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- Canada Life My Term™ offers term lengths from 5 to 50 years, allowing policyholders to select coverage that aligns with their financial goals
- Term life insurance premiums for Canada Life’s My Term™ policy remain fixed for the initial term but increase annually upon renewal
- Once the term expires, your My Term™ policy renews every year until age 85, ensuring continued coverage without medical underwriting
- Policyholders can switch to a Canada Life permanent life insurance policy before age 70 without a medical exam
- What are the key features of Canada Life term life insurance?
- Is a medical exam required for Canada Life term life insurance?
- What is Canada Life’s preferred underwriting option?
- Can I withdraw money from Canada Life term insurance?
- What happens when my Canada Life term policy expires?
- What are the pros and cons of Canada Life’s term life insurance policy?
- What other insurance policies does Canada Life offer?
- Is Canada Life a good insurance company?
- How can I compare quotes for Canada Life term life insurance?
- Frequently asked questions
Canada Life, one of Canada’s largest and most trusted insurance providers, has offered financial security solutions for over 175 years. Its My Term™ Life Insurance offers flexible, affordable coverage with term lengths ranging from 10 to 50 years.
This type of insurance is a practical choice for families, homeowners, and business owners looking to protect their financial future. Additionally, policyholders can also convert this term policy to permanent insurance without medical underwriting to ensure long-term security.
In this article, we’ll take you through the key features, costs, and pros and cons of Canada Life’s term life insurance.
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What are the key features of Canada Life term life insurance?
Canada Life My Term™ provides flexible, temporary coverage ranging from 5 to 50 years, allowing policyholders to choose a term length that aligns with their financial needs. This policy offers guaranteed level premiums for the selected term and automatic yearly renewals without medical underwriting.
It also includes conversion options, allowing policyholders to switch to permanent coverage at any time before age 70. Additionally, Canada Life provides competitive pricing, preferred underwriting for eligible applicants, and a term conversion reset feature.
Key features of Canada Life My Term™
| Features | Description |
| Term length options | Five to 50 years (inclusive) |
| Coverage options | Single-life (pays the death benefit upon the insured’s death)
Joint first-to-die (pays the death benefit upon the first insured’s death) |
| Issue ages (Nearest birthday) | Single-life:
– Non-smokers: 18 to (85 minus the chosen term) – Smokers: 15 to (85 minus the chosen term) Joint first-to-die: – Non-smokers: 18 to (85 minus the chosen term) – Smokers: 15 to (85 minus the chosen term) |
| Minimum coverage amount | $100,000 (or an annual premium of $500 if coverage is less than $100,000) |
| Premiums | Guaranteed level premiums for the initial term
Renewal premiums increase yearly but remain guaranteed |
| Renewals | Automatic yearly renewals without medical underwriting |
| Convertibility | Convertible to any Canada Life permanent policy before age 70 without medical evidence
If issued at age 69 or older, conversion is allowed within the first two years |
| Term conversion reset feature | Allows part of the policy to be converted into a term rider on a new permanent life insurance policy |
| Term-to-term conversion | Available if converting to a term at least 10 years longer than the original
Must be done after the first policy anniversary and before: – The end of the initial term – The seventh policy anniversary – The policy anniversary closest to the maximum age for the new term policy |
| Additional benefits and riders | Available on single-life policies:
– Waiver of premium benefit – Accidental death benefit – Guaranteed insurability rider – Business growth protection rider (10 or 15 years) – Child’s term life insurance rider Available on joint first-to-die policies: – Business growth protection rider (10 or 15 years) – Child’s term life insurance rider |
Is a medical exam required for Canada Life term life insurance?
No. Canada Life uses preferred underwriting to streamline applications and minimize the need for medical evidence. In many cases, you can qualify for term life insurance without a medical exam if you meet the following criteria:
- Ages 18 to 45: Applying for $2 million to $5 million in coverage
- Ages 46 to 50: Applying for $1 million to $3 million in coverage
- Ages 51 to 55: Applying for $250,000 to $1 million in coverage
- Ages 56 to 60: Applying for $100,000 to $1 million in coverage
What is Canada Life’s preferred underwriting option?
Preferred underwriting is a detailed assessment process that evaluates various health and lifestyle factors to determine an applicant’s life insurance risk level.
Canada Life considers smoking habits, body build (height and weight ratio), blood pressure, cholesterol levels, personal and family medical history, occupation, high-risk activities (avocations), and driving record.
By analyzing these factors, Canada Life can categorize applicants into specific underwriting risk classes, offering lower premiums to individuals who present a lower risk.
This means healthier applicants with good lifestyle habits can qualify for preferred rates, resulting in more affordable life insurance coverage.
Can I withdraw money from Canada Life term insurance?
No, you cannot withdraw money from a Canada Life term life insurance policy because it does not accumulate cash value like whole life policies.
