Term life insurance
How it works, what it can cost, and what happens when the term ends
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Key Takeaways
- Term life insurance pays a tax-free death benefit if you die within a set period, such as 10, 20 or 30 years, and it has no cash value.
- TD Insurance's published examples, calculated as of September 2026 and before discounts, show a 30-year-old non-smoker in good health paying $10.80 (female) or $12.60 (male) a month for $100,000 over 20 years. Those are TD rates, not Emma rates.
- Emma terms run from 10 to 35 years in one year steps, renew annually to age 80 and convert to a non-participating whole life policy until age 65.
- Premiums depend on age, sex, tobacco use, health, coverage amount, term length and riders, and they rise at renewal.
- Emma's permanent T100 product has no cash surrender value either, so check that line in any permanent offer.
What is term life insurance?
Term life insurance pays a tax-free death benefit to the people you name if you die within a set period, such as 10, 20 or 30 years. It has no cash value, and its premiums are generally lower than permanent insurance premiums at first purchase. When the term ends, coverage ends or renews, depending on your contract.
The Financial Consumer Agency of Canada's overview of term life insurance describes it the same way. As life insurance goes, the structure is simple: you pick an amount and a length, premiums usually stay level during the term, and no cash value builds up inside the policy.
At Emma, life insurance policies are issued by Humania Assurance Inc. and distributed by Emma Services financiers Inc.
How much does term life insurance cost in Canada?
Each insurer sets its own rates, and your premium is set individually when you apply, so other insurers' published examples only show a rough range. In an article dated February 5, 2026, Sun Life says life insurance in Canada typically costs $20 to $500+ per month, depending on factors such as age, sex at birth, health and the type of policy, and that a healthy 30-year-old male non-smoker may pay about $25 a month for a $250,000, 25-year term policy. These are Sun Life's examples, not Emma's prices.
TD Insurance publishes estimated monthly premiums by age, sex, term and amount. The tables below show its monthly premiums for a non-smoker in good health, calculated as of September 2026 and without discounts. These are TD's rates, not Emma's, and they change over time.
| Age and sex | 10-year term | 20-year term | 30-year term |
|---|---|---|---|
| 20, female | $11.70 | $14.75 | $17.10 |
| 20, male | $16.20 | $18.17 | $22.50 |
| 30, female | $12.60 | $15.73 | $21.60 |
| 30, male | $16.20 | $19.03 | $28.80 |
| 40, female | $14.97 | $23.30 | $40.50 |
| 40, male | $17.32 | $27.82 | $54.00 |
| 50, female | $29.19 | $48.95 | $99.90 |
| 50, male | $37.33 | $69.30 | $141.30 |
The coverage amount also changes the premium. In the same TD data, a 30-year-old non-smoker pays the following for a 20-year term.
| Coverage amount | Female | Male |
|---|---|---|
| $100,000 | $10.80 | $12.60 |
| $250,000 | $15.73 | $19.03 |
| $500,000 | $26.96 | $33.56 |
| $1,000,000 | $42.30 | $57.50 |
Read these as a range, not a quote. Tobacco use also changes the premium: for a 30-year-old man with $250,000 over 20 years, TD shows $19.03 a month as a non-smoker and $35.10 as a smoker.
Your own premium also depends on your sex, health, coverage amount and any riders, and it is set individually when you apply. When you compare quotes, use identical information in each, and look at the renewal premiums written in the contract, not only the first years. For the full picture across products, see our page on the price of life insurance. If you are not sure how much coverage to ask for, start with how much life insurance you need.
How does a 10 year term life insurance policy work?
A 10 year term is the shortest term Emma offers, and it is the easiest way to see the whole mechanism.
You choose your coverage amount and a 10 year term when you apply. The insurer reviews your application and assigns a risk class. Once the policy takes effect, your premium is level for those 10 years. If you die at any point inside that window, and no exclusion applies, the full coverage amount goes to your named beneficiaries, tax free.
If you are alive at the end of year 10, nothing is paid out. A term policy is not a savings plan, so there is no refund and no accumulated value.
What happens when your term life insurance ends?
The Financial Consumer Agency of Canada explains that once the term ends, the coverage ends and your beneficiaries receive no payment, although you might be able to renew certain policies, and premiums may increase when you renew. With Emma, you have three ways to keep coverage going, and a fourth if you no longer need it.
Renewal
At the end of the term, Emma coverage renews annually up to age 80 with no new evidence of insurability. That protects you if your health has changed. In exchange, renewal premiums follow the schedule set out in the contract and go up with your attained age. Read that schedule before you sign, not after. A renewed policy is a bridge, not a long term plan.
Conversion
Up to age 65 you can convert your term coverage into a non-participating whole life policy with no evidence of insurability. The premium on the new policy is based on your attained age, the rates in force and your risk class. Put plainly, conversion spares you a new health review, not a new price.
The exchange right
Between the 1st and 5th policy anniversary you can exchange your coverage once for a longer term, with no evidence of insurability, as long as the policy is in force and the contract conditions are met.
You can also let the policy end. If the mortgage is paid and nobody depends on your income anymore, stopping is a legitimate decision.
