Is it possible to teach without a PhD? I'm currently an MSc student, and I really enjoy teaching. As an anecdote, when I was younger (like 7) I had a school for all my toys and did homework (with errors!) for them all. 

Anyway, I have good reviews from my current students (I'm a lab instructor this semester), and a TA award from last semester. I enjoy this process - explaining concepts, developing lectures/labs, interacting with students. I do not really want to do a PhD though - it is not that I do not like research... I do, but I do not think it aligns with my life goals exactly.

We have two instructors with just MSc-s in my department, but they both apparently did so much research they could get a PhD if they wanted to. So I'm not sure if it is even possible to do from my current position? Can I become an instructor without doing a PhD once I graduate?

I mean, if not, I will probably spend that time developing online tutorials instead :)
Typically at larger "more prestigious" institutions, Professors must have their PhD to teach. It has been my experience that some smaller institutions will allow MS holders to teach undergraduate students - but your mileage may vary.

As an example, a friend of mine has currently taken over a Computer Science department at a small institution and only has his Masters. While they would prefer a PhD holder, they can not find one to take the job.

So, technically, yes - it is possible. Although you may not find yourself at a top-level institution.