What’s the Best Term Life Insurance in Canada?

Why term life insurance?

Thanks to its affordability, flexibility and straightforward coverage, term life insurance is already the best type of life insurance for most Canadians. It enables you to lock in low rates for the life of your policy, pick a term length that matches your financial obligations and avoid paying for any extras. 

You can leverage the advantages of term life insurance even further by looking for a policy with:

To make it easier for you, we’ve done the work of comparing over 25 term life insurance products from more than 20 companies and ranking them by price, customer satisfaction and convenience.

"Term life insurance is a simple and affordable way to protect your family’s financial future. The key is finding a policy that balances affordability with the right coverage amount." – Christelle Arouko, Licensed Insurance Advisor

What’s the best term life insurance in Canada?

Based on our data-driven review of the leading products and over 450,000 quotes, PolicyMe is the best life insurance in Canada for affordability, customer satisfaction and ease of purchase. The runner-ups include RBC Life Insurance, The Co-operators, Beneva and Foresters Life Insurance:

^{* These figures reflect the average monthly cost of $500,000 of coverage for a non-smoking female between the ages of 30-44 across a term length of 10-30 years.}

1. Term life insurance by PolicyMe

^{* Price comparisons are based on the average monthly cost of $500,000 of coverage for a non-smoking female between the ages of 30-44 across a term length of 10-30 years. The industry average incorporates the average monthly premiums for 26 term life insurance products.}

PolicyMe’s goal is to eliminate headaches from the traditional insurance process, and judging by our customer reviews, we’re on the right track. We use technology to cut unnecessary costs and bring competitive rates directly to the consumer, and most applicants don’t even require a medical exam.

Best of all, you can purchase term life insurance entirely online using a credit card or Google Pay. Our team of licensed life insurance advisors is ready to answer your questions, so you can make the most of your 30-day, money-back guarantee. 

Pros:

Cons:

Customer review

“The process was quick, support was top notch and the price was competitive.” – Verified customer on Reviews.io.

2. RBC YourTerm by RBC Life Insurance

^{* Price comparisons are based on the average monthly cost of $500,000 of coverage for a non-smoking female between the ages of 30-44 across a term length of 10-30 years. The industry average incorporates the average monthly premiums for 26 term life insurance products.}

As the largest bank in Canada, RBC Life Insurance offers an impressive array of term life insurance products and riders. You can customize RBC YourTerm life insurance any way you want it, but online reviews suggest the company’s customer service department is slow to respond.

Pros:

Cons:

3. Versatile Term by The Co-operators

^{* Price comparisons are based on the average monthly cost of $500,000 of coverage for a non-smoking female between the ages of 30-44 across a term length of 10-30 years. The industry average incorporates the average monthly premiums for 26 term life insurance products.}

The Co-Operators is the best place to go if you’re looking for life insurance for smokers. Its Versatile Term life insurance costs up to 8% less than the industry average, and you can renew it until the age of 75.

Pros:

Cons:

4. Term Plus by Beneva

^{* Price comparisons are based on the average monthly cost of $500,000 of coverage for a non-smoking female between the ages of 30-44 across a term length of 10-30 years. The industry average incorporates the average monthly premiums for 26 term life insurance products.}

Beneva provides excellent customer service and a wide selection of life insurance products, but you can’t get a quote before speaking with an advisor. Beware of opting for decreasing coverage, because your premiums will stay the same regardless.

Pros:

Cons:

5. Term life insurance by Foresters Life Insurance

^{* Price comparisons are based on the average monthly cost of $500,000 of coverage for a non-smoking female between the ages of 30-44 across a term length of 10-30 years. The industry average incorporates the average monthly premiums for 26 term life insurance products.}

Foresters Life Insurance is a fraternal benefit society with over 150 years in business. Becoming a member gives you a few extra benefits, including bereavement counselling for your beneficiaries and a charitable donation to an organization of your choice.

Pros:

Cons:

The best high-risk term life insurance

High-risk life insurance is a product of last resort for applicants who have been denied life insurance before. Simplified and guaranteed products (also known collectively as “no medical life insurance”) don’t require a medical exam, but they demand enormous premiums as a result.

At PolicyMe, we always recommend applying for fully underwritten term life insurance first. Even if you require a medical exam, you aren’t likely to be denied, and your premiums will be lower (and your potential coverage higher) than those of a no medical product.

No medical Simplified Elite Term by Canada Protection Plan

^{* Price reflects the average monthly cost of $500,000 of coverage for a non-smoking female between the ages of 30-44 across a term length of 10-30 years.}

Canada Protection Plan specializes in no medical life insurance for applicants who’d rather not take a medical exam. Coverage starts immediately for simplified and guaranteed-issue term life insurance, but you’ll have to be okay with higher premiums and lower coverage limits.

Pros:

Cons:

Term life insurance by Desjardins for seniors

^{* Price reflects the average monthly cost of $500,000 of coverage for a non-smoking, 60-year-old female across a term length of 10-30 years.} 

For life insurance for seniors, term life insurance by Desjardins is the product of choice. It’s convertible until the age of 70 and renewable until the age of 85, so you can keep your coverage without the need for a medical exam. 

Plus, the average premiums for a 60-year-old, female non-smoker are about 16% lower than the industry average across 26 similar products.

Pros:

Cons:

Versatile Term by The Co-operators for smokers

‍^{* Price reflects the average monthly cost of $500,000 of coverage for a smoking female between the ages of 30-44 across a term length of 10-30 years.}

The average monthly cost of $500,000 of coverage for a female smoker between the ages of 30-44 is around $81/month, which drops to $74/month if you pick Versatile Term by The Co-operators. Considering that smokers of all ages pay an average of 98% more for term life insurance than non-smokers, this is a rare deal.

