Best term life insurance in Canada in 2025: Free quotes
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- Fixed premiums for the term duration
- Option to renew the contract from the 5th year
- Fixed or decreasing insured capital
- Fixed premiums for the term duration
- Option to renew the contract from the 5th year
- Fixed or decreasing insured capital
Beneva's Term Life Insurance offers a flexible and affordable way to secure financial protection for dependents, making it particularly attractive for first-time buyers or those managing a tight budget. Coverage is available up to $10 million, with term lengths of 10, 15, 20, 25, 30, or even 40 years, and eligibility spans from ages 18 to 75. One of its key strengths lies in its adaptability: policyholders can switch to a longer term or even to permanent insurance without undergoing a new medical exam within the first five years. Customers can also choose between fixed or decreasing benefit structures, depending on their evolving needs. Premiums stay constant during the initial term, simplifying financial planning, although they may rise upon renewal. Additional features include optional riders like critical illness coverage and disability waivers. However, while the product is solid and backed by Beneva’s 75 years of industry experience, its online resources are relatively sparse, potentially requiring more direct interaction with an advisor to fully understand all options.
Ideal profile: This policy is best suited for young professionals, new parents, and individuals taking on major financial obligations like mortgages or business loans who need affordable, predictable protection over a defined period. It also appeals to those who value future flexibility without the risk of repeated health underwriting.
- Very broad choice of terms, from 10 to 40 years, adapting to many life stages
- Premiums remain fixed during the term, helping with predictable budgeting
- Option to switch to a longer term or permanent insurance without a new medical exam
- Choice between fixed and decreasing capital based on personal financial strategies
- Add-ons like critical illness or disability coverage can further customize protection
- Beneva's extensive experience (over 75 years) adds a layer of credibility and stability
- Premiums may increase substantially upon renewal after the initial term
- Decreasing benefit may not meet long-term protection needs for everyone
- Limited information available online, requiring direct consultation for complex cases
- Guaranteed premiums
- Option to convert the policy to permanent insurance at any time before age 75
- Ideal for business owners
- Guaranteed premiums
- Option to convert the policy to permanent insurance at any time before age 75
- Ideal for business owners
SunSpectrum Term Life Insurance from Sun Life offers a flexible and robust term life solution with term lengths of 10, 15, 20, or 30 years, accommodating a variety of short- to medium-term protection needs such as income replacement, debt coverage, or business continuity planning. Policies are available to applicants aged 30 to 60, with coverage amounts reaching up to an impressive $15 million, ensuring substantial financial protection. A standout feature is the guaranteed premium structure, providing cost predictability throughout the initial term, and the built-in option to convert the policy to permanent insurance without medical requalification before the insured's 75th birthday—an attractive benefit for those wanting lifetime coverage eventually. Additionally, the plan includes living benefits for terminal illnesses and disability waivers, catering to both personal needs and business applications, such as key employee coverage. However, it is important to note that premiums can rise sharply after the initial term, and conversion opportunities diminish with age, necessitating careful timing and planning.
Ideal Profile: This product is especially well-suited for business owners needing succession planning, middle- to high-income professionals seeking high coverage amounts for family security, and individuals aiming for flexibility now with the possibility of permanent coverage later. It is also a strategic fit for those who prioritize guaranteed insurability without future medical exams.
- Guaranteed premiums and ease of conversion to permanent insurance
- High coverage limits up to $15 million accommodating major financial responsibilities
- Flexible term options (10, 15, 20, or 30 years) to suit different planning horizons
- Living benefits included for terminal illness and total disability
- Tailored add-ons for personal and business needs, such as child and partner protection benefits
- Significant premium increases after the initial term
- Fewer conversion and longer-term options available as the insured ages
- Complex range of options requiring careful matching to specific needs
- Cancel anytime without fees or penalties
- 30-day grace period for missed payments
- Beneficiaries get 100% of the payout, tax-free
- Cancel anytime without fees or penalties
- 30-day grace period for missed payments
- Beneficiaries get 100% of the payout, tax-free
PolicyMe Term Life Insurance stands out as a streamlined and highly cost-effective solution for Canadians seeking straightforward life insurance coverage. Offering coverage amounts from $100,000 up to $5 million and term durations of 10, 15, 20, 25, or 30 years, PolicyMe targets individuals and families wanting affordable, predictable protection without unnecessary complexity. Rates are locked in for the full duration of the policy, helping clients plan with confidence. The 100% online process enables immediate approval, making it accessible to a wide audience, especially tech-savvy users. Added perks such as no cancellation fees, a 30-day grace period for missed payments, and a complimentary child coverage feature enhance its appeal. A notable 10% discount for couples in the first year encourages joint applications. However, the lack of deep customization options and the exclusively digital service model might not suit those who value personalized advice or face-to-face interactions, which remain common preferences in the Canadian insurance market.
