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Key Takeaways
Desjardins, Assumption Mutual, and PolicyMe offer some of the best permanent life insurance plans in Canada based on PolicyMe’s analysis.
Permanent life insurance is a pricier product that’s most beneficial to a select group of Canadians, especially those with a high net worth.
The most accessible type of permanent life insurance policy is a term-to-100 plan with no cash value component.
Monthly premiums for permanent life insurance start around $50/month for healthy, non-smoking applicants in their 30s.
The best permanent life insurance for Canadians
Permanent life insurance offers lifelong financial protection for Canadian families, with a guaranteed tax-free lump sum payout upon the policyholder’s death as long as premiums are up to date.
You’ve maxed out traditional investment and savings mechanisms like TFSAs and RRSPs
You have dependents in need of lifelong coverage (e.g. a spouse or child with a disability requiring lifelong support)
You have complex estate planning needs
In these situations, permanent life insurance options offer benefits like tax-advantaged cash value growth. But for the majority of Canadians, term life insurance is still the best financial planning option.
The reality is that permanent life insurance is a very specialized product that only meets the needs of a very small percentage of the population. — Andrew Ostro, Co-Founder & CEO of PolicyMe
If you’re among the select group of Canadians who can benefit from a permanent life insurance policy, the table below highlights six of the best plans from trusted life insurance providers, organized by type of coverage and customer category.
Category
Company
Product
Rating
Price comparison*
Best term-to-100 life (T100)
Desjardins Financial Security
Term to 100
★★★★☆ (4.0)
Costs 3% less than industry average
Best whole life
Assumption Mutual Life Insurance Company
ParPlus (Life Pay Enhanced)
★★★★★ (4.5)
Costs 8% less than industry average
Best universal life
Desjardins Financial Security
Universal Life - Term to 100
★★★★★ (4.5)
Costs 11% less than industry average
Best permanent for seniors
Foresters Life Insurance Company
Non-Par Whole Life Pay to 100
★★★★☆ (4.0)
Costs 10% less than industry average
Best no medical permanent
IA (Industrial Alliance)
Access Life L100 Immediate Plus
★★★★★ (4.5)
Costs 5% less than industry average
Best permanent for smokers
Assumption Mutual Life Insurance Company
ParPlus (Life Pay Enhanced)
★★★★★ (4.5)
Costs 6% less than industry average
* We compared each product's yearly costs to the average cost of similar products for the same type of applicant.
How we picked the best permanent life insurance in Canada
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+ Canadian life insurance products with in-depth research on 20+ providers, plus expert recommendations from our insurance advisors. Our star rating system assigns three stars for financial stability, one star for competitive pricing, a half-star for customer satisfaction, and a final half-star for ease of purchase.
Rankings are determined first by star rating and then by price. Our findings are entirely data-based and do not include paid placements, but should not be considered a substitute for personalized financial advice.
Is permanent life insurance a good investment?
Life insurance should never be treated as an investment tool — but for a small group of Canadians who have already exhausted traditional investment accounts, the tax-deferred cash value growth of some permanent policies could act as an added perk.
“I don’t always recommend life insurance as an investment,” says Susan Cruikshank, Senior Tax Manager at BDO Canada. “But for a higher-net-worth client, we will often use life insurance as a savings mechanism for funds they wouldn’t otherwise use while living.”
If you’re not in that high net-worth group, however, your money is typically better invested outside of your life insurance coverage.
Erik Heidebrecht, Customer Service Manager and Licensed Insurance Advisor at PolicyMe, explains it like this: “If you buy an expensive permanent insurance plan, it’s going to take money away from saving for a down payment, which might be more important.” Instead, he says, it’s smarter to “consider a cheaper term insurance policy that will get you what you want from an insurance perspective without jeopardizing savings for retirement, for a house, or whatever it may be.”
Term life policies allow Canadians to access much higher coverage amounts at a price well below that of permanent insurance. With full underwriting to evaluate and mitigate risk, term life helps families meet their financial goals without compromising the financial protection they need when tragedy strikes.
What’s more, a shocking 87% of permanent universal life insurance policies never pay out, largely due to payment lapses caused by unexpected events — and life is full of those. Term life claims pay out 99% of the time, thanks to low premiums and robust industry safeguards.
