40-year term life insurance in Canada: 2026 rates and who it suits
Bought at 25, Term 40 runs to about 65. Bought at 30, to about 70. It costs more than Term 30, so it only makes sense if your need lasts that long.
A 40-year term keeps the starting premium in place for four decades. That suits someone young with a long mortgage and young children. For others it means paying for years of cover they will not need. Here are the sample rates and a quick way to check.
In short
A 40-year term policy keeps a level premium for 40 years: to about age 65 if bought at 25, or 70 if bought at 30. In our October 2026 sample, the lowest Term 40 premium for $500,000 at 25 was $49.95 a month (male) and $36.45 (female), against $34.20 and $24.75 for Term 30. Choose it when your mortgage, children or income need will last past 30 years; otherwise a shorter term usually costs less.
What 40-year term life insurance is
Term 40 works like any term life policy. You pick an amount and pay a level premium. If you die while it is in force, your beneficiary receives the benefit. The difference is the length: the first term lasts 40 years instead of the more common 10, 20 or 30.
The Financial Consumer Agency of Canada notes that term policies don't build cash value. That stays true at 40 years. Term 40 is long, but it is not permanent insurance.
Not every insurer sells it. iA Financial Group, one of the insurers Pankaj represents, offers Pick-A-Term with any term from 10 to 40 years and a fixed, guaranteed cost for the term you choose. RBC Insurance also advertises terms up to 40 years on some products.
Where Term 40 ends
- Buy at 25
- Covered to about 65
- Buy at 30
- Covered to about 70
- Buy at 35
- Toward 75, if the insurer issues it at that age
40-year term life insurance rates in Canada: 2026 samples
Lowest visible monthly base premiums in an October 2026 LifeGuide market survey (2026.10A), regular non-smoker, no riders.
Age 25, Term 40
| Coverage | Male | Female |
|---|---|---|
| $250,000 | $27.90/mo | $21.83/mo |
| $500,000 | $49.95/mo | $36.45/mo |
| $750,000 | $72.23/mo | $51.98/mo |
| $1,000,000 | $93.60/mo | $66.60/mo |
Age 30, Term 40
| Coverage | Male | Female |
|---|---|---|
| $250,000 | $39.83/mo | $28.12/mo |
| $500,000 | $72.00/mo | $45.90/mo |
| $750,000 | $105.30/mo | $66.15/mo |
| $1,000,000 | $135.90/mo | $84.60/mo |
These are sample market quotes, not guaranteed prices or recommendations. The lowest quote in each cell came from the cheapest insurer in the survey for that age and amount, which is not always an insurer Pankaj represents, so his quotes may differ. Your final premium depends on age, sex, smoking status, health, underwriting, province, insurer, amount and application date.
Term 40 vs Term 30: what the extra 10 years costs
Term 40 starts higher because the insurer guarantees the price for another decade. The question is whether you need that decade.
| Sample profile | Term 30 | Term 40 | What the extra term buys |
|---|---|---|---|
| Age 25 male, $500K | $34.20/mo | $49.95/mo | About age 55 to 65 |
| Age 25 female, $500K | $24.75/mo | $36.45/mo | About age 55 to 65 |
| Age 30 male, $500K | $40.05/mo | $72.00/mo | About age 60 to 70 |
| Age 30 female, $500K | $30.60/mo | $45.90/mo | About age 60 to 70 |
| Age 25 male, $1M | $61.20/mo | $93.60/mo | 10 more years of first-term cover |
| Age 30 female, $1M | $54.00/mo | $84.60/mo | 10 more years of first-term cover |
Market-low samples. The cheapest Term 30 and Term 40 can come from different insurers, so this is not a same-insurer price increase. For the full side-by-side, including totals paid over each term, see Term 30 vs Term 40.
Term 40 fit check
Enter your age and when your needs end. The tool shows where Term 20, 30 and 40 would end and which one covers your longest need.
Assumes your income need runs to retirement and a child needs support to age 25. Change the numbers to match your family.
Who Term 40 suits, and who can skip it
Young homeowners
In your 20s or early 30s with a long amortization, Term 40 can cover most or all of the mortgage and your working years.
Young parents
Protects income through the years your children depend on you and on into your late working years.