Ideal profile: PolicyMe is an excellent fit for young to middle-aged adults, digital natives, and cost-conscious families who want reliable term life insurance without the hassle of dealing with brokers. It’s particularly suitable for those who prioritize speed, simplicity, and managing their insurance policies independently online.
- Affordable rates offering up to 20% savings compared to traditional insurers
- Wide range of term options (10 to 30 years) for different life stages
- Immediate online approval process with no medical exam in many cases
- Free child coverage and a first-year 10% couple’s discount
- No fees or penalties for cancelling the policy at any time
- Entirely online interaction may not appeal to those who prefer personal consultation
- Limited customization of coverage options compared to full-service insurers
- Fixed or decreasing insurance amount
- Fixed premiums and guarantees
- Option to convert to permanent life insurance without medical evidence
- Fixed or decreasing insurance amount
- Fixed premiums and guarantees
- Option to convert to permanent life insurance without medical evidence
Pick-A-Term from iA Financial Group is a highly flexible term life insurance solution designed to meet the evolving needs of individuals and families across different life stages. Offering term options from 10 to 40 years, it aligns perfectly with financial obligations such as mortgages, education funding, or business needs. The product guarantees fixed premiums for the chosen term, simplifying budgeting and financial planning. Additionally, policyholders have the option to renew coverage annually or convert to permanent insurance without requiring new medical evidence, providing valuable adaptability as circumstances change. It also includes access to additional benefits like critical illness and disability coverage for more comprehensive protection. However, at renewal, premiums can increase sharply, and the decreasing benefit option may not be suitable for those needing stable, predictable coverage. The wide array of optional features, while a strength, could overwhelm clients unfamiliar with life insurance choices.
Ideal profile: Pick-A-Term is ideal for young families, professionals, and pre-retirees seeking flexible, cost-effective coverage tied to specific financial milestones, such as paying off a mortgage or raising children. It’s perfect for those who prioritize simplicity upfront but may want the option to secure lifetime coverage later without new health checks.
- Wide selection of term durations (10 to 40 years) for customized financial protection
- Guaranteed premiums within the term for budgeting predictability
- Easy conversion to permanent life insurance without a new medical exam
- Renewable annually after term expiration, maintaining access to protection
- Access to optional critical illness and disability coverage for added security
- Renewal premiums can be significantly higher than initial premiums
- Decreasing benefits option may not suit clients who need stable coverage
- Broad range of optional features could complicate decision-making for some applicants
- Flexible offer
- Policy convertible to permanent insurance
- Several optional guarantees available
- Flexible offer
- Policy convertible to permanent insurance
- Several optional guarantees available
YourTerm Life Insurance from RBC offers a flexible and accessible term insurance solution designed for Canadians aged 18 to 70 seeking affordable, predictable protection for key financial stages. With terms ranging from 10 to 40 years and coverage amounts between $50,000 and $25 million, the policy is versatile enough to cover everything from personal debts to substantial family or business needs. Premiums are guaranteed to remain constant for the duration of the chosen term, supporting easier budget planning. An important feature is the ability to convert to a permanent policy without further medical underwriting, ensuring long-term insurability even if health conditions change. Optional benefits like accidental death coverage and a 10-day free look period enhance flexibility. However, coverage limits may tighten after age 55, and premiums can rise steeply if the policy is not converted after the original term ends. Additionally, the variety of term options may require thoughtful selection to align perfectly with personal financial goals.
Ideal profile: YourTerm is ideal for young professionals, growing families, and business owners who seek affordable, customizable temporary protection with the future option of upgrading to permanent life insurance. It’s particularly appealing for those who value premium stability and long-term flexibility.
