Term life insurance is a type of life insurance available in Canada to those who are looking for coverage for a set period of time. Compared to permanent life insurance policies, term life insurance can be set to different time periods of coverage, after which the policy expires or auto-renews for another term. Life insurance companies offer 10, 20, 25, 30 or 40 years of Term to help buyers determine the best option for their needs. If the policyholder were to die within the set period or term, then the insurance would be paid out to the selected beneficiaries. At Insurance Supermarket, we offer a wide selection of life insurance options so that you can find the right one for you and your loved ones, your budget, and lifestyle.
If you’re interested in term life insurance, here are some of the various term lengths offered by life insurance companies, and some insight on how to choose the right length for you.
What Does Term Length Really Mean?
When you purchase a term life policy, you’re selecting how long you want the coverage. This can range anywhere from 10 to 40 years, depending upon age, although other custom terms are sometimes available. If the policyholder passes away during this period, the policy pays out the death benefit to their beneficiaries.
At the end of the term, you typically have the option to renew, convert to a permanent policy, or let the coverage lapse. That’s why it’s important to choose a length that makes sense for your financial and family goals.
Why Choose 10-Year Term Life Insurance?
A 10-year term life insurance policy offers short-term protection. It’s often the best choice for individuals who are close to retirement, have few long-term financial obligations, or only need coverage for a limited period of time.
This could include:
- Covering the last few years of a mortgage
- Protecting a spouse or child during a transitional life stage
- Supplementing existing coverage from an employer
It tends to be one of the most affordable term options, but keep in mind that premiums will rise if you need to renew after 10 years, as insurance rates are generally based on age and health. When you opt for term life insurance with Insurance Supermarket in Canada, you can count on receiving options that require no medical exams, doctor’s reports, or nurse’s visits. In some cases, we even give on-the-spot approvals for 10-year term life insurance applications.
Why Choose 20-Year Term Life Insurance?
A 20-year term life insurance policy offers a balance between affordability and longer coverage. It’s a popular choice for young families and new homeowners who want to protect their loved ones for the bulk of their working years or while raising children.
This type of policy is often selected to:
- Cover the duration of a mortgage
Ensure kids are financially protected through post-secondary education - Lock in lower premiums at a younger age
- Since a 20-year term life insurance plan provides a longer window of coverage, it can give policyholders more peace of mind without requiring frequent renewals.
Consider Your Life Stage and Financial Goals
Choosing the right term length depends on where you are in life. Younger buyers may benefit from longer terms to secure lower premiums over time, whereas older buyers might opt for a shorter term that carries them through to retirement.
Considering the following factors can empower you to make the best decision when you reach out to a life insurance company.
- How long do I expect to have financial dependents?
- When will my mortgage or debts be paid off?
- Do I have major life events coming up that require financial protection?
If you’re unsure, speaking with a licensed insurance advisor can help guide your decision based on your current situation and long-term goals. Contact the Insurance Supermarket team for guidance and insight so you can find the best option for you and your family.
Explore Your Options with Insurance Supermarket
We, as a broker, simplify the process of choosing the right coverage. Whether you’re leaning toward a 10-year term life insurance plan or a 20-year term life insurance policy, we will help you compare options, understand renewal terms, and make the most informed decision possible.
Your life and your life insurance should match. Reach out to our team today to explore flexible, affordable coverage that gives you confidence for the future.