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Compare the best term life insurance quotes in Canada

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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Navigating term life insurance

How to get term life insurance with Ratehub.ca

  1. 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.

  2. 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.

  3. 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.

What is term life insurance?

Matt Hands

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.

What term life insurance is best?

The best term life policy for you will be the one that meets all your coverage needs for the best rate possible – compare term life insurance quotes with us to view all your options today.

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.

  • Mortgage

    Term life insurance can leave your family with enough money to pay off the home.

  • Children

    Term life insurance can fund your young children's everyday needs.

  • Pre-retirement

    A term policy can act as income replacement if you pass away before retirement.

  • Education

    If your partner is still studying, a term policy can help pay for their education.

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


Term vs. whole life insurance in Canada

FeaturesTerm life insuranceWhole life insurance
Coverage periodTerm life insurance only covers you during the fixed period you choose – be it five, ten, or twenty years.Whole life insurance covers you for your entire lifetime – from the start date of your policy until the day you pass.
Coverage needsTerm plans are well-suited if you only need financial protection temporarily (e.g. mortgage debt).Permanent plans are recommended if you have a lifetime need for coverage (e.g. estate planning).
Cash valueTerm life insurance policies don't accumulate in cash value, so you won't be increasing your death benefit.Whole life plans typically come with a growing cash value so that you can increase your death benefit.
Death benefitYour death benefit is fixed at the amount purchased – it'll be paid out if you pass away during the term.Your death benefit may grow over time – it's also guaranteed to pay out after you die.
WithdrawalsYou can't withdraw from a term insurance policy during your lifetime.You can borrow against your policy and withdraw dividends during your lifetime.
CostTerm life is generally more affordable than whole life – that's because you might not need a payout.Whole life insurance policies are eventually paid out, so expect higher premiums for this coverage.

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.

learn more

How much does term insurance cost 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?

  1. 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.

  2. Gender

    Statistically speaking, the life expectancy for females is longer than the expectancy for males, so your term life rates will reflect this.

  3. Health

    Pre-existing conditions, family medical complications, and habits such as smoking excessive drinking lead to higher premiums.

  1. Lifestyle

    Participating in high-risk activities on a regular basis, such as skydiving, can lead to higher term life insurance premiums.

  2. Job

    If you work in a high-risk industry, such as roofing or logging, you may need to pay more for your term policy.

  3. 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.

Find your best term insurance quote with us today

Looking for affordable life insurance? We've got you covered – in just a few steps, you can view personalized rates from Canada's top providers.

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

  • Renewable life insurance

    Renewable term 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.

  • Convertible life insurance

    Convertible term life insurance 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.

How to extend your term life insurance coverage

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).

Frequently asked questions

Which is better: term life or whole life insurance?


Can I sell my term life insurance policy in Canada?


How much term life insurance should you buy?


Can you cash in your term life insurance?


Does term life insurance cover accidental death?


Does term life insurance cover disability?


What do you do when your term life insurance expires?


Can I cancel my term life insurance policy?


How do you buy term life insurance online?


What is the most popular term life insurance?


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. 

Author Bio

Matt Hands, Business Director of Insurance

Matt started his professional career at CARPROOF where he honed his marketing and analytical skills for over 3 years. Matt then took his wealth of experience to Ratehub.ca’s Toronto offices, working with insurance providers, agents, and brokers to grow and expand the Insurance business unit. He is a thought leader in the community and a valuable insurance resource to respected publications like the Globe & Mail, Toronto Star, Huffington Post, Yahoo News, and 680 news radio in Toronto.

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