- Fixed premiums throughout the term enable easier financial planning
- Wide coverage range ($50,000 to $25 million) to meet both personal and business needs
- Term options from 10 to 40 years provide customization based on life stages
- Conversion option to permanent life insurance without medical exams
- Additional benefits such as accidental death protection and refund within a 10-day review period
- Coverage limits are reduced for applicants over the age of 55
- If not converted, premiums can spike significantly at term renewal
- Multiple choices may complicate decision-making for less experienced applicants
Term life insurance provides coverage for a specific period offering a tax-free lump sum payment to beneficiaries if the insured passes away during the policy term. Whether you're a young professional starting your career, a parent planning for your family's future, or a senior organizing your estate, term life insurance can be a suitable option.
In this guide to term life insurance in Canada, we explain how it works, the different coverage options available, the costs associated, the application process, how to get the cheapest plans, and much more.
You can also use our free comparator to compare the best term life insurance quotes online and explore the best deals based on your unique needs. Get over 20 free personalized quotes right here, instantly.
Term Life Insurance Canada: Key Points
- A term life insurance policy can have various durations:
- 10 years,
- 20 years
- 30 years, etc.
- Term life insurance premiums range from a few dollars per month to several hundred dollars.
- Term life insurance does not include a savings component.
- It also does not offer any cash surrender value.
- You have the option to convert a term life insurance policy into a permanent one.
- Most companies offer term life insurance quotes online.
- It is a great option for those seeking affordable coverage during their working years.
What is term life insurance?
By definition, term life insurance is a life insurance policy purchased for a specific period, such as 10, 20, 25, or 30 years. This policy is designed to provide financial protection in the event of an unexpected or accidental death, helping your loved ones cover expenses such as debts, funeral costs, or mortgages while maintaining their financial stability.
If the insured person passes away during the term, the insurer pays a tax-free lump sum to the designated beneficiaries. However, if the death occurs after the term ends and the policy isn’t renewed, no benefits will be paid.
Key Features of Term Life Insurance
- Coverage is for a set term (commonly 30 years or up to age 65).
- Coverage amounts typically range from $25,000 to $10,000,000 million.
- No cash surrender value or savings component.
- Benefits are not paid if death occurs after the policy term.
- Premiums increase with age.
- Beneficiaries must reside in Canada.
- Policies can often be converted into permanent life insurance.
- Optional add-ons like accidental death and dismemberment, children's life insurance, accidental fracture coverage, or waiver of premiums for disability are available.
What does term life insurance cover?
Term life insurance offers a tax-free lump sum to the designated beneficiaries if the insured person passes away during the policy term. Here’s what it typically covers or what term life insurance can be used for:
- Mortgage Payments: Helps your family pay off outstanding home loans, ensuring they can stay in their home.
- Outstanding Debts: Covers credit card balances, car loans, or other debts to relieve your family of financial burdens.
- Living Expenses: Supports your family’s daily needs, such as groceries, utilities, and other household costs.
- Education Costs: Funds tuition and related expenses for your children’s education.
- Funeral and Burial Costs: Covers end-of-life expenses, often ranging between $10,000 and $20,000 in Canada.
- Income Replacement: Ensures your family can maintain their lifestyle in your absence by replacing lost income.
This flexibility allows beneficiaries to use the payout for any immediate or long-term financial needs, giving them peace of mind during a difficult time.
What does term life insurance not cover?
- Death occurring after the policy term if it’s not renewed.
- Suicides within the contestability period.
- Deaths resulting from extreme sports excluded in the contract.
- Deaths related to undisclosed pre-existing medical conditions.
- Deaths linked to drug abuse or excessive alcohol consumption.
Is term life insurance worth it?
For Canadian residents, term life insurance is a practical and affordable way to secure your family’s financial future. The tax-free lump sum can be used to cover essential expenses like mortgages, debts, or daily living costs if the unexpected happens. With flexible term lengths and lower premiums than permanent life insurance, it’s an ideal choice for those looking to protect loved ones during key life stages. If peace of mind matters, term life insurance is worth considering.
What are the pros and cons of term life insurance in Canada?
