A term insurance policy in Canada is a type of life insurance that provides coverage for a specific period (or "term")—for example, 10, 20, 30 or 40 years. If the policyholder passes away during that term, the beneficiaries will receive a death benefit (a lump sum of money). If the policyholder outlives the term, no benefit is paid out, and the policy simply expires.
Term insurance is often seen as a more affordable form of life insurance compared to permanent insurance, which covers you for your entire life.
