Life insurance quotes in Canada: Get your rate in just a few clicks
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Life insurance quotes in Canada
Life insurance is more affordable than many people think. The price of life insurance can vary significantly by age, gender, health, policy length, and lifestyle. Check out the table below for a better idea of how life insurance quotes may vary.
Compare life insurance quotes for 20-year term life insurance: Women
Age | $100K | $250K | $500K |
|---|---|---|---|
25 | $8.08 | $12.49 | $19.15 |
30 | $8.33 | $13.00 | $19.15 |
35 | $9.41 | $13.95 | $21.23 |
40 | $11.49 | $18.73 | $30.81 |
45 | $15.40 | $28.10 | $47.46 |
50 | $23.23 | $44.13 | $76.60 |
* Values shown above are PolicyMe monthly averages for non-smoking women of average health.
Compare life insurance quotes for 20-year term life insurance: Men
Age | $100K | $250K | $500K |
|---|---|---|---|
25 | $9.33 | $16.44 | $27.48 |
30 | $9.58 | $16.44 | $27.48 |
35 | $10.57 | $17.90 | $28.97 |
40 | $13.32 | $25.39 | $41.63 |
45 | $19.57 | $39.13 | $66.19 |
50 | $30.72 | $64.73 | $126.23 |
* Values shown above are PolicyMe monthly averages for non-smoking women of average health.
How to choose a term length
Term life insurance comes in different term lengths, from as short as 5 years to 30 years or more. The most popular term length for PolicyMe customers is 20 years, which is enough to cover most families’ major financial obligations, including childcare costs.
Not sure which term length is right for you? Think about your age, the debts or dependents you need covered, and how long you need your life insurance coverage to last.
* Monthly cost for a 30-year-old non-smoking applicant with $500,000 in coverage. Rates are averaged between men and women.
How much life insurance do you need?
Once you’ve figured out how long you need your life insurance policy to last, it’s time to decide how much coverage to buy. According to the Canadian Life & Health Insurance Association (CLHIA), the average Canadian household with life insurance has $483,000 in coverage, or roughly 5 times their annual household income.
But there’s no one-size-fits-all here; every policyholder needs a different amount of insurance.
A good rule of thumb to start with is to purchase an amount equal to 7 to 10 times your annual income. But a more detailed calculation should take into account:
Debt
Aside from your mortgage (we’ll get to that in a minute), what outstanding debts would you need to pay off in the event of your death?
Income
Multiply your annual income by the number of years you’d need it replaced.
Mortgage
If you have a mortgage, what’s the remaining balance? Add up the total cost of your scheduled mortgage payments until the end of the loan.
Children’s education costs
The cost of education, from early childhood through post-secondary school, is a huge financial burden your family may need covered in the event of your death.
Final expenses
If you want your life insurance policy to help your family cover the cost of burial, cremation, or outstanding medical bills, factor these into your coverage amount.
Not a fan of math? PolicyMe’s online life insurance calculator is an easy place to start your calculations and get a sense of different coverage amounts that may work for you. You may also want to speak with a life insurance advisor to get expert input.
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Common life insurance mistakes Canadians make
The cost of life insurance increases every year, as your age adds to your insurable risk and market pressures add to the amount of coverage you may need to replace your income. According to CLHIA, the median age of Canadian life insurance policyholders is between 34 and 48. By buying life insurance just 10 years earlier, you could save an average of 44%, or $20 per month in premiums.
Buying more coverage adds to the cost of life insurance, but buying too little coverage — or too short a term — could mean serious financial hardship for your loved ones in the event of your death. Think carefully about all the expenses your dependents and family would need covered and look for a policy that meets all your financial needs.
Group term life insurance policies make up over a third of the total policies in force in Canada as of 2023, and many Canadians assume that if they have coverage through their employer, they’re set. But most group policies only provide 1-2x your salary, when 7–10 is recommended to meet your dependents’ unique needs — and because the coverage is tied to the job, it can change or disappear if your employment shifts.
While it’s true that disclosing health issues such as diabetes or high blood pressure can raise the cost of life insurance, concealing those issues when they’re present is never a good idea. If your insurer finds out that you misrepresented or covered up health concerns, they could deny your beneficiaries’ claims, leaving them essentially uninsured.
Whole life insurance may sound comforting, and its higher premiums may seem to indicate a higher level of coverage and service. But this isn’t necessarily the case. Whole life insurance premiums tend to be higher because insurers have a high expectation of paying out the final death benefit — not because they offer more benefits to policyholders. Pouring more money into premiums while you’re alive means reducing the funds available for investments with a better rate of return.
What impacts your life insurance quote in Canada
When you apply for life insurance in Canada, insurers will look at a range of factors to determine your risk and set the price of your coverage. Major cost drivers for life insurance include:
Age
The younger you are, the lower your risk of death during the policy term — so insurers will charge less. Average premiums for a $500K 20-year term life policy for a 20-year-old are around $23 per month; at age 40, the same policy costs $36 per month.