Whole life policies set aside a portion of your premium payments for cash value accumulation, which can be withdrawn, borrowed against, or used as collateral for a loan.
What happens when my Canada Life term policy expires?
When your Canada Life term policy expires, you have a few options:
- Renew your policy: This happens automatically. Once your initial term ends, your policy renews annually, with a gradual increase in premium, until its expiry date (typically the policy anniversary closest to the insured’s 85th birthday)
- Switch to a longer-term: If you want extended coverage, you can convert your policy to a term 10+ years longer than your original term. However, eligibility depends on your age and how long you’ve held your policy
- Switch to permanent coverage: You can also convert your Canada Life My Term™ policy to a permanent plan without additional medical underwriting until age 70
What are the pros and cons of Canada Life’s term life insurance policy?
Canada Life’s My Term™ life insurance offers a flexible and customizable term length ranging from 5 to 50 years, making it suitable for various financial needs. It is generally more affordable than permanent life insurance and provides a tax-free payout to beneficiaries.
Additionally, policyholders can convert their coverage to permanent insurance until age 70 without a medical exam. When the initial term expires, the policy automatically renews annually, ensuring continued coverage without requiring proof of insurability.
However, Canada Life term life insurance premiums increase annually upon renewal after the initial term, which can become costly over time.
Moreover, the policy requires a minimum coverage amount or premium, which may limit accessibility for those seeking lower coverage. Lastly, smokers and individuals with health concerns may face higher premiums compared to healthier applicants.
Pros and cons of Canada Life term life insurance
| Pros | Cons |
| Choose term lengths from 5 to 50 years and add optional riders for enhanced protection | After the initial term, renewal premiums rise annually |
| More cost-effective than permanent life insurance | Requires a minimum coverage amount or premium |
| Can be converted to permanent life insurance until age 70 without a medical exam | Smokers and those with health conditions may face higher premiums |
| Ensures continued coverage without medical underwriting |
What other insurance policies does Canada Life offer?
Beyond life insurance, Canada Life provides a range of coverage options,
- Permanent Life Insurance: Wealth Achiever Plus (Whole Life), Universal Life
- Critical Illness Insurance: Canada Life Critical Illness Insurance
- Disability Insurance: Canada Life Disability Insurance
- Health & Dental Insurance: Canada Life Health & Dental Insurance
- Workplace Benefits: Canada Life Group Benefits
- Creditor Insurance: Canada Life Creditor Insurance
- Investment Products & Financial Services: Canada Life Mutual Funds, Segregated Funds, Annuities, Financial Planning Services
Is Canada Life a good insurance company?
Yes, Canada Life is one of Canada’s largest and most financially stable insurance providers.
With an A+ rating from A.M. Best, it has a strong track record of financial reliability, ensuring policyholders can trust their claims will be paid. The company also holds an AAA- brand rating, highlighting its strong reputation in the Canadian insurance market.
For term life insurance, Canada Life offers customizable term lengths from 5 to 50 years, guaranteed level premiums for the initial term, and the option to convert to permanent insurance without medical underwriting.
While Canada Life’s premiums may be slightly higher than some competitors, its strong financial backing and policy flexibility make it a solid choice for those seeking long-term stability.
How can I compare quotes for Canada Life term life insurance?
You can get personalized term life insurance quotes for Canada Life through PolicyAdvisor, where you can compare different plans and policies. Our experienced advisors help compare plans and select options to protect your loved ones. Schedule a free consultation today!
Frequently asked questions
How do premiums work for Canada Life term life insurance?
Premiums for Canada Life term life insurance remain fixed for the initial term length chosen. Once the term ends, the policy automatically renews annually with increasing premiums unless the policyholder cancels or converts the coverage. Payments can be made monthly or annually, depending on the policyholder’s preference.
Can I customize my Canada Life term life insurance policy?
Yes, Canada Life’s My Term™ insurance allows for flexible customization. Policyholders can choose their coverage amount and term length (from 5 to 50 years). Optional riders, such as critical illness or disability coverage, can be added for extra protection. Additionally, the policy can be converted to permanent life insurance without a medical exam before a certain age.
What happens when my term ends?
When the initial term expires, the policy automatically renews on an annual basis with higher premiums. This renewal continues until age 85, unless the policyholder cancels or converts the policy to a permanent life insurance plan. Some policyholders may also have the option to adjust their coverage at this stage.
Can I cancel my Canada Life term life insurance policy?
Yes, policyholders can cancel their term life insurance policy at any time. However, cancellation means losing coverage immediately, and no death benefit will be paid out if the insured passes away after the policy is terminated. There are no refunds for past premiums paid.
Canada Life’s My Term™ life insurance offers customizable coverage ranging from 5 to 50 years, providing financial protection with guaranteed level premiums for the initial term. The policy automatically renews annually after the term expires and allows conversion to permanent life insurance until age 70 without a medical exam. While it offers affordability, tax-free payouts, and flexible options, its premiums increase upon renewal.
