Best Life Insurance in Canada: Top Companies (Updated Guide)
The best life insurance companies in Canada offer customers a balance of affordability, excellent customer service, and a strong industry reputation. After reviewing over 20 insurers, 80 insurance products, and thousands of insurance quotes, we developed a definitive ranking of the biggest life insurance companies in the country in 2025:
The ideal life insurance company excels in three areas:
PolicyMe advisors Stephanie and Erik cover our top picks and how you can find the right company for you in under 15 minutes below:
What’s the best term life insurance company in Canada?
Term life insurance is the top choice for most Canadians because it’s affordable, customizable, and covers a fixed period of 10-30 years. If you’re shopping for life insurance to protect your family’s finances when your kids are young or until your mortgage is paid off, you likely need a term life insurance policy.
The best term life insurance companies are:
- Affordable: Term life insurance is cheaper than permanent life insurance — a major advantage for families protecting their finances.
- Easy to work with: A quick application process and responsive customer service make a big difference when selecting a term life insurance company.
- Reputable: Life insurance is a major investment, so it’s important to choose a company that’s financially stable and has a positive industry reputation.
Best term life insurance in Canada: PolicyMe
Why we chose it: Based on customer service and industry reputation, the best life insurance company in Canada is PolicyMe. PolicyMe provides some of Canada's most affordable term life insurance for couples and parents. Family-friendly features like $10,000 of free child coverage, 10% off for couples during their first year, and a streamlined online application process make it easy for busy, first-time buyers to get covered. PolicyMe’s underwriting partner, Securian Canada, has an A+ (Superior) financial strength rating from A.M. Best.
Company profile: PolicyMe is an online insurance solution based in Toronto, ON, offering term life insurance policies underwritten by Securian Canada. Founded in 2018, PolicyMe added critical illness insurance in 2022 and health and dental insurance in 2024. It now provides over $10 billion of protection to more than 18,000 customers across Canada.
Runner-up for term life: Blue Cross of Canada
Why we chose it: Like PolicyMe, Blue Cross offers straightforward term life insurance you can buy online. Its 10 and 20-year term life insurance products are especially competitive.
Company profile: The Blue Cross of Canada is a non-profit, all-in-one stop for health, group, travel, and life insurance. Founded in 1938, the company and its regional subsidiaries—including Pacific Blue Cross, Ontario Blue Cross, and Medavie—are a reliable fixture in the Canadian insurance landscape.
Best cheap life insurance in Canada: RBC Insurance
Why we chose it: If you’re looking for the cheapest bottom line, RBC consistently offers some of the lowest premiums for term life of any insurer in Canada, with policies starting as low as $12 per month in some cases. You can also convert your term policy into a permanent life insurance policy, often without a medical exam. The downside: Many customers report difficulty communicating with RBC representatives
Company profile: Founded in 1864 in Halifax, Nova Scotia, the Royal Bank of Canada (RBC) is Canada’s largest bank. In addition to life insurance, RBC Insurance offers home, auto, critical illness, travel, and other insurance products.
How much does term life insurance cost?
Because term life insurance is the most affordable type of life insurance, it’s the most popular product for families seeking affordable life insurance options. While premiums vary based on coverage amount, age, and lifestyle factors, a 10-year term life insurance policy can cost between $12.20 per month for an 18-year-old female non-smoker and $143.21 per month for a 50-year-old male smoker.
Take a look at these PolicyMe average starting rates to get an idea of how much it might cost for you. Listed rates are for $500,000 in coverage over 20 years, for a non-smoker of average health.
What’s the best permanent life insurance company in Canada?
While most Canadians need term life insurance, permanent life insurance may be the right option for applicants with a high net worth, complex estate planning needs, or lifelong financial obligations (i.e. dependents with a disability). Permanent life insurance falls into three main categories: permanent life insurance, whole life insurance, and universal life insurance.
The best permanent life insurance companies have:
- Competitive pricing: Because permanent life insurance is a more expensive option than term life (as much as 10x more!), it’s important to find an insurer offering the best rates.
- Stellar customer service: Unlike term life policies, permanent life insurance may involve multiple transactions with your insurer, so building strong customer relationships is key.
- Strong industry reputation: With permanent life insurance, it’s important to work with an insurer with a proven history in the industry of building policy value.
Best permanent life insurance company: Desjardins
Why we chose it: Desjardins offers multiple permanent life insurance solutions, including whole, universal and participating life insurance. Three of its permanent life insurance options have a cash value component. However, Desjardins doesn’t sell life insurance in many areas outside of Ontario and Quebec, so it may not be the best fit for everyone.
Company profile: The Desjardins Financial Group is an association of credit unions with a 100+ year history in Canada. Desjardins Financial Security, the life and health insurance sector of the Desjardins Group, is among the largest life insurers in Canada.
