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Reasons to Choose Term Life Insurance

Published: 2026-05-19

When it comes to different types of life insurance in Canada, many Canadians choose term life insurance. This coverage often offers Canadians more affordability, flexibility, and simplicity than other types of life insurance, which can make it a practical choice for both individuals and families.

In this article, you'll get a snapshot of the key stages in life when you should consider term life insurance, the main reasons individuals choose term life insurance, the benefits of coverage with TD Term Life Insurance, and how to pick the right life insurance plan.

Times when you should consider term life insurance

  • Getting married
  • Buying a home
  • Starting a family
  • Children beginning post-secondary education
  • Retirement planning

Reasons to choose term life insurance

The simplicity of coverage: 

Overall, term life insurance is less complicated than other types of life insurance products as there's no investment component that needs to be managed or cash value component.

 

The affordability of coverage: 

Term life insurance is typically more affordable than other types of life insurance plans, such as universal life and whole life insurance. This is because term life insurance typically expires at age 75 or 80 (depending on the policy) and you are only paying for the cost of the insurance.

 

The flexibility to choose:

When you apply for term life insurance, you get to choose the term length and coverage amount that works for you. For example: If your financial situation changes and you want to decrease your overall coverage amount, you can do so with most term life insurance policies. Additionally, if your financial situation changes, and you end up no longer needing coverage, you can cancel your policy at any time. You don't have to wait until your policy expires.

Leading up to your policy's expiry date, you have the option to renew your coverage, although you will have to pay higher premiums going forward to reflect your age at the time of renewal. Or, if you decide to, most term life insurance plans allow you to convert your coverage to a permanent life insurance policy. Note: You can convert any time up until the age limit listed on your policy.

 

Coverage at different life stages:

Term life insurance can help provide financial protection throughout different life stages. Some of the main times in life that individuals choose to apply for coverage include when they get married, purchase a home, start a family, or are planning for retirement.

 

Tax-free lump sum benefit:

The death benefit payout is paid tax-free to your named beneficiaries. This means your beneficiaries will receive the full amount of your policy without having to pay any income tax on it.  

 

Term lengths:

Different term length options allow you to find the right term life insurance plan for your life. At TD Insurance, we offer four different term lengths to choose from: 10, 20, 30-Year and Term 100 Lifetime Coverage.  

The benefits of term life insurance

Now that we've covered some of the main reasons why people choose term life insurance, let's look at some of the key benefits of term life insurance, using TD Insurance Term Life Insurance as our example.

 

No Obligation Quote:

Get a quote in 60 seconds and then apply online in as little as 10 minutes.1

 

Instant Approval with No Medical Exam:

You could be instantly approved for up to $1,000,000 if you are under 50, up to $500,000 if you are under 60, or up to $249,999 if you are under 70 years old.2

 

Locked-In Pricing:

Your premiums are fixed and guaranteed not to increase throughout the term of the policy.3

 

30-Day Review Period:

We offer a 30-day review period to ensure you are comfortable with your choice. If you do change your mind within the review period, you can cancel your policy and receive a refund.

 

Convertible Coverage: 

Convert your 10, 20, or 30-Year Term Life plan to permanent Term to 100 life insurance, up to 6 months after you turn 69.4 No health questions or medical exams required.

How to choose the right term life insurance plan?

Deciding on the right term life insurance plan for you depends on several different factors. As you start researching your coverage options, it's important to ask yourself a few questions. Be sure to consider the following:

  1. What are your main reasons for getting coverage?
  2. How long will you require coverage for?
  3. How much coverage will you need?
  4. What type of life insurance plan best meets your needs?

Use the TD Life Insurance Calculator to help determine what plan length and coverage amount might work best for you.

When you're ready, you can start your application online.

Explore TD Term Life Insurance plans >

FAQs

What is term life insurance?

Term life insurance is a type of life insurance that offers coverage for a defined number of years at the same price point. This coverage period is known as a term. During your term, your premiums (the payments you make to keep your coverage in place) remain fixed and do not change.

The purpose of coverage is to help provide financial protection to your loved ones (named beneficiaries) if you pass away. If this happens, they will receive the tax-free death benefit payout. The death benefit payout amount is the coverage amount that you select.

When you apply for term life insurance, you get to choose the term length and coverage amount that fits your needs. Term lengths and coverage amounts can vary by insurance provider. For example, TD Insurance offers four term life insurance plans: 10-, 20-, 30-Year and Term 100 Lifetime Coverage. And with TD Term Life Insurance, you can choose between $50,000 all the way up to $10,000,000 in coverage. 

TD Term Life Insurance plans are individual life insurance plans underwritten by TD Life Insurance Company. Some restrictions may apply. Application subject to approval. See Insurance Policy(ies) for coverage details, including limitations and exclusions.

The content on this page is for general information purposes only and does not constitute legal, financial or insurance advice. The information contained herein is subject to change without notice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the case of conflict between the content on this page and your insurance contract, your contract shall govern. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought. Speak to a TD Insurance licensed advisor regarding your specific situation.

1 Individual circumstances may vary. If you need advice about your needs, call 1-888-788-0839 and speak to one of our TD Life Insurance licensed advisors.

2 Instant approval is subject to the responses you provide to certain health and lifestyle questions in your application and is available for coverage up to $1,000,000 if you are 50 and 182 days old or younger, up to $500,000 if you are 60 and 182 days old or younger, or up to $249,999 if you are 70 and 182 days old or younger.

3 TD 10- or 20-Year Term Life Insurance plans automatically renew at the end of each 10- or 20-year term until the age of 80. TD 30-Year Term Life Insurance plan automatically renews at the end of the initial 30-year term on a yearly basis until the age of 80. Premiums do not increase for the duration of the policy's term. The premium will increase when your term renews.

4 This option is available up to the policy anniversary nearest the Insured’s 69th birthday, and premiums will be based on the Insured person’s attained age at the conversion date.