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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.
What is term life insurance and why is it important to have adequate coverage?
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).
What are some of the factors that life insurance companies consider when calculating 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.
How much can term life insurance cost in Canada?
Cost Calculation Examples: TD Term Life Insurance
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
How much could a $100,000 TD Term Life Insurance policy cost per month in Canada?2
Per month cost of $100,000 of TD Term Life Insurance for a female in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$9.00 |
$9.90 |
$10.80 |
$12.60 |
30 |
$9.90 |
$10.80 |
$11.70 |
$13.50 |
40 |
$10.80 |
$13.50 |
$18.00 |
$28.80 |
50 |
$16.20 |
$27.00 |
$34.20 |
$61.20 |
60 |
$38.70 |
$72.00 |
$85.50 |
$126.00 |
Per month cost of $100,000 of TD Term Life Insurance for a male in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$10.80 |
$11.70 |
$13.50 |
$17.10 |
30 |
$10.80 |
$12.60 |
$14.40 |
$18.00 |
40 |
$12.60 |
$16.20 |
$21.60 |
$36.90 |
50 |
$20.70 |
$36.90 |
$51.30 |
$86.40 |
60 |
$53.10 |
$105.30 |
$124.20 |
$204.30 |
How much could a $250,000 TD Term Life Insurance policy cost per month in Canada?2
Per month cost of $250,000 of TD Term Life Insurance for a female in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$11.70 |
$15.30 |
$15.30 |
$18.90 |
30 |
$12.60 |
$16.20 |
$17.10 |
$25.20 |
40 |
$15.30 |
$24.30 |
$30.60 |
$57.60 |
50 |
$29.70 |
$51.30 |
$65.70 |
$117.00 |
60 |
$75.60 |
$151.20 |
$164.70 |
$275.40 |
Per month cost of $250,000 of TD Term Life Insurance for a male in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$16.20 |
$18.90 |
$25.20 |
$30.60 |
30 |
$16.20 |
$19.80 |
$25.20 |
$35.10 |
40 |
$18.00 |
$28.80 |
$37.80 |
$73.80 |
50 |
$38.70 |
$72.00 |
$107.10 |
$189.00 |
60 |
$106.20 |
$221.40 |
$282.60 |
$459.90 |
How much could a $500,000 TD Term Life Insurance policy cost per month in Canada?2
Per month cost of $500,000 of TD Term Life Insurance for a female in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$19.80 |
$26.10 |
$27.00 |
$33.30 |
30 |
$20.70 |
$27.90 |
$29.70 |
$46.80 |
40 |
$27.00 |
$44.10 |
$56.70 |
$111.60 |
50 |
$54.90 |
$99.00 |
$126.90 |
$230.40 |
60 |
$147.60 |
$299.70 |
$325.80 |
$547.20 |
Per month cost of $500,000 of TD Term Life Insurance for a male in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$28.80 |
$34.20 |
$45.90 |
$58.50 |
30 |
$28.80 |
$35.10 |
$46.80 |
$66.60 |
40 |
$32.40 |
$53.10 |
$72.00 |
$144.00 |
50 |
$73.80 |
$139.50 |
$210.60 |
$374.40 |
60 |
$207.90 |
$438.30 |
$560.70 |
$916.20 |
How much could a $1 million TD Term Life Insurance policy cost per month in Canada?2
Per month cost of $1 million of TD Term Life Insurance for a female in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$28.80 |
$41.40 |
$45.90 |
$57.60 |
30 |
$30.60 |
$42.30 |
$50.40 |
$89.10 |
40 |
$40.50 |
$72.90 |
$102.60 |
$209.70 |
50 |
$89.10 |
$167.40 |
$238.50 |
$422.10 |
60 |
$279.90 |
$594.90 |
$623.70 |
$1,067.40 |
Per month cost of $1 million of TD Term Life Insurance coverage for a male in good health |
||||
|
Non-Smoker |
Smoker |
||
Age |
10-Year Term |
20-Year Term |
10-Year Term |
20-Year Term |
20 |
$46.80 |
$59.40 |
$80.10 |
$107.10 |
30 |
$47.70 |
$60.30 |
$81.90 |
$120.60 |
40 |
$55.80 |
$95.40 |
$133.20 |
$266.40 |
50 |
$134.10 |
$252.00 |
$398.70 |
$695.70 |
60 |
$392.40 |
$799.20 |
$1,101.60 |
$1,701.90 |
Now that you have a better understanding of how much a TD Term Life Insurance policy can cost, you might be curious about how much life insurance you need, and which term length may be best for you. You can use the TD Life Insurance Calculator to help you determine how much coverage you may need.
