A Simple Guide to Term Life Insurance Process

Straightforward protection for a set period of time

Term life insurance is a type of life insurance that provides coverage for a specific number of years—often 10, 20, or 30. If you pass away during that term, the insurance company pays out a tax-free death benefit to your chosen beneficiary. If the term ends and you’re still living, the policy simply expires (unless it’s renewed or converted to permanent insurance).

Why it’s a smart choice for young adults:

• Affordable premiums
• Flexible coverage options
• Protects your family or partner from financial hardship
• Can cover large debts like a mortgage or student loan

The “why” is your starting point

Before you dive into the application process, ask yourself what you want the policy to do:

• Do you want to leave financial support for your family if something happens to you?
• Do you have a mortgage or debt that your loved ones would struggle to cover?
• Are you a new parent, newly married, or a sole earner in your household?

Your reason for buying term life insurance will help determine how much coverage you need—and for how long.

Customize your policy to fit your life

In most cases, term policies are offered in 10, 20, or 30-year increments. Choose a term that aligns with your financial responsibilities. For example:

• A 30-year term may make sense if you’ve just bought a house.
  
• A 20-year term might work if your kids will be financially independent by then.
  
• A 10-year term can serve as short-term protection while you build your savings.
  

Next, think about the coverage amount. Common coverage ranges from $100,000 to over $1 million, depending on your income, debts, and family needs. A good rule of thumb is to aim for 7–10 times your annual income.

Compare costs based on your age, health, and coverage
Once you know your ideal term and coverage amount, it’s time to get a quote. Most providers—including Wiseconomy Wealth Solutions Inc.—offer instant quotes online or through an advisor.

Your quote is based on:

• Age
  
• Health status
  
• Lifestyle (smoking, hobbies, etc.)
  
• Coverage amount and term length
  

You’ll get a monthly or annual premium estimate, which can help you plan your budget. The earlier you apply, the lower your premium is likely to be.

It’s easier than you think

The application form usually includes questions about:

• Personal and contact information
  
• Occupation and income
  
• Medical history
  
• Family medical background
  
• Lifestyle habits (smoking, alcohol, etc.)
  

Some insurers also ask for identification documents and allow digital signatures to keep the process paper-free.

Not always needed—but sometimes part of the process

Depending on the policy, coverage amount, and your health, you may be asked to complete a paramedical exam. This usually includes:

• Height and weight check
  
• Blood pressure measurement
  
• Blood and urine samples
  
• Possibly an ECG (for high coverage amounts or older applicants)
  

Good news? Many young applicants qualify for No Medical Term Life Insurance or Simplified Issue Life Insurance—where minimal health questions are asked and no medical exam is required.

Behind-the-scenes risk review

After you apply, the insurance company reviews your information in a process called underwriting. This can take a few days to a few weeks depending on your case. They might contact your doctor for more details or ask follow-up questions.

Once underwriting is done, you’ll receive:

• Approval (standard or preferred rate)
  
• Postponement (if more time or info is needed)
  
• Decline (in rare cases due to high risk)

Start your coverage with confidence

If you’re approved and happy with the quote, you’ll sign the final documents and make your first premium payment. At that point, your coverage becomes active.

You’ll also receive your policy contract, which includes all terms and conditions. Keep it in a safe place and let your beneficiaries know where it is.

Update as your life evolves

Life changes—and your insurance should too. We recommend reviewing your term life policy:

• After marriage or divorce
  
• When buying a home
  
• When having children
  
• When switching jobs or income levels
  

You can also choose to renew, convert to permanent insurance, or increase your coverage depending on your future needs.

Support every step of the way

At Wiseconomy Wealth Solutions Inc., we help you cut through the noise. Our advisors don’t just sell insurance—they explain it in plain language and help you make the right call for your budget and life goals.

We guide you through:

• Personalized quotes
  
• Application assistance
  
• Choosing between term and permanent life options
  
• No-medical or simplified policies when availabl

Whether you’re just starting your financial journey in Canada or building long-term security, term life insurance is a smart, affordable step in the right direction.

Need help choosing the right term life policy?
Let’s discuss how we can help.