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- Renewal premiums for 10-year term life insurance often double or even triple based on age and original risk class
- Automatic renewal generally doesn’t require a medical examination. Consider your age and original risk class when deciding whether to renew the existing term plan or not
- If healthy, buying a new policy can be cheaper than renewing. If not, consider renewing or switching before the policy expires
- Comparing rates across insurers can help you decide whether to renew the existing plan or buy new coverage
In Canada, renewing a 10-year term insurance plan means premiums doubling and even tripling. A 2024 report by LIMRA found 31% Canadians facing coverage gaps. Evaluating whether to renew your existing term coverage or switch to a new plan can help you save significantly while simultaneously enjoying protection benefits.
Renewing your 10-year term life insurance generally increases your premiums since rates are calculated based on age and coverage. Canadian insurers set term life insurance premiums at fixed rates during the initial term. At renewal, they recalculate premiums based on your age and rate schedule.
This guide will help you understand the term life insurance renewal cost and other alternatives, so that you can buy the best plan.
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How does term life insurance renewal work after 10 years Canada?
In Canada, term life insurance renewal Canada requires following specific conditions to maintain the coverage. Understanding premium calculation, automatic renewal, eligibility, and others helps in making better judgments during term renewal.
Key aspects of term life insurance Canada renewal after 10 years
- Automatic renewal clauses: Most 10-year term life insurance plans are guaranteed renewal up to the maximum age of 85 years, based on age and health risk class. No medical assessment is required, and changes in health status don’t affect the premium rates. Pay the premiums to enjoy continuous coverage
- Guaranteed renewal: This insurer must allow renewal at the set rate schedule until the maximum renewal age, regardless of health status, provided the premiums are paid
- Premium recalculation depending on the age: Insurers recalculate premiums during renewal based on your age and original underwriting class (smoker/non-smoker). The premiums rise significantly, often doubling or even tripling
- Notification from Canadian insurer: The Canadian insurer typically reminds 30-60 days before policy expiry. Use this window to review your existing policy, get queries resolved, and decide whether to renew or switch to a new plan
- Renewal eligibility up to specific ages: Most insurers in Canada allow renewal up to the age of 85 years, after which the policy terminates. Check the maximum renewal age mentioned in your policy to decide whether to renew or buy another plan
Renewable term life insurance features
| Features | Details |
| Automatic renewal | Most term insurance policies can be renewed annually until the maximum age, ranging between 80 and 85 years, as stated in your policy contract |
| Medical assessment during renewal | Medical assessment is not required during the renewal of a term life insurance plan |
| Premium recalculation | Premium is based on the attained age during renewal |
| Renewal notice period | 30-60 days before the policy expires |
| Guaranteed renewal | The policy is renewed automatically, provided the premiums are paid |
| Cost of renewal premium | Renewal premiums can double or triple, depending on the insured’s age and risk factor |
What happens when your 10-year term life insurance Canada expires?
When a 10-year term life insurance plan expires, it undergoes significant changes. Being aware of the changes can help in making informed decisions regarding policy continuity.
- The insurer typically sends a reminder for policy renewal, 30-60 days before your term ends. This helps in deciding whether to continue with the policy or let it lapse and look for another insurance plan
- The insurer offers the policyholder a grace period to evaluate their existing policy and decide whether to let it lapse
- Most term life insurance plans in Canada renew automatically at the end of the term unless the policy is cancelled or allowed to lapse
- Most insurers renew term life insurance coverage without a medical assessment. Though the renewal premiums rise, it ensures continuous coverage, provided you keep paying the premiums
Difference between Guaranteed renewable term life insurance and Non-renewable term life insurance
Knowing the differences between guaranteed renewable term life insurance and non-renewable term life insurance helps in deciding the type of term life plan an individual would need based on their age, risk factors and budget.
Guaranteed renewable vs. non-renewable term life insurance
Knowing the differences between guaranteed renewable term life insurance and non-renewable term life insurance can help in deciding which of them would be suitable. Though the premiums for a guaranteed renewable plan are higher, other notable factors can help in determining the type of insurance needed.
Guaranteed renewable vs. Non-renewable term: Key differences
| Features | Guaranteed renewable term life insurance | Non-renewable term life insurance |
| Premiums | Increases depending on the insured’s age, risk factor, and coverage | No premiums payable once the policy expires. The insured will need to buy a new plan |
| Renewal | The insured can renew the policy without undergoing a medical assessment | You cannot renew the policy |
| Coverage continuity | Coverage continues until the maximum renewal age, which is typically 85 years | No coverage is provided once the policy expires |
| Medical assessment during renewal | Not needed | Medical examination is compulsory when buying a new policy unless a no-medical exam life coverage is obtained |
What is the cost of term life insurance renewal after 10 years in Canada?
