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How Term Insurance Can Protect You Against High-Risk Home Loans In 2025

How Term Insurance Can Protect You Against High-Risk Home Loans In 2025
Canadian LIC

By Pushpinder Puri

CEO & Founder

  • 11 min read
  • July 17th, 2025

SUMMARY

Facing high-risk home loans in 2025, Canadian families can rely on a Term Life Insurance Plan for true mortgage protection. The writing shares real stories, dives into Term Life Insurance Rates, explains the value of personal policies over bank options, and breaks down how to use a Term Life Insurance Cost Calculator. Tips for comparing Term Life Insurance Quotes and making informed decisions about family security are woven throughout.

Introduction

Have you ever had those days where your head’s foggy and you just keep thinking about that one couple who called after midnight because their mortgage was about to eat them alive? Not saying that’s every day, but it happens more than you’d think. Oh—our coffee just went cold. Typical.

So, here’s the thing about 2025—if you’ve got a mortgage, you’re probably sweating more than you thought you would. And if your mortgage feels risky, well, join the club. Sometimes we get lost in all the details clients bring in—bank statements everywhere, kids running around, someone’s always burning toast. Not really relevant, but you get the vibe.

Term Life Insurance Plan

Anyway, a Term Life Insurance Plan. We keep repeating it because people forget—honestly, we forget sometimes. But yeah, you hear about it and probably roll your eyes, right? “Just another bill,” people say. But seriously, it’s the one thing that can keep the bank from showing up if things go sideways. We know, it sounds dramatic, but our neighbour’s brother lost his house after his wife got sick, and the GoFundMe didn’t work out. That one stuck with us for some reason.

Not saying everyone should panic. We mean, sometimes we think we overdo it. But you know what? Better to overthink than underthink, especially when the roof over your head is on the line.

What even is a high-risk loan anymore? (Honestly, we can't keep track)

Do you ever get the feeling every mortgage is high-risk these days? Maybe it’s just us. Stress tests, random rule changes, and Term Life Insurance Rates hopping all over. Raj from Brampton (we talk about him too much, but whatever) told us he checks his bank app like it’s the weather—every hour, just in case. It’s funny until it’s not. “We’ll be okay unless something happens,” he said. We don’t even know what “okay” means anymore.

Point is, you can’t count on things staying steady. Sorry if we’re jumping around—it’s just, you hear so many stories, they blend together.

Sometimes life just dumps on you

There was this teacher, super young, really into gardening (not that it matters), who bought her first home with her partner. Then bam—diagnosis, just like that. We talked about Term Life Insurance when she closed. Did she want it? “Maybe later,” she said. But her partner pushed. He was stubborn, and thank goodness for that, because she called us in tears when he got sick. If you’ve ever tried to say something comforting and failed, you know how awkward that call is.

We dunno, sometimes we still think about it. Made us double-check our own insurance that night.

Let's be real, the bank's not your buddy

If you trust the bank to take care of you, we’ve got a bridge to sell you. Sorry, we get a little salty. The bank’s mortgage insurance sounds good, but have you ever read the fine print? It’s like those contest rules nobody ever reads. They pay themselves first. You want your family to get help? Get your own Term Life Insurance Plan. Even if you don’t do it with us, just do it, okay?

What about Term Life Insurance Rates in 2025? (Math's never been our strong suit)

We get this question so much, and honestly, the answer’s boring. Rates go up with age, health, all that stuff. But people get hung up on saving a few bucks now and forget the cost of waiting. Sometimes we pull up the Term Life Insurance Cost Calculator, and people laugh at the price—it’s less than what we spend at Tim’s in a week. Of course, next year it goes up. We mean, even gas is cheaper some days.

Oh, wait, did we say that already? Sorry. We ramble when we’re passionate about something.

