Term Life Insurance FAQs 

Q: What does a term life insurance plan not cover? 

A: Each insurance plan has different exclusions, so it’s crucial to carefully review your policy.  

Q: Can you buy term life insurance if you already have insurance through your job? 

A: Yes, you can purchase term life insurance even if you have life insurance through your employee benefits. It’s usually recommended. While employee life insurance provides a great head start in financial protection, the coverage amount is typically limited and tied to your salary. Additionally, you may lose these benefits if you leave the company. 

Q: Do you need to be a Canadian to qualify for term life insurance in Canada? 

A: In most cases, providers require that you’re a permanent resident or Canadian citizen to qualify for term life insurance in Canada. For example, CAA Term Life Insurance, provided by Securian Canada, requires applicants to be a resident of Canada. Additionally, if you choose to move out of the country in the future, the issued policy is still valid.” 

Q: What happens when your term life insurance ends? 

A: When the term on your term life insurance comes to an end, your coverage simply expires. Before this happens, you have several options: renew your policy, purchase a new one, convert to a different type of life insurance, or cancel your coverage. Contact your provider to explore the available options as your policy nears expiration. 

Q: What happens if I pass away while my term life insurance policy is active? 

A: If you pass away while your term life insurance policy is still active, your beneficiaries will need to file a claim with your insurance provider. The insurer will guide your loved ones through the claims process and request any necessary information to settle the claim. Subject to the terms of your policy, your beneficiaries will receive a lump-sum payment once the claim is settled.