Last updated: June 12, 2025 | Reviewed by Catherine Malone
Term life insurance is an affordable life insurance policy that gives you financial protection for a set period of time. You get to choose how long you want your term policy to last – it can be anywhere between 5 to 40 years. If you die while your policy is still active, then your beneficiaries receive a lump-sum, tax-free payment (called the death benefit). They can use this money for any purpose.
Learn more about popular types of term policies:
Your premiums (monthly or annual fees) remain the same and won’t change during the length of your term.
Temporary coverage lasts up to 90 days. You may get this after you submit your life insurance application and pay any required premiums.
You can convert your plan from term to permanent, which provides lifelong coverage that never expires. This option is available for select term plans.
Your beneficiaries will receive a guaranteed tax-free payment (death benefit) that stays the same.
Term life insurance provides protection for a certain "term" of years. See how it works and why it’s a good way to protect your loved ones from worry.
What is term life insurance?
Simply put, all types of life insurance can help provide your loved ones with financial security when you die. One common type of life insurance is called term life insurance.
How does term life insurance work?
Term coverage provides protection for a fixed payment amount, for a given number of years. This could be 10, 15, or 20 or more years. You can choose the amount of time you need.
What happens if you die during this set time period? Then your beneficiaries – the people or person you want to leave money behind to – will get a tax-free death benefit.
The death benefit refers to the amount of money your beneficiary gets when you die. The exact amount they get depends on how much coverage you buy.
Your beneficiaries can then use the money from that benefit for any reason. For example, they can use it to pay:
Why choose term life insurance?
Because of its affordability and flexibility, term life insurance can be a good solution to help you manage risk, while providing for your dependents.
But its true value lies in the peace of mind it can offer. The assurance your loved ones can be financially supported at a time when they need it most.
For more tips and tools, visit sunlife.ca.
We have 3 term life insurance products. Coverage varies depending on which one you choose.
Here are your coverage options:
$50,000, $75,000 or $100,000
Ideal for: Those who want life insurance they can quickly apply for online.
$100,000 and up to $1 million
Ideal for: Those who want to buy online.
$50,000 and up to $25 million
Ideal for: Those who want more flexibility and the option to convert to lifelong protection if their needs change.
Looking for peace of mind? We're introducing a first-of-its-kind life insurance product tailor-made for you.
The cost for term life insurance in Canada varies from person to person. Your premiums will depend on your age, sex assigned at birth, health, and lifestyle habits (e.g. smoker, non-smoker, etc.) when you purchase term life insurance or any other life insurance product.
For example, if you’re a healthy 30-year old, assigned female at birth, your premiums may be as little as $8.55/month for $100,000 of coverage* – this applies for a 10-year term life insurance policy with a non-smoker rate.
For more detailed information, view our term life insurance rates charts and find rates applicable to your age and smoking/non-smoking status. The indicated average rates in those charts may apply to you if you purchase one of our products.
* This rate is current as of May 26, 2025, and is subject to change.
To apply for any of these products, you must currently be a Canadian resident.
Depending on which term product you’re applying for, you may have to go through the underwriting process. Underwriting looks at your risk when you apply for insurance. This helps us determine the coverage you’re eligible for and ensures your premiums (monthly or annual insurance fees) reflect your level of risk.
If you get term life insurance, you have the option to renew after your term ends. But keep in mind, your policy will expire when you reach age 85.
A Sun Life advisor can help you figure it out. They can also answer any questions you have.
Enter your postal code to find an advisor near you.
You can apply online for a term plan up to $1 million of coverage.
You get instant temporary insurance for up to 90 days while we review your application.
In Canada, term coverage provides protection for a fixed payment amount, for a given number of years. This could be anywhere from 5 to 40 years depending on the product you choose.
The best age to get term life insurance is typically in your 20s or early 30s. Here’s why:
Lower premiums (fees). Insurance rates can increase with age. Buying in your 20s or 30s locks in significantly lower fees (premiums) for the duration of your term.
Better health qualification. Younger people generally have fewer health issues, making it easier to qualify for cheaper rates.
Maximum coverage period. Starting earlier allows you to secure longer terms (such as 30-year policies) that extend through your peak financial responsibility years.
No, you can’t borrow from a term policy because there’s no cash value (a tax-preferred savings portion).
However, there are some permanent life insurance policies which come with a cash value. Keep in mind, borrowing funds from your cash value may reduce your policy’s death benefit. There also may be tax implications to borrowing from your cash value.
The right type of life insurance for you will depend on your personal situation and financial needs. For example, term life insurance is initially more affordable, but it expires – so, it may be ideal for people looking for coverage for a set amount of time.
Whereas someone in need of lifelong coverage may want to consider whole life insurance or another type of permanent life insurance which never expires. Keep in mind, you can also have multiple life insurance policies to cover all your needs. Connect with an advisor to find out which policies work best for you.
You’re able to apply for our term products until age 85. Keep in mind, if you get a term policy, you can only continue to renew it until you turn 85 since your policy will expire at that age.
When your term ends, your policy will automatically renew until age 85. Some plans allow you to convert to permanent life insurance.
However, if you live past 85, your term policy expires. When this happens, you’ll stop paying premiums. So, if you died after your policy ends, your beneficiaries won’t receive a death benefit. Remember, your beneficiaries are only eligible for the death benefit while your policy is active.
Term life insurance plans don’t cover death due to suicide if the insured person commits suicide within the first two years since the policy took effect, in which case, Sun Life will return the premiums paid within those two years minus any administration fees.
If any information you provided is fraudulent, then Sun Life won’t pay the death benefit to your beneficiaries. Please note that Sun Life can contest your policy at any time due to fraud.
Additional exclusions may apply. For more detailed information, please connect with an advisor.
No, you don’t have to be a Canadian citizen to apply for life insurance in Canada. But you do need to be a Canadian resident to purchase any of our life insurance products.
If you're leaving your job and losing your life insurance coverage, you may qualify to replace it – whether it was from Sun Life or another provider. My Life Choice lets you replace your employer's coverage with your own insurance.
Temporary coverage for specific needs.
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This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.
