Basics

Reviews

Common Inquiries

Who Benefits from Term Life Insurance?

Who Benefits from Term Life Insurance
Canadian LIC

By Harpreet Puri

CEO & Founder

  • 11 min read
  • October 17th, 2024

SUMMARY

Planning your financial assets is very important to ensure that, in case of some unexpected event, you can secure the well-being of your family. There are quite a lot of people in Canada who are unable to make up their minds as to whether or not a Term Life Insurance Policy should be taken into consideration. The good news is that Term Life Insurance ranks amongst the most accessible and affordable options to secure your family’s financial well-being. But who actually benefits from a Term Life Insurance Policy? Or is it only useful for young families, or can other categories of people benefit from having a policy?
Here at Canadian LIC, we meet clients each and every day wondering if Term Life Insurance is the right fit for them. Quite often, they’re managing multiple financial responsibilities, perhaps mortgages or education for young children, and are seeking an insurance solution that balances those needs within their budget. We’ve seen firsthand how a well-structured Term Life Insurance Policy can impact different groups of people. Let’s explore who really benefits from Term Life Insurance and why it might be right for you.

Young Families Seeking Financial Security

Young families are among the most common recipients of Term Life Insurance. In many cases, parents with young children look for ways to provide for their family if either or both parents die prematurely. In this regard, Term Life Insurance seems to be the best solution; it provides an enormous amount of coverage at a relatively low cost, meaning if something happens worse, the surviving spouse or children do not end up with unbearable financial burdens.
For instance, most of our clients visiting the Canadian LIC are so worried about how the spouse would handle the mortgage, daycare costs, or even day-to-day living costs when one income suddenly vanishes. Term Life Insurance helps cover all these critical needs with peace of mind that the family will be looked after. The cost of Term Life Insurance is almost always less than that of a Permanent Life Insurance Policy, making it an especially practical option for young families starting out and potentially on a tighter budget.

Homeowners with Long-Term Debt

Another class of individuals who can actually benefit from Term Life Insurance is homeowners. Mortgages often qualify as one of the largest financial obligations that couples and families incur. In the event of death, this outstanding mortgage amount can severely burden members of the family. Term Life Insurance can be structured to cover the duration of a mortgage, ensuring that the home will be paid off and your family won’t lose their home due to financial strain.
More often than we would wish, homeowners are found to be caught between payment of mortgages and long-term car or personal loans. At such times, a Term Life Insurance Policy ending at an age when the mortgage is likely to end can prove a wonderful safety net. The “low-cost” life insurance quotes make it well within the realms of economic decision-making to protect one’s home, sheltered by family members, from uncertainty by risk due to unexpected life events.

Business Owners Protecting Their Legacy

A Term Life Insurance Plan benefits small local companies or large enterprise business owners. As a business owner, you owe yourself a responsibility to your and your employees’ financial well-being as well as the continuation of your business operations. For this reason, a Term Life Insurance Policy protects you in case you die because it will give the business assets to continue to run and possibly thrive in your absence.
For example, at Canadian LIC, we had one very small-time businessman with many employees who only lived on his income. So when he decided to take Term Life Insurance, the reason behind it was more financially binding on his family, even business partners, if his death became abrupt. With this coverage, his business had the funds necessary to continue operating, paying debts, and not letting the employees flee. The cost of Term Life Insurance was reasonably priced and was warranted in the protection that would be given for personal and business life.

Individuals with Dependents

Term Life Insurance Coverage is not limited to parents or people with homes. Anyone who has dependents—be it aging parents, a spouse, or siblings—will benefit from holding a Term Life Insurance Policy. Your dependents rely on your income to continue living in the way you have provided for them. Their loss might put them in a very precarious financial situation. Having a Term Life Insurance Policy would provide the means to pay for living costs, medical care, or maybe even educational costs in the future, should your dependents require it.
One of the most heartwarming experiences we’ve had at Canadian LIC was with a client who was looking after both her elderly parents. With the fact that her parents depend on her for financial support, she decided to take a term insurance policy that would care for them in case of her untimely death. Because term life quotes were affordable, she was able to find a policy that suited her needs and would give her peace of mind, knowing that, in case anything happened to her, her parents would be taken care of.

