Chelsey will have left their son with a benefit that will help with going to college, funeral costs, and a way to pay estate taxes without selling the family home.