Smoking status
One of the biggest determinants of life insurance costs; smokers pay significantly higher rates than non-smokers (2x or more!). Non-smokers pay $23 per month for $500K 20-year term coverage with PolicyMe, while smokers pay $43 per month for the same coverage.
Health
Applicants in good health pay less than those with risk factors like a high BMI or chronic illness. Insurance providers determine your “risk factor” using your age, smoking status, and health. Those in poor health may see premiums from 25% to 200% higher, depending on the risk.
Gender
On average, men carry a higher risk of death than women, so you’ll see the price of that risk reflected in your life insurance premiums. Average rates for a 20-year $500K term policy are 44% higher for men than for women.
Coverage amount and term length
Let’s say you’re shopping for term life at age 40. You’ll pay less than $15 per month for a 10-year term policy for $250k — but a 10-year term policy for $500K or a 20-year term policy for $250k will run you around $22 per month.
Policy type
Term life insurance costs considerably less than whole or universal life insurance, since it only covers a set period of life. The good news: most Canadians only need term life insurance.
Other factors that might influence your costs include discounts and perks you’re eligible for. While location is not a primary cost driver, you might see some variation in quotes. You can also save on life insurance by working with a provider that offers discounts, like PolicyMe’s 10% discount in the first year for couples who apply for term life.
Why choose PolicyMe for a quote
PolicyMe is a leading digital insurance solution for life, health, and critical illness insurance. Here’s why you can trust us with your life insurance search:
- $10B in active life insurance policies across Canada
- Transparent pricing with no broker commissions
- 10% discount for couples in the first year
- $10,000 of free child coverage
- No-fuss online application — no fluff, no upsell, and no overpaying
- Licensed advisors on call for you with real, human support
- Policies backed by Securian, a federally regulated insurer with an A+ (Superior) rating from A.M. Best
Rated 4.8/5 by
Canadians just like you
Not interested in our glowing reviews? We get that. Read our 1-and-2 star reviews that we’ve worked to make better. (See, we told you we were honest.)
Types of life insurance in Canada
There are three primary types of life insurance in Canada: term life, whole life, and universal life. The first is a temporary policy that only lasts for a certain term, while the other two are forms of permanent life insurance with lifelong coverage.
Term life | Whole life | Universal life | |
|---|---|---|---|
Duration | 1, 5, 10, 20, 25, or 30 years | Permanent | Permanent |
Pros | Affordable, fixed premiums, coverage designed to meet specific needs without overinvesting | Locked-in premiums, estate planning options, wealth transfer | Flexibility, tax-advantaged savings |
Cons | Coverage only lasts for your chosen term | Can be 7-10x the cost of term life | Poor returns vs. traditional investing |
Builds cash value | |||
Investment option | |||
Who it’s best for | $117.48 | $131.21 | $164.62 |
Who it’s not for | $117.48 | $131.21 | $164.62 |
FAQ: Health insurance quotes in Canada
The monthly cost of a 20-year, $500K term life insurance policy ranges from $23 for a non-smoking 25-year-old to $36 for a 45-year-old non-smoker. Term length, age, smoking status, health and other risk factors all impact the cost of a $500K life insurance policy.
Term life is the cheapest form of life insurance, thanks to limited policy lengths and more straightforward coverage. Whole life, which offers lifelong coverage with payouts regardless of when the policyholder dies, typically costs between 7 and 10 times more than term life insurance.
With PolicyMe, your term life insurance rates stay the same for the whole term. Buying a policy earlier in life can help you lock in the lowest rates possible when you’re young and healthy.
Most Canadians who apply for life insurance through PolicyMe don’t need a medical exam. That’s because we’ve optimized our underwriting process to cut out the fluff and reduce wait times, paperwork, and, yes, medical exams. The whole application process is digital and usually takes under 20 minutes with instant decisions for most customers.
Applicants with health issues can still apply for term life insurance through PolicyMe. While a medical exam may be required for the most thorough underwriting, this exam can help PolicyMe match your premium as closely to your actual risk as possible, so we avoid overcharging you and you avoid overpaying.
If you move to a new province, let your life insurance provider know. It’s important to keep your information updated so that there’s no difficulty or delay in paying out claims, converting a term policy to permanent life insurance, or other common situations.
PolicyMe has some of the best term life insurance rates in Canada in comparison to other traditional term life insurance providers. The difference: while other insurers either invest costly resources in traditional in-office underwriting or skip out on underwriting altogether, PolicyMe uses technology to cut out unnecessary costs in the process of setting up a life insurance policy.
The result: fully underwritten life insurance with the same quality protection your family deserves, but at a lower monthly premium.
PolicyMe is the administrator for insurance products which are underwritten by Canadian Premier Life Insurance Company – an A+-rated insurance company by A.M. Best. Securian Canada is the brand name used by Canadian Premier Life Insurance Company and Canadian Premier General Insurance Company to do business in Canada. We’re not a broker, meaning we don’t give quotes for or sell other companies’ life insurance.
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