There are many
deferred term
insurance options.
Photo by Ed Yourdon
The insured is covered for the length of the term when it comes to deferred term life insurance. However, should death occur within the first two policy years, the death benefit payment is limited to a return-of-premium plus interest.
The two primary deferred term policies providers in Canada are Industrial Alliance and Canada Protection Plan, underwritten by Foresters.
The following is a snapshot of the difference between the two carriers:
Canada Protection Plan's Deferred Term Policies
- They offer Deferred Term 10, Deferred Term 20, and Deferred Term 100 plans.
- The death benefit in the first two policy years is limited to a return-of-premium plus 3% interest.
- The plan is non-renewable and non-convertible.
$100,000 of Deferred Term 20 coverage for a 40-year-old male, non-smoker is $429 a year.
Industrial Alliance Deferred Term Policy
- They only offer a Deferred Term 20 Policy.
- The death benefit payout, if death occurs by non-accident in the first two policy years, is limited to a return-of-premium plus 5% interest.
- The plan is non-convertible and non-renewable.
ยท The annual premium for a 40-year-old male, non-smoker is $475 a year.
For more details on Non-medical Life Insurance in Canada, please call us at 1.866.899.4849 or visit our Non-medical Life Insurance Quote Page.
I’m looking for a client – are there any other companies that offer Deferred Term life insurance policies. Also does CPP offer a Non Medical Term plan without a waiting period on the death benefit
Thanks for the note.
Many insurance carriers offer Deferred Permanent policies but the selection among Deferred Term plans is far more limied. Bingham Group Services Corp (BGS) alsooffers a deferred mortgage insurance plan underwritten by Foresters Life Insurance Company.
CPP offer two Simplified issue Term plans with no waiting period. Simplified Term and Simplified Term Plus. The coverage starts from day one and the rates are lower than the Deferred Term plan but there are additional questions the insured must able to answer “no” to.
What does deferred term life insurance mean?
Deferred means that the death benefit is reduced to a return of premium with interest, if the death occurs with a certain time period, usually 2 years.
After the elimination period of 2 years, the full death benefit will be payable.