Pros of Canadian Term Life Insurance
- Affordable Premiums
- Flexible Term Options
- Simplicity and Transparency
- Financial Safety Net
- Can be converted into permanent coverage, even without medical exams at times
- Less expensive than permanent life insurance plans
Cons of Canadian Term Life Insurance
- No Cash Value Accumulation
- Premiums Increase Upon Renewal
- Lapsed Coverage if Premiums Not Paid
Good to know
Term life insurance is a great way to secure your financial future, but if you’re looking to cover your entire household, family life insurance might be the perfect fit. It bundles coverage for spouses, children, and dependents into one plan, offering flexibility and savings. Learn more in our Family Life Insurance in Canada guide to see if it’s right for you.
How much does term life insurance cost in 2025?
The cost of term life insurance in Canada depends on several factors:
- Your health
- Your age (the higher your age higher the premiums)
- Your occupation
- Your income
- Smoking status
- The coverage amount you want
- Options for renewing or extending the policy
- Riders/add-ons if any
Good to know
Your term life insurance rates can vary significantly depending on your age (e.g., 30 vs. 60), smoking status, and whether you're insuring $100,000 or $500,000.
Term Life Insurance Quotes Canada
Here are term life insurance Canada quotes based on the insured's profile and the chosen coverage and term length:
| Profile | 10 Year Term Life Insurance | 20 Year Term Life Insurance | 30 Year Term Life Insurance |
|---|---|---|---|
| 30-year-old non-smoker (male) | $15 - $25/month | $20 - $35/month | $30 - $45/month |
| 30-year-old smoker (male) | $25 - $40/month | $40 - $55/month | $60 - $75/month |
| 45-year-old non-smoker (female) | $40 - $60/month | $70 - $90/month | $110 - $140/month |
| 45-year-old smoker (female) | $70 - $95/month | $120 - $150/month | $200 - $240/month |
| 60-year-old non-smoker (male) | $150 - $200/month | $250 - $300/month | |
| 60-year-old smoker (male) | $250 - $350/month | $400 - $500/month |
These are sample prices for term life coverage in Canada. Always get personalized quotes to find a policy that fits your specific needs and budget.
Here are term life insurance Canada quotes based on term lengths:
10 Year Term Life Insurance Quotes
Short-term coverage with the lowest premiums, ideal for temporary needs like paying off debts or mortgages.
| Profile | Monthly Premium (Approx.) |
|---|---|
| 30-year-old non-smoker (male) | $15 - $25 |
| 30-year-old smoker (male) | $25 - $40 |
| 45-year-old non-smoker (female) | $40 - $60 |
| 45-year-old smoker (female) | $70 - $95 |
| 60-year-old non-smoker (male) | $150 - $200 |
| 60-year-old smoker (male) | $250 - $350 |
20 Year Term Life Insurance Quotes
Mid-range coverage suitable for long-term commitments like raising children or covering educational expenses.
| Profile | Monthly Premium (Approx.) |
|---|---|
| 30-year-old non-smoker (male) | $20 - $35 |
| 30-year-old smoker (male) | $40 - $55 |
| 45-year-old non-smoker (female) | $70 - $90 |
| 45-year-old smoker (female) | $120 - $150 |
| 60-year-old non-smoker (male) | $250 - $300 |
| 60-year-old smoker (male) | $400 - $500 |
30 Year Term Life Insurance Quotes
Longest term available, offering extended coverage for long-term financial stability, often unavailable for older applicants.
| Profile | Monthly Premium (Approx.) |
|---|---|
| 30-year-old non-smoker (male) | $30 - $45 |
| 30-year-old smoker (male) | $60 - $75 |
| 45-year-old non-smoker (female) | $110 - $140 |
| 45-year-old smoker (female) | $200 - $240 |
Term Life Insurance Rates Canada: Key Facts
- Affordability for younger applicants: Premiums are significantly lower for individuals in their 20s and 30s.
- Higher costs for smokers: Smoking can increase premiums by as much as 50%-75%.
- Coverage for seniors: While more expensive, term life coverage remains an option for those in their 50s and 60s, often to cover final expenses or outstanding debts.
- Limited duration: The availability of longer-term policies (e.g., 30-year) decreases with age, with most insurers capping term lengths for older applicants.
Want to know how much you could pay? You can get over 20 free term life insurance quotes online, and instantly, using our comparator. You can compare multiple plans based on your unique profile in no time.
