Life insurance in Alberta
Alberta families can save on term life insurance with PolicyMe.
Term life insurance quotes in Alberta
Average starting costs for PolicyMe term life insurance with $500,000 over 20 years
Age | Premiums For Women | Premiums For Men |
|---|---|---|
30 | $20.68 | $29.67 |
35 | $22.93 | $31.29 |
40 | $33.27 | $44.96 |
45 | $51.25 | $71.49 |
*For a non-smoking person with average health.
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How much does life insurance cost in Alberta?
Averaged across 20 insurance companies, a term life insurance policy in Alberta with $500,000 in coverage costs an average of $54.83 per month, or $657.96 per year, for healthy, non-smoking applicants aged 30-39.
Term Length | Industry Average Rates | PolicyMe Average Rates |
|---|---|---|
10 years | $32.58 | $20.79 |
15 years | $41,75 | $25.76 |
20 years | $50.33 | $30.11 |
25 years | $66.00 | $42.60 |
30 years | $83.50 | $54.15 |
*The table above shows average premiums for term life insurance across 20+ carriers in the industry.
What impacts life insurance cost?
Living in Alberta doesn’t affect the cost of life insurance — in fact, life insurance prices are constant across Canada. Instead, insurers will determine the cost of your policy based on a few key factors, including:
- Your age
- The amount of coverage you’re purchasing
- The length of your policy term
Your health, whether or not you smoke, and other lifestyle factors can also impact the cost of life insurance in Alberta.
What are the best life insurance companies in Alberta?
The “best” life insurance isn’t one-size-fits-all—it depends on your coverage needs, lifestyle, and more. We’ve ranked the best life insurance companies across the most common categories.
Category | Insurance Company |
|---|---|
Best Life Insurance Company | PolicyMe |
Best Term Life Insurance | PolicyMe |
Best Whole Life Insurance | Manulife |
Best Whole Life Insurance with Cash Value | Sun Life |
Best Universal Life Insurance | BMO |
Best Participating Life Insurance | Canada Life |
Best No Medical Life Insurance | Canada Protection Plan |
Best Life Insurance for Seniors | Co-operators |
Best Life Insurance for Smokers | Co-operators |
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 received a final, averaged score out of 5. After adding the results together, we had a definitive list of the best life insurance providers in Canada.
PolicyMe does not receive compensation for any life insurance reviews.
How much life insurance does the average Albertan need?
Not sure how much to budget for life insurance or how much life insurance you’ll need? Let’s use some basic data to build a sample life insurance policy for the average Albertan.
Debt: $24,659
According to a 2024 Equifax report, Albertans carry an average of $24,659 in debt.1
Income: $64,100
The average annual income for Albertans aged 15 years and over is $64,100.2
Mortgage: $267,900
Average mortgage debt in Alberta for all age groups is $267,900.3
Education: $30,936
$7,734 is the average annual tuition fee in Alberta for a Canadian undergraduate. Multiply that by four, and it costs an average of $30,936 to send your kid to college.4
According to our research, the average Albertan would benefit from $387,595 in term life insurance coverage.
Using the DIME method, we’ve estimated that an average Albertan might have life insurance needs totalling just under $400,000. A term life insurance policy for that coverage amount costs an average of $525 per year, or $44 per month, for applicants under age 40.
For Albertans living in major cities like Calgary or Edmonton — or in rural areas — these figures might look different. To get a more exact estimate of your insurance needs, you can use PolicyMe’s online term life insurance calculator to see three levels of coverage you may want to consider.
1 https://www.equifax.ca/about-equifax/newsroom/-/intlpress/delinquency-levels-show-signs-of-stabilizing-but-the-financial-gap-continues-to-widen-for-some-canadians
2 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901
3 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110001601
4 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3710004501
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How do we offer a better life insurance rate?
Usually, around 40% of a policy's rate is used for distribution and underwriting costs.
We removed the extra admin and fluff with technology to help you save money.
You'll still get fully underwritten, high-quality life insurance, but at a more affordable price.
Our life insurance rates in Alberta are hard to beat…
And our application process is delightfully simple!
PolicyMe is Better Business Bureau accredited. They've rated us A+; which is a rating based on a combination of publicly available information and the reputation we have with our customers.