Worried about future health
A long first term means you are less likely to need a new policy in your 50s, when health issues can make approval harder.
Term 40 is not better just because it is longer. If the mortgage will be gone in 20 years and your children independent in 15, a shorter term costs less for the same protection. The FCAC suggests working out both the type and the amount you need, and reviewing them over time.
Pros and cons of 40-year term
| Advantages | Trade-offs |
|---|---|
| Long first term at a level price | Higher starting premium than Term 20 or 30 |
| Can match a long mortgage or family need | May last longer than the need |
| Less chance of reapplying because a shorter term ran out | Not permanent insurance |
| Some contracts include conversion rights | Conversion rules vary by insurer |
| Level death benefit on many designs | No cash surrender value |
Why conversion matters more on a long term
Over 40 years your health can change a lot. A conversion right lets you move some or all of the coverage into a permanent policy without new medical evidence, within the contract's age limits.
iA describes Pick-A-Term as convertible to permanent insurance regardless of your health and renewable yearly after the first term. Deadlines and the permanent plans you can convert to are product-specific, so check them before you buy. Our term life guide lists conversion ages at other insurers.
$1 million of Term 40 for younger buyers
A large amount bought young is one of the best uses of Term 40. In the October 2026 sample, the lowest $1 million Term 40 premiums were:
| Age | Male | Female |
|---|---|---|
| 25 | $93.60/month | $66.60/month |
| 30 | $135.90/month | $84.60/month |
That doesn't mean everyone needs $1 million. Work out the amount from your mortgage, debts, income and dependants with the life insurance needs calculator.
40-year term life insurance questions
What is 40-year term life insurance?
It is term life insurance with a level premium for 40 years. If you die during those 40 years, your beneficiary receives the death benefit.
Bought at 25 it runs to about 65; bought at 30, to about 70. It is still temporary cover with no cash value.
How much does a 40-year term policy cost?
In our October 2026 sample, the lowest Term 40 premium for $500,000 at age 25 was $49.95 a month for a man and $36.45 for a woman, as a regular non-smoker.
At age 30 the same samples were $72.00 and $45.90. Your price depends on health, smoking status, province and insurer.
Does every Canadian insurer offer Term 40?
No. Fewer insurers offer Term 40 than Term 30, and availability can depend on issue age, amount and province.
iA Financial Group's Pick-A-Term lets you choose any length from 10 to 40 years, at issue ages 0 to 70.
Can a 25-year-old keep Term 40 until age 65?
Yes, a 40-year term bought at 25 runs to about age 65, subject to the policy date and contract terms.
A 30-year-old buying Term 40 would be covered to about 70.
Why does Term 40 cost more than Term 30?
The insurer is guaranteeing your premium for 10 more years, into ages where the risk of death is higher.
In our samples, Term 40 cost between about 46% and 86% more than Term 30 at $500,000 and $1 million.
Does Term 40 build cash value?
No. It is term insurance, not whole life, and pays nothing if you cancel or outlive it.
If you want lifetime cover, compare Term 100 and whole life.
Should I just buy the cheapest Term 40?
Not automatically. Compare conversion rights, renewal rules, underwriting and service along with the price.
Conversion matters more on a 40-year policy because your health can change a lot over four decades.
Can I buy $1 million of Term 40?
Often yes, if your income and debts justify the amount and you qualify medically.
In our sample the lowest $1 million Term 40 was $93.60 a month for a 25-year-old man and $66.60 for a 25-year-old woman. See $1 million Term 40.
Written by Pankaj Bhatia, CHS, PFA
Insure In Canada Inc. · Licensed in Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, New Brunswick and Nova Scotia
Pankaj compares Term 30 and Term 40 at the same age, health class and amount, and checks the conversion rules on each, so the extra premium buys years you will actually use.
Call 647-640-2222 · WhatsApp · info@pankajbhatia.ca · About Pankaj
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Sources and related pages
- Financial Consumer Agency of Canada: Life insurance
- iA Financial Group: Pick-A-Term (10 to 40 years)
- LifeGuide 2026.10A market surveys, Term 30 and Term 40, regular non-smoker (October 2026)
Sample rates are market quotations from October 2026, not guaranteed premiums. Product availability, issue ages, conversion and renewal rules differ by insurer; the contract governs.