Popular scenarios

Tap a tile to auto-fill typical assumptions. You can edit any field below.

Your details

This tool provides planning estimates only. Actual premiums depend on underwriting, policy details, medical history, and insurer criteria.

Your estimate

Disclosure: Estimates are illustrative and not an insurance offer. Contact PolicyMe for an official quote.

Not sure how much coverage to choose Use this quick planner to estimate a target death benefit.

How term life insurance works

Term life insurance pays a tax-free death benefit to your beneficiaries if you pass away during the policy term. You choose a coverage amount and a term length. Premiums are typically level for the entire term. If the term ends and you still need protection, you can reapply, convert to permanent coverage if available, or adjust the amount based on your new goals.

Who usually needs life insurance

• Parents and caregivers who want to replace income and fund childcare or education.
• Homeowners who want the mortgage paid off so family can keep the home.
• Business owners covering debt, key person risk, or buy-sell obligations.
• Couples who rely on each other’s income to meet monthly expenses.

Choosing a coverage amount

Many Canadians start with a rule of thumb between 10 and 20 times annual income plus debts and final expenses, then subtract savings and existing coverage. Use the Coverage Needs Snapshot above as a quick planner, or talk to a licensed advisor for a more detailed analysis that considers childcare costs, tuition, and long-term financial plans.

Selecting a term length

• 10-year term can work for short obligations and tighter budgets.
• 20 to 25-year term is popular for families, aligning with child-rearing years and mortgages.
• 30-year term offers more runway for long mortgages or late parenthood, at a higher premium.

Smoker status and health class

Insurers price term life based on age, smoker status, health profile, and selected term. Non-smokers generally pay less, and applicants in strong health may qualify for preferred classes. If you quit smoking and remain tobacco-free for a qualifying period, you may be eligible to re-evaluate rates with an insurer.

Riders to consider

• Child term rider adds a small amount of coverage for children under one policy.
• Waiver of premium waives payments if you meet a disability definition.
• Accidental death benefit adds extra coverage for qualifying accidents.
• Critical illness rider pays a lump sum on covered diagnoses where available.

Why digital-first term life is popular

Modern Canadian providers streamline the process with online quotes, simplified applications, and in many cases fewer medical hurdles. You can compare pricing quickly, understand the impact of different terms and amounts, and apply on your schedule.

Tips to keep premiums lower

1. Choose the shortest term that still covers your big obligations.
2. Select the right amount using the needs planner, not an arbitrary round number.
3. Consider healthy lifestyle improvements ahead of your application.
4. Bundle only the riders you truly need. You can add or change coverage later.
5. Review coverage after major life events like a new child, home purchase, or income change.

Term vs permanent insurance at a glance

The bar below shows your estimated annual premium compared to policy fee and riders.

For exact pricing, complete an application and review an official quote from a licensed provider.

Step by step

1. Select a preset or enter your age, smoker status, health class, term, and coverage.
2. Click Calculate premium to see monthly and annual estimates.
3. Use the Coverage Needs Snapshot to refine your coverage amount.
4. Click through to PolicyMe to compare real quotes and apply online.

Reminder: This calculator is for guidance only and does not bind coverage.

How does term life insurance differ from permanent life

Term life covers you for a set period with level premiums, focused on protection when you need it most. Permanent life lasts for life and may build cash value, but usually costs more for the same death benefit.

What term length should I choose

Match the term to your biggest financial obligations. Many families choose 20 to 25 years to cover mortgages and child-rearing years.

How much life insurance do I need

A common starting point is 10 to 20 times annual income plus debts and final expenses, minus savings and existing coverage. Use the planner above to personalize.

Do I need a medical exam

It depends on age, coverage amount, and provider. Some applications use simplified underwriting and may not require an exam.

Will my premiums change during the term

Level term policies keep premiums fixed for the selected term. If you renew after the term, rates are recalculated based on your new age and the provider’s rates.

Can I cancel or change my policy later

Yes. You can usually reduce coverage, cancel, or reapply for a new policy if your needs change. Some contracts include conversion options to permanent coverage within certain time windows.

What is a beneficiary

The person or entity who will receive the death benefit. You can select multiple beneficiaries and specify percentages.

Are life insurance proceeds taxable in Canada

Proceeds are generally paid tax-free to beneficiaries, though tax outcomes may vary for business-owned policies. Seek professional advice for complex situations.

What if I start as a smoker and later quit

If you remain tobacco-free for a qualifying period, you may be able to seek non-smoker rates with the insurer, subject to underwriting.

What riders should I consider

Common add-ons include child term coverage, accidental death benefit, waiver of premium for disability, and critical illness where available.