How much can term life insurance cost in Canada?

Term life insurance could be a way to help protect your family's financial future. For Canadians interested in coverage, one of the first questions they often ask is: how much does coverage cost? The cost of life insurance can vary depending on a number of different factors. In this article, we'll take a closer look at some of these factors and the cost of life insurance using two plans available from TD Insurance as our examples.

Term life insurance is an insurance option for individuals who aren't seeking coverage for life, but rather a "term," a select period of time. Term lengths can vary. For example, TD Insurance offers 10-, 20-, and even a 100-year term, where premiums remain fixed for the duration of your term. Most policies offer automatic renewal (at a higher premium) when your initial term ends, which means, if you choose to, you can have coverage until you reach the maximum age on your policy set by the insurance provider.

Choosing the right term life insurance policy is important because it can help ensure your family's financial obligations are met and they are financially protected if you were to pass away. Whether it's covering debts, providing for children's education, or replacing lost income, a well-selected policy could effectively fulfill your financial planning goals in case of a covered event.

Before we dive into examples of the cost of TD Term Life Insurance and look at different term lengths across different ages, let's go over some of the factors life insurance companies consider when calculating the cost of coverage (commonly referred to as premiums). 

Age: Younger individuals typically pay lower life insurance premiums because they are generally considered to be in better health. As your age increases, so do premiums, reflecting the increased likelihood of health concerns or issues.

Sex assigned at birth: Males typically pay higher premiums for life insurance than females because their life span is generally shorter. 

Health and lifestyle: Your health status, including medical history and lifestyle choices can play a role in the price of coverage. If you're in good health and don't have a high-risk lifestyle, you'll generally receive lower premiums. That said, insurers might require a medical exam to assess your health and determine the appropriate premium.

Term length: The duration of the policy also impacts the cost. Shorter term lengths are typically less expensive and can be automatically renewed (at a higher premium). Longer term lengths (also automatically renewable at a higher premium) offer more stability, but with higher premiums.

Coverage amount: It's important to note that the higher the coverage amount you select, the higher your premiums will be. This is because the insurer is taking on more risk with a larger potential death benefit payout.

Smoker status: If you're a non-smoker, you could be eligible for lower premiums because smoking and vaping can affect a person's health and lifespan, which in turn affects insurance premiums.

Note: There are additional factors such as your chosen occupation that are also considered when calculating life insurance premiums. You can learn more about some of the different factors affecting life insurance premiums here.

Let's now look at the estimated costs for TD Term Life Insurance. Note: The premiums are calculated as of May 2025¹ and do not consider potential discounts. Cost calculations are based on:

• 10-year and 20-year terms
• Sex assigned at birth
• Non-smoker and smoker status
• Coverage amounts of $100,000, $250,000, $500,000 and $1 million