Good to know
Life insurance policies usually have a contestability period of 1 to 3 years. The contestability period means that an insurer will scrutinize, and possibly deny, a claim if a death occurs just after taking out the policy.
Which is the best term life insurance in Canada?
The best term life insurance varies from person to person because everyone's policy is different. Many reputable life insurance companies in Canada offer a variety of policies and coverage. So, here are some of the best providers offering the most comprehensive term life insurance plans.
| Best Term Life Insurance Canada Providers | Features | Get a Quote |
|---|---|---|
| Beneva Life Insurance |
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| RBC Term Life Insurance |
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| Manulife Term Life Insurance |
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| Assumption Life Insurance |
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| Equitable Life of Canada |
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| Foresters Financial |
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| Humania Insurance |
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| Canada Life Term Life Insurance |
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| BMO life insurance |
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| Canada Protection Plan |
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| Empire Life Insurance |
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| iA Financial Group |
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Good to know
If you’re a member of the Canadian Armed Forces, a military family, or a veteran, SISIP Life Insurance offers coverage up to $1,200,000, with benefits like no exclusions for military activities and $10,000 free coverage for children. Check out our guide and review on SISIP life insurance to learn more!
So, how to get the right coverage that suits you and your family? Compare rates and companies before selecting your policy to be sure you have the one that is right for you. You can use our online comparison tool to get the best term life insurance quotes online today.
How much term life insurance do I need?
The amount of term life insurance you need depends on your financial obligations, future goals, and family’s needs. Here’s a step-by-step guide to help you determine the right coverage:
- Assess Your Debts
Add up your mortgage, car loans, credit card balances, and any other outstanding debts.
Example: If you owe $200,000 on your mortgage and $20,000 on a car loan, you’ll need at least $220,000 to cover debts. - Consider Income Replacement
Multiply your annual income by the number of years your family would need financial support.
Example: If you earn $50,000 a year and want to provide 10 years of support, you’ll need $500,000 in coverage. - Account for Education Costs
Include tuition and other expenses if you want to fund your children’s education.
Example: If college tuition is estimated at $25,000/year for 4 years, add $100,000 to your coverage. - Factor in Final Expenses
Include funeral and burial costs, which typically range from $10,000 to $20,000 in Canada. - Subtract Existing Resources
Deduct any savings, investments, or existing life insurance that can be used to meet these needs.
Example: If you need $800,000 in coverage but have $100,000 in savings, you’ll require $700,000 in term life coverage.
Quick formula to calculate how much term life insurance you need:
Coverage Amount = Debts + Income Replacement + Education Costs + Final Expenses – Existing Resources
Find out how much coverage you need instantly
Still not sure how much term life insurance is right for you? Try the HelloSafe Term Life Insurance Calculator! It's easy, and intuitive, and takes all these factors—debts, income replacement, education costs, and more—into account. In just seconds, you'll get accurate, personalized results to help you make the right choice for your family.
What is term life insurance vs whole life insurance?
Term life insurance offers affordable, temporary coverage for a set period, ideal for short-term financial obligations like mortgages or children’s education. In contrast, permanent life insurance like whole life insurance provides lifelong coverage with a cash value component, making it a suitable choice for estate planning, leaving an inheritance, or securing lifelong financial protection.
The table below highlights the key differences to help you decide which type of insurance best fits your needs.
| Features | Term Life Insurance Canada | Whole/Permanent Life Insurance |
|---|---|---|
| Duration | Coverage lasts for a fixed term (e.g., 10, 20, 30 years) or until a specific age. | Coverage lasts for the policyholder's entire life as long as premiums are paid. |
| Purpose | Designed to cover temporary financial obligations like mortgages, loans, or children’s education. | Provides lifelong financial protection and can serve as a financial planning tool with investment or cash value components. |
| Premiums | Lower and affordable but increase upon renewal. | Higher but remain level throughout the policy. |
| Monthly premium for a 30-yr-old non-smoking woman, $100,000 coverage | $10 | $50 |
| Coverage Amount | $50,000 to $10,000,000 or more | Between $10,000 and $10,000,000 |
| Cash Value | ||
| Convertibility | Most term policies can be converted to a permanent policy | Not applicable, policy is already permanent |
| Renewability | N/A | |
| Tax Advantages | ||
| Best For |
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Should I choose term life or permanent life insurance?