Calculate how much term life insurance you may need
When it comes to informing a decision about term life insurance, it's important that you weigh your current and future financial obligations. By understanding the factors that influence premiums and comparing the different term lengths, you can choose a policy that could better protect your loved ones financially.
To determine how much life insurance you need, you'll have to calculate:
- The sum of all your financial obligations
- The sum of all your savings and income
- (Sum of financial obligations) minus (sum of savings and income)
This figure equals the amount of coverage that you may need. You can use the TD Life Insurance Calculator to assist with this calculation.
How you can benefit from TD Term Life Insurance
TD Term Life Insurance offers instant approval on select coverage amounts (depending on your age), the ability to convert your plan to TD Term 100 Lifetime Coverage, and potential savings. Let's take a closer look.
1. Instant approval3
You could be instantly approved for:
- Up to $1 million if you are under 50 years old
- Up to $500,000 if you are under 60 years old
- Up to $249,999 if you are under 70 years old
2. The option to convert
- You can convert your 10-Year or 20-Year TD Term Plan to permanent Term 100 Lifetime Coverage, up to 6 months after you turn 69, and no health questionnaire or medical exam is required at the conversion date4.
3. Savings
- Save 10%: If you apply online5.
- Save 10%: If you are a TD customer, which includes TD Auto Finance, TD Insurance Home and/or Auto, and TD Wealth6.
Or
- Save 5%: If you or your spouse is a graduate of an eligible Canadian post-secondary institution or a member of an eligible professional association6.
Note: The above discounts cannot be combined, the maximum discount available is 10%.
Interested in learning more about life insurance plans from TD Insurance?
Explore TD Term Life Insurance plans
FAQs
How does smoking affect term life insurance premiums?
Insurance companies charge you a higher premium if you smoke. Generally, an individual who uses any substance or product containing tobacco and/or nicotine is considered a smoker. Your premiums could be more than double if you are a smoker. However, if you purchase an insurance policy and quit smoking, you may become eligible for non-smoker rates from your provider in the future.
What are the advantages of shorter-term policies and who are they for?
Shorter-term policies (like 10-year terms) generally have lower premiums, making them more affordable. This can be a good solution for young families or those with temporary financial obligations.
What are the advantages of longer-term policies and who are they for?
Longer-term policies (like 20-year terms) provide fixed premiums over longer periods. These policies can be beneficial for individuals with long-term financial responsibilities. And with fixed premiums over a longer duration of a policy, policyholders can better plan their finances without worrying about sudden increase in costs.
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TD Term Life Insurance plans and TD Guaranteed Acceptance Life Insurance 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. Speak to a TD Life Insurance licensed professional advisor regarding your specific situation. The information contained herein, is subject to change without notice.
1 The premiums are calculated as of May 2025 and are subject to change.
2 The above quote is based on the information you provided for your age, smoking status and sex. Your actual premium may change when we assess your individual circumstances based on the information collected during the application process. Your cost won't change during the term of your policy unless the cost goes up for all policies that share one or more characteristics that we consider material to our risk. Your cost will increase after the expiry of your term upon renewal for each subsequent term, due to your age.
3 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 under 50, up to $500,000 if you are under 60, or up to $249,999 if you are under 70 years old.
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.
5 The discount is only available to eligible applicants who apply for a new TD 10-Year or 20-Year Term Life Insurance policy using the online application. Offers cannot be combined with any other offer and are subject to change or may be withdrawn at any time.
6 Discounts are available to eligible applicants who apply for a new TD 10-Year or 20-Year Term Life Insurance policy. Offers cannot be combined with any other offer and are subject to change or may be withdrawn at any time.