How long a term should you choose?
The right length is the one that covers the period when other people depend on your income. The useful question is how many years your family would need this money.
| Situation | Term to consider | Why |
|---|---|---|
| Active mortgage | At least the years left on the loan | The coverage spans the period when the balance is still high. |
| Young children at home | Until they are financially independent | The need shrinks as they start supporting themselves. |
| Personal debt or a car loan | The repayment period | The need disappears once the debt is cleared. |
| Income to replace until retirement | The number of years between now and then | The coverage follows your working years. |
Emma's term product lets you pick the length at application, anywhere from 10 to 35 years in one year steps, so you can line the term up with the year your mortgage ends or your youngest child finishes school. The exact term is confirmed in your contract.
Term life or permanent life insurance?
They answer different questions. Term protects a period of your life, permanent protects all of it. Comparing their prices without comparing their duration does not tell you much.
Permanent insurance often builds a cash value, but not always. Emma's permanent product, T100, has no cash surrender value and is non-participating. Check that specific line in any offer instead of assuming it.
| Element | Term | Permanent (Emma T100) |
|---|---|---|
| Length of coverage | The term you chose, with renewal available | Your whole life |
| Premium | Level during the term, reset at renewal | Level, payable to the policy anniversary nearest your 100th birthday |
| Cash surrender value | None | None on the T100 product |
| Common use | Mortgage, debts, income replacement | Final expenses, estate planning, a gift |
| Conversion | Available up to age 65 | Not applicable |
| Renewal | Annual to age 80 | Not renewable |
To go further, read our page on whole life insurance.
Is term life insurance worth it?
It is usually worth considering when someone depends on your income or you carry debt such as a mortgage. Whether it is worth it for you depends on the gap between what your family would need and what you already have through work, savings or other coverage. Our page on whether life insurance is worth it walks through that question.
What is not covered
No life insurance contract covers everything. The Emma contract sets out limitations including the following.
- Suicide within the first two years of the policy.
- Misrepresentation on the application, which can void the contract.
- Death resulting from a criminal act.
- Death during certain high risk activities named in the contract, such as mountaineering, ice climbing, scuba diving outside a resort setting, paragliding, hang gliding, skydiving, bungee jumping, heli-skiing, off-piste skiing, off-trail snowmobiling, aviation other than commercial pilots, auto racing and kitesurfing.
This is a summary. The exact wording is in the policy specimen, which we publish openly. Read it before you buy. Your issued contract is the document that governs a claim.
Emma term life insurance at a glance
| Element | Detail |
|---|---|
| Issue ages | 18 to 80 |
| Coverage amount | 50,000 to 5,000,000 CAD |
| Term length | 10 to 35 years, in one year steps |
| Renewal | Annual to age 80, no evidence of insurability |
| Conversion | To a non-participating whole life policy until age 65, no evidence of insurability |
| Exchange right | Once, between the 1st and 5th policy anniversary, for a longer term |
| Cash surrender value | None, non-participating |
| Riders | Available, including dependent life coverage |
This is a summary. Your contract governs.
Riders can be added to your contract, including coverage for a dependent. Each rider carries its own premium, so check what your quote actually includes. See how child riders work on life insurance if you have children at home.
Frequently asked questions
What happens when my term life insurance ends?
It depends on the contract. With Emma, coverage renews annually up to age 80 with no new evidence of insurability, at premiums set by the schedule in the contract. Nothing is paid out for having outlived the term. In many cases the need has also shrunk by then, with the mortgage paid off and the children independent.
How much is a $100,000 term life insurance policy?
It depends on your age, sex, tobacco use, health and term length. As one published example, TD Insurance shows a 30-year-old non-smoker in good health paying $10.80 a month (female) or $12.60 (male) for $100,000 over 20 years, and $9.90 or $10.80 over 10 years, calculated as of September 2026. Those are TD's rates, not Emma's.
Does term life insurance have a cash value?
No. Term coverage has no cash surrender value and you cannot borrow against it. The premium funds the death benefit and nothing else, which is part of why its premiums are generally lower than those of lifelong coverage for the same face amount when you first buy.
Do I need a medical exam?
It depends on your profile and the amount you request. The application starts with a health questionnaire, and the insurer then decides whether more information is needed. There is no guaranteed acceptance and no application without health questions. See our page on life insurance with no medical exam.
Is there an age limit on term life insurance?
There is no single legal cutoff that applies to every insurer, so what matters are the limits in your own contract. With Emma you can apply between ages 18 and 80, coverage renews annually to age 80, and conversion to a permanent policy stays open until age 65. Premiums are generally higher at older ages because age is one of the factors that defines the risk class.
Get your price
Your premium depends on your age, your health, the coverage amount and the term you choose. The only way to know your real number is to complete an application and receive a personalized offer. You can go through it on your own or ask an advisor for help along the way.
Jacomo Deschatelets, CMO & Cofounder, Life Insurance Expert
Questions? Email us at editorial@emma.ca
Jacomo Deschatelets
Questions about this page? Email us at editorial@emma.ca
