Insurance · Life
Life insurance is an amount and a length : the rest follows.
Term or permanent, the choice depends on what you protect: a mortgage that eventually ends, or an estate that stays.
What this page covers
The points to look at
- 01Term 10, 20, 30 years: the premium rises at renewal, not during the term.
- 02Lender's mortgage insurance versus a personal policy: who receives the payout.
- 03Health declaration and the policy's contestability period.
Two life policies compared on the same lines
| Item | Why it matters | What to ask |
|---|---|---|
| Term or permanent | Term covers a period and costs less at the start; permanent lasts a lifetime and builds value. | How long the need really lasts: mortgage, dependent children. |
| Amount insured | It should cover the debts and the income the family would lose, not a round number. | The needs calculation, item by item. |
| Premium at renewal | At the end of a term the premium can jump sharply if you renew without a new assessment. | The premium at each renewal, in writing. |
| Exclusions and contestability | A misstatement at application can lead to a denied claim during the contestable period. | How long that period lasts and what you must disclose. |
Ask before you apply
- 1.Does the insurance my mortgage lender offers follow the loan, or do I own it?
- 2.Can the policy convert to permanent without a new medical exam?
- 3.Who is the beneficiary, and can it be changed without my spouse?
- 4.What ends the policy: a late payment, a change in health?
Guides
Read next
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Frequently asked
What people ask most
Date the need. A mortgage that ends and children who will become independent point to a term policy of the same length. A need that never ends, such as an estate or a lifelong dependant, calls for permanent. The product follows the need's calendar, never the reverse.
Put numbers on your decision
Open the calculatorsFor information only: not an approval, and not a rate offer.
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