Term life insurance

Affordable protection when you need it

Life insurance does not necessarily represent a lifetime commitment. That’s because term life insurance offers an affordable way to cover your big expenses, so you’re protected when it matters most.

Affordable Protection

  • Payments remain the same for the selected term.

Temporary protection

  • Choose the length of protection that’s right for you – any period between 5 and 50 years.

Tax-free payment

  • Your insurance proceeds are paid to the person you designate.

What is term life insurance?

This is temporary protection that provides tax-free payment to the people or charities you have designated as beneficiaries in the event of your death during the period you choose. The money can be used to pay bills, pay off the mortgage, pay for the children’s education, or keep your business running.

The payments to be made, called premiums, are fixed for the duration of the protection you choose and will not change during this period.

How does it work?

  • Choose the amount and duration of protection you want.
  • Customize your coverage with additional benefits. 
  • Pay monthly or annual premiums.
  • At maturity, your policy will automatically renew each year, or you can terminate it or convert it to long-term life insurance or permanent life insurance, subject to certain limits.
  • If you die while your policy is in force, the people or charities you named as beneficiaries will receive a tax-free payment.

View video transcript

How much does it cost?

Generally speaking, term life insurance is the most affordable type of life insurance available. Here are some factors that can affect the cost of your policy:


  • As a general rule, the younger you are, the less the insurance costs.

Health status

  • Family history, chronic conditions, and lifestyle can increase the cost.


  • As women on average live longer than men, insurance may cost less for them.

The profession

  • If you do dangerous work, the cost of your insurance could be higher.

When do you need it?

start a family

  • Provide replacement income to help your partner and children.

To buy a house

  • Make sure your family can still afford major expenses, like a mortgage.

Cover future costs

  • Leave an inheritance to help your family cover education and funeral expenses and to provide future income.

How much insurance do you need?

The ideal is to ensure that your debts are covered so that you do not leave important expenses to be borne by your loved ones when you die.

Here are some factors to consider:

  • Your income
  • Your net worth
  • Your family’s needs
  • Your debts
  • Other insurance you have taken out

What type of insurance do you need?

There are two main types of life insurance: term life insurance and permanent life insurance.

Term life insurance

Permanent life insurance

What does this type of insurance offer?

Protection for a fixed period

permanent protection

How long will your protection last?

The length of protection you choose all your life

How can this product help you?

  • Compensate for loss of income
  • Cover debts and funeral expenses
  • Compensate for loss of income
  • Cover debts and funeral expenses
  • Build up a heritage 
  • Facilitate estate planning  

How much does it cost?

Type of insurance is usually more affordable than permanent insurance

This type of insurance is usually more expensive than term life insurance

Can this insurance accumulate cash value over time?

No Yes


  • Your beneficiaries receive a one-time tax-free payment upon your death.
  • If your plans change, your coverage can change accordingly.
  • Your beneficiaries receive a one-time tax-free payment upon your death.
  • You have the option of building up an estate within your policy, within the permitted limits and accessing it during your lifetime.

What options are available to you at the end of the protection period?


With most traditional term insurance products, your policy would automatically renew for the same duration as the original term. With My Canada Life Term ™, your policy renews annually at a lower initial rate than traditional term products. This allows you to keep your protection longer if you need it. 

Conversion to long term protection

You may be able to convert your protection to a policy with a term that is 10 years or longer than your original policy. Your premiums will gradually increase each year.

Conversion to permanent insurance

Choose this option if you want lifelong insurance that can increase in value over time, with tax advantages. Your premiums will be based on the coverage selected.

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