Insurance Rates Increase with Age

Getting quotes isn't rocket science, but it's still confusing

Online calculators? Good for ballpark numbers, but if you have asthma or your grandma had diabetes, suddenly you’re stuck. Sit with us—well, not literally, unless you like burnt coffee—and we’ll hash out the details. Sometimes you need more coverage, sometimes less. There’s no right answer. We get nervous, too, whenever we fill out paperwork for ourselves. Nobody likes forms.

Mortgage protection isn't just for the "big shots."

It bugs us when people think insurance is for rich folks. Do you own a condo? You need it. Tiny bungalow? Same thing. We know a guy who lived in his car for six months, waiting for things to turn around. His parents had insurance, but he didn’t. Life’s weird like that.

Difference between bank insurance and your own policy (sorry if this sounds preachy)

The lender’s policy fades as you pay down your mortgage. Great deal, right? Only for them. If you move banks, poof—gone. Your own plan? Stays the same. Your family gets the money. Sometimes we say this three times in the same meeting because people don’t believe us.

Tech's supposed to make this easier, but we still get headaches

We like that you can get Term Life Insurance Quotes online now, but sometimes we miss the old days—paper, coffee, and a handshake. Now it’s passwords, logins, and the printer always jams. If you hate forms, trust us, we get it. We’ll muddle through together. Maybe that’s an overshare, but whatever.

Real stories aren't always tidy

People want answers, but life’s messy. Some folks say, “We’ll do it next year.” The next year, something happens. Or nothing happens, and they forget again. We’ve lost track of how many people told us, “We wish we’d listened.” We forget stuff, too—we left our lunch on the GO train last week. Still annoyed.

High-risk home loans: do what you can, not what you can't

Variable rates, side hustles, layoffs, rent going up—everyone’s got something. You can’t fix the world, but you can make sure your family doesn’t end up on the street if you’re gone. Is that too dramatic? Maybe. But we’ve seen it.

Signing up for the bank's insurance at closing? don't

Seriously, it’s just paperwork they slide in when you’re tired and hungry. Half the time, you don’t even know what you’re signing. Get your own policy. Even if it’s not perfect, it’s yours.

New to Canada? We've been there

Not literally—we were born here. But our families weren’t. Watching them navigate paperwork, banks, and all that stuff? We respect anyone who’s made the move. You already did the hard part. Let us help with the insurance bit. No lectures.

Wanna talk numbers? The Term Life Insurance cost is what it is

You wanna see the numbers? We’ll show you. Not gonna twist your arm. We’ll even use the Term Life Insurance Cost Calculator with you. We’ll compare, we’ll argue (nicely), we’ll figure it out.

Harpreet Puri and Canadian LIC—yeah, we're different (we think)

We remember your name. Your story. Your dog’s name, if you tell us. It’s not just about selling. It’s about sleeping at night, not worrying if a random flu season means your house is at risk.

If you're not ready, that's fine—we're not either, half the time

Maybe you’re thinking about this for the first time. Maybe you’re sick of hearing us talk about it. That’s cool. When you’re ready, we’ll sit down, laugh, maybe cry, and figure out what works.

Your home is more than drywall and receipts (it's also chaos and comfort)

There are days when we look around and think, “How did we get here?” But at least our families are safe. Yours should be, too. That’s why we do this. Even if we’re rambling, forgetting things, or spilling coffee everywhere.

More to Know

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    FAQs

    Yes, we receive this one frequently. Life never goes according to plan, does it? New job, freelance work, laid off (ugh, we’ve all been there) — your Term Life Insurance doesn’t give a good gosh darn. It follows you, not your boss. It doesn’t matter whether you drive a truck after teaching or finally open the bakery you’ve always dreamed of. Just pay the payments, and it’s also yours. We had someone who became their own boss partway through their mortgage — no problem. But be sure to let us know if your contact info changes, or else we’ll go ahead and send your renewal to the mailbox at your old workplace (awkward).

