Single Parents Life Insurance: Canadian Guide (2026)
Quick answer: life insurance for single parents
Term life insurance is usually one of the best life insurance options for most single parents in Canada.
Why term? This type of coverage is flexible, customizable, and affordable. Craft a term policy that fits your family and your budget, and choose a payout amount that will replace your income and support your kids in the future if anything happens to you.
What does it cost? A typical term life insurance plan with a $500k payout costs around $20–$40/month in Canada. Your rate may vary depending on your age, sex at birth, overall health, etc.
Kids cannot directly receive life insurance payouts. If you want to ensure that your kids can use the money from a life insurance policy if you pass away, make sure you designate an adult family member, friend, or a trust fund to manage the money until your children are no longer underage.
What type of life insurance should single parents get?
The ideal type of life insurance for single parents is an individual term life insurance policy.
Single parents should pick term instead of relying on group, mortgage, and permanent policies—and here’s why term comes out on top for single parents compared to other types of coverage.
Individual vs. joint life insurance: An individual policy covers one adult (you) with one payout. A joint policy covers two adults (typically the parents in a two-parent household) with only a single payout, depending on who dies first.
→ The single parent POV: Individual policies are simpler and make more sense for one-parent households.
Individual vs. group life insurance: An individual policy is customizable and flexible. A group policy is sold through your employer, but coverage is capped low and you might lose it if you lose your job.
→ The single parent POV: Individual policies give more reliable protection to your kids than group coverage. Group is better than nothing and could help cover funeral costs, but it’s not as good as an individual term policy.
Individual vs. mortgage life insurance: An individual policy has a set payout that will go to your beneficiaries if you pass away while the policy is active. A mortgage life insurance policy has a payout that shrinks to match your mortgage balance as you pay it off—and the payout goes directly to your lender, not your kids.
→ The single parent POV: Individual policies give your kids more flexibility with the payout.
Term vs. permanent life insurance: Term policies last for a set length of time, usually as long as your kids rely on you financially. Permanent policies are lifelong with a guaranteed payout, but premiums are extremely high and you pay them for life.
→ The single parent POV: Term policies provide appropriate, affordable coverage for single parents with children who are relying on them temporarily.
Permanent coverage may be appropriate for single parents with a lifelong dependent like a disabled child. It may also be an estate planning strategy for wealth transfer. But for most Canadian single parents, term policies provide plenty of protection at a better price.
Do single parents need life insurance?
Single parents need life insurance to ensure that their dependents are financially secure if they pass away. The policy would pay a tax-free, lump-sum death benefit, which can help cover your kids’ living expenses, child care, and educational costs.
Term life insurance is an affordable and flexible option for life insurance for parents.
“Single parents actually have a bigger need for life insurance as they are most often the main and only providers for their families.” —Ivana Govedarica, Certified Life Insurance Advisor
Best life insurance for single parents
The best type of life insurance for single parents in Canada is term coverage because it’s affordable and flexible enough to fit your unique needs.
Terms typically range from 10 to 30 years, and the policy will pay out if you pass away during the term. You’ll want to choose a term that aligns with your financial obligations—that is, until your kids are financially independent and any significant debt is paid. Your coverage amount should be enough to replace your income, pay off your debts, and cover your kids’ essentials, including childcare and future education.
Most kids don’t need life insurance policies, but PolicyMe offers $10,000 in complimentary coverage per child with all adult term policies. This means that if your child passes away, you’ll receive a payout to help cover their final expenses.
Life insurance add-ons for single parents
You can add other coverage to a base term life insurance policy to provide additional peace of mind:
- Critical illness rider: Pays a lump sum once if you’re diagnosed with a serious health condition, like cancer or heart disease. You can also buy critical illness insurance as a standalone policy.
- Disability insurance rider: Pays a regular income if you’re unable to work due to injury or long-term illness.
These add-ons are optional and not necessary for everyone, so be sure to assess your needs so you’re not paying for coverage you don’t require.
How to calculate your life insurance needs
The first step in determining your life insurance needs is choosing your coverage amount. How much life insurance you need depends on your future expenses:
- Annual income to be replaced
- Debt to pay off (mortgage)
- Other expenses (child care, education costs)
Use a life insurance calculator to simplify the estimation, and then round to get an approximate coverage requirement. For example, if your obligations total around $285,000, your kids might benefit from $300,000 in coverage.
