Term life insurance
Term life covers you for a set number of years, like 10, 20 or 30. If something happens to you during that time, it pays out. If the term ends and nothing has happened, the coverage ends or can sometimes be renewed at a higher price.
Term tends to fit needs that have an end date: paying off a mortgage, or raising kids until they are grown. It usually costs less to start than permanent coverage for the same amount.
Permanent life insurance
Permanent life (such as whole life or universal life) is meant to last your whole life, as long as you keep it in force. Some types also build a cash value over time. It usually costs more each month than term for the same amount.
Permanent coverage tends to fit needs that never end, like final costs, leaving money to family, or some estate and business plans.
Many families use both
Some people use term for the big, temporary needs and a smaller permanent policy for lifelong needs. The right mix depends on your budget and goals.
Learn more from the Government of Canada
This guide is general education, not personal advice. Rules can change, so check the official sources above.