Term life insurance covers you for a fixed period, such as 10 or 20 years or to a set age such as 65, and costs less than permanent coverage when you first buy it. This page covers what differs between insurers’ term products and the decision that is specific to term: how long a term to buy. It is part of the life insurance section; for how term compares with permanent coverage, see term vs whole vs universal life.
What Differs Between Term Products
| Feature | What to compare | Examples (checked September 2026) |
|---|---|---|
| Term lengths | Which terms are offered | PolicyMe: 10, 15, 20, 25 or 30 years. Canada Protection Plan Simplified Elite Term: 10, 20 or 25 years |
| Coverage limits | The minimum and maximum amount | PolicyMe: $100,000 to $5,000,000 (minimum $50,000 from age 51). Canada Protection Plan Express Elite Term: up to $750,000 without a medical exam |
| Underwriting | Medical exam, health questions only, or no questions | PolicyMe: no medical exam for most applicants. Canada Protection Plan: no-medical plans |
| Renewal | Whether and to what age you can renew without new evidence | Canada Protection Plan Simplified Elite and Express Elite Term: renewable to age 80 |
| Conversion | The deadline to convert to permanent coverage without new evidence | Canada Protection Plan Simplified Elite and Express Elite Term: convertible to age 70 |
| How you apply | Online, by phone or through an advisor | PolicyMe: online. Canada Protection Plan: independent advisors or its own licensed advisors |
Premiums for the same coverage differ between insurers, and the cheapest insurer changes with age, sex and health class. Life insurance costs by age covers how age, smoking and health move the price.
Choosing a Term Length
| Term Length | Typical Use |
|---|---|
| 10-year | Short-term need (mortgage nearly paid, children almost grown) |
| 15-year | Medium-term need |
| 20-year | Covers the peak financial years for many families |
| 25-year | Matches a longer mortgage |
| 30-year | Longest coverage without renewal, for parents of very young children |
If you renew a term policy at the end of the period, the premium may increase at renewal.
Matching the Term to Your Obligations
| Your Situation | Typical Term |
|---|---|
| New mortgage (25-year amortization) | 20 or 25-year term |
| Newborn child | 20 to 25-year term (covers until they’re independent) |
| 10 years from mortgage payoff | 10-year term |
| Age 35, want coverage to 65 | 30-year term |
| Single, no dependents | May not need term life at all |
| Children 10+, mortgage half paid | 15 or 20-year term |
| Children over 18, mortgage nearly paid | May not need renewal; review assets vs obligations |
The usual approach is to pick a term that covers your longest major obligation (often the mortgage plus the years your children depend on you), then revisit the coverage when debts and family obligations fall. A 30-year term suits parents of very young children who want coverage through post-secondary years without renewal risk. If you are unsure whether you still need coverage at all, whether you need life insurance and when it ends covers that decision, and the coverage calculation sets the amount.
Key Features to Compare
Riders and Add-Ons
| Rider | What It Does | Who Might Consider It |
|---|---|---|
| Critical illness rider | Pays a lump sum if you are diagnosed with a covered illness | Those without standalone critical illness coverage |
| Disability waiver of premium | Waives premiums while you are disabled | Those without group disability insurance |
| Child term rider | Small amount of coverage on your children | Parents with no child coverage |
| Accidental death benefit | Extra payout if death is accidental | Adds little for most households |
| Guaranteed insurability | Buy more coverage later without new medical evidence | Young people expecting future needs |
Each rider adds to the premium; ask for the cost of each one separately when you compare quotes.
Conversion Privileges
- The conversion needs no new health questions or medical exam.
- It must be done before a deadline set in the policy (PolicyMe: the policy anniversary nearest the 69th birthday; Canada Protection Plan's term plans: age 70).
- The coverage amount stays the same, and the premium is recalculated for your age at conversion.
A conversion privilege lets you exchange term coverage for permanent coverage without new medical evidence, up to a deadline. The deadline and the permanent plans you can convert to vary by insurer and are set out in the policy; Canada Protection Plan’s Simplified Elite and Express Elite term plans, for example, are convertible to age 70, and PolicyMe’s term policies include an option to convert to permanent coverage.
No-Exam vs Traditional Underwriting
| Feature | No-Exam (Simplified Issue) | Traditional (Fully Underwritten) |
|---|---|---|
| Application | Health questions only, often online | Health questions, and a medical exam or tests for some applicants |
| Maximum coverage | Lower | Higher |
| Premium cost | Usually higher for the same health | Lowest rates for healthy applicants |
| Best for | Applicants who want fast approval or can’t pass full underwriting | Those seeking the lowest price or high coverage |
Direct online sellers such as PolicyMe skip the medical exam for most applicants, while an online broker such as PolicyAdvisor compares many insurers’ underwriting. Applicants who can’t qualify for either often turn to guaranteed or simplified issue specialists such as Canada Protection Plan.
Group Coverage and Individual Term
Workplace group life is typically a multiple of salary and usually ends when you leave the job, so an individual term policy can cover the gap. Employer group life insurance covers what group plans provide and the conversion window when you leave.
Buying the Policy
The application, underwriting and approval steps are the same for every term product and are set out in how life insurance works in Canada. Two points specific to term: policies include a free-look period during which you can cancel for a full refund (10 days for Canada Protection Plan’s policies), and the conversion deadline in your policy is the date to diarize if you may want permanent coverage later.
Related Articles
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and September 30, 2026. How we check facts.
- Canada Protection Plan: Simplified Elite Term Life Insurance | Canada Protection Plan
- Canada Protection Plan: Express Elite Term Life Insurance Policy | Canada Protection Plan
- PolicyMe: PolicyMe Term Life Insurance Product Summary | PolicyMe
- PolicyMe: Term Life Insurance – PolicyMe Product Details