Pros:

Cons:

Methodology: best term life insurance in Canada

About the data

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 more than 50 policies and 20 insurers, drawing on trusted sources such as COMPULIFE, WinQuote and official provider websites, supplemented by ratings from Google.

About star ratings

Each product received a star rating out of five based on pricing, customer satisfaction and ease of purchase, customized by age group, sex at birth, and smoking status. We started by awarding three stars to every provider with insolvency protection from Assuris and a financial stability rating of “A” or higher from a respected credit rating agency such as A.M. Best.

Products with an average price at least 5% below the industry average received one extra star for affordability, while providers with a Google Reviews score of 4.0 or higher earned an extra half-star for customer satisfaction. Finally, products offering convenient online quoting options earned another half-star for accessibility. 

About the categories

The 12 “Best Of” categories use criteria reflecting the most popular types of coverage and buyer needs. Most term life insurance categories—except those for smokers and seniors—rank policies with $500,000 in coverage for non-smoking women between the ages of 30-44, providing a starting price for young professionals, families and business owners.

Most customers purchase a smaller amount of permanent and no medical coverage because it’s expensive, and they require coverage for end-of-life expenses rather than debt or income replacement. We therefore capped the coverage for the permanent and no medical life insurance categories at $100,000.

About rankings

The rankings within each category are determined first by star rating and then by average monthly premiums by age group, sex at birth and smoking status. “Top Picks” indicate the expert recommendations of PolicyMe’s life insurance advisors, recognizing standout products whose value isn’t captured by numerical scoring alone.

About pricing comparisons

To ensure fairness and accuracy, all pricing comparisons were made within identical product types and demographic segments. For instance, a 10-year term policy for non-smoking women aged 18-29 with $500,000 in coverage was compared to the average pricing for all other 10-year term policies meeting the same criteria.

Disclaimer

PolicyMe’s findings use unaltered data and are free from paid placements or sponsored influence. While we strive to keep our information up-to-date, we cannot guarantee the validity of third-party data. These results are intended as a helpful reference and not as a substitute for personalized financial advice.

The best term life insurance according to Redditors

Redditors agree that the best term life insurance policies include the option to convert or renew because, as u/lifeinsurancecanada puts it, “you cannot predict your future health.” As for specific recommendations, here are a few:

• u/labo-is-mast: “PolicyMe is the easiest and cheapest if you’re healthy and just want something simple.”
• u/nsparadise: “I’ve worked with many companies over the years. Nowadays, I primarily use Canada Life and Empire Life with my clients, because they are solid companies with good policies and good service. BMO is good too.”
• u/Khyron686: “I switched to PolicyMe, no issues/regrets. In our 20s we were suckered into whole life from a mutual advisor... The numbers make no sense once you’re 50+ and don’t need insurance anymore.”

How much does term life insurance cost?

The cost of life insurance in Canada depends on your age, sex at birth, smoking status and health, plus the amount of coverage you choose, the length of your term and whether you apply for no medical life insurance or not. 

The lowest rates belong to young, female, non-smoking applicants in good health who are shopping for $50,000 of coverage for 10 years (and are willing to undergo a medical exam). By contrast, an elderly, male applicant who smokes and is looking for $750,000 of coverage for 30 years will pay much more.

Here are the average rates for non-smokers in different age groups, calculated using quotes from 26 Canadian term life insurance products:

^{* Prices reflect the average monthly cost for $500,000 of coverage for healthy, non-smoking individuals.}

How to find cheap term life insurance quotes

You can find the cheapest life insurance quotes by comparison shopping for fully underwritten term life insurance. Underwriting helps life insurance companies accurately assess your risk, and you might be pleasantly surprised by the quote you receive. 

The effort it takes to get a medical exam can pay off with big savings with no risk to your insurability–you can always apply for no medical life insurance later.

How to choose the best term life insurance policy

Term life insurance works best when it’s tailored to your needs. To find a policy that works for you, first:

1. Calculate how much life insurance you need. Rather than simply multiplying your income, sit down and think about what you want to cover and how much it will cost; it’ll help you avoid overpaying or going underinsured.
2. Choose your term length. Think about how long your financial obligations will last and set your term accordingly. How long will your mortgage last? How long until your children turn 18? How long until your spouse retires?
3. Compare term life insurance quotes. The best way to find a deal is to compare prices from multiple insurers. 

Next steps: Best term life insurance in Canada

Once you’ve decided on the best term life insurance for you, you’re only 5 steps away from securing protection for your loved ones:

1. Choose your coverage amount, your term length, and your product.
2. Complete the application online, over the phone or in person, then wait for a decision. If you’re denied, consider applying for no medical life insurance.
3. Read your insurance policy documents carefully before signing. 
4. Provide your payment information and make your first payment.
5. Use your 10-day, free look period to consider your policy documents carefully.

With PolicyMe, you can get a quote, apply, and pay for a life insurance policy entirely online in 20 minutes or less. Our 30-day money-back guarantee gives you plenty of time to consider your purchase and make a change if you need to.

FAQ: Best term life insurance in Canada

Want to learn more about other life insurance options? Here are more reviews of Canadian life insurance companies:

• Biggest life insurance companies in Canada
• Best bank owned life insurance
• Best whole life insurance in Canada
• American Income life insurance review
• Beneva life insurance review
• Canada life insurance review
• Canada Protection Plan life insurance review
• Canadian Premier life insurance review
• Costco life insurance review
• Desjardins life insurance review
• Equitable life Insurance review
• Foresters life insurance review
• Industrial Alliance life insurance
• Ivari life insurance review
• Manulife life insurance review
• PolicyMe life insurance review
• Primerica life insurance review
• UV life insurance review