Best Individual Life Insurance in Canada: Updated for 2026
What’s the best individual life insurance?
Term life insurance is the best individual life insurance policy for most folks in Canada.
Why term for individuals? This type of coverage can work well for anyone who has debts and dependents, from married people and single parents to young people and retirees. Term policies allow you to customize your coverage and it’s the most affordable option, compared to other types of individual policies like permanent and group coverage.
Top picks for individual life insurance: PolicyMe, Empire Life, and RBC are the top 3 providers of individual policies in Canada.
The right policy for you depends on your budget, health, and coverage needs—so keep reading and let’s find your perfect match!
Individual vs. group vs. joint life insurance
Individual plans are the most straightforward option, with key advantages over group and joint life insurance policies like flexibility, portability, and affordability.
- Individual: Covers one person with one payout. Simple, portable, flexible.
- Group: Covers one person with one payout. Tied to employment, low cap.
- Joint: Covers two people with one payout. More complex, less flexible.
Compared to group and joint life insurance, here’s a look at policy features that illustrate why individual life insurance policies tend to work best for most Canadians:
The biggest advantage of individual life insurance is that you control the policy and the coverage long term. With group plans, your policy options are limited and your coverage is tied to the employer. With joint plans, you’re combining two people into one contract with only one payout.
The best individual life insurance plans in Canada
Life insurance options for individual shoppers are easy to find in Canada, but which are the best life insurance companies for individual policies?
The best type of individual life insurance for most Canadians is generally term life insurance, which covers a limited period of your life (typically 10, 20, or 30 years) during which you have outstanding debts, dependents, or other financial needs that require protection.
Most Canadians don’t need permanent insurance unless they have lifelong dependents, a high net worth, and/or complex estate planning needs.
To find the best individual term life insurance providers and plans, we analyzed dozens of life insurance quotes and plan options. We looked for financial strength, lower premiums than the industry average, and benefits like online applications and built-in policy perks.
Methodology
PolicyMe’s rankings are based on an independent, data-driven review of Canada’s best life insurance products and providers.
Our analysis combines 450,000+ quotes for 70+ life insurance products with in-depth research on 20+ providers. We assigned each product a star rating out of five based on a mix of average pricing, Google Review scores, and shopping convenience, then ranked the results in 12 categories.
Rankings are determined first by star rating and then by price. Our findings are entirely data-driven and do not include paid placements, but should not be considered a substitute for personalized financial advice.
When do you need individual life insurance?
You need individual life insurance if there are people who rely on your income for financial stability, or if you have outstanding debts that would place a burden on your loved ones if you passed away.
The most common life insurance needs focus on children and mortgages. If you’re a parent or a homeowner, you and your loved ones likely need the financial protection of a life insurance policy. But you may also need individual life insurance if:
- You have student debt
- Your partner relies in your income
- Your parents or other family members rely on your income
- You want to build a robust financial planning strategy
- You plan to have children in the future
- You want to leave a legacy or inheritance to your loved ones or to a charitable cause
Life insurance is an important financial solution for most Canadians, but it’s not a fix for every financial goal. In particular, life insurance is not an effective investment tool. If you want to build wealth for yourself or your loved ones, a high-yield savings account or traditional investment accounts will almost always yield higher returns.
When you may not need individual life insurance
People who do not have someone relying on their income (or who have other sources of financial support beyond their salary) may not need individual life insurance.
- I have minimal or no debt. My existing assets could cover personal and joint debts.
- I have no dependents. Any kids are grown and financially independent and my spouse is well resourced.
- I have substantial savings. My TFSA and RRSP are fully funded and I have a strong emergency savings account that could cover final expenses and my family’s bills.
- I have other coverage. My disability insurance, critical illness coverage, or mortgage insurance would help if I lost the ability to work or passed away.
- I have a very tight budget. I’m still working to set aside money for emergencies.
Life insurance is one strategy for financial stability, but it’s not the right approach for every Canadian. Consider every option to ensure your family’s peace of mind if the unexpected happens. If your budget changes or your needs change, you can always reconsider individual life insurance.
Why couples might need individual life insurance
For couples, choosing between joint and individual life insurance is a key decision in the shopping process. The biggest difference between a joint vs. individual life insurance policy is who has coverage and when the payout comes.
