Term life insurance is the least expensive type of life insurance. The term plan is usually for 10 years, 20 years or you can choose any term up to 40 years (depending up on the age of the insured). The cost for different term insurance plans varies based on the number of years you want to lock in the benefit. The term plans are renewable and convertible. You can renew your existing term plan for another term or you can convert it into a permanent plan (subject to some conditions).
Term insurance rates in Canada have come down in last couple of years and it is very cost effective to get a large amount of coverage with premiums locked in for 10 years, 20 years or for any term up to 40 years (depending up on the age of the insured). If you have an old term insurance policy it might be good to look at your options to renew that plan. Even though you are older the premium for a new plan could be the same or less because of term life insurance cost reductions.
Always look at the length of time you will be at financial risk. How long will it take to pay off your mortgage or debts, raise your children, save for retirement, etc. These are the high risk years and when you are buying term life insurance to protect against these risks, buy the term you need and save money.
