Term life insurance
Affordable coverage when you need it
Life insurance doesn’t have to be a lifelong commitment. Term life is affordable coverage for your big expenses, so your loved ones are protected when it matters most.
Payments don’t change for the period you choose.
Choose the period of coverage that works for you – anywhere from 5 to 50 years.
Your insurance payout goes to whomever you choose.
What is term life insurance?
It’s temporary coverage that provides the people or charities you name as beneficiary with a tax-free payout if you die within the term you choose.Footnote * The money can be used to pay bills, the mortgage, kids’ education or to keep your business running.
The payments you make, called premiums, are set for the term you choose and won’t change during that period.
How does it work?
- Choose the coverage amount and term length you want.
- Customize your coverage with additional benefits.
- Pay the monthly or annual premiums.
- When the term is up, your policy will automatically renew each year, or you can end it or convert it to longer-term or permanent life insurance, within limits.
- If you die while your policy is active, the people or charity you named as beneficiary receive a tax-free payout.
How much does it cost?
In general, term life insurance is more affordable than permanent life insurance. There are a few factors that can affect the price of your policy, including:
Generally, insurance is less expensive when you’re younger.
Family history, chronic diseases and lifestyle can increase costs.
Women live longer than men on average, so their insurance may cost less.
If you have a dangerous job, the cost to insure you can be higher.
When do you need it?
Starting a family
Provide income replacement to help your partner and kids.
Buying a home
Make sure your family can still pay off large expenses, like a mortgage.
Leave a legacy to help your family cover education and funeral costs and provide for future income.
How much insurance coverage do you need?
Ideally, you want to make sure your debts are covered, so you don’t leave major expenses behind for your loved ones.
Here are a few things to consider:
- Your income
- Net worth
- Family needs
- Other insurance you have
What kind of life insurance do you need?
There are two main types of life insurance: term life insurance and permanent life insurance.
Term life insurance
|Permanent life insurance|
What does it provide?
Protection for a set length of time ||Permanent protection|
How long are you covered?
The length of time you choose
How can it help?
| || |
What's the cost?
|Usually more affordable than permanent life insurance||
Usually more expensive than term life insurance|
Can it build cash value over time?
| || |
|View permanent life insurance|
What are your options when your term ends?
With most traditional term insurance products, your policy would automatically renew for the same length of time as the original term. With Canada Life My Term™, your policy renews on a yearly basis at a lower initial rate than traditional term products. This allows you to keep your coverage longer if you need it.
Convert to a longer term
You may be able to convert to a term that is 10 or more years longer than your original term. Your premiums will increase gradually each year.
Convert to permanent insurance
Choose this option if you want insurance that lasts a lifetime and may grow in value over time, with tax advantages. Your premiums will be based on the coverage you choose.
- Footnote *
- * This refers to named beneficiaries (people). Probate fees (estate administration tax), if any, may apply on money paid to an estate. All comments related to taxation are general in nature and are based on current Canadian tax legislation and interpretations for Canadian residents, which are subject to change.