Couples Without Children

That’s a fallacy of thinking to limit Term Life Insurance to only families with children. In point of fact, childless couples can really use a Term Life Insurance Policy in the event that both parents contribute to household income and responsibilities for mortgage payments or any other shared debts-it would be financially catastrophic for the surviving spouse if one’s income is lost overnight.
We often work with couples at Canadian LIC in this exact situation. They may have no kids, but they still want to protect each other for financial reasons. A Term Life Insurance Policy lets them do exactly that—to ensure that their spouse or partner won’t be bothered making ends meet for expenses, debts, or other obligations when one of them dies unexpectedly.

Individuals Planning for Major Life Events

Term Life Insurance is also quite fabulous for people with huge milestones ahead, such as marriage, buying a home, or even getting children in the near future. Getting Term Life Insurance earlier can help you take advantage of lower Term Life Insurance rates by locking the deal in, making sure that you are covered during your increasing financial responsibilities.
For example, the majority of our customers for Canadian LIC come near to huge life-changing events; they may be buying their first home or having a family. Allowing the coverage to begin early can also help them out with lower premiums and ensure their financial futures with their family, no matter what could befall.

Those Who Want Affordable, Flexible Coverage

The most important reasons why people buy Term Life Insurance are its affordability and flexibility. Term Life Insurance Quotes compared to those of Permanent Life Insurance Policies are much lower, thus making it a really good option for those needing heavy coverage for a couple of years but not having the funds needed for a more expensive policy.
At Canadian LIC, we often work with clients who are seeking a simple, cost-effective solution to protect their loved ones financially. With the Term Life Insurance Policy, you can choose the term length, 10 years, 20 years, 30 years or 50 years- to meet your current needs. Term Life Insurance is highly popular among both young professionals and retirees at different stages of life.

Term Life Insurance for Different Needs

We have already discussed several significant categories of individuals who can benefit the most from Term Life Insurance in Canada. However, Term Life Insurance offers more benefits, and such benefits can be used outside of life cycle events such as buying a home and starting a family. Let us now look at other scenarios and parties that will greatly benefit from having Term Life Insurance in place:

Single Individuals Looking to Leave a Legacy

It is also largely assumed that single people don’t need life insurance because they’re not dependents or have financial obligations tied to anyone else. Many, however, are simply buying Term Life Insurance policies for the purpose of leaving behind a financial legacy. Be it a preferred charity, extended family members, or a cause they are passionate about, the ability to make a difference after they’re gone gives a reason for buying a Term Life Insurance Policy.

At Canadian LIC, we’ve worked with several clients who wanted to ensure that their savings or other assets wouldn’t be exhausted by final expenses like funeral costs, debts, or taxes. For those clients, a Term Life Insurance Policy covers not only those immediate costs but leaves something behind for the causes or people they care about. In many cases, a modest Term Life Insurance Cost can achieve this, providing peace of mind and ensuring that their legacy lives on.

Parents of Adult Children

Many parents assume that when their children have grown old enough and become financially secure, there is no longer a need for life insurance. In reality, many parents maintain a Term Life Insurance Policy to provide for the benefit of their adult children or grandchildren. This might include savings for educational payments, a down payment on a home, or even just a cash reserve for times when money is tight.

At Canadian LIC, we have made it possible for many parents who want to keep a Term Life Insurance Policy exactly for those reasons. Their aim wasn’t to replace income but to leave comfort for an easier life later on from their children. In this aspect, the cost of Term Life Insurance is actually quite reasonable since parents can take shorter-term or reduced coverage values knowing that their children will sustain themselves after growing up.

Older Individuals Planning for Retirement

While many might think of Term Life Insurance as for younger people, there are also thousands of older Canadians who would benefit from it. Term Life Insurance might be an intermediate step between retirement savings and other savings goals for those soon-to-be retirees. For example, if you are paying off a mortgage or other debts and fear that the family may be left behind once you are gone, a Term Life Insurance Policy can cover the risk.

