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Once you’ve reached a point in life where you’ve decided to get life insurance, it can be difficult to know which is going to be the best term life insurance plans in Canada to fit your needs?
There are a few different types of term life insurance available, spanning both whole and term life insurance plans, as well as other package elements like renewable or convertible term life insurance that can impact how versatile a plan is once it’s put in place.
This page is going to walk you through how you can compare term life insurance plans to one another, as well as explore the differences between whole and term life insurance plans in Canada.
Overview of Life Insurance Options in Canada
From a basic perspective, there are two types of life insurance you can access: permanent and term life insurance plans.
Permanent Life Insurance Plans
Both whole vs universal life insurance plans are types of permanent life insurance plans. These types of life insurance cover you for the remainder of time that you’re living, as long as you maintain your monthly/yearly premium payments.
Term Life Insurance Plans
Term life insurance plans in Canada offer the major benefit of customizability and flexibility, which isn’t something you’ll get as much of from permanent life insurance plans.
For example, Blue Cross Life offers a variety of elements you can personalize when you’re requesting a quote, such as:
- Plans ranging from 10-30 years in length
- Coverage ranging from $100k to $5M
- Partner and child coverage options
- Renewable term life insurance options (at the end of your term)
- Convertible term life insurance options (within the first 5 years of your term)
Universal & Whole Life Insurance vs Term Life Insurance
Both universal and whole life insurance are meant to offer protection for you through the remainder of your life, under certain eligibility criteria (i.e., policies are voided by things like suicide, etc.).
On the other hand, term life insurance plans in Canada are much more flexible and customizable, especially with Blue Cross Life’s Term Life Insurance.
Not only does this make term life insurance plans in Canada more affordable than whole or universal life insurance, but it allows you to build the perfect package to fit your unique individual needs.
Is There a Difference Between Whole vs Universal Life Insurance?
The short answer is: yes, but not a massive difference.
In many cases, these terms get used interchangeably. And while there may be some universal or whole life insurance in Canada that are convertible to term life insurance, not every package will allow for this.
There may also be variances in the ways that these plans are designed, such as their coverage amounts, monthly/yearly premiums, criteria for claim eligibility, etc., but these are the same types of differences you’d find between different types of term life insurance.
Although there can be variances between each package, for all intents and purposes they are the same thing - providing you with life insurance for the remainder of your life, as long as your premiums remain paid.
Choosing the Right Term Length for Your Life Insurance Policy
Now that we understand some of the differences between whole vs universal vs term life insurance in Canada, let’s look at some of the ways that you can help narrow down comparing term life insurance
term length:
10-Year Term Life Insurance
This is the shortest term life insurance plan in Canada that you can get through Blue Cross Life’s Term Life Insurance.
Many people who are discovering the value of term life insurance later in life (i.e., ages 50-60) may find that this plan covers them long enough to protect their loved ones.
Conversely, someone who’s younger and only wants coverage for a limited, specific period of time can benefit from a 10-year term; particularly when there’s the option for renewable term life insurance at the end of their term.
15-Year Term Life Insurance
In addition to meeting a lot of the same needs that 10-year terms can provide, 15-year terms allow you to extend those same benefits for a slightly longer period of time.
Just as 10-year terms provide as well, 15-year terms may offer flexibility to change or adapt the plan over time if they’re either convertible or renewable term life insurance plans.
20-Year Term Life Insurance
Another mid-length term, 20-year terms are perfect for people who want to get coverage younger and maintain protection into their old age.
For those searching for the best long-term life insurance protection, 20-year terms are a smart and popular choice for people both young and middle-aged.
25-Year Term Life Insurance
One of the longest term lengths available for term life insurance plans in Canada, this is the premium option for those looking to take advantage of the affordability of term life insurance vs whole, while still offering long-term, extensive protection for their loved ones.
25-year terms are especially good to consider if you’ve realized young that you can benefit from term life insurance coverage, because you can lock in your rates at the best amount, for the longest possible period.
How To Choose the Best Term Life Insurance Plan for Your Needs
One of the best ways to choose the best term life insurance plan to meet your individual needs, and those of your loved ones, is to sit down and ask yourself some very important questions:
- How much financial support will your partner need after you’re gone?
- Do you have a mortgage? How long is left on it?
- What is the cost of living in your area?
- How many kids do you have? How old are they?
- Do you have savings set aside for things like weddings or post-secondary schooling?
- How much debt do you have?
- Do you have elderly parents that you’re required to take care of financially?
- Do any of your loved ones have medical conditions that require ongoing treatments or medication? What are the costs associated with those necessities?
Of course, this is only the tip of the iceberg of questions that you could ask yourself. That’s why sometimes it can be a good idea to speak with an expert advisor to get a little extra guidance.
How Blue Cross Term Life Insurance Can Protect You and Your Family
In whatever way you need them protected
Our customizable term life insurance plans in Canada offer you the versatility to build a plan around your ideal coverage, so you can find the perfect blend of value and affordability.
Start exploring Blue Cross Life’s Term Life Insurance options today, and you can get quotes in less than 60 seconds. Once you find a plan that works for you, you can get approved in as little as 20 minutes!
Or you can get further guidance from one of our insurance experts, who will be happy to walk you through all the options available to you, as well as help you nail down the perfect plan for your needs.