Term Life Insurance in Canada: Simple, Affordable Protection for What Matters Most
Life throws curveballs, and while we can't predict the future, we can prepare for it. Life insurance is a cornerstone of smart financial planning, acting as a safety net for your loved ones if the unexpected happens. Losing someone is hard enough; financial stress shouldn't add to the burden.
Term Life Insurance is a popular choice for Canadians because it’s straightforward and often the most affordable way to get significant financial protection when you need it most. Think of it as focused protection for a specific period.
An unexpected medical event shouldn't jeopardize your financial future or force you to compromise your hard-earned assets. Travel health insurance acts as a crucial shield, protecting your financial well-being from these unforeseen risks.
Our Guardianship of Assets strategies, which is the third step to achieving total financial freedom framework extends beyond traditional wealth management to proactively protect your financial well-being against life's most challenging moments. This means protecting your future needs into your financial plan today, recognizing that preparing for possibilities is vital for lifetime financial security.
As your independent advisors, we meticulously search the market, leveraging access to modern, often specialized insurance programs. We find the tailored Insurance policy that fits your unique needs, acting as that essential layer of protection. Our personalized guidance demystifies complex options, empowering you with the confidence to pursue your ambitions, knowing you're better prepared for unexpected financial shocks.
Think of Term Life Insurance as your essential safety net for your loved ones.Term Life is incredibly effective for covering significant financial responsibilities that have a clear timeframe.
It’s often ideal for:
Young Families & New Parents: Protects your spouse and children's future by replacing lost income in case of untimely death for the childcare, education, and living expenses until they're independent. This security forms a foundation for future generational wealth.
Homeowners with Mortgages: Ensures your family can pay off the mortgage and keep their home if you're no longer there to contribute. Securing the family home is a vital step in multi-generational planning.
Individuals with Debts: Covers outstanding loans (student loans, car loans, lines of credit) so the burden doesn't fall on your loved ones. Clearing debt is crucial for building a solid financial future.
Budget-Conscious Canadians: Provides the maximum death benefit for the lowest initial cost, making essential protection accessible.
Business Owners: Can fund buy-sell agreements or provide key person insurance to ensure business continuity, protecting the value you've built.
Term Life Insurance simpler than you might think. Here’s the basic idea:
Choose Your "Term": You select a specific period (the "term") for your coverage, often 10, 20, or 30 years, aligning with temporary needs like a mortgage or raising children. Some providers even offer flexible term lengths.
Choose Your Coverage Amount: This is the tax-free lump sum (the "death benefit") paid to your chosen beneficiaries if you pass away during the term. You decide how much coverage your family would need to cover debts, replace income, fund education, or maintain their lifestyle.
Pay Level Premiums: You pay regular premiums (usually monthly or annually) that are typically guaranteed to stay the same for the entire initial term, making budgeting easy.
Protection Provided: If the insured person passes away during the active term, the insurance company pays the tax-free death benefit to the beneficiaries.
Feature | Term Life Insurance | Whole Life Insurance | Universal Life Insurance | Term 100 (T100) |
---|---|---|---|---|
Coverage Duration | Fixed term (e.g., 10-40 years) or up to age 65/70 | Lifelong | Lifelong | Lifelong (to age 100) |
Premium Pattern | Level during initial term; Increases upon renewal | Guaranteed level for life | Flexible (within limits); may need increases if funds low | Guaranteed level (often to age 100 |
Initial Cost | Lowest | Higher than Term | Higher than Term; potentially lower/higher than Whole Life | Higher than Term; Lower than Whole/Universal |
Cash Value Accumulation | No | Yes, guaranteed growth with potential dividends | Yes, growth depends on investments & funding; not guaranteed market driven | Typically No |
Investment Component | No | Yes, managed by insurer; potential dividends guaranteed | Yes, often policyholder choice/ involve market risk | No |
Flexibility (Premium) | None during term | Yes (within limits) | Yes (more flaxable) | None (guaranteed level till age 100) |
Flexibility (Benefit) | Fixed | Fixed (can increase with dividends) | Can sometimes be adjusted | Fixed |
Primary Use Cases | Temporary needs to protect early death (mortgage, income replacement, debt) | Lifelong needs at death and retirement or old age (estate tax planning, final expenses, wealth creation, legacy) | Lifelong needs (estate tax planning, wealth transfer, investment) | Lifelong needs (final expenses, legacy) without investment or cash value focus |
Key Advantage | Affordability, Simplicity | Guarantees, Stability, Potential Growth not linked to market | Flexibility, Potential Growth linked to market | Permanent coverage, Lower cost than cash-value permanent policy |
Key Disadvantage | Coverage ends, Renewal cost increase | Higher cost, Less flexibility | Complexity, Investment risk, Potential cost increases | Higher cost than Term, No cash value |
Choosing the right Term Life Insurance can feel overwhelming. With dozens of providers and policies filled with complex terms and riders , how do you know you're truly protected for the right coverage amount at the right cost?
This is where clarity and objective guidance are essential. Hexavision believes in empowering Canadians to make informed financial decisions. That's why we offer our no-cost mentorship program.
Our experienced mentors provide unbiased education, helping you understand complex options for term life Insurance, weigh the pros and cons based on your personal circumstances, and compare them confidently against other options. We're here to partner with you, enhancing your financial literacy so you can choose the path that truly serves your goals.
Taking the step to secure Term Life Insurance is an act of responsibility and love. Let Hexavision help you make that decision with confidence.
