Best Affordable Life Insurance In Canada 2026

The most affordable life insurance in Canada

Fully underwritten term life insurance can start as low as $6.29 per month in Canada. Why so cheap? Two reasons:

• Full underwriting is more accurate, so your premiums are tailored to you and your lifestyle rather than being one-size-fits-all.
• Term life insurance is temporary, so you pay only for as long as you need protection.

For permanent coverage, your best choice is term 100 life insurance, which keeps premiums low by trimming costly and unnecessary extras. With an affordable insurance plan in your pocket, you’re not only carrying a tax-free financial safeguard, but also a vital source of peace of mind.

Fortunately, term and term 100 life insurance are among the best life insurance products in Canada. You won’t have to sacrifice convenience or customer service to get a low quote from the top life insurance providers in the country.

Most affordable term life insurance in Canada

The cheapest life insurance in Canada is typically a fully underwritten term life insurance policy from an online company such as PolicyMe. We’ve streamlined the application process to make coverage more accessible to the 34% of Canadian families who say life insurance is too expensive:

^{* For $100,000 in coverage for an 18-year-old female non-smoker living in Ontario.}

Best of all, most applicants to PolicyMe don’t require a medical exam, and you can buy with confidence knowing you have a 30-day money-back guarantee. Our 31-day missed payment grace period also helps prevent unexpected expenses from derailing your family’s financial plans.

“Term insurance, 100% is the way to go. It’s going to get you the most coverage and the biggest bang for your buck. Once your kids are all grown up and independent, you don’t need to worry about insurance anymore.” – Erik Heidebrecht

Most affordable permanent life insurance in Canada

The cheapest permanent life insurance in Canada is generally a fully underwritten term 100 or whole life insurance policy without any cash value. Although a policy with an investment fund might seem like a smart buy, a shocking 87% of universal life insurance policies never pay out, largely because their premiums are too high for policyholders to keep up.

For example, the cheapest universal life insurance policy in Canada with $25,000 in coverage starts at $18.60 per month for an 18-year-old female non-smoker (courtesy of Ivari). The most affordable term 100 life insurance policy starts at $14.18:

^{* For $25,000 in coverage for an 18-year-old female non-smoker living in Ontario.}

Note that the cheapest permanent life insurance costs more than double the price of term life insurance and delivers just a quarter of the coverage. Unless you need a permanent policy to cover funeral costs, end-of-life expenses, or estate planning fees, we recommend a term life policy instead.

 “If you buy an expensive permanent insurance plan, it’s going to take away from saving for something that could be more important. Maybe instead, you consider a cheaper term insurance policy that will get you what you want without jeopardizing savings for retirement, for a house, or whatever it may be." –Erik Heidebrecht

Most affordable life insurance for seniors

Unless you have an extremely high net worth or a complicated estate, the best life insurance for seniors is term life insurance. You can qualify for higher coverage, lower rates, and fixed premiums for the entirety of your term length.

^{* For $50,000 in coverage for a 60-year-old female non-smoker living in Ontario.}

As you can see from the table below, permanent policies carry much higher premiums, which is why they’re our least favourite life insurance option. Our licensed advisors don’t recommend lifetime coverage unless you need it for final expenses or estate planning:

^{* For $50,000 in coverage for a 60-year-old female non-smoker living in Ontario.}

Most affordable no medical life insurance for seniors

According to the Canadian Health & Health Insurance Association, 96% of applicants receive the coverage they apply for and qualify for standard rates. Completing a life insurance application for a fully underwritten policy could save you a lot of money, even if you have pre-existing conditions. 

If you’ve applied and been rejected, your next best option is simplified issue life insurance, which asks only a few medical questions. Guaranteed issue life insurance–which accepts all applicants–should be your last resort:

^{* For $50,000 in coverage for a 60-year-old female non-smoker living in Ontario.}

Methodology

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 70+ 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 awarded 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 10 “Best Of” categories use criteria reflecting the most popular types of coverage and buyer needs. Most term life insurance categories compare 10-30-year policies with $500,000 in coverage for non-smoking women between the ages of 30-44. The “best of” categories for smokers and seniors compare policies for smoking women and 60-year-old women, respectively.

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 $50,000.

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. 

About pricing comparisons

To ensure fairness and accuracy, we made all pricing comparisons between products of the same type, with the same coverage amount, and for the same combination of age group, sex at birth and smoking status. The rates listed in this article are based on publicly available rates as of January 2026.

For example, the cost of a 10-year term policy for non-smoking women aged 18-29 with $500,000 in coverage is always compared to the industry average for all 10-year term policies for the same demographic segment and with the same amount of coverage.

Similarly, the average cost of a fully underwritten permanent life insurance policy for non-smoking women aged 30-44 with $50,000 in coverage is always compared to the industry average for all fully underwritten permanent policies for the same demographic segment and with the same amount of coverage.

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.

How are life insurance premiums calculated?

Insurance premiums are calculated during the underwriting stage of the life insurance process, when a company assesses how likely and how soon you might pass away. The most important factors are your:

• Age
• Height and weight
• Lifestyle (including alcohol and tobacco use)
• Location
• Medical history (including any pre-existing medical conditions)
• Occupation (including work and hobbies)
• Sex at birth

The higher the risk indicated by this information, the higher your insurance premiums. For example, life insurance costs much more for a middle-aged male who likes to drink and base-jump than for a young female student still living at home.

