Term Life Insurance

Term Life Insurance in Canada offers simple and affordable coverage for a fixed period, ensuring financial security for your loved ones. It’s an ideal choice for protecting your family’s future at a low cost.

Have Any Questions?

What is a Term Life insurance and how does it work?

Term Life Insurance is the simplest and most affordable form of life insurance. You pay regular premiums for a fixed term — usually 10, 20, or 30 years — and your beneficiaries receive a tax-free payout if you pass away during that period.

This ensures your family’s financial security by covering major expenses like mortgage, education, or daily living costs.

Fixed coverage period (10–30 years)
Tax-free death benefit payout
Affordable and easy to understand
Ideal for family protection
Covers major life expenses
No cash value savings

How Much Term Life Insurance do you need?

At the end of the day, only you can decide how much term life insurance coverage you want to buy — and how long you need it to last. While the typical rule of thumb is to buy a policy with a death benefit of at least 10 times your current income, you may want to invest in term life coverage with an even higher death benefit, perhaps as much as 20 times your income or more, depending on your needs.

This means that someone who earns $50,000 per year would want to purchase at least $500,000 in term life insurance, but potentially closer to $1 million or even more. Meanwhile, a high earner who brings in $100,000 per year should buy at least $1 million to $2 million in term life insurance coverage.

What to Evaluate Before and Selecting a Term Life Policy

As you shop around for term life insurance, factors to keep in mind include:

Your current income that needs to be replaced when you’re gone.
How long you want coverage to last How many dependents you have and their future needs.
Debts you have that will need to be paid off, including mortgage debt, car loans, credit card debt and medical bills.
The cost of your final expenses.

Benefits of and Term Life insurance

Term life insurance is one of the most affordable types of life insurance.
Your beneficiary receives a tax-free death benefit if you pass away during the term.
Unlike permanent life insurance, term policies are only active in the years you need it most.
The payout can be used for anything your family needs: funeral costs, debts, tuition, etc.

Advantages of Term Life Insurance

Premiums cost less than permanent life insurance
Get more coverage for your money
Choose policy length to fit your needs
Buy online, sometimes without a medical exam
Generally more affordable than whole life insurance

On average, term life insurance is more affordable because coverage lasts for a set period. If you outlive the policy term, your beneficiaries won’t receive the death benefit, reducing the insurer’s risk.

Disadvantages of Term Life Insurance

Coverage ends when the term expires
No cash value or investment component
Must meet health and age requirements
No surrender value if canceled early
Renewal can mean higher premiums

While term insurance is affordable, it doesn’t build cash value or last a lifetime. Renewal premiums rise based on your age and health, which can make long-term coverage costly.

What to look when and selecting Term Life Insurance

When choosing term life insurance coverage, the length of the policy is going to be your primary concern. But there are also some additional variables to consider when it comes to term life, as there are several types of term life policies.

Level term life insurance charges the same premium for the entire life of the policy, and your beneficiaries will receive the same death benefit amount if you die while the policy is in force.