Next, you’ll need to choose your term length. Your coverage should last as long as your kids will be dependent on you, which may be anywhere from 15 to 30 years, depending on their ages.
When your term policy expires, you may have the option to renew it—but premiums will increase due to your age, so it’s smarter to get the coverage duration you need now to secure the best rate.
“To keep premiums low and still get meaningful protection, buy the amount of coverage your family would truly need for things like the mortgage, education, and living costs. Apply early while you’re young and healthy, since that’s when rates are lowest and you can lock them in for your full term.” — Jeremy Burbano, Life Insurance Advisor
How much does life insurance for single parents cost?
The average cost of life insurance for a 30-year-old single parent in Canada is between $20 and $40 per month.
Your price depends on your age, health, and the term/coverage combination you select. The older you are and the longer your term length, the more you can expect to pay for your premium. Men pay more than women, and smokers’ rates can be 2–3x higher than nonsmokers for the same coverage.
Here are some sample rates for term life insurance with PolicyMe for a 20-year term with $500,000 in coverage:
What if life insurance feels too expensive?
If the cost of life insurance doesn’t fit your budget right now, consider less coverage to save money—or focus on immediate ways to stabilize your family’s financial future.
- Start with lower coverage: Smaller payout amounts come with smaller monthly premiums. You can always buy another policy with more coverage later.
- Choose a shorter term: 10-year policies cost less than 20- and 30-year policies and still cover some vulnerable years in your kids’ lives.
- Adjust later: Buy what you can afford now and then reconsider more coverage if your budget changes. You can have more than one life insurance policy at a time.
We understand that money can be tight for single parents—but some life insurance protection is better than none, especially if your children rely on you solely.
Focus on building a financial safety in some way. If any form of life insurance coverage isn’t affordable right now, prioritize what you can control: build an emergency fund, reduce debt, or set aside savings for your kids. Even small steps can help create some financial stability over time.
Choosing a beneficiary for your life insurance
Your kids are probably the intended beneficiaries of your life insurance policy, but most life insurance policies will not pay out claims to kids under 18.
As part of your estate planning, be sure to name an adult trustee to ensure that your kids receive the death benefit. If you don’t make arrangements before you pass, the court may appoint a legal trustee to oversee the payment for you.
5 things to remember about single parent life insurance
Here are six things single parents in Canada need to understand before purchasing life insurance.
1. If you’re divorced, be sure to update your policy or get your own.
You had a policy before the divorce? Change the beneficiary if you previously named your ex-spouse. If, like many single moms, you depend on your ex-spouse financially and you’re the primary caregiver for the kids, then ask your ex-spouse to ensure you are the beneficiary on their policy.
You didn’t have a policy before the divorce? Now is the time to get your own life insurance policy.
2. Permanent life insurance typically isn’t ideal for single parents.
The cost of permanent life insurance products is 5–15x higher than term and the coverage lasts a lifetime—not ideal for a single parent. Lifetime coverage is usually only worth the cost if you have dependents who require lifelong support.
Thinking about saving or investing for your kids’ future? Invest your money into a TFSA or RESP to grow your wealth instead of the cash value of a permanent policy.
3. You probably don’t need life insurance for your kids.
Most single parents don’t require life insurance policies where the child is the policyholder. You’re unlikely to make a claim against a child’s policy and it locks you into a monthly premium for a long time.
An adult term policy with PolicyMe includes $10,000 in free coverage per child. Consider putting money into a savings account for your child’s financial security instead of towards their life insurance premium.
4. Mortgage life insurance isn’t a good strategy to protect your kids.
Mortgage insurance pays off your mortgage balance if you pass away. The money goes to the lender, not your kids—and the premiums are very high.
Instead, ensure your term life policy coverage is sufficient to cover your mortgage balance and pay for your children’s future.
5. Your group life insurance probably isn’t sufficient.
Group life insurance can be helpful and inexpensive, but it’s capped around 1–2x your annual salary. That’s not enough coverage to be a safety net for the average Canadian family. Group policies won’t cover you if you switch jobs or get laid off.
Use group life insurance as a starting point and then secure a term policy that supplements that coverage.
FAQ: single parents life insurance
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.