Short answer
Term life insurance covers you for a set period, such as 10 or 20 years, and usually costs less at the start. Whole life covers you for life, keeps the same premium and builds cash value, but costs more. The better fit depends on how long your family needs the protection and what fits your budget.
Next step: Use the life insurance cost estimate at https://ironmarkfinancial.ca/calc-insurance-quote.html to get your own number. It is no-cost and takes about two minutes.
What is term life insurance?
Term insurance pays your beneficiaries if something happens to you during the term. When the term ends, the coverage ends.
- Terms are often 10 or 20 years, or until a set age like 65.
- There is no cash value, so you cannot borrow against it or get money back if you cancel.
- Some term policies can be renewed, but premiums may go up when they renew.
- Premiums are generally lower than permanent insurance when you first buy.
The Financial Services Regulatory Authority of Ontario (FSRA) says term suits temporary needs with a clear end date, like a mortgage or your children's education.
What is whole life insurance?
Whole life is a type of permanent insurance. It is meant to cover you for your entire life.
- Premiums do not change as you get older.
- Policies often have a guaranteed minimum cash value.
- It costs more than term, because you are paying for lifetime coverage and a cash value.
What is universal life insurance?
Universal life is another type of permanent insurance. It combines insurance with an investment account. FSRA notes that investment growth is not guaranteed, and premiums could go up if returns fall. If someone offers you universal life, ask to see illustrations that show low returns too.
When does term life insurance make sense?
- You need a lot of coverage now, such as while you have a mortgage and young kids.
- The need has an end date.
- You want to keep the monthly cost lower.
When does permanent life insurance make sense?
- You want coverage that does not expire.
- You want a guaranteed premium and a cash value.
- You are planning for a lifelong need, such as leaving something behind.
The truth is that permanent insurance is not better or worse. It is built for a different job, and it costs more to do it.
What should I ask before I buy a policy?
- Is the term policy renewable or convertible? FSRA suggests checking this, so you can keep coverage or switch to permanent later as your life changes.
- What happens to my premium? Ask whether it stays level and for how long.
Many families use both: term for the big temporary needs and a smaller permanent policy for lifelong needs.
Who sells life insurance in Ontario?
In Ontario, life insurance is sold by agents licensed by FSRA. You can confirm any agent's licence on FSRA's Licensing Link before you share health details.
Frequently asked questions
What happens when my term life insurance ends?
The coverage ends and your beneficiaries do not receive a payout after that date. Depending on the policy, you may be able to renew at a higher premium or convert to permanent coverage. Ask about renewal and conversion before you buy.
Is whole life insurance an investment?
Whole life has a cash value, but it is insurance first. It costs more than term, and the cash value is not the same as an investment account. Ask for the policy details in writing and compare them with your other options.
Can I have both term and whole life insurance?
Yes. Many people combine a term policy for large temporary needs with a smaller permanent policy for lifelong needs.
What is term to 100 insurance?
FSRA describes term to 100 as coverage through age 100 that usually has no cash value, with premiums that are usually lower than whole life.
Which is less expensive, term or whole life?
Term premiums are generally lower than permanent premiums when you first buy the policy, according to the Financial Consumer Agency of Canada. A licensed agent can show you exact prices for your age and health.
What is the fastest way to get my own number?
Use the Life Insurance Cost Estimate at https://ironmarkfinancial.ca/calc-insurance-quote.html. It answers the question: Where might I stand for life insurance pricing based on my coverage, health and lifestyle? It is no-cost with no obligation.
Sources and further reading
- Life insurance (Financial Consumer Agency of Canada)
- Life insurance policy types (FSRA, Ontario)
- Licensing Link: confirm an insurance agent's licence (FSRA, Ontario)
Figures were checked against these pages on October 26, 2026. Limits and benefit amounts change, so confirm the current numbers with the source.
Related guides and tools:
This article is general education, not personal advice. Rules can change, so check the official sources above. In Ontario, life insurance quotes are prepared by a licensed life insurance agent.
Keep reading
How much life insurance do I need in Canada?
Add up your mortgage, debts, income your family would need and future costs, then subtract what you already have. A plain-language guide for Canadian families.
Read guide →How much does life insurance cost in Ontario?
Your premium depends on age, health, tobacco use, amount and type of coverage. See what sets the price and how to get a real quote in Ontario.
Read guide →Is mortgage protection insurance the same as life insurance?
Mortgage life insurance pays only your mortgage balance to your lender. Term or permanent life insurance pays the amount you choose to the people you name.
Read guide →