See how affordable term life insurance can be with PolicyMe.*
Term-to-100 life insurance is a permanent life insurance product that covers the policyholder’s entire life, with fixed premiums and no cash value growth component. Think of it as a basic term life insurance policy that won’t expire until your 100th birthday.
For Canadians in need of lifelong coverage, term-to-100 is the most affordable and practical permanent life insurance option. Our top plans come from Desjardins, PolicyMe, and the Empire Life Insurance Company and start around $30/month.
Company
Product
Rating
Premiums*
Desjardins Financial Security
Term to 100
★★★★☆ (4.0)
$30/month
Policyme
Term 100
★★★★☆ (4.0)
$31/month
The Empire Life Insurance Company
Term to 100
★★★★☆ (3.5)
$30/month
* For each product, we display the approximate monthly cost for a 30-year-old female non-smoker seeking a term 100 life insurance policy with $50,000 in coverage.
Term to 100 by Desjardins
Best term 100 life insurance - #1
Desjardins Financial Security
(4.0)
Great Customer Service
Quote Online
Costs 3% less
than industry average
Desjardins Term to 100 life insurance is competitively priced and--with 11 riders, positive Google reviews, and an "A+" from Standard & Poor's--our top pick for permanent life insurance. The only downside is its above-average pricing for adults over the age of 44.
Pros
11 Available riders
Bundling discount
Choice to stop paying premiums and reduce coverage in year 8
High Google review scores
Includes access to autonomy, home, psychological and telehealth phone assistance lines
Cons
Above-average rates for older applicants
Limited information available online
Term life insurance with $50,000 - $20 million in coverage for 10-30 years
Life Insurance Over 50 with $5,000 - $20,000 in lifetime coverage and no medical exam
Term to 100 with lifetime coverage
Universal Life with investment options
Whole Life Guaranteed to 100 with participating dividends
With Term 100, PolicyMe took the same cost-effective approach to permanent coverage as we did to term. Our permanent life insurance undercuts industry average rates by as much as 9%, without sacrificing a high customer satisfaction rating.
The drawbacks are a lack of customization and cash value. If you'd rather treat your life insurance policy as an investment vehicle, you may prefer a universal or whole life policy.
Pros
$10,000 - $5 million in lifetime coverage available
$10,000 Of complimentary coverage per child with every policy
31-Day missed payment grace period
30-Day trial period
10% First-year discount for couples
Below-average rates for all ages and smokers
Buy online or over the phone
High Google review scores
Pay by credit card
Cons
No accidental death and dismemberment or guaranteed insurability riders
No brick-and-mortar offices
No universal or whole life insurance
Term life insurance with $100,000 - $5 million in coverage for 10-30 years
Term 100 life insurance with $10,000 - $5 million in lifetime coverage
Term to 100 by The Empire Life Insurance Company
Best term 100 life insurance - #3
The Empire Life Insurance Company
(3.5)
Great Customer Service
Costs 4% less
than industry average
Empire Life is an established name in the Canadian insurance industry, and with a 4.2-star rating on Google and an "A" from Morningstar DBRS, it has every reason to continue. Its Term to 100 plan offers a great deal to non-smokers of all ages and smokers under the age of 45. As with other T100 products, there are few frills attached, but you can customize your policy with 14 riders.
Pros
$10,000 - $20 million in lifetime coverage available
14 Available riders
Below-average rates for applicants between the ages of 18-44
Choice of paying until age 20 or age 100
Choice of single, joint or multi-life coverage
Includes Living Benefit Advance
Option to stop premiums in return for reduced coverage starting in year 8
Cons
Above-average rates for smokers over the age of 45
Phone call may be required to quote and purchase
Solution 10-30 with $25,000 - $20 million in coverage for 10-30 years
Solution ART with $25,000 - $499,999 in coverage for 3 years
EstateMax with $10,000+ in lifetime coverage and participating dividends
Optimax with $5,000+ in lifetime coverage and participating dividends
Solution 100 with $10,000 - $10 million in lifetime coverage
Term to 100 with $10,000 - $20 million in lifetime coverage
* We compared each product's yearly costs to the average cost of similar products for the same type of applicant. This figure shows the approximate price difference for a 30-year-old female non-smoker shopping for a term 100 life insurance policy with $50,000 in coverage.