Runner-up for permanent life: PolicyMe
Why we chose it: Although we focus primarily on term life insurance as the best life insurance product for most Canadians, PolicyMe also offers a competitively priced term-to-100 life insurance policy. With no cash value attached, your premiums are as low as possible and fixed for the rest of your life.
Best whole life insurance: Sun Life
Why we chose it: Sun Life has an A+ (Superior) financial strength rating from A.M. Best, and the company’s share dividends have grown by 8.84% over the past 5 years, reflecting the company’s investment expertise. Its policies are expensive, but worthwhile for individuals with a high net worth who have already maxed out other investment options.
Company profile: With over 160 years of experience in selling life insurance, Sun Life isn’t going anywhere soon. It’s one of the largest life insurance companies in Canada by assets and has been rated one of the world’s most sustainable corporations for 15 years in a row.
Best universal life insurance company: Ivari
Why we chose it: Ivari offers a staggering number of coverage add-ons, from critical illness to child coverage riders. Canadians who want to choose their own investments may appreciate the ability to customize their universal life insurance policy from top to bottom.
Company profile: For over 90 years, Ivari has sold life insurance, health insurance, investment and other financial products in Canada. The company joined Sagicor in 2023 and maintains a network of thousands of independent advisors across the country.
Best participating life insurance company: Assumption Life
Why we chose it: Some permanent life insurance policies pay out a small share of the issuing company’s profits, an option known as participating life insurance. By customer and industry reviews, Assumption Life is the leader.
Company profile: Assumption Life provides life insurance policies with minimal health questions, plus easy qualifications for new immigrants. If you’ve been denied coverage by a traditional provider, try the company that received an A- grade from A.M. Best for its financial stability.
How much does permanent life insurance cost?
Permanent life insurance is a much more expensive product than term life, since it’s designed to extend across your entire lifetime with a payout regardless of when you die (as long as the policy remains active).
Typically, premiums for permanent life insurance are around 7 to 10 times the cost of term life insurance, ranging from $23.07 per month for an 18-year-old female non-smoker to well over $300 per month for policyholders in their 70s.
What’s the best high-risk life insurance company in Canada?
High-risk life insurance applies to anybody with increased mortality, whether as a result of their age, lifestyle, or medical conditions. Although it can be hard to find affordable coverage under special circumstances, there are life insurance providers specializing in high-risk applicants.
Life insurance policies with medical exams and questionnaires are fully-underwritten, while those without are no-medical, also called “simplified issue.” Meanwhile, guaranteed-issue life insurance accepts all applicants regardless of age, health history, or health status. These policies may be a good fit for applicants who pose a higher risk due to health concerns, age or lifestyle.
The major downside: Skipping a medical exam is the surest way to drive up your insurance premiums, so we recommend applying for a fully-underwritten policy first, followed by a simplified or guaranteed-issue product if you’re declined.
Best no medical life insurance company: Canada Protection Plan
Why we chose it: Canada Protection Plan (CPP) specializes in simplified and guaranteed life insurance that doesn’t require a medical exam. Canadians of all ages and health conditions can get covered online, as long as they agree to above-average premiums.
Company profile: In operation since the 1990s, CPP is a subsidiary of Foresters Financial, a highly-regarded mutual insurance company. The company offers both permanent and term life insurance products, along with critical illness insurance.
Best simplified issue life insurance company: Manulife
Why we chose it: Manulife’s CoverMe Easy Issue life insurance is just that—easy, quick coverage. You’ll have to answer two medical questions regarding terminal and serious illness, but there’s no medical exam required. Although you’ll pay above-average premiums to forgo that exam, you’ll have the stability and services of a large company to draw upon.
Company profile: Founded in 1887, Manulife is the biggest life insurance company in Canada by assets. Its life insurance premiums are excellent if you’re in good health (or looking for low coverage), and it offers a range of life insurance and investment options.
Although PolicyMe’s term life insurance policies are fully underwritten, not every applicant requires a medical exam. Find out if you qualify online, then skip the test and keep the savings!
Best guaranteed issue life insurance company: Assumption Life
Why we chose it: Assumption Life added its Bronze Protection guaranteed issue whole life insurance plan in 2022 as a last resort for those who can’t obtain other life insurance coverage. Maximum coverage limits are between $25,000 and $50,000 depending on your age, and annual premiums range from $13 to $495 per $1,000. However, the policy includes some built-in advantages like transportation benefits.
Best life insurance company for smokers: Co-operators
Why we chose it: Co-operators consistently offers competitive rates to smokers, seniors and other high-risk applicants. The company’s Term Life 1 product allows customers between the ages of 18 and 49 to secure one-year, guaranteed-renewable life insurance online with no medical exam.
Company profile: Founded in 1945 by a group of Saskatchewan farmers, Co-operators has since expanded to a multi-line insurance group offering auto, home, commercial, travel and life insurance across the country.