One of the strength points of Term Life Insurance is its flexibility. You can really choose the length of your term to provide some coverage that reflects your particular financial obligations. Whether it’s ten years for the remainder of your mortgage and/or when you have your children almost grown and out of college, or 20 years so that coverage reaches into your early retirement, there’s Term Life Insurance to match any need.
At Canadian LIC, this is a typical scenario. Customers are likely to walk in, one in his or her 50s or in his or her 60s, seeking term life quotes within the overall context of retirement planning. Their wish is to have the peace of mind that their spouse or children won’t be saddled with outstanding debts without breaking the bank on premium payments. The cost of Term Life Insurance changes according to age, but it is indeed much lower than Permanent Life Insurance.

Term Life Insurance for Divorcees

Divorce often leads to significant changes in financial responsibilities, and for many, that includes the need for life insurance. In the majority of cases, divorce will cause one or both exes to have to continue carrying life insurance to support any children and/or ex in the event that something happens to one of them. Sometimes, even life insurance becomes a mandatory aspect of the divorce decree to ensure that child support or spousal alimony would be paid in case one spouse dies.

At Canadian LIC, we’ve worked with clients who are in this very situation. After their divorce, they needed a Term Life Insurance Policy to provide financial protection for their children. The Term Life Insurance Cost was well within their budget, and they were able to secure a policy that provided coverage until their children reached adulthood. This way, they could fulfill their financial responsibilities even after the divorce, ensuring that their children’s needs were met.

The Impact of Group Term Life Insurance

Many Canadians receive group life insurance through their employer, and what happens to this group life insurance when you leave the job? One of the downsides of group life insurance is that it usually ends at the end of the job change, retirement, or loss of employment. An individual Term Life Insurance Policy, on the other hand, is portable; therefore, it will follow you to a new job. For many people, having an individual policy in addition to any group coverage can serve as that little added protection factor.

At Canadian LIC, we frequently see clients who rely on the group life insurance available through their employers but then discover that it might not be sufficient. Individual Term Life Insurance is often very affordable and provides the security that group insurance alone cannot provide, especially to young and healthy people. This personal Term Life Insurance Policy protects you and your family, irrespective of changes in your employment status.

Coverage for Stay-at-Home Parents

A stay-at-home parent does not generate an income like others, but the value to the household is priceless. In the event of their death, the surviving spouse may face significant costs related to childcare, household management, and other daily tasks that the stay-at-home parent previously handled. Stay-at-home parents need Term Life Insurance to provide financial resources for the additional expenses.

Most Canadian LIC families we work with realize that a stay-at-home parent plays an equally significant role in the home. Securing a Term Life Insurance Policy ensures that if something happens to the stay-at-home parent, the surviving spouse will not have to bear the costs and emotional burdens of running everything alone. It is relatively less expensive than the cost of stay-home parents’ life insurance and, therefore, protects the family’s financial well-being.

Key Takeaways: Choosing the Right Term Life Insurance

Term Life Insurance can offer much-needed financial security regardless of the age and stage of life. Whether you are a young family, homeowner, business owner, or individual approaching retirement, the flexibility and affordability of Term Life Insurance can be an ideal solution for many Canadians.

At Canadian LIC, we have been serving hundreds of clients to find the ideal Term Life Insurance Quotes and structure policies that suit every client’s needs. This coverage pays off debts and mortgages and insures your children’s future. It leaves families, businesses, and individuals with peace of mind.
If you are willing to check your options for Term Life Insurance, then feel free to contact our experienced team at Canadian LIC. We shall be there to help you each step of the way by providing you with the best Term Life Insurance Quotes, as we have a thorough knowledge of the numerous coverage options available to our clients. Whether one is starting out or planning for the future, Term Life Insurance is the ultimate protection tool to protect that which matters most.
Contact LIC today for the most suitable Term Life Insurance you and your family deserve. Let’s build a secure financial future!

Who benefits from a Term Life Insurance Policy?

Who benefits from a Term Life Insurance Policy

Final Thoughts: Secure Your Future with Canadian LIC

No matter your age or life situation, having a Term Life Insurance Policy can provide essential financial security for you and your loved ones. From young families to business owners, the benefits of Term Life Insurance are vast and adaptable to meet individual needs. Whether you’re concerned about covering mortgage payments, protecting your business, or ensuring that your dependents are taken care of, a Term Life Insurance Policy is an innovative, cost-effective solution.
At Canadian LIC, we’ve seen how the right Term Life Insurance Policy can make all the difference. We work closely with our clients to understand their unique needs and help them find the best possible Term Life Insurance Quotes. Our goal is to make the process as simple and stress-free as possible so you can have peace of mind knowing your future is secure.