Best whole life insurance
The product
Whole life insurance is a permanent life insurance product with fixed premiums and a savings component that allows the policy’s cash value to grow over time. Some whole life insurance policies are participating, meaning that policyholders can earn dividends based on the insurer’s performance that can be converted to cash, used to generate interest, or applied against future premiums.
Whole life insurance is one of the most popular permanent life insurance products, but its advantages may not live up to their promised value for most Canadians. If you’re interested in whole life insurance for its cash value growth component, you may be better off opting for a more cost-effective term insurance solution and investing the amount you’ve saved in premiums in a TFSA or RRSP.
“Whole and universal life insurance generally isn't worth it for the majority of Canadians.” — Erik Heidebrecht, Licensed Insurance Advisor
Company
Product
Rating
Premiums*
Assumption Mutual Life Insurance Company
ParPlus (Life Pay Enhanced)
★★★★★ (4.5)
$30/month
Canada Protection Plan (Foresters Life)
Preferred Whole Life
★★★★☆ (3.5)
$33/month
The Empire Life Insurance Company
Solution 100
★★★★☆ (3.5)
$33/month
* For each product, we display the approximate monthly cost for a 30-year-old female non-smoker seeking a whole life insurance policy with $50,000 in coverage.
ParPlus (Life Pay Enhanced) by Assumption Mutual
Best whole life insurance - #1
Assumption Mutual Life Insurance Company
(4.5)
Great Customer Service
Costs 8% less
than industry average
The price of ParPlus by Assumption Life starts at 17% below the industry average and maintains its competitive streak until applicants reach the age of 44. At that point, older adults and seniors are better off seeking a non-participating permanent life insurance product to save on premiums.
However, its pricing remains below-average for smokers of any age.
Pros
$5,000 - $4 million in lifetime coverage available
$80 Annual policy fee
7 Available riders
Choice of paying for 20 years or until age 100
Choice to receive dividends as accumulation, cash, enhanced, paid-up additions or reduced premiums
Choice of individual or joint life coverage
Includes the ability to vote at annual general meetings
Cons
Above-average rates for older applicants and seniors
Phone call may be required to quote and purchase
FlexTerm with $100,000 - $10 million in coverage for 10-35 years
YouthPlus with $35,000 - $175,000 in coverage until age 25
Non-Participating Whole Life with $5,000 - $10 million in lifetime coverage
ParPlus and ParPlus Junior with $5,000 - $4 million in lifetime coverage
Bronze, Silver, Gold and Platinum Protection Whole Life with $5,000 - $750,000 in lifetime coverage
Preferred Whole Life by Canada Protection Plan
Best whole life insurance - #2
Canada Protection Plan (Foresters Life)
(3.5)
Quote Online
Costs 2% more
than industry average
Preferred Whole Life is no medical, permanent life insurance issued by Canada Protection Plan. If you're in good health, you'll qualify for CPP's second-best rates and an above-average amount of coverage. Otherwise, you'll have to settle for higher insurance premiums and a lower face amount.
It's a good product from a trusted insurer with an "A" from A.M. Best, but we recommend first applying for a fully underwritten policy (with a possible medical exam). According to the Canadian Life and Health Insurance Association, 96% of life insurance applicants receive the coverage they applied for and qualify for standard rates.
Pros
$50,000 - $1 million in lifetime coverage available
10-Day Free Look Guarantee
3 Available riders
Choice of paying for 20 years or until age 100
Guaranteed cash value starting in year 5
Includes terminal illness benefit, transportation benefit and access to online will creator, learning library, orphan benefit and more
No waiting period
Cons
Above-average rates for all ages and smokers
Restricted to applicants in good health
Preferred Elite, Express Elite, Preferred, Simplified Elite and Deferred Elite Term Life Insurance with $25,000 - $1 million in coverage for 10-30 years and no medical exam
Preferred Elite, Preferred, Simplified Elite, Deferred Elite, Deferred and Guaranteed Acceptance Life with $5,000 - $1 million in lifetime coverage and no medical exam
Solution 100 by The Empire Life Insurance Company
Best whole life insurance - #3
The Empire Life Insurance Company
(3.5)
Great Customer Service
Costs 2% more
than industry average
Solution 100 is a non-participating whole life insurance product from Empire Life. Despite the lack of dividends, it still costs more than term life insurance, and your only advantage is a guaranteed cash surrender value starting in year four. The problem with cash surrender values is you have to wait a long time to see substantial value.
