Term life insurance made affordable. Finally.

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Last updated: February 28, 2023

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PolicyMe’s term life insurance product highlights

Meet our term policies, best suited for the average Canadian family.

Rates are locked-in for the full term

Coverage from $100K to $5 million

Term lengths from 10-30 years

10% couple’s discount in the first year

Free $10,000 in child coverage

Cancel anytime without fees or penalties

30-day grace period for missed payments

Beneficiaries get 100% of the payout as a tax-free lump sum

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Why choose a term policy with PolicyMe?

Join thousands of Canadians with term coverage they can count on.

More coverage for less cost

Our streamlined process = better rates

Get an online quote in seconds

Your quote in just a few clicks, no pressure to buy

Canadian advisors available every day

Speak to a real human for genuine advice without the upsell

Coverage you can trust

Term policies backed by Canadian Premier

Family-first term policies

Free coverage for each child. Couple's discount in the first year.

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Term life insurance quotes for every budget

Take a look at some sample PolicyMe term quotes for Canadian families.

Felicia, a non-smoker aged 34 in Burnaby, BC
Felicia has been married for 3 years with a $500,000 mortgage over a 25-year amortization period. She plans to have kids within the next year.
Coverage: $500,000
Term length: 25 years
Quote: $32.03 per month
Mohammed, a non-smoker aged 31 in Calgary, AB
Mohammed just had his first child and wants to make sure his spouse can cover childcare and the mortgage if something were to happen to him.
Coverage: $250,000
Term length:
20 years
$17.96 per month
Jing, a non-smoker aged 29 in
Toronto, ON
Jing recently bought her first condo. She is a single woman, her mother co-signed the mortgage. Jing wants to have a financial safety net set up for her mom.
Coverage: $750,000
Term length: 25 years
Quote: $29.49 per month
“The quote I received from PolicyMe on $650k in insurance was less than I was quoted for $600k at my previous company. 100% satisfied!
5-Star Review on Reviews.io
“Impressed with PolicyMe’s straightforward, easy application process. And their policies are way more affordable!
5-Star Review on Reviews.io
Great rates and coverage put into effect in less than 24 hours. Highly recommended.”
5-Star Review on Reviews.io
“Made a very daunting and important task so easy. I'm relaxed and happy to have things in place for my loved ones.”
5-Star Review on Reviews.io
“Easy application, fully online. It took a couple of days and I am fully insured. Couldn't be happier.”
5-Star Review on Reviews.io
“I am older and had to authorize my doctor to answer some questions for the life insurance company, but the process was actually very easy and created zero stress for me.”
5-Star Review on Reviews.io

Protect your family (and wallet!) with term life insurance

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What is term life insurance?

Term life insurance is an affordable and straightforward type of life insurance that provides financial protection for a set period. If the policyholder passes away within that timeframe, the beneficiary receives a lump sum. Term policies tend to be the cheapest option for Canadians. 

Benefits of term life insurance

Term life insurance is one of the most affordable types of life insurance. Premiums tend to be around 15% of the price of whole or permanent.

Your beneficiary receives a tax-free death benefit if you pass away during the term.

Unlike permanent life insurance, term policies are only active in the years you need it most.

The payout can be used for anything your family needs: funeral costs, debts, tuition, etc.

Read video transcript

Term life insurance 101: What Canadians need to know

Your family deserves the best, and for most families, that means a straightforward and affordable term life insurance policy.

Who is term life insurance for?
Term life insurance is for those that want financial protection for a set period, like while raising a family or paying off debt. If someone depends on you financially, a term policy might be for you.
How does term life insurance work?
Term life insurance works by providing coverage for a set amount of time – most commonly 20 years. A term plan guarantees that if you pass away while the policy is active, your loved ones get a tax-free lump sum.
What term length should I choose?
Term coverage is protection for the years you need it most. When looking at your life insurance options, you’ll generally see policies around 10, 20 or 30 years. We tend to recommend a term that covers the length of your financial obligations – like childcare, mortgage, etc. Not sure how much you need? Try our life insurance calculator.

Learn more about term life insurance 

Frequently asked questions about term life insurance

The ABCs and 123s of term life insurance.

When is the best time to get term life insurance?

The best time to get life insurance is when you need it, or expect to need it. But the younger you are when you buy term life insurance, the better.

Younger individuals tend to get lower term rates, because as we age, the likelihood of developing health issues increases. You may not need a medical exam to get a term life insurance plan, but if you do, you’ll want to do it when you’re younger and healthier.

What is the cheapest term life insurance in Canada?

PolicyMe has some of the most affordable term life insurance rates in Canada.

We have reduced cost barriers to term life insurance by delivering the same high-quality coverage but at a lower, more affordable price. Get your own term life insurance quote today.

How much term life insurance do I need?

