When your life insurance term ends
You chose the term of your original term life insurance policy based on your coverage needs at the time.
But now, your term life insurance policy is expiring and you still need life insurance coverage to help protect your family.
You have 3 options: renew your current term life insurance, purchase a new term life insurance policy or convert your term life insurance to permanent life insurance.
Renew your present term life insurance
When your original term ends, your coverage will automatically renew.
Automatic renewal happens so you’re not unexpectedly left without coverage when you might need it.
Of course, you can notify us if you don’t want to renew.
How to decide whether or not to renew your term life insurance policy
- Take a hard look with your insurance advisor at how your financial goals and life insurance needs have changed during the term of current policy. Have you paid off your mortgage, got married or divorced, had children, received a large inheritance or increase in pay or won a lottery? Any of these life events could mean your present life insurance coverage may not be adequate.
- You’ve developed health concerns (such as heart disease or cancer) or you otherwise might not be eligible for a new life insurance policy so it may be prudent to maintain the current coverage and perhaps convert to permanent?
Benefit of renewing your term life insurance
You won’t need to requalify or answer more health questions to maintain coverage.
Disadvantage of renewing your term life insurance
Your premiums will gradually increase yearly as you get older.
Purchase a new term life insurance policy
If your health hasn’t changed and the only thing that’s happened is that you’ve gotten a little older, you can also look at buying a new term life insurance policy to replace the one which is ending.
However, you will have to answer questions about your health to qualify for the new coverage, but if you’re healthy, your premiums could still be less than renewing your present term life insurance policy, especially over a longer term.
You can get a quote for flexible, affordable Canada Life My TermTM life insurance.
Convert to permanent life insurance
In most cases, you can convert your Canada Life My Term™ policy to permanent life insurance any time after the first anniversary of the policy and before it expires.
Permanent life insurance such as participating life or universal life provide guaranteed lifelong coverage (as long as all required premiums are paid) that protects the people you care about. Over time your policy could also build cash value you can access during your life, with certain tax implications. Which type of permanent life insurance is best for you depends on your needs and can be discussed with your insurance advisor.
If you bought your term life insurance policy at age 69 or older, you can convert it to a permanent life insurance policy in the first 2 years.
Your premiums will be based on the coverage you choose.
You won’t need to requalify or answer more health questions.
How to decide what to do with your expiring term life insurance
- Know when your policy is set to expire and mark the date on your calendar a few months before the expiry date.
- Understand how your needs for life insurance may have changed during the term of your present term life insurance.
- Choose the course of action that best meets your needs to continue life insurance coverage.