Term life insurance
Term life insurance provides protection for a defined period (10, 20, 30 years or more). It is usually more affordable than permanent life insurance and is designed to cover specific needs: mortgage, income replacement while children are dependent, major debts, and more.
How does it work?
You choose a coverage amount (death benefit) and a term length. During that period you pay a fixed premium. If you pass away during the term, the benefit is paid to your beneficiaries, generally tax‑free. At the end of the term, coverage ends or can be renewed, depending on the contract.
Term insurance is especially useful when your protection needs are limited in time: for example, the remaining years on your mortgage or until retirement.
Who is it for?
- Parents with dependent children who want to secure several years of income.
- Homeowners who want to protect the balance of their mortgage.
- Couples with shared debts (car loans, personal loans, credit cards).
- Self‑employed workers or business owners who want to cover a business loan.
Advantages of term life insurance
- Premiums generally lower than permanent life insurance for the same coverage amount.
- High flexibility on term length (10, 15, 20, 25, 30 years or more depending on the insurer) to match your projects.
- In some cases, possibility to convert to permanent insurance without new medical evidence.
- Ideal to cover financial risk periods (children’s education, mortgage).
How to choose the right term and amount?
The coverage amount depends on your income, debts, and what you want for your loved ones (maintaining their lifestyle, education, paying off debts). The term is chosen based on the years left to repay your loans or until your children become financially independent.
Our advisors can help you design a solution that fits your budget and family situation.
Example — individual term life (T20)
Case: Philippe, 35, married, two young children, non-smoker — goal: protect the family.
Needs to cover
- Mortgage: $400,000
- Income replacement (10+ years): $500,000
- Children's education fund: $100,000
- Other debts: $25,000
- Estimated total need: ~$1,000,000
Recommended option: 20-year term (T20), $1,000,000 coverage, standard non-smoker. Indicative premium: about $55–$75/month (varies by insurer and risk class).
At $65/month over 20 years: $65 × 12 × 20 = $15,600 total to protect $1M during the high-risk period.
Why 20 years?
In 20 years, children are often in their 20s, the mortgage is lower or paid off, and major financial responsibilities have passed.