    Entirely possible, but not magic — of the finger-snapping kind, at least. If you purchase a larger home, want to increase your coverage or have another baby, we can assist you in applying for a higher amount. Just know that new health checks can occur, and if you wait too long, the rates may be higher. We know someone who called us two days after he received his keys, panic invading his voice, “Do I need more now?” Never hurts to ask early. We can layer one with a second policy or take a look at your options, even if you’re just kicking tires.

    Yes, and no one ever wants to believe us at first. Received one call, sunburnt, the flecks of sand in the cradle, and it was an actual emergency from someone in Cancun. Your coverage is worldwide, provided you’re not off on a reality TV stunt or running away to the circus (seriously, read the fine print for dangerous activities). Moving to another country long-term? That’s a whole other ball game — we will walk you through it when the day comes. Vacations, work trips, backpacking Europe? Still covered. Just keep the policy paid, and you’re in the clear.

    Sure can. Some people put in a sibling, a parent or a charity. We met a pair who had left everything to their dog rescue (no joke). Just be honest, because if it’s not spelled out, it can become a mess. We always ask, ‘Who do you trust the most with your house keys?’ That’s usually your answer. And if you change your mind in a year or 10, updating a beneficiary isn’t the nightmare people believe — it’s often just one short form, and we’ll even track down the paperwork if you lose it (which, believe us, you will).

    This one is a tricky one, and it’s the one that makes people uncomfortable. Basic Term Life Insurance? It pays out on death, not on diagnosis. But if you want even more protection, there are add-ons — for example, “critical illness riders.” Those can pay a cash benefit if you develop cancer, suffer a heart attack or have a stroke — and you are still alive. They are more expensive, but we have seen them prevent people from having to sell their houses to pay hospital bills. It’s not part of the default kit, so if you’re concerned, just ask us, and we’ll make sure you get the plain truth with no sugarcoating.

    We get this question a lot around tax season, typically from someone who’s been up all night with receipts. The good news: there are no taxes on the payout of a Term Life Insurance in Canada. Doesn’t tinker with government benefits like the child tax credit or OAS, either. So you can relax there. If they ever change the rules (because you know, government), we’ll ding you. But for now? Nothing to worry about.

    Happens more than people admit. You’re between paychecks, maybe — your account bounced just because you missed that your payday was moved. Many Term Life Insurance policies come with a grace period — typically 30 days. Miss one payment? Just get caught up, and hey, you’re good to go. Miss more? You are in danger of losing the coverage, but give us a call immediately. We have saved numerous policies with a phone call and a little paperwork. It’s ignoring the problem that gets people in trouble. We’d rather you pick up the phone, even if you’re embarrassed.

    By default, no, but don’t worry, it’s one of those confusions. Term Life Insurance is simple: You pay a large sum of money if you die. And if you want protection from injury or sickness, you’ll have to buy a separate disability or critical illness policy (we can discuss those, but trust us, we’re not pushing — promise). Had a client who broke a leg, couldn’t work for four months, and assumed that their term plan would cover the mortgage. No, but we did help them add the proper coverage for the future. Just ask before you need it.

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    Key Takeaways

    • High-risk home loans in 2025 are everywhere. Even folks with good jobs and big down payments aren’t immune.

    • A Term Life Insurance Plan is the real safety net. It follows you—job changes, self-employment, moving cities—doesn’t matter.

    • The bank’s mortgage insurance protects the bank. Your own Term Life Insurance policy protects your family and gives them choices.

    • Rates go up with age and health, so waiting usually just makes things harder (and more expensive).

    • Coverage isn’t one-size-fits-all. You can adjust your Term Life Insurance Plan as your mortgage, family, or budget changes.

    • Claims can be paid anywhere in the world—not just in Canada—so your coverage travels with you.

    • Missed payments don’t always mean disaster, but ignoring them can. Talk to your advisor before it snowballs.

    • Critical illness or disability aren’t covered by basic Term Life Insurance, but you can add extra protection if you want.

    • Your home is more than an address—it’s comfort, memories, chaos, and peace of mind. Keeping it safe should never be left to chance or a bank’s fine print.

    Sources and Further Reading

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