Best term life insurance in 2024: Get free quotes
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Are you ensuring your family's financial security for the future? Term life insurance provides the reassurance that your loved ones will have the necessary financial support in your absence. It can make a significant impact, allowing your family to remain in their home and sustain their lifestyle.
New to term life insurance? Read our guide on how term life insurance works, its pros and cons, costs, and more, helping you make informed decisions about your family's well-being.
Use our free comparator to compare the best term life insurance Canada plans in the market, explore the best deals based on your unique needs, and get over 20 free personalized quotes right here.
Best term life insurance Canada plans in 2024
- Manulife Term Life Insurance - Family Term and CoverMe Term Life
- iA Financial Group Life Insurance
- Empire Life Insurance
- Assomption Life - FlexTerm
- Sun Life - SunSpectrum Term Life Insurance
- Humania Insurance - HUGO Life
- Equitable Life of Canada
- Foresters Financial Life Insurance
- Canada-Life - Term Life Insurance
- RBC Term Life Insurance
- Canada Protection Plan - Simplified Elite and Deferred Elite Term Life Insurance
What is term life insurance?
Term life insurance or direct term life insurance is a type of life insurance that provides a payout to beneficiaries of the deceased after their death.
When signing up for a life insurance policy, you will decide the length and the amount of coverage. The policy pays out to your beneficiaries, should you pass away during that term. Most term life insurance policies range between 5 and 30 years.
If you cancel your term life insurance or it expires before your death, you will receive no money. You will not be eligible for refunds on already paid premiums.
Do I need term life insurance?
Term life insurance is one of the most powerful tools for people with dependents to ensure their financial future. Term life insurance payouts can be used to pay off mortgages, fund education, or cover bills and day-to-day necessities. This means your loved ones have time to grieve without worrying about the financial costs to follow.
Here are a few questions to ask yourself when considering whether to get term life insurance and how much to purchase:
- Debt: how much do you owe and are you comfortable passing it on to your family?
- Mortgage: Do you have a mortgage? If so, how much do you still owe on it?
- Income: How much does your family need to maintain its lifestyle?
- Education: Do you have children who will depend on you to fund their education?
Good to know
Because it is less expensive than a whole life insurance plan, especially for healthy adults in their 30s and 40s, term life insurance is a fantastic tool for assuring that your minor children are taken care of financially through adulthood. The premiums are typically higher for senior life insurance plans.
You can use our term life insurance calculator to determine how much coverage you would need based on your unique preferences and finances.
Is term life insurance worth it?
Term life insurance is frequently the cheapest life insurance option. It is a compelling option for individuals unable to afford some of the more expensive permanent life insurance options. It can also be used to cover debts that the individual does not want to pass on to their family after death.
It’s intended to make sure that your family won’t be financially ruined if anything happens to you. It can also pay out to make sure that a mortgage or other debt is covered – so even if you don’t have a family, your mortgage lender might ask you to take out a policy.
Here are some situations where term life insurance could help your beneficiaries.
- Paying the mortgage on your family home as the sole breadwinner or you need both incomes to be able to keep up the payments;
- Caring for a dependent partner or children
- Paying for university tuition for your children
- Paying for full-time childcare
- Looking after an aged parent or disabled child, if you’re a carer
- Repaying debts
Good to know
Term life insurance is recommended for people who have others who are financially dependent on them like a child, parent, or spouse.
What are the pros and cons of term life insurance Canada?
Pros of Term Life Insurance
- Affordable Premiums
- Flexible Term Options
- Simplicity and Transparency
- Financial Safety Net
Cons of Term Life Insurance
- No Cash Value Accumulation
- Premiums Increase Upon Renewal
- No Permanent Coverage
- Lapsed Coverage if Premiums Not Paid
How much does term life insurance cost?
Rates, benefits, and cancellations are all factors that will depend on the policy and term life insurance that the company you choose provides. You should do your research and make sure you understand the policy before making any commitments.
In the example below you can see how the term length and death benefit affect the monthly average. This quote is for a 30-year-old woman in good health:
|$250,000 death benefit
|$500,000 death benefit
|$18 per month
|$25 per month
|$24 per month
|$37 per month
|38 per month
|$69 per month
Keep in mind that this is an example. Rates and coverage do vary between individuals.
