Understanding Term Life Insurance in Alberta
- patrick83738
- Oct 27, 2025
- 4 min read
What “Term” Means
Term life insurance covers you for a set period of time — usually 10, 20, or 30 years. If you pass away during that period, your beneficiaries receive a tax-free payment. If you outlive the term, the coverage ends.
According to the Financial Consumer Agency of Canada (FCAC), term life insurance provides protection “for a specific time period” and premiums “usually stay the same during that period.” (Government of Canada, 2025).
Because the coverage is temporary, term life insurance generally costs less than permanent insurance.
💡 Example
If you buy a 20-year policy at age 35 for $500,000, your cost stays the same for 20 years. If you pass away during that period, your family receives the benefit. If you live past year 20, the coverage generally automatically renews at a higher premium which increases year over year.
What the Price Does During the Term
Your premium (the price you pay) is locked in for the entire term — it won’t increase every year.
A 10-year term keeps the same premium for 10 years.
A 20-year term keeps it for 20 years.
What Happens After the Term Ends
When your policy term expires, you usually have three options:
Renew the policy – no new medical exam, but the new rate will be based on your older age, so the cost increases.
Convert to a permanent policy – guaranteed coverage for life, higher cost but no medical exam.
Let it end – if you no longer need coverage (e.g., mortgage paid off), cancel the policy or stop paying and it will lapse naturally
The Insurance Bureau of Canada notes that term policies “usually end when the term expires unless renewed or converted.” (IBC 2025).
Standard Features of Term Life Insurance
Coverage period: 10–30 years or to a certain age.
Guaranteed premiums: Stays level through the term.
Tax-free death benefit: Paid to your beneficiary.
No cash value: Not a savings plan.
Renewable/convertible: Extend or upgrade coverage without a new medical exam.
What It Takes to Qualify
Insurers review factors like:
Age and gender – younger people usually pay less.
Health and medical history – controlled conditions may still qualify.
Lifestyle and occupation – riskier jobs or hobbies may increase cost.
Smoking status – non-smokers receive better rates.
In Alberta, insurers operate under the Insurance Act (RSA 2000, c.I-3) (King’s Printer 2025).
What If You Don’t Qualify for Standard Coverage
If a health condition prevents you from qualifying for traditional coverage, you still have options:
Simplified or “no-medical” life insurance (fewer health questions)
Rated coverage (approved with slightly higher cost)
Group life insurance through an employer
Smaller benefit amount to improve approval odds
The FCAC notes that simplified-issue policies “allow some applicants to get coverage without a medical exam.” (Government of Canada, 2025).
Sample Term Life Insurance Premiums — Alberta
Estimated monthly premiums for a non-smoker with $500,000 coverage. Actual rates vary by health, underwriting, and plan options. As of October 2025 - Rates subject to change.
Male — Non-Smoker
Company | Age 30 T10 | Age 30 T20 | Age 40 T10 | Age 40 T20 | Age 50 T10 | Age 50 T20 | Age 60 T10 | Age 60 T20 |
Manulife Financial | $23.27 | $30.97 | $29.12 | $47.18 | $67.15 | $121.19 | $198.87 | $388.01 |
BMO Insurance | $25.65 | $31.95 | $29.70 | $45.00 | $62.55 | $124.20 | $200.70 | $403.20 |
Canada Life | $23.38 | $30.43 | $29.98 | $47.38 | $67.12 | $125.36 | $203.58 | $403.20 |
RBC Insurance | $22.32 | $29.97 | $27.36 | $44.10 | $61.29 | $120.83 | $204.62 | $407.93 |
Equitable Life | $22.97 | $30.25 | $28.00 | $45.95 | $65.45 | $122.24 | $201.14 | $407.49 |
Beneva | $22.05 | $29.70 | $27.45 | $44.10 | $62.10 | $120.60 | $200.70 | $402.75 |
Female — Non-Smoker
Company | Age 30 T10 | Age 30 T20 | Age 40 T10 | Age 40 T20 | Age 50 T10 | Age 50 T20 | Age 60 T10 | Age 60 T20 |
Manulife Financial | $21.60 | $22.38 | $22.65 | $35.78 | $44.98 | $90.81 | $151.19 | $275.15 |
BMO Insurance | $20.70 | $22.05 | $21.60 | $36.00 | $44.58 | $89.10 | $149.85 | $281.25 |
Canada Life | $20.94 | $21.94 | $24.00 | $35.96 | $49.33 | $89.01 | $147.43 | $294.62 |
RBC Insurance | $19.85 | $21.60 | $19.85 | $32.63 | $41.29 | $81.14 | $148.19 | $290.16 |
Equitable Life | $20.25 | $22.02 | $20.80 | $34.59 | $44.99 | $85.74 | $145.65 | $287.84 |
Beneva | $19.80 | $20.25 | $19.80 | $32.40 | $43.75 | $81.00 | $148.05 | $280.80 |
Notes
Female premiums are consistently lower, reflecting longer life expectancy.
Term 20 premiums are 30–60 % higher than Term 10, but they stay fixed twice as long.
Premiums roughly double every decade after age 40.
(Source: LifeGuide 2025 Quotations Software, Equisoft Inc., based on $500,000 coverage for non-smokers in Alberta.)
Why Term Life Insurance Makes Sense in Alberta
For families, homeowners, and business owners, term life coverage is a practical, affordable safety net. It protects loved ones from debt, income loss, or business disruption during the years you’re most financially responsible.
When your major obligations decline — mortgage paid, kids grown, retirement approaching — you can adjust or end your coverage.
When to Review Your Policy
Major life changes (marriage, birth, business expansion)
Mortgage or debt milestones
Approaching end of your policy term
A licensed insurance advisor can help you compare renewal vs. conversion options and find ways to save as your needs evolve.
Summary
Term life insurance is simple, predictable, and cost-effective protection. Premiums stay level during the term, and you decide what to do once the period ends. Even if your health isn’t perfect, options exist to secure coverage.
At SAFE CREST INSURANCE INC., we help Alberta families and business owners find the right balance between affordability, protection, and long-term flexibility.
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