Business-owned term life insurance
Protection when your business needs it
It’s affordable coverage that can help keep your business running smoothly for when it needs it most.

Tax-free payout
It can help pay off big expenses, like a loan or mortgage.
Pay less for more
You can get coverage when you may need it most at a low initial cost.
Protection for set periods
Choose the period of coverage that best fits your needs.
What is business term life insurance?
It’s temporary coverage for you and your business that lasts for a set period and automatically renews in most cases.
With term insurance, your premium payments are set at an initial low cost and won’t change during that period.
Your beneficiary receives a tax-free payment if you die during the period you’re covered. Business term life insurance is also sometimes referred to as key man/key person term life insurance.
How does it work?
- Choose the coverage length and amount you want.
- Customize your coverage with optional benefits.
- Pay the monthly or annual premiums.
- Coverage automatically renews except for term to age 65. Convert to longer term or permanent life insurance within age limits.
- If you die while your policy is active, your company or the people you chose receive a tax-free payout.

Renewing and converting to permanent coverage
Renewals
- Extend your coverage for another term
- Your term 10, 20 and 30 policy automatically renews after the period ends.
- It will renew for another 10, 20 or 30 year period.
- You can notify Canada Life if you don’t want to renew.
- Your premiums will increase for your new coverage period.
- You don’t need to take a medical exam.
Convert to a longer term
- Provides affordable, longer term coverage.
- You can convert between the first and seventh anniversary if you’re within specified age limits
- You can convert to a longer term if you have term 10, 20 or 30
- Your premiums will increase for your new coverage period
- You don’t need any medical evidence.
Convert to permanent insurance
- Offers coverage for life and a savings component.
- You can convert a term 10, 20 or 30 policy before age 70; convert a term to age 65 before you turn 60.
- Your premiums will be based on the coverage you choose.
- You don’t need any medical evidence.
How can you use term life insurance for your business?
Here are some ways that life insurance can help your business:
Fund a buy/sell agreement
Insurance payout can help buy your partners’ shares or vice versa if someone dies.
Protect your key people
Use funds to pay debts and expenses to help keep the business going while you find and train a suitable replacement.
Loan coverage
Help cover outstanding business loans and debts.
Succession planning
Life insurance can help fund your transition plan whether you want to sell your business, liquidate your business or pass it along to family.
How much does it cost?
In general, term life insurance is the most affordable type of life insurance available. There are a few factors that can affect the price of your policy, including:
Age
Generally, insurance is less expensive when you’re younger.
Health
Family history, chronic diseases and lifestyle can increase costs.
Gender
Women live longer than men on average, so insurance may cost less.
Occupation
If you have a dangerous job, your insurance costs can be higher.
What are the other types of business life insurance?
There are 2 main types of life insurance for business owners: term life insurance and permanent life insurance.
Term life insurance | Permanent life insurance | |
---|---|---|
What does it provide? | Short-term protection | Long-term protection |
How long are you covered? | The length of time you choose | Your lifetime |
How can it help? |
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What's the cost? | Typically the most affordable type of insurance |
Usually more expensive than term life insurance |
Investment options | No | Yes |
Benefits |
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Contact an advisor |