How much does no medical life insurance cost?
The cost of life insurance for high-risk applicants can vary considerably, but be prepared to pay higher premiums. For example, the average cost of a 10-year term life policy for a non-smoker in their 30s is $15.34 per month, while smokers pay $25.13 per month and non-smokers in their 50s pay $42.94 per month for the same coverage.
Best life insurance companies by age
Life insurance premiums vary by age, and so does the best life insurance product. Click to expand the toggles below to reveal the best life insurance by demographic, plus the runner-ups:
How to know which life insurance company is right for you
If you’re shopping for life insurance for the first time, it’s important to shop for the right life insurance. To do that, you’ll need to determine three things:
What type of life insurance you need
The two main types of life insurance in Canada are term life insurance and permanent life insurance. Most Canadians don’t need permanent life insurance, so you’re more likely to need term life insurance. Term life insurance is generally best suited to the average Canadian’s life insurance needs.
How much life insurance you need
Life insurance coverage can start as low as $20,000 and go as high as $20,000,000 or more. To determine how much life insurance you need, you’ll need to calculate the amount your family would need to replace your income and cover all necessary debts and expenses. You can simplify the process by using a life insurance calculator.
How long you’ll need life insurance
Most Canadians don’t need permanent life insurance unless they have a high net worth and need complex estate planning options. If you’re shopping for term life insurance, you can purchase a term as short as 10 years or as long as 30 years. In some cases, term life can extend to permanent life insurance.
If you have student debt, a mortgage, dependent children or other major financial obligations, you likely need life insurance. That’s most Canadians — but LIMRA reports that fewer Canadians bought life insurance in 2024, despite growing need. According to LIMRA, 30% of Canadian adults say they either need life insurance and don’t have it or don’t have enough life insurance coverage.
How to buy life insurance
Interested in some of the insurers reviewed on this page, but not sure where to start? Follow these steps to get a life insurance policy and the peace of mind that comes with it:
- Understand the type of policy you’re trying to buy: Try to identify the type of coverage, coverage amount and term length (if applicable) you’re looking for. If you’re unsure of what you need, consider working with a professional insurance advisor.
- Pick the company that best suits your financial needs: The best life insurance company is one with the coverage options you want at a price that fits your budget. And don’t discount the importance of service and convenience!
- Fill out an application at the company of your choice: Depending on the type of coverage you’re applying for and the company’s policies, you may need to submit to a medical exam as part of the underwriting process. (Around 60% of PolicyMe customers don’t need to do a medical exam to get approved.)
Once you’ve applied, wait for the insurer to evaluate your risk profile and issue an approval and a final price. Be sure to review your policy and details like exclusions and premium payment plans before you sign.
Methodology: Best life insurance in Canada
To find the best life insurance companies in Canada, we evaluated over 20 of the largest and most well-known insurers in the country using three categories:
- Affordability: To determine which insurers charge the lowest premiums, we gathered over 2,000 life insurance quotes. Our price data spans smokers, non-smokers, and birth sex, across six age groups from 18-70 and five products (including term and permanent life insurance).
- Customer service: To find out which life insurance companies offer the best customer experience, we averaged review scores from the Better Business Bureau, Trustpilot, Insureye and Google. We also counted the number of contact methods each insurer offers to its customers.
- Industry reputation: To ensure our recommendations were financially sound, we reviewed each life insurance company’s financial stability ratings from leading credit agencies A.M. Best, Morningstar DBRS and S&P Global. We incorporated Glassdoor reviews to reflect each insurer’s ability to manage and support its employees.
All three categories got a final, averaged score out of 5. We combined these three categories into a final overall quality score on a 10-point scale.
PolicyMe does not receive compensation for any life insurance reviews.
FAQ: Best life insurance in Canada
Sources
- https://www.limra.com/en/newsroom/news-releases/2025/adults-age-30-and-younger-overestimate-life-insurance-cost-by-1012-times/
- https://insurancenewsnet.com/innarticle/the-opportunity-in-the-canadian-life-market
Jessica is a content marketing manager with PolicyMe. She has over a decade of experience creating content, including 10 years freelancing for nonprofits and small businesses in North America and beyond. She was previously the senior editor handling car insurance content for Silicon Valley startup, and the managing editor for creditcardGenius. She's passionate about breaking down complex financial topics into clear, approachable content that helps readers feel confident about their decisions.
Jessica is a content marketing manager with PolicyMe. She has over a decade of experience creating content, including 10 years freelancing for nonprofits and small businesses in North America and beyond. She was previously the senior editor handling car insurance content for Silicon Valley startup, and the managing editor for creditcardGenius. She's passionate about breaking down complex financial topics into clear, approachable content that helps readers feel confident about their decisions.