A joint life insurance policy:
- Covers two people (typically spouses) under one policy
- A first-to-die policy pays out when the first insured person dies
- A second-to-die policy pays out once both insured individuals have died
While a joint policy can be cheaper than holding two individual policies, there are serious drawbacks:
- With a first-to-die policy, the surviving spouse gets a payout but no longer has any insurance coverage
- With a second-to-die policy, the surviving spouse doesn’t receive a payout after their partner dies
Joint term policies might work for covering mortgages or specific shared debts. A joint permanent policy could also be a good fit for a couple who are estate planning and considering strategies for efficient wealth transfer.
However, we believe individual policies are best for most Canadians—even for couples. An individual life insurance policy:
- Covers one person under one policy
- Pays out when the insured policyholder dies
- Can be tailored to each individual’s income, health, and coverage needs
Individual policies cost a little more, but they stick with you—even if you separate from your partner or need to adjust your coverage. That’s financial security.
Separate term life insurance policies are typically the smartest choice for couples. Each partner can select a term that best suits their financial obligations. Some insurance providers even offer discounts for couples who buy separate life insurance policies. PolicyMe gives you 10% off the first year of your term policy when you apply together.
Pros and cons of an individual life insurance policy
The best part of an individual life insurance policy is the control. Though it is slightly more expensive for two people to have their own term insurance policies than to purchase a joint policy, we believe the benefits make it worthwhile.
Types of individual life insurance policies
There are two main types of life insurance policies: term and permanent (whole or universal). Term insurance is typically the most affordable coverage option and best meets the needs of most Canadians.
Term life insurance covers a set term, like 10, 20, or 30 years:
- Pays out if you die during the term
- Usually the most affordable option
- Good if you have a mortgage or are raising children
Permanent life insurance lasts your entire life, as long as you pay the premiums:
- Pays out when you die
- Builds cash value that you can borrow against or withdraw
- Can be useful for complex estate planning
With whole life insurance (permanent), you have lifelong coverage and your premiums are fixed. Your death benefit and cash value are guaranteed with non-participating whole life policies. Participating policies mean you participate in the insurer’s investment returns, and you may receive dividends.
With universal life insurance (permanent), you have lifelong coverage and your premiums (and coverage!) can flex over time. Your cash value growth is not guaranteed since it’s tied to interest rates or market performance (depending on the type). This type of coverage is often marketed as a source of retirement income, but most Canadians can get better returns through investing.
Eligibility for lifetime coverage may require medical exams or basic health questionnaires.
Use a term life insurance calculator to estimate how much life insurance you need based on your situation.
How much does individual life insurance cost?
The cost of life insurance in Canada depends on your age, gender, health status, policy choice, and insurance provider. In general, female nonsmokers tend to pay less for life insurance.
Here’s what average monthly premiums look like by age group (for healthy nonsmokers):
- 20s: $15–$30
- 30s: $20–$50
- 40s: $35–$90
- 50s: $80–$150+
Age is a key factor in setting premiums, and rates increase about 8% every year with age.
Term length is another major determinant of the cost of individual life insurance. These quotes are pulled from PolicyMe rates for a 35-year-old non-smoking applicant for $500,000 in coverage.
How to find the right individual life insurance for you
We’ve done our best to highlight the best life insurance policies in Canada for most individuals, but every applicant is different. The best insurance policy for most Canadians might not be the right option for you.
To make sure you’re getting the right life insurance, you can work with a licensed advisor or ask yourself the following questions:
- Do I need short-term coverage or a permanent policy? For most Canadians, a term life insurance plan that only covers 10–30 years is the right option: coverage when you need it with premiums that stop once your insurance needs go away.
- Do I have health conditions or habits that could impact my rates? Healthy Canadians who don’t smoke are eligible for the best rates with a full underwriting process. Even if you smoke or have some health conditions, it’s best to get a fully-underwriting policy if possible, but applicants with serious health issues should be prepared to face high rates and may need to consider the pros and cons of a guaranteed issue policy.
- What does my budget look like? In general, term life insurance costs Canadians in their 30s around $20–$30/month, with higher rates for older applicants and lower rates when you’re young.
Do I need any add-ons? Common add-ons for life insurance include critical illness insurance riders, disability riders, and child coverage riders. Consider which riders (if any) you need on your policy and be prepared to pay extra for them.
FAQ: Individual life insurance
*** The life insurance premium rates in this article are based on publicly available figures as of May 2026.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.