Deferred Term Life Insurance Solutions in Canada

There are many
deferred term policy
options out there.
Photo by Shirley Buxton

Deferred term life insurance policies mean that the insured is covered for the length of the term, but should death occur within the first two policy years, the death benefit payment is limited to a return-of-premium plus interest.

The two primary deferred term policies providers in Canada are Industrial Alliance and Canada Protection Plan, underwritten by Foresters.

The following is a snapshot of the difference between the two carriers:

Canada Protection Plan's Deferred Term Policies

• They offer Deferred Term 10, Deferred Term 20, and Deferred Term 100 plans.
• The death benefit in the first two policy years is limited to a return-of-premium plus 3 per cent interest.
• The plan is non-renewable and non-convertible.

$100,000 of Deferred Term 20 coverage for a 40-year-old, male non-smoker is $429 a year.

Lisa Harbinson wanted a new life insurance policy for her mother Joyce. She thought mom was paying too much at over $100 a month for a $10,000 term policy that she had borrowed money against and now it was time to pay it back. (1 of 81)

Lisa HarbinsonRead more

Industrial Alliance Deferred Term Policy

• They only offer a Deferred Term 20 Policy.
• The death benefit payout if death occurs by non-accident in the first two policy years is limited to a return-of-premium plus 5 per cent interest.
• The plan is non-convertible and non-renewable.

The annual premium for a 40-year-old, male non-smoker is $475 a year.

For more details on non-medical Life Insurance in Canada, please call us at 1.866.899.4849 or visit our Non-medical Life Insurance Quote Page.