Term life insurance is one of the most affordable ways to protect your family’s financial future.
Often called “temporary” insurance, term coverage is designed to last for a specific period—most commonly 10, 20, or 30 years. When the term ends, the policy can either be renewed at a higher premium or allowed to expire, depending on your needs at that time.
In Canada, most insurers place an upper age limit on term coverage—typically around age 80. Because of this, some people choose to combine term insurance with permanent coverage so their loved ones can still receive a benefit later in life.
How Much Coverage Can You Get?
Coverage amounts vary based on your goals and responsibilities. Over the years, the average policy size has increased as Canadians have taken on larger mortgages and financial obligations.
Smaller coverage amounts—often under $300,000—can usually be approved without medical exams. Higher coverage levels may require basic medical underwriting, such as a saliva test, blood work, or urine sample.
Renewal and Conversion Options
Most term policies allow you to renew your coverage at the end of the term without another medical exam, even if your health has changed.
Many also include a conversion option, which lets you switch your term policy to permanent life insurance in the future—again, without new medical underwriting. This provides valuable flexibility as your needs evolve.
Who Is Term Insurance Best For?
Term insurance is ideal for people with temporary but significant financial responsibilities, such as:
- Paying off a mortgage
- Supporting children
- Replacing household income
- Covering business debts
For many families, the loss of one income could make it difficult to maintain their lifestyle. A term policy can provide the funds needed to pay off major debts and protect the surviving partner from financial strain.