If you’re ready to explore your Term Life Insurance options, Canadian LIC—is here to help. Protect your family, your business, and your financial future with a Term Life Insurance Policy that fits your life perfectly. Reach out today to get started.

More on Term Life Insurance

Get The Best Insurance Quote From Canadian L.I.C
Call +1 844-542-4678 to speak to our advisors.
Get Quote Now

FAQs Around Term Life Insurance in Canada

Anyone who has financial responsibilities, like a mortgage, children, or debts, should consider a Term Life Insurance Policy. Many of our clients at Canadian LIC are young families, homeowners, and business owners. They want to protect their loved ones from financial strain if they pass away unexpectedly. A Term Life Insurance Policy provides that protection.
The length of your Term Life Insurance Policy depends on your financial situation. If you’re covering a mortgage, you might want the term to last as long as the mortgage. At Canadian LIC, we’ve seen clients choose 10, 20, or 30 years, depending on their needs. It’s about ensuring your family is covered during critical financial periods. The right term depends on your long-term financial obligations.

The Term Life Insurance Cost can vary based on factors like your age, health, and the length of the policy. However, Term Life Insurance is generally more affordable than Permanent Life Insurance. Many of our clients at Canadian LIC are surprised by how affordable their Term Life Insurance Quotes are. We always work to find the best rates for our clients.

Yes, it’s possible to get a Term Life Insurance Policy even with health issues. The premium might be higher, but coverage is still available. At Canadian LIC, we help clients with various health conditions find coverage that fits their budget. It’s all about getting the right Term Life Insurance Quotes based on your specific situation.
When your Term Life Insurance Policy ends, you can either renew renew it, buy a new policy or let the coverage end. At Canadian LIC, we often see clients choose to renew for a shorter term if their financial situation has changed. Some may choose to move to a different kind of policy. We help guide you through the process based on what’s best for your needs.
Many Term Life Insurance policies allow you to convert to a permanent policy without additional medical exams. This is useful if your financial goals change over time. At Canadian LIC, we assist clients who decide they want the long-term benefits of Permanent Insurance after starting with a term policy.
Term Life Insurance is better for those who need coverage for a specific period, such as paying off a mortgage or raising children. The Term Life Insurance Cost is lower, making it an attractive option. On the other hand, Permanent Insurance offers lifelong coverage but is more expensive. We help our clients at Canadian LIC decide based on their financial goals and current needs.
The best way to get affordable Term Life Insurance Quotes is to compare options. At Canadian LIC, we do the legwork for our clients. We search for the best rates, considering your age, health, and coverage needs. Our goal is to find you the most competitive quote that fits your budget and provides adequate protection.
Yes, if you pass away while your Term Life Insurance Policy is active, your beneficiaries will receive the payout. Many of our clients at Canadian LIC feel secure knowing their families will be financially protected if the unexpected happens during the policy term.
Yes, some people choose to buy multiple-Term Life Insurance policies for different purposes, such as one to cover a mortgage and another for their children’s education. At Canadian LIC, we work with clients to structure their coverage in a way that best meets their needs. Multiple policies can offer more flexibility.
The Term Life Insurance Cost depends on several factors, including your age, health, lifestyle, and the length of the policy. At Canadian LIC, we often explain to clients that younger and healthier individuals typically receive lower rates. Smoking, medical conditions, or hazardous jobs can increase your premiums. The length of the term also plays a role, with longer terms generally costing more than shorter ones.
The amount of coverage you need depends on your financial obligations. Many of our clients at Canadian LIC choose a Term Life Insurance Policy that covers their mortgage, outstanding debts, and future family expenses, like children’s education. We always suggest calculating how much your family would need to maintain their standard of living if something happened to you.
Once you’ve purchased a Term Life Insurance Policy, most policies are fixed, meaning the term and coverage amount are locked in. However, some policies may offer options for renewal or conversion to Permanent Insurance. At Canadian LIC, we often guide clients on which policy has the flexibility they may need in the future.
If you stop paying your premiums, your Term Life Insurance Policy will lapse, and you’ll lose coverage. At Canadian LIC, we always remind clients of the importance of maintaining their premium payments to ensure their family remains protected. If a payment is missed, there’s usually a grace period, but after that, coverage ends.
Yes, many Term Life Insurance policies offer a renewal option, but the premiums will likely increase based on your age and health at the time of renewal. We often see clients at Canadian LIC renew their policies if they still have financial responsibilities, but others may consider switching to a different policy type, depending on their situation.
Yes, most Term Life Insurance policies have exclusions, such as death by suicide within the first two years or death related to criminal activity. At Canadian LIC, we carefully explain these exclusions to our clients so that they understand what is and isn’t covered under their policy. It’s always important to review these details before purchasing.
Yes, you can name anyone as a beneficiary for your Term Life Insurance Policy. Many of our clients at Canadian LIC name their spouses, children, or other family members. You can also choose a charity or organization if you wish to leave a legacy. We help clients decide who would benefit most from the payout.
In most cases, the payout from a Term Life Insurance Policy happens within a few weeks after the claim is submitted and approved. At Canadian LIC, we work with beneficiaries to ensure they understand the process and can submit all the required documentation quickly. This way, the financial support can reach your family when they need it most.
A medical exam is often required to determine your Term Life Insurance Cost and eligibility. However, some policies offer no-exam options, but these tend to have higher premiums. At Canadian LIC, we guide clients through the medical exam process and help find policies that match their comfort level and health situation.
If your financial situation changes, you may want to reevaluate your Term Life Insurance Policy. At Canadian LIC, we help clients adjust their policies or consider alternatives if they experience a significant life change, like a new job, divorce, or increased financial responsibilities. While you can’t change the policy itself, you might explore options like adding a new policy or converting to Permanent Insurance.
These FAQs cover the common concerns we hear from clients at Canadian LIC. Whether you’re starting a family, purchasing a home, or planning for the future, a Term Life Insurance Policy could be the right solution to protect your loved ones. Feel free to reach out to us for more personalized Term Life Insurance Quotes and advice.
get Term Life Insurance Quote

