Compare the best term life insurance quotes in Canada

Q: What is the most popular term life insurance?

Common lengths of term life insurance typically range between one and thirty years, with the most popular plan being a 20-year term life policy.

Q: Can I sell my term life insurance policy in Canada?

No, but you can cancel to avoid paying any more premiums. Selling a life insurance policy in Canada is complicated, only allowed in certain provinces, and is generally reserved for a permanent life insurance policy. For more information on the topic, read our blog post – Can you sell a life insurance policy?

Q: How much term life insurance should I buy?

It depends on your situation. Debts, income, mortgage, and education (DIME) are the four factors to consider in how much coverage you need. The more coverage you have, the higher the monthly or annual premiums will be. We recommend comparing life insurance quotes to see what suits your budget and your lifestyle best.

Q: Can I cash in my term life insurance policy?

No, money doesn't accrue in a term insurance policy as it would in a universal life insurance plan . You can try to convert to this type of policy, but you wouldn't start accruing money within the policy until you pay into it.

Q: Does term life insurance cover accidental death?

Yes, term life insurance – and in fact, any type of insurance – is there to protect you from the unexpected, including accidental death.

Q: Can I cancel my term life insurance policy?

Yes, you can cancel your term life insurance at any time, simply by contacting your provider. But before you do, consider why you purchased the policy in the first place. You may want to consider alternatives, such as reducing your coverage, as biding a new policy often leads to higher premiums.

In just a few clicks, we'll help you shop the term life insurance market as we connect you with rates from some of Canada's top term life insurers – your best rate is only a few steps away.

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How to get term life insurance with Ratehub.ca

Tell us a bit about yourself
Start the process by filling out our request form – life insurance is specific to you, so we'll need a few details to customize your policy.
Speak with an insurance broker
We can connect you with over 20 top providers, so a broker will be in touch to help you choose.
Finalize your policy selection
Depending on your situation, you might need a doctor's note or medical exam. Don't fret – you'll be guided through the entire process.

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What is term life insurance?

Matt Hands, VP, Insurance and MoneySense

June 25, 2023

A term life policy is an insurance product that guarantees a death benefit payout to a stated beneficiary during a specific period time, typically ranging between five to thirty years. So if you pass away during the set term, your loved ones can use this money for whatever they wish – including paying off the mortgage, replacing your income, and financing their education, When you purchase term insurance, your coverage amount and premiums are locked in for the entire length of the policy.

When the term expires, you have the option to either renew our policy for a higher cost or let your coverage expire. Some policies also let you covert the term life insurance to whole life insurance or universal life insurance, typically between one and five years before the term ends.

When you bind your term life policy, you choose the term length (also known as how long you want to be covered for), as well as your coverage amount (also known as how much out want your beneficiary to receive after you die). Only if you die within the term does your life insurance company pay out the death benefit.

When to buy term life insurance

Term life insurance is best for those that have a temporary need for coverage. And this temporary need can extend for many years – in most cases, you can renew your policy for another term or convert it into a whole life plan before it expires. Here are a few situations in which a term life insurance policy could come in handy.

If you have an unpaid mortgage you should definitely consider a term life insurance policy. You want to make sure you can leave your family with enough money to pay off the remainder of the owed mortgage. For example, a typical mortgage term is 25 years, so a term 25 life insurance policy would be a suitable form of coverage length and is a much better insurance option than a mortgage life insurance policy. A house is one of life's biggest investments, it's best to make sure that investment is protected so that your family can continue to benefit from living there after you're gone. Keep in mind, your spouse may not be able to make the mortgage payments without your income, so a life insurance policy will cover that for you - it makes it easier for you loved ones to move on.

If you have children having a set term life insurance policy can ensure your loved ones have the financial security to supplement your income after you're gone. Think about how old your kids are today and how long they would depend on your regular income. You should factor that into your coverage calculation. They will need money for clothing, food, events, activities, etc... The amount of kids you have and their ages will impact the length term and amount of coverage you may need.

A term policy can act as income replacement if you pass away before retirement. If you and your spouse had big plans for retirement, but in order to fulfill them it required more active years of work, a term life insurance policy can help supplement that missing income. You can factor in how much you would have contributed to your couples retirement fund and your beneficiary can be the recipient of this amount. They can then invest that money into their retirement to ensure they can still live the retried lifestyle you had hoped they could.

We all know paying for education is not cheap, especially post-secondary education. It get's even more expensive the more dependents you have, so having a plan in place to cover these extensive costs is an important part of life planning. A term life insurance policy will step in to provide the necessary money required to fulfill your children's or spouse's education dreams, allowing them to secure the career they desire.

How much term life insurance do I need?

One of the most important decisions you need to make when purchasing life insurance is the coverage amount on your policy. To determine the right number, there are three different factors you should consider – your family situation, your debts, and your income. Visit our blog on this topic to learn more about calculating your term coverage needs.

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Types of term life insurance in Canada

Term life insurance is a relatively simple product when compared to other types of life insurance, but it's still important to learn about the options you have when shopping around for your policy. So here's a brief overview of three popular types of term insurance plans in Canada.

Level term insurance

Yearly renewable term insurance

Decreasing term insurance

Choosing your term insurance length

So how long should your term life insurance last? While plans typically range between five to thirty years, the right term for yourself will depend on your personal needs – here are a few factors you should consider.

