Term 20

Product description

Issue ages (age nearest)

• 0 - 65

N.B.: T20 coverage continues to the policy anniversary at age 80. Age nearest is calculated using a six-month rule from the date of issue. For example, if the client's birthday falls within 6 months of the day of issue, the client will be considered a year older. Conversely, if the client's birthday is greater than 6 months from the day of issue, the client's attained or actual age will be used.

Issue amounts

• Minimum: $25,000
• Maximum: $10,000,000 (maximum amount as illustrated in the illustration software. You can request a higher amount by writing to specialquotes@dfs.ca)

Flexible options for term insurance

Conversion option

Term 20 can be converted into a permanent product up until age 70, without having to provide new evidence of insurability. Joint policies can be converted up until the eldest insured turns 70. 

For in-force contracts, please refer to the contract's clause to find out the maximum age at which the option may be exercised.  If the option is not included in the contract, please contact the Head Office.

• Products available for conversion

Exchange option

The Exchange Option allows your clients to exchange the Term 20 for a longer term life insurance coverage, during the first five years of coverage, without providing new evidence of insurability. The client must be 55 or under at the time of the exchange and certain age restrictions may apply. The maximum age to exercise the exchange option to a Term 30 is 50 (age nearest).

Please note that an individual life Term 20 can be exchanged for a longer individual life term coverage. A joint first-to-die Term 20 can be exchanged for a longer joint first-to-die term coverage. A new coverage with a longer term period will be issued.​

The Exchange option can only be exercised once.  The exchange option will be excluded from the new term coverage.

Partial exchanges are also accepted.​

Insurability options (for joint policies)

Joint policies include an Insurability Option while living and an Insurability Option upon the first death, without having to provide new evidence of insurability. When exercising insurability options, insureds may exchange their joint coverage for individual permanent coverage, at which time the joint coverage ends. The products offered are the same as those available for conversion.

• Products available for conversion

1. The Insurability Option while living allows you to split the joint coverage into individual permanent coverages up until the eldest insured turns 65. When exercising the insurability option, the policyholder must decide, for each insured, whether to exercise the insurability option or whether to terminate their coverage. The sum insured available corresponds to the sum insured in force divided by the number of insureds.
2. The Insurability Option upon the first death allows surviving insureds under the age of 65 to obtain individual permanent coverage.  The sum insured available for each surviving insured corresponds to the total sum insured in force at the time of death.

For in-force contracts, please refer to the contract's clause to find out the maximum age at which the option may be exercised.  If the option is not included in the contract, please contact the Head Office.

Association option (for individual policies)

Individual coverages include an option for exchanging the individual coverage for joint last-to-die coverage, up to age 70. This option allows you to add new insureds to the joint coverage. The products offered are the same as those available for conversion.

• Products available for conversion

1. If the additional insured already has coverage through DFS that includes a conversion option:
   • No evidence of insurability is required
   • The amount available corresponds to the lesser of the insured's inforce sum insured.
2. If the additional insured does not have any coverage through DFS with a conversion option:
   • The additional insured will need to provide new evidence of insurability
   • The amount available corresponds to the existing insured's inforce sum insured

For in-force contracts, please refer to the contract's conversion clause to find out the maximum age at which the option may be exercised.  If the Association Option is not included in the contract, please contact the Head Office.

Coverage options

• Individual (5 lives)
• Joint first-to-die (5 lives)

To obtain a Joint 1^st to die premium, you must multiply each insured's rate by 95%, round to the second decimal and add them together.Example: [Round (Rate1 x 95%) + Round (Rate 2 x 95%) +... ] x Insurance amount + $50

Annual policy fees

• Basic Coverage: $40
• Each Additional Coverage: $20

Payment frequency

• Annual
• Semi-annual
• Monthly PAC (Pre-Authorized Chequing)

Modal factors

• Semi-annual: 0.52 X total annual premium
• Monthly PAC: 0.09 X total annual premium

N.B.: The total annual premium refers to the total policy premium including any benefits/riders and applicable policy fee.

Premium banding

• $25,000 to $49,999
• $50,000 to $99,999
• $100,000 to $249,000
• $250,000 to $499,999 (preferential rates for insured clients ages 51 and more)
• $500,000 to $999,999 (preferential rates for insured clients ages 18 and more)
• $1,000,000 to $4,999,999 (preferential rates for insured clients ages 18 and more)
• $5,000,000 or more (preferential rates for insured clients ages 18 and more)

Underwriting risk classes

Rate classes

Sales material

​​​To order, contact your financial centre's administrative assistant or follow your current procedure and specify the item number.