FinviloTerm vs permanent life insurance in Canada
Term life insurance covers you for a set period, such as 10 or 20 years, and costs less. Permanent insurance, including whole and universal life, lasts your lifetime and builds cash value, but premiums are much higher. Most families protecting a mortgage or income during working years look first at term.
How they differ
Use the purpose of the coverage to guide the type.
- Term: lowest cost per dollar of coverage, ends or renews at a higher price.
- Whole life: guaranteed premiums and cash value, highest cost.
- Universal life: flexible premiums and investment component, more complex to manage.
What drives your premium
Age, health, smoking status, coverage amount and term length. Medical underwriting can change the price you are offered, so published sample rates are only a starting point.
Before you buy
Check that the insurer and any advisor are licensed in your province. Compare employer group coverage, which usually ends when you leave the job, with individual coverage you own.
Frequently asked questions
- Is mortgage life insurance from my lender the same thing?
- Not quite. Lender creditor insurance usually pays the lender and coverage falls as the mortgage shrinks; individual term insurance pays your beneficiaries a fixed amount.
Compare options
Official sources
General information only, not personalized financial, tax or legal advice. Rules change; confirm current details with the source.