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A Guide to Buying Term Life Insurance in Canada
Most Canadians already know that life insurance coverage is important. But when it comes to buying term life insurance in Canada, it’s easy to feel overwhelmed—and we get it.
Unfortunately, what often ultimately happens is that we end up putting it off. But here’s the thing: this leaves our loved ones vulnerable in case the unexpected were to happen.
Fortunately, buying life insurance is easier than ever before—you can even do it online.
Keep reading as we break down everything you need to know about buying term life insurance in Canada so you can secure coverage for you and your family with confidence.
Term life insurance is designed to provide your loved ones financial coverage should you pass away. If you pass away during your policy term, your beneficiaries can receive a lump-sum benefit payout (subject to the terms of the policy).
Term life insurance typically covers most causes of death. However, the details will vary depending on your specific policy. For example, policies typically don’t cover death by suicide within the first two years of the policy.
You can read a sample Blue Cross Life Term Life Insurance policy, to get all the details.
Determining the right time to buy term life insurance depends on several key life events and financial considerations. Whether you're a young professional starting your career, a new parent, or approaching retirement, here are some scenarios that might signal it's time to consider buying term life insurance.
One of the most common triggers for buying term life insurance is starting a family. With the birth of a child, your financial responsibilities increase significantly. Having a term life insurance policy can ensure your family is financially protected if something happens to you.
Purchasing a home is another major life event that might prompt you to get term life insurance. Your mortgage is likely the largest debt you’ll ever take on, and term life insurance can help cover this liability, ensuring your family isn’t burdened with mortgage payments if you pass away.
Any significant change in your financial situation, such as a substantial increase in income, getting married, or taking on significant debt, can be a good time to evaluate your life insurance needs. Term life insurance can provide a safety net for your loved ones, ensuring they can maintain their standard of living and cover debts.
While most Canadians benefit from having life insurance, your needs will vary significantly from person to person.
As you think about your own term life insurance coverage, here are some things you’ll want to consider:
Of course, you can always purchase additional coverage in the future if your needs change, but the cost of term life insurance tends to go up as you age. Good life insurance planning considers your future needs, so you can secure the right coverage at a lower rate today.
Everyone’s life situation is unique, which is why there is no one-size-fits-all recommendation for the amount of life insurance coverage you might need. Speaking with a trusted life insurance advisor is one of the best ways to get a personalized recommendation.
That being said, there are some tried and true ways to calculate how much life insurance you might need.
This is the simplest way to determine how much term life insurance you might need. Take your annual income or salary and multiply it by 10.
For example, a person making $50,000 a year will likely want at least $500,000 in life insurance coverage.
While it’s not perfect by any means, most insurance experts agree that multiplying your income by 7 to 10 gives you a good starting point when deciding how much coverage you want to buy.
The DIME method is another common way to calculate how much life insurance you might need. It’s a popular method because it considers your financial situation in a bit more detail.
The DIME acronym stands for:
All you need to do is add the 4 categories together to get your base life insurance amount.
The challenge with the DIME method is that it doesn’t always account for other life circumstances that may impact how much life insurance you need or other future expenses. For example, the number of dependents you have or any assets you might own.
There’s no fun acronym for this method but adding up all your financial obligations and assets is one of the best ways to determine your ideal life insurance coverage.
The goal is to figure out how much financial support your family might need if you were no longer around.
Your financial obligations should include:
Assets should include:
Sometimes it’s just easier to let someone else do the work for you. Take the guesswork and math out of the life insurance equation with this handy life insurance calculator.
Simply enter in the details about your income, savings, expenses, and other information. You will have a personalized recommendation in just a few minutes.
Get a personalized term life insurance recommendation in 60 seconds. Get a free, no-obligation quote.
Buying life insurance should be stress-free. So, no matter how you buy term life insurance, there’s a solution for you.
We’ve made it easy for you to secure term life insurance on your terms. No hassle. No stress.
If you were ever wondering, how to buy term life insurance online, it is easier and probably faster than your morning commute to work! Complete your term life insurance application without even leaving your couch.
Get Blue Cross Life Term Life Insurance, in three simple steps:
Need help? Get personalized life insurance advice every step of the way from our team of expert advisors. Chat with our licensed advisors.
Get financial protection and perks—just for choosing Blue Cross Life Term Life Insurance. But not only do you get comprehensive coverage, you also get:
Term life insurance in 20 minutes? You read that right. Get your Blue Cross Life Term Life Insurance quote today.
Yes, you can easily buy comprehensive term life insurance online in Canada.
With Blue Cross Life Term Life Insurance, you can get a quote and complete your application online in as little as 20 minutes. You'll find out instantly if you're approved and if we need more information, we’ll let you know right away, so you can secure coverage as quickly as possible.
Canadian insurance providers typically require that you’re either a Canadian citizen or a resident to be approved for term life insurance.
Blue Cross Life Term Life Insurance requires all applicants to be a Canadian citizen or a Canadian resident. You also need to be physically within Canada when signing your policy contract.
Yes, you can get Blue Cross Life Term Life Insurance as a senior.
You can be covered with Blue Cross Life Term Life Insurance coverage up until the age of 85. With a minimum term length of 10 years, this means you can purchase coverage up until you reach the age of 75.
® Registered Trade-mark of the Canadian Association of Blue Cross Plans, an association of independent Blue Cross Plans. TM Trade-mark of the Canadian Association of Blue Cross Plans, an association of independent Blue Cross Plans. Used under license by Blue Cross Life Insurance Company of Canada (Blue Cross Life®).
Term Life and Critical Illness Insurance products are underwritten by Blue Cross Life and distributed by PolicyMe Corp.
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