Renewing a 10-year term life insurance plan in Canada can be costly, depending on the policyholder’s age and the type of coverage. A younger individual with a basic term life coverage will pay a lower premium as compared to an older person renewing their existing term life insurance policy.
The premium range for the renewable term plan will differ according to the age, coverage and coverage amount. For example, a 40-year-old Canadian with $500,000 coverage will pay annual premiums ranging between $1,200 – $1,280/year.
You can schedule a call with our advisors at PolicyAdvisor, who will help in deciding whether to renew an existing term plan or buy a new one based on age, coverage, and health status.
The table below shows the estimated renewal annual premium for a 10-year term life insurance from three leading insurers in Canada – Empire Life, Desjardins, and Canada Life, based on coverage amount and renewal age.
10-year term life insurance estimated annual renewal premiums
| Renewal age | Coverage amount | Empire Life annual renewal premium | Desjardins annual renewal premium | Canada Life annual renewal premium |
| 40 years | $250,000 | $650 | $670 | $690 |
| 40 years | $500,000 | $1,200 | $1,250 | $1,280 |
| 50 years | $250,000 | $1,200 | $1,250 | $1,300 |
| 50 years | $500,000 | $2,300 | $2,400 | $2,500 |
| 60 years | $250,000 | $2,800 | $2,950 | $3,100 |
| 60 years | $500,000 | $5,400 | $5,600 | $5,800 |
| 65 years | $250,000 | $4,200 | $4,400 | $4,600 |
| 65 years | $500,000 | $8,000 | $8,300 | $8,600 |
| 70 years | $250,000 | $6,000 | $6,300 | $6,600 |
| 70 years | $500,000 | $11,500 | $12,000 | $12,500 |
Comparing the cost of renewing vs. buying a new term life Insurance policy in Canada
The renewal cost of a 10-year term insurance plan is higher compared to buying a new term insurance policy at your current age. Comparing both before deciding to pay the renewal cost can help in significant savings.
Renewal cost of an existing term life insurance plan vs. a new term insurance plan
| Age (in years) | Coverage amount | Renewal premium for an existing 10-year term insurance plan | Premium for a new 10-year term insurance plan |
| 40 | $500,000 | $35/month | $35/month |
| 50 | $500,000 | $210/month | $80/month |
| 60 | $500,000 | $500/month | $180/month |
| 50 | $1,000,000 | $420/month | $150/month |
| 60 | $1,000,000 | $1,000/month | $350/month |
Term life insurance premium comparison between males and females in different Canadian provinces
Women in Canada pay lower premiums compared to men due to longer life spans, lower mortality rates, and being less likely to be involved in risky occupations and lifestyle choices.
The premium rates for both females and males differ across provinces in Canada. The table offers a guide to the average premium for both men and women across different Canadian provinces.
Average monthly premium range by province
| Province | Insured’s age (in years) | Coverage | Average male premium | Average female premium | Notable insurance companies |
| Ontario | 30 | $500,000 | $30–$35 | $22–$28 | RBC, Manulife, Canada Life |
| Ontario | 45 | $500,000 | $65–$75 | $50–$60 | BMO, iA, Sun Life |
| British Columbia | 30 | $250,000 | $20–$25 | $15–$20 | Desjardins, Empire Life |
| Alberta | 40 | $1,000,000 | $90–$105 | $70–$85 | RBC, Canada Life |
Renewal premium differences: smoker vs. non-smoker
The premium for a smoker will be higher since they are at a higher risk and more susceptible to being diagnosed with a medical condition. The insurers calculate premiums by factoring in the health status, age and coverage.
Premium range for a smoker vs. a non-smoker
| Age | Coverage | Estimated monthly premium rate for a smoker | Estimated monthly premium rate for a non-smoker |
| 30 years | $250,000 | $32/month | $18/month |
| 30 years | $500,000 | $55/month | $28/month |
| 40 years | $250,000 | $55/month | $28/month |
| 40 years | $500,000 | $95/month | $48/month |
| 50 years | $250,000 | $130/month | $65/month |
| 50 years | $500,000 | $240/month | $120/month |
*Illustration showing the difference in monthly premiums for smokers vs. non-smokers with a 10-year term plan
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Which are the best Canadian life insurance companies for renewals in 2025?
