Term insurance, as the name implies, generally covers a temporary need, such as a line of credit, mortgage, or business loan.
Most term life insurance policies purchased in Canada are Term 10 or Term 20 policies. Term 10 plans offer premiums that are low for 10 years, and Term 20 plans offer premiums that are level for 20 years.
Following a trend seen in the United States, Canadian life insurance providers are leaving the permanent life insurance market or increasing their premiums and offering more solutions for long-term policies. In the '90s, virtually no insurance companies offered Term 30 life insurance. Now, there are several Term 30 providers.( Term 40 Life Insurance Policies in Canada continued...)