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Ontario | Quebec
Alberta | Nova Scotia
British Columbia | Saskatchewan
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Kanwaljit (Sunny) Kochar DBA Hexavision Enterprise is licensed to sell Segregated Funds investments, Life and A&S Insurance products in Ontario, Alberta, QC, NB, SK, NS and British Columbia. Not available in other provinces.
License #s: FSCO LIC#17161321 (ON), AIC LIC # M-3493167-1763384-2020 (AL), BC LIC#LIC-2020-0022136-R01 (BC). Insurance and segregated funds provided by Carte Risk Management Inc.
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If you live past the end of your initial term, your coverage doesn't necessarily stop immediately; term policies are guaranteed renewable, meaning you can continue coverage, at a higher premium based on your attained age at renewal. Eventually, the policy will reach a final expiry age (often 85), at which point coverage ends permanently. If you outlive the final expiry date, the coverage terminates, you stop paying premiums, and no death benefit is paid.
Can I get my premiums back if my term expires and I haven't died?
No. The standard term life insurance does not have a cash value or savings component, and premiums are not refunded if the insured outlives the policy term or cancels the policy. The premiums paid are solely for the death benefit protection during the term.
No, you cannot borrow against a standard term life insurance policy because it does not accumulate any cash value. Only permanent life insurance policies (like Whole Life or Universal Life) typically offer policy loan features based on their cash value.
How much term life insurance do I really need?
The amount varies greatly depending on individual circumstances.We use the DIME method (Debt Outstanding, Income Replacement, Mortgage Balance, Kids Education Cost) to calculate the insurance protection needs.
A common guideline is 5 to 10 times your annual income. However, a more precise calculation should consider factors like income replacement needs for dependents, outstanding debts (mortgage, loans), future education costs for children, final expenses, and your family's lifestyle needs. Using an online calculator or consulting with a financial advisor can help determine an appropriate amount.
Neither is inherently "better"; they serve different purposes for each stage of life.
Term life is ideal for covering temporary needs affordably mainly to protect the family if you die young (like mortgage protection or income replacement while children are young).
Permanent life is better suited for lifelong needs whenever the person die, like estate tax planning, final expense coverage, creating wealth for the next generation or leaving a legacy, but it comes at a higher cost.
The best choice depends on your specific financial goals, budget, and time horizon. Some people hold both types of insurance policies in layers to achieve financial security for each stage of life including tax sheltered cash value for retirement or old age income.
Term Life Insurance Premiums are typically guaranteed level during the initial term you select (e.g., 10, 20, 30 years). However, suppose you choose to renew the policy after the initial term expires. In that case, the premiums will increase based on your attained (older) age at the date of renewal and the insurer's current rates. Therefore, if your protection needs are long-term, it is crucial to plan the options in advance.
The maximum age to apply for term life insurance varies by insurer and product, but it's often around age 70. The age to which coverage can be renewed or maintained also varies, commonly up to age 85, depending on the policy structure.
Standard exclusions include death by suicide within the first two years of the policy taking effect (in which case premiums paid are usually refunded). Claims may also be denied due to fraudulent information or material misrepresentation on the application. Specific policies might have other exclusions (e.g., related to war, criminal activity, or extremely hazardous activities), which will be detailed in the contract.
Yes, it is permissible and sometimes advisable to have multiple life insurance policies to meet the challenges of each stage of life, e.g., a group policy through work to cover while working years and an individual term policy for mortgage or numerous individual policies like term insurance for temporary needs and permanent insurance for wealth creation to meet different needs or coverage levels. Insurers will consider your total coverage amount during underwriting to prevent over-insurance.
Not always. Whether a medical exam is required depends on your age, the amount of coverage you're applying for, your health history, and the insurer's underwriting guidelines. Many applications for moderate coverage amounts on younger, healthy individuals may be approved without an exam. No-medical or simplified issue policies are also available, but typically have higher premiums or lower coverage limits.
You don't necessarily need to be a Canadian citizen, but you typically must be a Canadian resident meeting the insurer's specific residency requirements to apply for and maintain coverage.
Policies typically include a grace period (often 30 or 31 days) after the premium due date, during which the policy remains in force. If the premium isn't paid by the end of the grace period, the policy will lapse (terminate). Depending on the policy terms and how long it has lapsed, you might be able to reinstate it, which may require paying back missed premiums and possibly providing new evidence of insurability.
Once the insurer receives all required claim forms and documentation (like the death certificate), and assuming there are no complications (like death within the contestability period or beneficiary disputes), the death benefit is typically paid out within a few weeks.
For more information on insurance in Canada, please visit the Canadian Life and Health Insurance Association (CLHIA).
Our Service Area
Ontario | Quebec
Alberta | Nova Scotia
British Columbia | Saskatchewan
New Brunswick
Working Hours
🟢 Monday to Friday : 9:30 - 6:30 EST
🔴 Saturday and Sunday : Closed
Join Our Blogs/Newsletter
Kanwaljit (Sunny) Kochar DBA Hexavision Enterprise is licensed to sell Segregated Funds investments, Life and A&S Insurance products in Ontario, Alberta, QC, NB, SK, NS and British Columbia. Not available in other provinces. License #s: FSCO LIC#17161321 (ON), AIC LIC # M-3493167-1763384-2020 (AL), BC LIC#LIC-2020-0022136-R01 (BC), AMF LIC# 2023-CI-1016414(QC), LIC # 087345 (SK), FCSC LIC# 220039066 (NB) Insurance and segregated funds provided by Carte Risk Management Inc.
@ 2025 Hexavision Enterprise| Terms And Condition| Privacy Policy | Advisor Disclosure
© 2025 Hexavision Enterprise. All rights reserved