When Is the Best Time to Lock In a Term Life Rate?

If you have considered buying term life insurance, you may have heard that locking in your rate early can save you money. But what does that really mean? And how do you know when the timing is right?

The best time to lock in a term life rate is not about guessing the market or waiting for the perfect life stage. It is about acting while your health and age still work in your favour, two things that are guaranteed to change with time.

What It Means to Lock In Your Rate

When you apply for term life insurance, your premiums are calculated based on your age, health, lifestyle, and other risk factors. Once approved, your rate stays fixed for the entire term, whether that is 10, 20, or 30 years.

Locking in your rate means securing that cost structure now, based on your current profile, before it has a chance to shift.

How Age and Health Affect Pricing

Life insurance becomes more expensive with every year you wait. Not only do premiums rise due to age alone, but the risk of developing health issues increases as well. Even a minor medical diagnosis can significantly impact your eligibility or cost.

Here is a simplified look at how the same policy can change based on when you apply:

Rates are illustrative and based on healthy, non-smoking individuals in Canada.

Signs It’s Time to Act Now

You do not have to be married, have children, or own a home to justify life insurance. The right time is when your death would financially impact someone else. That could include:

• A partner who relies on your income
  If you live with someone who depends on your earnings to cover rent, utilities, or shared expenses, your income is part of their financial foundation. Life insurance helps protect that stability in your absence.

• Parents who co-signed your loans
  If your parents or guardians have co-signed a student loan or other personal debt, they could be held financially responsible if you passed away. A modest term policy can prevent that burden from falling to them.

• Future children or family planning
  If you are planning to grow your family in the near future, securing coverage in advance can lock in lower premiums. It also avoids the potential stress of applying during pregnancy or early parenthood, when your time and health profile may shift.

• A mortgage or joint financial commitment
  Whether you own a home or are preparing to buy one, having life insurance ensures your co-owner or spouse is not left with unaffordable payments. This protection often aligns closely with the length of your mortgage.

• Starting a business with a partner
  If you are co-founding a company or investing in a new venture, your financial contribution likely plays a key role. Insurance can help ensure the business remains viable and debts are covered if something happens to you.

Even if those events are a year or two away, it can be smart to act in advance. That way, you can lock in a better rate and avoid reapplying during a busier or less stable time.

How Long Should You Lock In For?

The right term length depends on your goals. You want the coverage to last as long as your major financial obligations do — for example, until your mortgage is paid off or your children finish university.

Here is a simple guideline:

Why This Decision Matters More Than You Think

Locking in a term life rate may seem like a small task in your broader financial plan, but the savings and security it provides can be substantial. Acting early can reduce lifetime costs, improve eligibility, and remove one major financial unknown from your future planning. It is not about reacting to risk. It is about recognizing timing as a strategic advantage.