Life insurance policies fall under two broad categories: term and permanent.

Term 10, 15, 20, 30

Policies that offer coverage for a term of either 10, 15, 20 or 30 years. Premiums remain the same for the duration of the term. The option to either renew or convert the policy is available when the term ends.

Term to 65, 70, 75

Policies that offer coverage up until the ages of 65, 70, or 75. Premiums remain the same for the duration of the policy. The option to renew isn’t available.

Term to 100

While occasionally grouped in with other permanent life insurance plans, Term to 100 is actually a term policy. It provides coverage until age 100 and is non-renewable.

Universal Life

Your policy is valid for life and has a cash value. You can adjust your premium by reducing your death benefit or by tapping into your plan’s cash value. Premiums are high in comparison with premiums for term insurance.

Whole Life

Your policy is valid for life and your premiums will never change (no recourse). It also has a cash value, which you can borrow against, tax-free. Premiums are high in comparison with premiums for term insurance.

The coverage you require depends on a variety of factors such as your spending habits, future spending plans, annual income, etc. People typically select a coverage amount that is 5 times their current pre-tax annual income. On average, Canadians select $500,000 as their coverage amount.