If you need affordable coverage for temporary needs, like paying off a mortgage or supporting your family while your kids are young, term life insurance could be the right fit. But if lifelong protection and building savings you can access later sound appealing, whole life insurance might be the better choice for you. You can check out our detailed guide on term vs whole life insurance to help you decide what's best for you.
Can you get term life insurance in Canada without medical exams?
In Canada, some insurance providers offer term life insurance policies without requiring a medical exam, simplifying the application process. Applicants are typically not required to undergo traditional medical tests (e.g., blood work, urine tests, etc) but may need to complete a short health questionnaire. These no-medical-exam term life insurance policies are ideal for those seeking quick and hassle-free coverage.
Here are examples of insurers providing no medical term life insurance in Canada:
| Insurance Provider | Coverage Amount |
|---|---|
| Manulife | Up to $500,000 |
| Humania | Up to $300,000 |
| Canada Protection Plan | Up to $1,000,000 |
While simplified term life insurance offers the advantage of quick enrollment without a medical exam (a lifesaver for applicants with a medical history), its premiums are typically higher, and coverage amounts are often limited. You can check our guide on the best no medical life insurance plans in Canada.
What is renewable term life insurance?
Renewable term life insurance allows you to extend your policy at the end of its term without undergoing another medical exam. For example, if you're a Canadian with a 10-year term policy and it expires, you can renew it for another 10 years—ideal if your health has changed and getting a new policy would cost more. Keep in mind, that premiums will increase at renewal based on your age. It's a flexible way to keep coverage in place as your needs evolve!
Can I buy term life insurance online?
Yes, purchasing direct term life insurance online in Canada is a straightforward and convenient process. Many insurers and brokers now offer digital platforms to help you find and apply for the right policy quickly. Here’s how it works and why it’s beneficial:
Benefits of buying term life insurance online:
- Quick and Easy Process: Complete your application online without the need for lengthy paperwork or in-person meetings.
- Compare Multiple Options: Use online tools to compare policies, premiums, and coverage from various Canadian insurers in one place.
- Instant Quotes: Get free personalized quotes tailored to your age, health, and coverage needs within minutes.
- Flexibility: Shop and apply at your convenience, anytime and anywhere, whether on your phone, tablet, or computer.
- Tailored Recommendations: Many platforms offer filters and guides to help you choose the best policy for your needs, whether it’s basic coverage or add-ons.
Expert advice
By shopping around using a comparison tool—like the one available at the top of this page—you can get instant and free quotes for term life insurance, making it easier to find the best option for your needs.
What are 5 tips to get the cheapest term life insurance plans?
Here are five actionable tips to get the cheapest term life insurance Canada plans:
- Buy Early:
Life insurance premiums are based on your age at the time of purchase. The younger you are, the lower your premiums will be.
Example: A 30-year-old non-smoker might pay $20/month for a 10-year term, but waiting until 40 could increase this to $40/month for the same policy. - Choose the Right Term Length:
Select a term that aligns with your financial needs. Avoid paying for a longer term than necessary.
Example: If your mortgage has 15 years remaining, a 20-year term may suffice instead of a more expensive 30-year policy. - Maintain a Healthy Lifestyle:
Non-smokers and individuals with good health often qualify for lower premiums. Quitting smoking or managing health conditions can significantly reduce your rates.
Example: A smoker may pay $250/month at age 60, while a non-smoker of the same age might pay only $150/month. - Shop Around for Quotes:
Insurance companies offer different rates based on their underwriting criteria. Use comparison tools to find the best deal. You can use our free HelloSafe tool to compare term life insurance quotes online and get instant results.
Example: One insurer might offer a 10-year term for $25/month, while another offers the same coverage for $20/month. Comparing rates ensures you get the lowest premium. - Opt for Basic Coverage Without Add-Ons:
Riders like critical illness or accidental death benefits increase premiums. Stick to essential coverage if affordability is a priority.
Example: A 20-year term with additional riders may cost $50/month, but opting for a basic term life could reduce it to $30/month.
Good to know
The best way to obtain the most affordable term life insurance quotes is by comparing multiple options. You can use our free tool at the top to compare personalized quotes and get the best rates from Canada's top providers, all in one place.
