What is term life insurance?

​​

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.

​​​

How you can benefit from a term life insurance plan

​​​

Your fees are fixed

​​

Your premiums (monthly or annual fees) remain the same and won’t change during the length of your term.​​

​

Instant temporary coverage

​​

Temporary coverage lasts up to 90 daysundefined. You may get this after you submit your life insurance application and pay any required premiums.

​​​

Convert to permanent life insurance

​

You can convert your plan from term to permanent, which provides lifelong coverage that never expires. This option is available for select term plans. 

​​

Guaranteed death benefit

​​

Your beneficiaries will receive a guaranteed tax-free payment (death benefit) that stays the same.

​

Frequently asked questions

​​

How does term life insurance work in Canada?

​​

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.

​​

How much is term life insurance in Canada?

​​

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, 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.

​

Can you borrow money from a term life insurance policy?

​​

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.

​

Which policy is better: term or whole life?

​​

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.

​​

What is the age limit for term life insurance?

​​

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.

​

What happens if I outlive my term life insurance?

​​

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.

​​

Whats not covered in a term life insurance plan?

​​

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.

​​

Do you have to be Canadian to apply for term life insurance?

​​

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

​​

I am retiring or losing my insurance from my workplace. How can I replace it?

​​

If you're leaving your job and losing your life insurance coverage, you may qualify to replace it.