Term insurance covers you for a specific number of years – and is the lowest cost life insurance.
Term insurance is the lowest cost life insurance you can buy. It’s the most common type of insurance and can meet most insurance needs.
Term insurance provides you with insurance protection for a specific period of time. Policies are generally available for terms of 1, 5, 10 or 20 years, but you can’t get coverage after a certain age, typically between 75 and 85.
While your annual premium amount stays the same throughout the term, term insurance becomes more expensive to buy as you get older.
Most term policies are renewable, which allows you to extend your coverage for a new term without a medical exam when your original term ends. The renewal premiums are listed in the insurance contract.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca
Follow us on Twitter: