Term Life Insurance in Canada

Set the context: what term life insurance is for and why Canadian families consider it.

• Term life pays a tax-free lump sum if the insured dies during the term
• Its job is to replace lost income and protect dependents
• It is usually the cheapest type of life insurance

Learners sort statements into 'term' or 'permanent' before the explanation to surface prior beliefs.

• Decide which features belong to term coverage
• Notice common confusions between the two
• See the correct grouping revealed after each choice

Walk through the mechanics of a term contract: premium, death benefit, term length, and renewability.

• Premium is usually level for the chosen term
• Death benefit is paid only if the insured dies during the term
• Policies can be renewable, convertible, or both

Address the 'waste of money' belief by comparing term life to other insurance products most Canadians already accept.

• Most insurance protects against rare but financially devastating events
• Term life is priced similarly per dollar of coverage to home and auto insurance
• The right comparison is cost vs. financial loss, not premiums vs. payout likelihood

Show the most common use cases and connect each to a typical Canadian household situation.

• Income replacement for a spouse and children
• Paying off a mortgage or other large debt
• Funding children's education
• Key-person coverage for a small business owner

Quick assessment to surface and correct the belief that only the primary earner needs life insurance.

• Identify scenarios where a non-earner's death creates financial loss

Introduce simple rules of thumb, especially the DIME method, for sizing a policy.

• DIME: Debt, Income (multiplied by years), Mortgage, Education
• Quick rule: 5–10x annual income as a starting point
• Adjust for existing savings and group coverage

Explain how insurers assess risk and how that turns into the premium quoted.

• Medical exam, age, smoking status, and health history matter most
• Simplified and guaranteed issue policies skip the exam but cost more
• Lifestyle factors like hazardous hobbies can also affect pricing

Learners adjust coverage amount and term length on two sample quotes and observe the premium change.

• See how longer terms raise the premium
• See how doubling coverage roughly doubles cost for the same risk
• Compare a level term vs a renewable term quote

Walk through the real-world buying process in Canada, from quotes to beneficiaries.

• Compare at least three quotes and check insurer ratings
• Decide term length to match your longest dependency
• Choose riders such as critical illness or child coverage if useful
• Name beneficiaries clearly and update them after major life events

Confirm understanding of key features, sizing, and buying decisions before the wrap-up.

• Recognize meaningful differences between term products
• Apply the coverage-sizing logic to a new scenario

Pull the course together and give the learner a concrete next action.

• Use term life as low-cost protection for a specific time horizon
• Size coverage with DIME or an income multiple, then adjust
• Compare features, not just price, before buying
• Next step: gather two to three Canadian quotes using your own numbers