Sources and Further Reading

  • Canadian Life and Health Insurance Association (CLHIA) Offers a comprehensive overview of life insurance types and industry regulations in Canada. https://www.clhia.ca
  • Government of Canada – Life Insurance Guide Provides information on choosing life insurance policies, including Term Life Insurance and its benefits. https://www.canada.ca
  • Canadian Life Insurance Quotes Comparison Tool Helps compare Term Life Insurance Quotes from various providers in Canada to find the best rates. https://www.insurancehotline.com
  • The Globe and Mail: Life Insurance in Canada – Articles and insights on the Canadian life insurance market, trends, and considerations. https://www.theglobeandmail.com
  • Canadian LIC – Term Life Insurance Policies – Access helpful guides, client stories, and professional advice from one of Canada’s best insurance brokerages. https://www.canadianlic.com
These sources provide valuable information to further understand Term Life Insurance policies, Term Life Insurance Costs, and how to get Term Life Insurance Quotes in Canada.

Key Takeaways

  • Term Life Insurance offers affordable coverage for a specific period, making it ideal for individuals with temporary financial responsibilities.
  • It benefits a wide range of people, including young families, homeowners, business owners, and even single individuals who want to leave a legacy.
  • Term Life Insurance policies are flexible, allowing you to choose coverage that aligns with your needs, such as mortgage payments or children’s education.
  • The Term Life Insurance Cost is generally lower than Permanent Life Insurance, making it an accessible option for many Canadians.
  • Comparing Term Life Insurance Quotes can help you find the best rates for your unique situation, ensuring your loved ones are financially secure.
  • You can renew or convert most Term Life Insurance policies if your financial situation changes, providing long-term flexibility.
  • Canadian LIC offers personalized guidance to help you choose the right Term Life Insurance Policy based on your needs and financial goals.

Your Feedback Is Very Important To Us

We would love to hear your thoughts on Term Life Insurance and any challenges you may face when considering it. Please take a few moments to answer the questions below to help us understand your struggles and needs better.

    1. Personal Details

    Full Name:


    2. Feedback Questions

















    Thank you for sharing your thoughts! Your feedback will help us provide better support and information about who benefits from Term Life Insurance and how to make the right decision.

    IN THIS ARTICLE

    Life Insurance Policy Form