Choosing the right life insurance company in Canada for term life insurance renewal is crucial for obtaining low premiums, including reliable customer support and flexible options. Various reputable insurers in Canada offer the best term life insurance renewal options to their customers, thanks to their strong financial position, competitive rates, and customer-friendly options.
In the table below is the list of Canadian insurers that offer term life insurance renewal options to their customers. This table helps in understanding the benefits they provide so that you can make an informed decision regarding the 10-year term life insurance renewal.
10-year term life insurance renewal options by Canadian insurers
| Name of the insurance company | Guaranteed renewability | Conversion option | Medical assessment during renewal | Key benefits offered |
| Manulife | Yes, up to age 85 | To long-term plans until the age of 70 | No medical assessment needed | Option to customize the plan, and conversion to another policy |
| Sun Life | Yes, up to age 85 | To long-term plans until the age of 75 | No medical assessment needed | Online application tools offered |
| Canada Life | Yes, up to age 85 | To long-term plans until the age of 70 | No medical assessment needed | Add-on plans, such as child-term rider, joint-first-to-die plans, are available |
| iA Financial | Yes, up to age 80 | To long-term plans until the age of 71 | No medical assessment needed | Add-on plans for your child, flexible term options |
| RBC Insurance | Yes, up to age 80 | To long-term plans until the age of 70 | No medical assessment needed | Accidental death and dismembering bundling options available |
| Equitable Life | Yes, up to age 85 | To long-term plans until the age of 75 | No medical assessment needed | User-friendly online tools, flexible policy tenure available |
Step-by-step term life insurance renewal process in Canada
Before your policy expires, you have the option to either renew it or let it lapse. Choosing the option to renew your term insurance ensures continuous coverage without undergoing medical underwriting.
There are various reputable insurers in Canada offering the term life insurance renewal option. However, understanding the renewal option helps in deciding whether to continue with the existing policy or not, and to avoid out-of-pocket expenses.
This section aims to help you understand the step-by-step process to renew your existing term life insurance plan.
- The insurer typically sends a reminder 30-60 days before policy expiry. This helps in reviewing your existing policy and whether to renew it or let it lapse
- The next step is to review your existing policy to understand whether the benefits and coverage offered fit your financial requirements. Take into account factors such as age, income, outstanding debts, number of dependents, and health status to decide on the renewal of the term life plan
- If you are healthy, compare the renewal cost of your term plan with new insurance quotes to decide on the most affordable option available. A renewable term life plan doesn’t require medical underwriting, though the premiums are higher
- Once you have decided whether to renew your existing term plan or not, inform the insurer accordingly
- Certain policies allow conversion to a permanent plan without having to undergo a medical assessment. Take this factor into consideration before deciding on renewing. Do ask your insurer about the eligibility criteria for conversion to a permanent life insurance plan
- Update your beneficiaries and their contact information to avoid any claim-related issues in the future
You can get in touch with our experienced advisors at PolicyAdvisor, who will help you decide better whether to renew your existing plan or buy a new one. Our advisors will be available to help not only during the renewal process but also after you have renewed or bought a new policy, and clear your policy-related queries.
Best alternatives to your term life insurance renewal after 10 years in Canada
When your term life policy approaches its expiry date, you have the option of renewing it or letting it lapse. Though automatic renewal of term life insurance in Canada is a hassle-free option, it is expensive and can affect your budget.
There are several alternatives to consider that offer both coverage and are affordable too. Some of these options are buying a new term life plan with the choice to convert it into a permanent plan, lowering your coverage, or even considering not having insurance if there are no dependents.
- Converting your existing term life plan to a permanent coverage: Converting your term life plan to a permanent coverage can be beneficial, even though the premiums increase. However, permanent coverage premiums are fixed for life and offer the option to build a cash value, compared to renewal premiums for a 10-year term plan, which can double or triple during the renewal process
- Buying a new term life insurance plan: The premium for a new term insurance plan will be significantly lower compared to renewing an existing term coverage. You can choose your policy term – 10, 20, or 30 years, and secure the future of your loved ones
- Reducing coverage amount: The coverage determines the premium rates for a term life insurance plan in Canada. Lowering the coverage helps in reducing the premium. Reviewing future financial requirements, outstanding debts, and changes in family obligations can help determine whether to reduce coverage or not
- Laddering multiple-term life plans: To maximize coverage needs for important life events such as children’s education, mortgage payment, etc., hold multiple term plans with staggered expiry dates. To reduce premiums, let the higher coverage and shorter-term policy expire first, as your needs decline. This is called the laddering strategy
What factors affect your term life insurance renewal premium in Canada?
