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Canadian Life Insurance Quote Comparison
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What an Average Canadian Pays For Term Life InsuranceThe cost of insurance is a minor mystery to most Canadians. Consumers often go with the best life insurance their bank can offer them, or they choose a provider based on referral from a friend. What they don't realize is how many reputable companies there are in Canada selling insurance. Many of these companies provide excellent coverage with exceptionally low premiums. There's really no friend like a broker when it comes to getting the best policies and lowest premiums for insurance. CanEquity has built lasting relationships with insurance providers all over Canada. These companies give us their best insurance premiums on their most flexible policies. Access to these policies allows us to bring you insurance with the best rates and better service than anyone else in the industry. Insurance for an average 37 year old MaleThe average Male aged 37 falls under the Regular health category. But for those who have no family history of disease or illness and who keep in good shape, they can often fit into the Preferred health category. The better that your health is, and the better your family's health history, the better the products you'll be able to qualify for. In the case of a 37 year old Male whose health fits under the Regular category, who doesn't smoke, the most affordable Term Life policy generally available is the Term 10 - 10 Year R C Term from RBC Life Insurance Company, which we can broker at $27.50 per month.
Comparison of Different Term Life Insurance QuotesThe following are different Term Life insurance options. Click the button on the right of a policy if you'd like to start an online application for life insurance. Term to 100 Guaranteed Life Pay
Term to Age 100, also called T100 or Term 100, is our best term of life insurance policy. Term 100 insures you past your life expectancy, and is an exceptional vessel for the preservation of your estate. Because of the length of its coverage, this term is actually classified as permanent life insurance. Premiums for Term 100 are fixed and guaranteed for their duration and are always cheaper than the other two permanent insurance options; Whole Life and Universal Life. The T100 is about simplicity. It doesn't have the complicated investment component of its permanent life insurance counterparts, so you're not paying to build equity, and there are no cash surrender value to the policies. Term 100's simplicity keeps its monthly premiums down, and it keeps the policy focused on its sole purpose, which is assuring the persistence of your interests.
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.
20 Year Level Term
20 Year Term Life Insurance policies are by far the most popular terms of life insurance purchased by Canadians today. These 20 year term policies are also known as T20 and Term 20 policies. Term 20 policies are level, guaranteed life insurance policies for 20 year periods. They're offered on a single life, multi life or joint life basis to Canadians aged 18 or older, and can be renewed at end of term, or converted to whole life or universal life insurance as desired. Due to their popularity and structure, 20 year term life insurance policies are only slightly more expensive than Term 10 policies. 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.
Here's an example scenario where Term 20 becomes very useful: Jason and Melanie purchase their first home and amortize their mortgage over 20 years. They both feel it's important to cover their mortgage should one of them die. So the couple buys a 20 year term life insurance policy for the amount of their mortgage. If either Jason or Melanie passes away in the next 20 years, the death benefit would ensure that their mortgage could be paid in full, if they choose. The benefit provides some peace of mind, knowing that the surviving spouse wouldn't need to make mortgage payments after such a loss of household income. At the end of the 20 year term, if neither Jason nor Melanie died, the couple has some options. Term 20 policies are renewable, so if they choose, Jason and Melanie can keep the policy, even with failing health. They also have the option of converting the policy to permanent life insurance, like universal or whole life insurance. As the policy holders, they may change the beneficiary of the policy to anyone they want, at any time.
10 Year Level Term
10 Year Level Term Insurance is the second most popular type of term life insurance available to Canadians today. Also known as Term 10 or T10, it generally has the lowest premiums and is offered by virtually all life insurance companies in Canada. The premiums on Term 10 are fixed and guaranteed, and are based on your age and specific health at the time of issue. 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 the T20, some insurance companies will issue Term 10 on amounts up to $500,000 without a medical examination.
Here's a common example of 10 year term insurance being used: John and his wife Betty have 10 years left on a mortgage that they just renewed. They've built memories for 10 years while raising kids in their home. So John and Betty buy a policy covering both their lives, in case of an untimely death. In doing so, they've guaranteed that in the next 10 years, their home will be paid off, and neither of them will be left a single parent with a mortgage. At the end of the term policy, if nothing happened, John and Betty have the option of renewing their insurance. Because the term is renewable, even if their health is failing, they have the right to continue under the policy at their age; there would be no medical examinations and no necessary evidence of insurability.