Plus, each life insurance company uses a different formula to calculate its premiums, and you can receive different life insurance quotes after submitting the same information.

10 Ways to lower your life insurance premiums

After consulting with PolicyMe’s licensed life insurance advisors, we created a list of 10 ways to find cheap life insurance in Canada:

Tip #1: Apply early

The average term life insurance premiums cost just $10.35/month for an 18-year-old and $163.37/month for a 70-year-old! The sooner you apply, the more you’ll save. 

Tip #2: Choose term life insurance

Compared to term life insurance, permanent life insurance (which includes term 100, whole life, and universal life insurance) is more expensive and grants less coverage. One of the other advantages of term life insurance is that you can shop for new rates and adjust your coverage once your term expires, instead of ending up with coverage that exceeds your financial needs.

Why pay for lifetime coverage when your debts won’t last forever?

Car loans, credit card debt, and tuition fees for your children’s education don’t last forever, so why should your life insurance? A 20-year term life insurance policy can provide your dependents with a higher amount of coverage at a more affordable price.

Tip #3: Choose fully underwritten life insurance

Life insurance companies use underwriting to figure out how likely and how soon you might pass away, and to set your premiums accordingly. The more thorough the underwriting, the more complete the picture of your health, and the lower your life insurance premiums are likely to be. 

For example, fully underwritten life insurance sometimes requires an in-person medical exam, but it’s 72%-171% cheaper than no medical life insurance. Try applying for fully underwritten life insurance first to see how much you could save; you can always apply for a no medical policy later.

Tip #4: Choose lower coverage

The larger the death benefit you plan to leave behind, the more you’ll pay. Instead of simply multiplying your income, it’s worth figuring out exactly how much coverage you need by using a life insurance calculator. 

For example, a 10-year term life insurance plan for $100,000 from PolicyMe starts at just $6.29/month. Increasing the amount of coverage to $200,000 raises your premiums to $9.17/month. It’s not quite double, but it’s still nearly 30% more.

With a little effort, you can figure out exactly how much financial protection you need and keep your life insurance costs as low as possible.

Why flexibility matters when choosing life insurance

Term life insurance, which lasts for 10-30 years, lets you change your coverage amount once your policy expires. With permanent life insurance, you’re locked into high rates, and you’ll probably end up over- or undershooting your insurance needs at some point in your life.

Tip #5: Choose to pay annually

Most life insurance companies provide a discount if you pay your premiums once per year instead of once per month. For example, you can save up to 8.3% by buying life insurance with an annual payment plan from Canada Protection Plan.

Tip #6: Don’t smoke

On average, the life insurance premiums for smokers are 69.59% higher than those for non-smokers. The gap gets wider with age—a 70-year-old smoker will pay about 88% more per month than their non-smoking counterpart, while an 18-year-old smoker will pay 25% more.

The increase in premiums applies to vaping, chewing tobacco, betel nut leaves, cigars, and any other use of tobacco within the last 12 months. If you do consume nicotine, it’s crucial to find a company with competitive life insurance rates for smokers, such as:

^{* For $100,000 in coverage for an 18-year-old female non-smoker living in Ontario.}

Marijuana use can affect your life insurance rates

Depending on the insurer, using marijuana may raise your life insurance rates.

Tip #7: Evaluate your risk

Life insurance companies use underwriting to figure out how likely and how soon you might pass away, and the higher your risk, the higher your premiums. Anyone with a pre-existing medical condition, a dangerous hobby, or a difficult occupation may qualify for high-risk life insurance instead of regular rates.

Here’s a quick guide to lowering your risks and your life insurance premiums at the same time:

If you’ve done the hard work to improve your health, call up your insurer and tell them about your progress. Most companies are happy to review your life insurance premiums after a significant change in circumstances.

Tip #8: Find a bundling discount

A single life insurance policy that insures the lives of two or more people is known as joint life insurance. Although it’s generally cheaper than buying a pair of individual policies, a joint life insurance policy only leads to a single payout.

By buying two policies, you can set different amounts of life insurance coverage for your spouse and yourself, and secure your loved ones’ financial security with two payouts. Plus, you’ll qualify for a couple’s life insurance discount.

Tip #9: Find the right life insurance company

Different life insurance companies set different premiums, even for the same customers. Comparing prices is the most reliable way to find a deal, and most companies offer online, no-obligation quotes.

Tip #10: Avoid optional riders

Every additional coverage option adds to your life insurance premiums, and most are just plain unnecessary. 

For example, the majority of Canadian term life insurance policies are convertible and renewable with no further proof of insurability. You shouldn’t have to pay extra to guarantee your eligibility for permanent coverage. Similarly, by promising to double your beneficiaries’ payout in the event of an accident, accidental death riders are really just asking you to gamble.

We recommend saving your money instead.

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Did you know?

PolicyMe includes $10,000 of free coverage per child with every life insurance policy.

FAQ: Affordable life insurance