Life insurance in Alberta: Quick facts
58 life insurers
Alberta has 58 licensed life insurance providers, meaning residents have plenty of options.5
Albertans buy more life insurance
Alberta has the highest average life insurance coverage level in Canada, at $572,000 compared to the national average of $483,000. That’s just under 9 times the average annual income for the province.5 6
Albertans buy life insurance younger
The median age of life insurance policyholders in Alberta is 38, which is tied with SK and MB as the lowest in Canada. Only the territories are lower. BC’s median is 41.5
Life expectancy is below average
Life expectancy at birth in Alberta is 80 years, just below the Canadian national average of 81.5 years.7
Less coverage from work policies
Employer-provided group life insurance policies in Canada total just 35 percent of the value of total policies.5
$17.3B paid out to policyholders
In 2023, Canadian life insurers paid out a total of $17.3 billion to policyholders, including $9.2 billion in death benefits.5
How do you get term life insurance in Alberta?
1. Decide what type of insurance you need
Most people who need life insurance need it to cover temporary financial burdens: dependent kids, a mortgage, or a major loan. Term life is the best coverage to meet these needs. If you have dependents who will need lifelong care or have other complex estate planning needs, though, you might need a permanent life insurance option such as universal or whole life insurance. Not sure where you fall? Ask a licensed insurance advisor for their insight.
2. Figure out how much coverage you need
How much money would your loved ones need if you passed away? The simplest rule-of-thumb calculation for your life insurance coverage target is 7-10x your annual income, but you can make a more detailed estimate (and avoid overpaying) with a sophisticated online calculator or the help of a financial professional.
3. Research life insurance companies in Alberta
Look for reputable insurance providers doing business in your area. Take time to read reviews from current customers and investigate each company’s financial stability. You can do this research on your own or work with a licensed broker who knows the ins and outs of the market.
4. Fill out an application form with the company you choose
Once you know the life insurer you’d like to do business with, fill out an application either online or through an agent with your personal information, contact details, and any relevant information requested regarding your health and lifestyle.
5. Provide documentation or medical information as needed
Be prepared to submit additional documentation or undergo a medical exam in the application process. While this may seem inconvenient, it can help your insurer tailor your premium to your exact level of risk with full underwriting, meaning you’re less likely to overpay.
6. Review and sign your policy once approved
Take the time to read through your policy once you’re approved. If you find anything you don’t understand — from coverage details, exclusions, and beneficiaries to your payment schedule — ask an agent before signing.
Why term life is the best life insurance type for most families in Alberta
You may notice that we’ve only talked about the cost of term life insurance — but what about permanent life insurance options?
While some families, like those with a high net worth or dependents in need of lifelong care, might benefit from the features of a permanent life insurance policy, it’s not the best fit for most families. Term life is more affordable and typically a better solution to the temporary financial risks of raising children or paying off a mortgage.
Whole and universal life insurance plans can include a cash value component that saves and invests money over time, which may sound appealing. But unless you’ve already exhausted other investment options, including FHSA, RRSP, and TFSA contributions, opting for a cheaper term life policy and investing the extra cash yourself typically offers better returns.
If you know that your children will need support, such as in-home care, even after they’re 18, you may want to speak with a professional about permanent life insurance. Keep in mind that some term life insurance policies can be converted to permanent plans.
No; if you outlive your term life insurance, you’ve still put money towards protecting your family’s finances — and by opting for term life insurance, you keep that protection as affordable as possible while freeing up your finances for other expenses and investments.
FAQ: Life insurance in Alberta
Term life insurance plans typically cost $40 and $138 per month for policyholders under age 40 in Alberta. While the province you live in doesn’t impact the cost of life insurance products in Canada, your age, term length, and selected coverage level play a major role in determining the cost of your policy.
The average monthly insurance premium payment for a term life insurance policy with $500,000 of coverage ranges from around $12 per month for applicants in their 20s to $394 per month or more for applicants in their 40s. Other types of life insurance, such as whole or universal life insurance or policies with a cash value option, may have different payments.
The best life insurance company in Canada depends on your financial needs, priorities, lifestyle and more. When shopping for life insurance, consider more than finding affordable coverage. You should also look for a life insurance provider with positive customer service reviews and good financial security. If you’re interested in multiple insurance products in addition to life insurance, such as critical illness insurance, disability insurance or health insurance, look for insurers that can meet a variety of needs.
To get term life insurance in Alberta, start by determining your insurance needs by estimating the amount of coverage your family would need to cover living expenses, education, debts and other key financial responsibilities if you were to die. Next, research companies that offer term life insurance in Alberta and evaluate each company’s reputation and offerings. Once you’ve chosen a company, fill out an application and provide any documentation requested.
The primary benefit of having life insurance in Alberta is the peace of mind that comes with knowing that your family’s financial future won’t be put in jeopardy if you die unexpectedly. Upon your passing, a term life insurance policy can issue a tax-free lump sum payment to your family to help cover funeral costs, living expenses, debts, and more.
