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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.

Get a term life insurance quote from an advisor.

Renewing and converting to permanent coverage


  • 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?

  • Replace lost income
  • Cover debt and funeral expenses
  • Replace lost income
  • Cover debt and funeral expenses
  • Build wealth
  • Estate planning  

What's the cost?

Typically the most affordable type of insurance 

Usually more expensive than term life insurance

Investment options




  • You choose who receives a tax-free one-time payment when you die
  • You choose who receives a tax-free one-time payment when you die
  • Build wealth inside your policy, within limits, that you can access during your life    
Contact an advisor

View permanent life insurance

Why us?

Canada Life has been paying claims for 150 years. Work with one of our trusted advisors to help build a plan for you.