Term Life Insurance: Built-In rights with an expiry date

While term life insurance has its limitations compared to permanent insurance, it offers a guaranteed stepping stone toward longer-term protection. Regardless of their health status, policyholders can renew their term coverage at the end of the term. At any point, they may also convert it to a permanent life insurance product. However, these rights come with an expiry date. 

In 10-year term insurance (T10), only a handful of insurers allow policy renewal up to age 100 or beyond, according to data compiled by the product information centre InsuranceINTEL for Insurance Portal. 

UV Insurance stands out by stating that renewal is allowed “as long as the insured is alive.” Empire Life, iA Financial Group (under its Traditional Insurance Pick-A-Term product), and RBC Insurance offer renewals up to age 100. Assumption Life is close behind, capping renewals at age 90. 

Empire Life and RBC Insurance also note that once the insured reaches age 100, the policy becomes fully paid-up and no longer requires premiums. 

Most other insurers have set the maximum renewal age at 85. Humania Assurance, ivari, and Manulife are among the most restrictive, with a renewal age limit of 80. 

The renewal window is similarly generous for 20-year term insurance (T20). 

However, insurers tend to be more conservative when it comes to the maximum age allowed for converting term policies—whether T10 or T20—into permanent life insurance. Even the most flexible insurers cap conversion eligibility at age 75. 

Among the most restrictive, Humania Assurance limits conversion of both T10 and T20 policies to age 65. Foresters Financial also limits T20 conversion to 65, but allows T10 conversion up to age 71, in line with many other providers. 

Renew annually 

Many insurers offer annual renewals for T10 and T20 policies. These include Assumption Life, Canada Life, Cumis Life, Co-operators Life, Equitable Life, iA Financial Group (under Traditional Insurance Pick-A-Term product), Manulife (for T10 only), and RBC Insurance. 

Beneva offers renewals every five years. UV Insurance and Wawanesa Life allow renewals every 10 years. Others maintain the same renewal term as the original coverage, including BMO Insurance, Desjardins Insurance, Empire Life, Foresters Financial, Humania Assurance, iA Financial Group (Traditional Life), ivari, Manulife (T20 only), and Sun Life. 

Humania Assurance offers two renewal options—Platinum and Gold. “The renewal term matches that of the original policy. The only difference is that Platinum renewals are less expensive, because the initial cost of the policy was slightly higher,” Amélie Jodoin, Vice-President, National Business Development, Individual Insurance at Humania Assurance, told Insurance Portal.