Term life insurance, explained in plain language
Term life insurance pays your family a tax-free lump sum if you die during a set term, usually 10, 20 or 30 years. It is the simplest and most affordable way for most Canadians to protect a mortgage, replace income and cover the years their children depend on them.
Bima helps you work out how much coverage you actually need, shows indicative rate ranges from Canadian carriers, and connects you with a licensed advisor who confirms the final premium and completes the application.
Free, about 3 minutes, no obligation
How term life insurance works
You choose a coverage amount and a term. Your premium stays level for that term. If you die while the policy is in force, the insurer pays the death benefit to your beneficiaries, tax free in Canada. If the term ends and you are still here, the policy either renews at a higher rate or you replace it.
Because it only covers a window of time and has no cash value, term life costs a fraction of permanent coverage for the same death benefit. That is why it suits people whose biggest obligations, like a mortgage or young children, have an end date.
How much coverage do you need?
A common rule of thumb is 7 to 10 times your annual income, but the honest answer depends on your household. Bima's Protection Checkup weighs the things that matter:
- The mortgage or rent your family would still have to pay
- Income you would want replaced, and for how many years
- Childcare, education and everyday costs for dependants
- Debts, final expenses and any coverage you already have through work
What affects your term life rate in Canada
Carriers price term life on age, gender, smoking status, coverage amount and term length, then refine it through underwriting that may include health questions or a paramedical exam. Applying younger locks in a lower level premium for the whole term. Bima's ranges use the first four factors so you can compare carriers before you talk to anyone.
Bima shows indicative rate ranges calculated from published carrier tables. They are estimates only. A licensed advisor confirms your final premium before anything is bound.
Term Life insurance questions, answered
Is term life insurance worth it if I have coverage through work?
Group coverage is usually one or two times salary and ends when you leave the job. Most families need more than that, and an individual term policy stays with you regardless of employer.
Can I convert a term policy to permanent coverage later?
Many Canadian term policies include a conversion option that lets you switch to whole or universal life before a set age without new medical underwriting. Your advisor can confirm what a specific carrier offers.
Are Bima's term life quotes final?
No. They are indicative ranges from published rate tables. A licensed advisor confirms the final premium after underwriting, and the carrier issues the policy.
How long does it take to get covered?
The checkup takes about three minutes. A licensed advisor contacts you within 24 hours, and depending on the carrier and your health profile, a policy can be in force within days to a few weeks.