The insurance provider determines the cost of a term life insurance policy by assessing the individual's risk profile and the desired policy. Life insurance quotes vary greatly from one policy to another because they are tailored to each client's situation and the coverage they require.
Want to know how much you could pay? You can get over 20 free term life insurance quotes today right here using our comparator. You can compare multiple plans based on your unique profile in no time.
Compare the top term life insurance options today
What does term life insurance cover?
Life insurance provides a one-time, tax-free payment to your beneficiaries. The amount of this death benefit depends on the type of insurance and the amount of coverage. Because they receive the amount directly, your beneficiaries can use this money for almost anything. It's a great way to be assured that your family's financial future will be comfortable even if you're no longer around.
|Bills and living expenses
|A financial nest egg
Assuming the account was in good standing, it is rare to have problems claiming benefits from a life insurance policy. Nevertheless, some exclusions do exist. Your contract should clearly explain them.
Here are some situations that a term life insurance policy might not cover:
- The policyholder dies or commits suicide during the contestability period.
- The policyholder committed fraud or intentionally misinformed the insurer on their application by lying about pre-existing health conditions or risky behavior.
- The death occurred while committing a criminal act
- The death occurred while taking part in an extreme sport such as heli-skiing, skydiving or similar.
- The death occurred in a high-risk area of the world.
- The policyholder failed to pay their premiums.
Good to know
Life insurance policies usually have a contestability period of 1 to 3 years. The contestability period means that an insurer will scrutinize, and possibly deny, a claim if a death occurs just after taking out the policy.
Many insurance providers will have an online calculator that will provide you with an estimated monthly rate. You can also contact the provider directly to discuss options on monthly rates, coverage amounts, and the length of your term.
Which is the best term life insurance Canada plan?
The best term life insurance varies from person to person because everyone's policy is different. Many reputable life insurance companies in Canada offer a variety of policies and coverage. So, here are some of the best providers offering the most comprehensive term life insurance plans.
|Provider and plan
|Get a Quote
|Manulife - Family Term and CoverMe Term Life
CoverMe Term Life
|Get a quote from Manulife
|iA Financial Group
|Get a quote from iA Financial
|Empire Life Insurance
|Get a quote from Empire Life
|Assomption Life - FlexTerm
|Get a quote from Assomption
|Get a quote from Sun Life
|Humania Insurance - HUGO Life
|Get a quote from Humania
|Equitable Life of Canada
|Get a quote from Equitable
|Get a quote from Foresters
|Canada-Life - Term Life Insurance
|Get a quote from Canada Life
|RBC Insurance - Term 100
|Get a quote from RBC
|Canada Protection Plan - Simplified Elite Term Life Insurance and Deferred Elite Term Life Insurance
|Get a quote from Canada Protection Plan
Good to know
Note that life insurance plans and their coverage might change across provinces. They are governed by different bodies. For example, life insurance in Quebec is monitored by the Autorité des Marchés Financiers (AMF), while Ontario is regulated by the Financial Services Regulatory Authority of Ontario (FSRA).
So, how to get term life insurance? More importantly, a term life plan that suits you? Compare rates and companies before selecting your policy to be sure you have the one that is right for you. You can use our online comparison tool below to get the best term life insurance quotes today.
Compare the top term life insurance options today
Can you get Ladderlife no medical exam term life insurance in Canada?
Ladder Life is a life insurance company based in the United States that provides term life insurance policies. Ladder Life is known for its online platform and quick application process, which may not always require a medical exam, depending on factors such as age and coverage amount.
Ladder life term life insurance, however, is offered only in the US, and not in Canada. However, it's essential to note that the availability of specific insurance products, including those from Ladder Life, can change over time, and new offerings may become available. Additionally, eligibility criteria, coverage options, and terms may vary based on your location and the regulations in that region.
What is term life insurance vs whole life insurance?
The main difference between term life insurance and whole life insurance is the time frame. Term life insurance will be a set amount of time determined by the policy when you sign up. Whole life insurance will cover your entire lifetime as long as you make your payments and do not cancel the insurance.
Term Life Insurance
Term life insurance is based on a set monthly rate for a predetermined period, or term. You will know exactly how much you will pay and what the payment will be to your beneficiaries. If you choose to renew, your rates may change.