5 Year Level TermAlso known as T5 and Term 5, 5 Year Term Life Insurance is used primarily to cover very short term debt obligations. These policies are not as common as 10 and 20 year policies because most large loans and debts outstanding are structured to last longer than five years. Because of this, purchasers tend towards the more popular 10 and 20 year insurance terms. 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.
15 Year Level TermAlso known as Term 15 or T15, this term insurance coverage is not a very common type of insurance and is offered only by a few Canadian life insurance companies. Because of the way debt is structured, many Canadians find T10 and T20 policies more attractive. Term 15 insurance still includes the features of most major term life insurance policies though, like the ability to be renewed, and are convertible. These policies are good coverage for debts in-between 10 and 20 years.
An example of when 15 Year Term Insurance may 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.
25 Year Level Term25 Year Term Life Insurance is also known as Term 25 or T25 life insurance. Term 25 is a less common type of insurance offered to Canadians, and as a result only a handful of insurance companies offer it. Like T10 and T20 life insurance, Term 25 is generally sold as renewable and convertible, which means that at the end of term you have the option to renew your policy without regard to your health and without a medical exam. Because it's convertible, it means you also have the option to convert it into a permanent life insurance policy. 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.
30 Year Level Term30 Year Term Life Insurance, also known as Term 30 or T30, is another term type with a fixed premium, guaranteed over a 30 year term. Like most forms of term life insurance, these policies are renewable and convertible, which means they offer the best options upon the end of your policy term. Term 30 life insurance, like Term 25, exists to fill a niche where few policy providers go. This term is useful for fulfilling longer-term debt obligations like personal and business loans, shareholder loans, mortgages and offsetting estate taxes.
35 Year Level TermAlso known as Term 35 or T35, this term life insurance is not a very common type of insurance, and as such is only offered by a few insurance companies in Canada. It is available for purchase on a single life or multi life basis and is convertible to a more permanent type of insurance, such as Universal Life or Whole Life, prior to the policy's expiry. The minimum age for policy holders is 18 years old. 35 Year Term Insurance may be used to cover a specific debt obligation such as a mortgage or loan. It could also be used to cover the loss of income, funeral expenses, or deemed disposition taxes payable on death. 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.
40 Year Level TermDue to its duration of coverage, Term 40 is one of the more difficult insurance products to obtain, making it a far less common policy for Canadians than Term 10 and Term 20. At this time, 40 year term life insurance is only offered by one company in Canada, and it's a part of the Industrial Alliance Pick-A-Term specialized insurance product line up. Term 40 can be issued on a single life or multi life basis, and is easily convertible a permanent type of insurance. 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 t heir 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.
Level Term to age 65Term to Age 65 is a type of term insurance where the premiums remain fixed and guaranteed until the policy's expiry at age 65. In Canada, term to age 65 is only offered by IA Pacific and Primerica Canada Life Insurance. It is ideally suited for someone who requires some life insurance protection to that specific age. Because it only covers the insured to age 65, the premiums are generally fairly inexpensive. It is commonly offered on a single life or multi life basis, from 18 to 60 years of age. There is also a provision built into the policy allowing you to convert to a permanent type of insurance, such as Universal Life or Whole Life, prior to the policy's expiry.
Level Term to age 70Currently there are only 3 Canadian life insurance companies that offer Term to Age 70 life insurance; AXA Assurance, Primerica Canada Life Insurance and IA Pacific (Industrial Alliance). The premiums in these types of policies will remain level and guaranteed to age 70. Depending on which insurance company is chosen, many have the option to convert the policy to a permanent type of insurance, such as Whole Life or Universal Life prior to age 65. Term to Age 70 is typically offered to applicants who are between 18 and 60 years of age as a single life or multi life plan. In AXA's Term to Age 70 policy, there is also a built in Extreme Disability provision, so that if the person insured develops an Extreme Disability, the policy can pay out up to $250,000 or half of the policy value tax free prior to the age of 60.
Level Term to age 75Offered in Canada by only 2 insurance companies, Co-Operators Life Insurance Company and IA Pacific, Term to Age 75 has level and guaranteed premiums to age 75 and can be purchased on a single life or multi basis. A policy conversion option is typically built in whereby the policy owner can convert the policy to a more permanent type of insurance.
Other TermThis category contains various other terms of life insurance.
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