Age & retirement

Mortgage & debt

Children

Cost

Common term life insurance coverage additions

Some term life insurance providers allow you to purchase extended coverage – or riders – to protect you against special circumstances. Here are a few examples you can ask your broker about:

Critical illness insurance – Pays out if you develop a life-threatening illness (e.g. cancer, stroke).
Disability insurance – Provides a payout in case you're unable to work for a long period of time.
Accidental death – Pays an additional benefit if your death is the result of an accident.
Disability waiver of premium – Allows you to stop paying premiums if you become disabled.
Children’s rider – Pays out in the event your child dies (added as an extension on your policy).

Find your best term insurance quote with us today.

We're here to help you find the best term life insurance policy to suit your personal needs. Comapre quotes from one of our licenced brokers today to find the cheapest rate!

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How much is term life insurance in Canada

So what is the average cost of term life insurance? While rates vary on a case-to-case basis, here are approximate premiums for a healthy, non-smoking 35-year-old in Canada. Keep in mind that you won't know the exact price you'll be paying until you compare term life insurance quotes with us – we can help you find your cheapest rate today.

Coverage	Male	Female
$100,000	$108/year	$96/year
$500,000	$259/year	$193/year
$1,000,000	$446/year	$327/year

What factors affect term life insurance premiums?

Age
The older you are, the more expensive your term life insurance will be – that's why it's often a good idea to bind your term policy while you're young.
Gender
Statistically speaking, the life expectancy for females is longer than the expectancy for males, so your term life rates will reflect this.
Health
Pre-existing conditions, family medical complications, and habits such as smoking excessive drinking lead to higher premiums.

Lifestyle
Participating in high-risk activities on a regular basis, such as skydiving, can lead to higher term life insurance premiums.
Job
If you work in a high-risk industry, such as roofing or logging, you may need to pay more for your term policy.
Policy type
More coverage and longer terms result in higher term life premiums – you'll need to pay more for the additional peace of mind.

What is term life vs whole life insurance?

Does term life insurance expire?

Oftentimes, the death benefit of a term life insurance policy won't be paid out – this is because the coverage can expire if you don't pass away during the set period. If you want to extend your policy term, you can look into renewable and convertible life insurance.

A convertible life insurance policy gives you the option to convert your term policy into a permanent policy. The primary benefit of having a convertible policy is that you won’t have to pass a medical exam to get permanent coverage. So if you’re diagnosed with a serious illness while you have an active convertible term life plan in place, you can still get permanent coverage that may not otherwise be available to you.

A renewable life insurance automatically renews at the end of your set term. Let's say your policy is set to expire after ten years – in this case, you'll be automatically renewed into another ten-year term, provided you didn't pass away during the first decade. When you choose a renewable policy, be aware that premiums increase at the time of the renewal, so it's a good idea to shop the market again before the term expires.

*For more insight on your various options, check out our blog – What to do when your term life insurance expires.

Ready to speak with a broker about term life insurance?

Request your free term life insurance quotes today and find out which carrier offers the most affordable policy options to meet your personal coverage needs.

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Frequently asked term life insurance questions

What term life insurance is best?

There is no one right answer. Selecting the right policy amount and term length will be unique to your situation. The best term life policy for you will be the one that meets all your coverage needs for the best rate possible. That's why we recommend doing a full coverage calculation breakdown and then comparing term life insurance quotes to find the carrier that best suits your needs, for the right price.

What is the most popular term life insurance?

Is term life insurance better than whole life?

The best life insurance for yourself is the one that satisfies the needs of your specific case. Term life is less expensive and covers you for the most critical time in your life. Whole life is more expensive and covers you until death. Think about your beneficiaries – anyone who depends on you financially – that's who you need to worry about. For more information on the topic, read our article on term life vs. whole life insurance.

Can I sell my term life insurance policy in Canada?

How much term life insurance should I buy?

Can I cash in my term life insurance policy?

Does term life insurance cover accidental death?

Does term life insurance cover disability?

No, but you can add disability insurance as part of your overall life insurance plans. Disability is nearly a requirement for most people as workplaces continue to do away with short-term and long-term disability options in their benefits. Disability insurance provides income replacement for a period while you are unable to work. Critical illness insurance, on the other hand, gives you a one-time lump sum payment in case you're unable to work, but also covers unforeseen expenses related to the affecting illness.

What do I do when my term life insurance expires?

Wondering what to do when your term life insurance expires? There are a few options you can consider if you still want to protect your loved ones financially:

Renew the term insurance policy for another term (before the coverage expires).
Covert the term insurance policy into permanent insurance (before the coverage expires).
Shop for an entirely new life insurance policy.

Be sure to speak to a licensed life insurance broker for more details on your specific case. New policies typically come with higher life insurance rates due to aging, so if you’re opting for brand new coverage, compare term life insurance quotes to ensure you're getting the cheapest premium possible.

Can I cancel my term life insurance policy?

How do I buy term life insurance online?

When does term life insurance payout?

Is term life insurance tax-deductible?

All about your Ratehub.ca term life insurance quote

Securing your term life insurance online with us is simple – in just a few steps, you can bind your policy from one of Canada's top providers for the best rate possible. Here are our most frequently asked questions about the process, answered.

Ratehub.ca works with partners to help you compare term life insurance quotes from over 20 of Canada's top providers. You won't need to visit multiple brokerages or insurers in order to find the cheapest option for your needs – we shorten the process for you in one go.

Each quote is calculated using the life insurance company's own underwriting process, so you can receive an accurate estimation based on your individualized profile.

Matt Hands, Business Director of Insurance

With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio

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Coverage	Male	Female
$100,000	$139/year	$122/year
$500,000	$375/year	$280/year
$1,000,000	$666/year	$483/year

Coverage	Male	Female
$100,000	$196/year	$152/year
$500,000	$673/year	$513/year
$1,000,000	$1,267/year	$920/year