The main benefit of term life insurance is the cost. It is cheaper than whole life insurance and a good option if you only need coverage for a shorter time. Some people use this while paying off a house or other large debt.
The main drawback is that these policies have no cash value. If you don’t use the insurance, you will get nothing back from the premiums you paid. It also will be more expensive every time you renew.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance. As the name implies, is a policy designed to give you life coverage. It does not have an expiration date. Keep paying your premiums and the policy will remain in place. When you pass away, your beneficiaries will receive a payment. Your policy also has a cash value that you may withdraw if you choose to terminate the policy.
The main benefits are the cash value of whole life insurance and the stability offered. A portion of your premiums earns interest and can be used in case of emergency. Note that this value will not be the equivalent of the policy payout. Whole life insurance also offers stability, as you will not have to reapply or worry about it expiring.
|Whole Life Insurance
|Term Life Insurance
|Lifelong coverage until death.
|Coverage for a specific term (e.g., 20 years).
|Higher premiums but remain level.
|Lower initial premiums but may increase upon renewal.
|Accumulates cash value over time.
|No cash value accumulation.
|Includes a savings or investment component.
|Pure insurance with no investment aspect.
|Less flexible, but may offer policy loans.
|More flexible, and renewable or convertible.
|Guaranteed death benefit payout.
|Pays out only if death occurs within the term.
|Long-term financial planning and legacy.
|Temporary coverage for specific needs.
|Higher upfront cost for lifelong coverage.
|Lower initial cost but can increase over time.
Keep in mind that the choice between whole life and term life insurance depends on individual financial goals and needs.
What is the difference between term 10 life insurance and term 20 life insurance?
Term 10 life insurance and term 20 life insurance refer to the length of the policy. Term 10 is a ten-year policy, while term 20 is a 20-year policy.
A monthly payment rate is agreed upon when a term life policy is created. A longer policy may have a higher monthly rate, but that rate will be fixed for a longer period, potentially making it a good deal later in the contract.
While a shorter lower rate may seem more appealing initially, you will have to renegotiate the rate when you renew your term life insurance policy. At this point, you will have grown older, and if your health has gotten worse, you may be looking at a much higher monthly average with the new term life policy. You can go for the less expensive 10 life insurance option if you only need a term life policy for a specific period.
Some policies have a free termination clause. This means that you may terminate your term life insurance policy at any time. While you will not get your payments back, you will not be obligated to pay for the full length of the contract.
What is renewable term life insurance?
Renewable term life insurance is a type of term life policy that allows the policyholder to renew coverage for an additional term without undergoing a new medical examination. While the premiums typically increase upon renewal, this option provides flexibility for those who need continued coverage.
Let's say Singh, a 35-year-old from British Columbia, purchases a 20-year renewable term life insurance policy with a $500,000 death benefit. The policy is designed to provide financial protection during a specific period, such as raising children or paying off a mortgage.
After the initial 20-year term, John's circumstances have changed, and he still desires life insurance coverage. With a renewable term policy, John can choose to renew his coverage for another term, such as 10 or 20 years, without the need for a new medical exam. The premiums for the renewed term, however, are likely to be higher based on his age at the time of renewal.
What are 5 tips to get the cheapest term life insurance plans?
- Shop Around: Obtain quotes from multiple insurance providers to compare rates. Different insurers may offer varying premiums for similar coverage, so exploring multiple options allows you to find the most cost-effective plan. Use our HelloSafe comparator and get quotes in no time.
- Healthy Lifestyle Choices: Maintaining a healthy lifestyle, including regular exercise and a balanced diet, can positively impact your life insurance rates. Insurers often consider factors like health, so staying in good shape may help reduce premiums.
- Quit Smoking: Smokers typically pay higher premiums. If you quit smoking, you may qualify for lower rates after a certain period of being smoke-free. Be transparent about your tobacco use when applying for coverage.
- Choose a Shorter Term: Opting for a shorter-term life insurance policy can result in lower premiums. Assess your coverage needs and consider a term length that aligns with your financial goals and obligations.
- Review and Adjust Coverage Needs: Regularly assess your life insurance needs. As your financial situation changes, you may require less coverage over time. Adjusting your coverage to reflect your current needs can help keep premiums affordable.