The amount of term life insurance you need will depend on your financial situation. Some financial experts will give you a general rule of thumb as an easy answer (for example, your salary times ten), but there’s really no blanket method that’ll work for everyone. 

Your term policy payout, or death benefit, should be enough to protect your family during this tough time. Think end-of-life costs like a funeral, medical expenses, any debts you carry, supplemental income for your spouse or partner, as well as childcare and tuition costs.

For example, the most common term length and coverage amount at PolicyMe is 20 years for $500,000. Most Canadians do not need coverage for life.

What age does most term life insurance end?

Term policies end when the term ends – so whatever age you happen to be by then! For example: if you are 32 when you apply for a 30-year term policy, then it’ll expire when you are 62.

At PolicyMe, term coverage can be offered up to the age of 85, with the available term lengths of 10, 15, 20, 25 and 30 years. So the oldest age to apply (with minimum term length) is 75.

What happens when term life insurance expires?

When your term life insurance expires, you have the option to reapply or forgo additional coverage.

Term life insurance is intended to cover you during the years you need it most, so when the plan expires, your life insurance needs should be different.

Note: it is typically cheaper to reapply than it is to renew your existing policy. If you find yourself in a position where you can’t get new insurance, worst case, you can renew the soon-to-expire policy.

Can I extend my term life insurance coverage in Canada?

Yes, you can convert your term life insurance coverage in the first five years of your policy being active to a 15, 20, 25 or 30-year policy (with PolicyMe). After five years, or when you reach the end of your term, you’ll need to reapply.

If you renew your policy, it's almost guaranteed that you'll pay higher premiums. Why? Because now that you're older, your risk of dying is higher. And that makes it more likely that your insurer will have to pay a death benefit during your renewed policy term.

Is my term life insurance worth anything?

Unlike whole or universal life insurance, term life insurance does not have a cash value. When your term ends, or if you cancel your policy before the end of your term, there’s no refund.

Sounds like a bad deal? Think of it this way: term life insurance is like auto insurance or home insurance. If you don’t make a claim on your car insurance, you don’t get your money back. Same deal with term life insurance.

How much does term life insurance cost in Canada?

Here’s one thing for sure: you should pay less for term life insurance than you would for a permanent life insurance policy.

The exact amount you’ll pay for term life insurance every month will depend on your age, your health status, the insurer providing you a quote, as well as the length and amounts of your coverage.

From age 20 to 35, prices stay pretty similar. After that, they start increasing quickly. For example, a 35-year-old non-smoking woman would pay $25.44 a month for $500,000 in coverage and a 20-year term. A 50-year-old woman buying the same policy would pay $93.28 a month.

Is there any cash value with a term life insurance policy?

No, there is no cash value associated with term insurance policies. Once the policy expires, the coverage ends. And if you don’t die before your term expires, you or your beneficiaries don’t get a payout either, nor do you get any of your premiums back. There are also no refunds in the event of the policy lapsing or if you choose to cancel your policy early.

How can I pay for my term life insurance policy?

You can choose to arrange automatic monthly or annual payments with your credit card or visa debit for your term life insurance policy. This prevents you from being late or missing payments, as long as there are enough funds in your account to cover the premium each month.

Who offers PolicyMe term life insurance policies?

PolicyMe’s term life insurance policies are sold by PolicyMe, a licensed life insurance agency, and are insured by Canadian Premier Life Insurance Company.

Who does term life insurance cover?

Term life insurance covers anyone that the policyholder names as a beneficiary. Generally speaking, people get term life insurance to cover family members and financial dependents – like their kids. 

If the policyholder passes away during the term, the beneficiaries get a lump sum payout. The payout (also known as the death benefit), can be used for whatever the beneficiaries need during this difficult time. This can include anything from supplementing income, to childcare costs, to paying off the mortgage and more. 

Do you have to be Canadian or live in Canada to get term life insurance? 

You do not necessarily need to be Canadian or a Canadian resident to get a term life insurance policy. But note that it is extremely rare to find a company that will approve coverage for you in this case. If you do find a company that offers coverage to non-Canadians and non-residents, chances are that your coverage amounts will be much more limited.

For PolicyMe’s term life insurance coverage, you’re either required to be Canadian or be a resident of Canada. Further to this, you’d need to be a Canadian resident at the time of application. And, in addition, the contract must also be signed while in Canada and cannot be signed while overseas.

Does term life insurance cover accidental death?

Term life insurance covers accidental death, as well as other causes of death. But there are two major caveats to this. Firstly, most life insurance policies have a two-year contestability period, in which suicide is excluded from coverage. This can also be referred to as a “suicide clause”. 

Second, each company will have a different approach to this. The majority of which will have a contestability period and suicide clause mentioned above. But there may be other particularities to your policy. Make sure to read your policy closely before signing to avoid any misunderstanding!