Term life insurance
Term life insurance is the simplest and generally the least expensive form. It offers protection for a fixed period, often from 10 to 30 years, with premiums that remain constant for the duration of the contract.
Key points
What is term life insurance?
Term life insurance offers protection for a fixed period, often from 10 to 30 years. Premiums generally remain constant for the duration of the contract, and if you die during that period, the coverage amount is paid to your beneficiaries.
It is the simplest and most accessible form of life insurance. It is particularly suited to temporary needs such as repaying a mortgage, providing financial protection for children until they become independent, or replacing income during critical years.
Did you know that
According to Statistics Canada, approximately 60% of Canadians hold life insurance, the vast majority of which are term life insurance policies.
Pros and cons
Weigh the pros and cons to determine if term life insurance is right for you.
Benefits
- Lower premiums than other forms of life insurance
- Simplicity and ease of understanding
- Option to convert to permanent insurance without proof of insurability
- Suitable for temporary needs such as mortgages or child protection
Drawbacks
- It expires after a specified period, leaving you without coverage thereafter.
- No cash surrender value or savings accumulation
- Premiums may increase if you renew the policy after it expires.
How does it work in practice?
The case of Julie, a single mother
Julie, a single mother of two, takes out a 20-year term life insurance policy worth $500,000 to protect her children's financial future. If Julie dies during those 20 years, her children will receive the coverage amount to meet their needs.
Other types of life insurance
Compare the different forms of life insurance to find the one that best suits your situation.
Whole life insurance
Permanent lifetime coverage with a fixed premium and a cash surrender value that grows over time.
learn moreUniversal life insurance
Combine protection and placement with maximum flexibility to suit your evolving needs.
learn moreParticipating life insurance
Lifetime coverage with the possibility of receiving dividends based on the insurer's performance.
learn moreProtect your family's future
Term life insurance is an accessible and effective way to protect your loved ones. Contact us for personalized advice and start protecting your family's financial future today.
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