Comparing 10, 15, and 20-Year Term Insurance Rates

Term insurance policies provide level premiums for a stated term. As a rule of thumb, the longer the term, the higher the initial premium.

The reason is that the insurance company carries a greater risk because you have a greater chance of dying the longer you live. When you buy term insurance, you should try to match up the type of term policy with the length of time you need insurance.

If you need the coverage for 20 years, you would be better off choosing a 20-year term than a 10-year term. An example: $500,000 for a 40-year-old, male non-smoker would be $34.20 a month with Equitable Life at standard rate — yet, that same plan would increase to a whopping $247.50 a month at age 50. It’s much more economical to go with a a 20-year Term, since the 20-year would cost only $60.30 a month by comparison. Of course, this results in a significantly lower total expense over the requisite 20 years on the term.

The following is an example of the top three life insurance carriers, ranked by premium, for a 40-year-old, male non-smoker. Here, we are quoting a standard rate at $500,000 of coverage for 10-year, 15-year, and 20-year policies. Please note the rates have changed since the time this article was written please contact us at 1-866-899-4849 or visit our Term Instant Quote Life Insurance Page below for a current quote.

$500,000 – Term 10 – Equitable Life – $34.20/month

$500,000 – Term 10 – Transamerica Life – $34.20/month

$500,000 – Term 10 – BMO Insurance – $34.65/month

$500,000 – Term 15 – Assumption Life – $48.60/month

$500,000 – Term 15 – Industrial Alliance – $51.30/month

$500,000 – Term 15 – AXA insurance – $54.45/month

$500,000 – Term 20 – Equitable Life – $60.30/month

$500,000 – Term 20 – Transamerica Life – $60.30/month

$500,000 – Term 20 – Manulife – $60.66/month

For more details on Term life insurance in Canada, please contact us at 1-866-899-4849 or visit our Term Instant Quote Life Insurance Page.

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