The cost of renewing term life insurance in Canada is generally higher than buying new term coverage. Canadian insurers consider factors such as age, health status, and coverage amount to determine the premium.
Canadian insurers set the life insurance premiums, even though provincial laws and tax regulations may impact them indirectly. The cost of term life insurance renewal for different provinces depends on factors such as investment returns, the state of the economy, and the insurance company’s claim history.
Knowing what factors affect term life insurance renewal premiums can help in deciding whether to renew the existing term plan or buy new coverage.
- Renewal age: The age of the insured determines the premium rates. The older the insured, the higher the premium
- Gender: Females in Canada pay lower premiums than men due to their higher life expectancy, lower mortality rates, and less involvement in risky occupations or lifestyles
- Medical status: An individual diagnosed with a medical condition will pay a higher premium compared to a healthy person. However, a majority of renewals do not require a medical assessment
- Smoking status: A smoker will pay higher premiums than a non-smoker since they are high-risk. If, during renewal, the person has quit smoking, they will still have to pay smoker’s premium rates unless they apply for a new policy
- Coverage amount: The premium rates grow with the coverage amount. One of the ways to lower premiums is to reduce coverage
- Policy length and type: A term life insurance policy with a longer policy term and add-ons (riders) is significantly costlier compared to a basic coverage option
How to decide whether to renew term life insurance or not?
Considering the renewal of term life insurance is an important decision. Though renewal costs often double and triple, the price is not the only factor that determines the renewal of term life insurance. Factors such as long-term financial goals, family situation, and health status play an important role in the decision to renew term life insurance.
Assessing the current financial situation and future financial requirements can help in deciding whether to renew the term life insurance plan or buy a policy that is comprehensive and suitable.
- Review policy documents: The insurer notifies 30-60 days before the policy expires. Reviewing policy documents helps in deciding whether to renew the existing policy or buy a new coverage
- Evaluate changes in coverage needs: Changes in income, number of dependents, and health status can help determine the coverage required
- Compare life insurance quotes: Before deciding to renew the term life coverage, compare various life insurance quotes to evaluate whether the current term plan is suitable or not. Healthy individuals buying a new policy will pay lower premiums
- Health status: The health status plays an important role in the decision to buy a new policy or renew the existing coverage. If you suffer from a pre-existing illness, it is recommended that you buy a no-medical exam life insurance policy. A healthy individual can buy a new policy, which will be more cost-effective
- Consult an advisor: Get in touch with our advisors at PolicyAdvisor, who will offer guidance and help make a better decision between renewing the existing term plan or buying a new insurance coverage
Frequently Asked Questions
Can I renew my 10-year term life insurance without a medical exam?
Yes, most Canadian insurers offer the automatic renewal option for 10-year term life insurance without a medical exam. Insurance companies recalculate premiums based on your age. Unless you apply for new coverage, you do not have to disclose your health status during the renewal process.
Can I switch insurance companies instead of renewing my current policy?
Yes, you can switch to a new insurer in Canada instead of renewing the existing term plan. However, while applying for a new policy from another insurer, you will have to submit a fresh application and undergo a medical examination.
What documentation do I need for term life insurance renewal?
For renewal, you need to evaluate the renewal notice and pay the new premium. If you are reducing coverage or switching to a new plan, fill in a conversion form. Renewing your existing policy doesn’t require a medical examination, unless you buy new coverage.
Can I partially renew my term life insurance coverage to reduce costs?
Yes, certain plans enable lowering of coverage, and renew the lower amount. You can also partially convert your term plan to a permanent one while keeping the remaining as term plan coverage. This is an effective way of saving and still enjoying protection.
What happens to my term life insurance if I move provinces in Canada?
If you move to another Canadian province, the existing term life policy remains active. Update your banking and address information to ensure the policy service is smooth and convenient. If you buy a new policy after moving to a new province, the replacement options and provincial taxes may differ.
Renewing a 10-year term life insurance policy in Canada can be costly as premiums rise with age. Understanding renewal costs, automatic renewal provisions, and the differences between guaranteed renewable and non-renewable insurance is essential, especially since around 31% of Canadians experience coverage gaps. The guide covers renewal costs, as well as options such as buying new policies or switching to permanent insurance, to help you make informed decisions in 2025.
LIMRA. 2024. “Nearly One Third of Canadian Adults Report Living With a Life Insurance Coverage Gap.” LIMRA Newsroom, July 11, 2024.