For example, in a 2020 case study by Empire Life, a customer's guaranteed cash surrender value only grew 2% after 20 years. They probably could have gained more by buying 20-year term life insurance policy, investing the money they saved, and shopping for a new term policy once the old one expired.
Pros
$10,000 - $10 million in lifetime coverage available
$50 Annual policy fee
8 Available riders
Below-average rates for applicants between the ages of 18-29
Choice of reduced coverage starting in year 4
Choice of single, joint or multi-life coverage
Guaranteed cash surrender value starting in year 4
Cons
Above-average rates for most ages and smokers
Solution 10-30 with $25,000 - $20 million in coverage for 10-30 years
Solution ART with $25,000 - $499,999 in coverage for 3 years
EstateMax with $10,000+ in lifetime coverage and participating dividends
Optimax with $5,000+ in lifetime coverage and participating dividends
Solution 100 with $10,000 - $10 million in lifetime coverage
Term to 100 with $10,000 - $20 million in lifetime coverage
* We compared each product's yearly costs to the average cost of similar products for the same type of applicant. This figure shows the approximate price difference for a 30-year-old female non-smoker shopping for a whole life insurance policy with $50,000 in coverage.
Best universal life insurance
The product
Universal life insurance is a permanent life insurance product with adjustable premiums and a cash value growth component.
Universal life insurance policies break down into more complex categories, such as index universal life insurance and variable universal life insurance. If you’re considering a policy like this, be sure to meet with a licensed insurance advisor or financial planning expert to be sure your policy choice aligns with your financial goals.
Company
Product
Rating
Premiums*
Desjardins Financial Security
Universal Life - Term to 100
★★★★★ (4.5)
$30/month
IA (Industrial Alliance)
Genesis 10 Life Pay
★★★★☆ (3.5)
$33/month
The Canada Life Assurance Company
Universal Life
★★★☆☆ (3.0)
$33/month
* For each product, we display the approximate monthly cost for a 30-year-old female non-smoker seeking a universal life insurance policy with $50,000 in coverage.
Universal Life – Term to 100 by Desjardins
Best universal life insurance - #1
Desjardins Financial Security
(4.5)
Great Customer Service
Costs 11% less
than industry average
We consider most life insurance add-ons to be unnecessary, but if you ever want to customize a Universal Life policy from Desjardins, you've got 9 choices. More importantly, your premiums will be as low as 8% below the industry average, and Desjardins itself carries a 4.5-star rating from Google and an "A+" from S&P.
Pros
9 Available riders
Bundling discount
High Google review scores
Includes access to telehealth phone assistance
Cons
Above-average rates for senior smokers
Phone call may be required to quote and purchase
Term life insurance with $50,000 - $20 million in coverage for 10-30 years
Life Insurance Over 50 with $5,000 - $20,000 in lifetime coverage and no medical exam
Term to 100 with lifetime coverage
Universal Life with investment options
Whole Life Guaranteed to 100 with participating dividends
Genesis 10 Life Pay by IA (Industrial Alliance)
Best universal life insurance - #2
IA (Industrial Alliance)
(3.5)
Great Customer Service
Costs 1% less
than industry average
Genesis 10 Life Pay is the rare permanent life insurance product that offers comparatively better rates to older applicants than to those below age 45. It's one of the most affordable policies with a cash value on the market (for non-smokers, at least), and while we can't speak to Industrial Alliance's investment acumen, we can confirm it has positive customer service reviews and an "A+" from A.M. Best.
Pros
$100,000 - $10 million in lifetime coverage available
3 Available riders
0.75% Investment bonus starting in year 1 (subject to restrictions)
Choice of face amount only, face amount and fund or face amount and fund with wealth maximizer option
Choice of guaranteed interest and market, diversified and active management accounts
Includes disability benefit
Cons
Above-average rates for applicants between the ages of 18-44 and smokers
No accidental death and dismemberment or guaranteed insurability riders
Phone call may be required to quote and purchase
Access Life Insurance with $10,000 - $350,000 in coverage for 15-25 years or until age 100
Pick-A-Term with $25,000 - $20 million in coverage for 10-40 years
Genesis 10 Life Pay with $100,000 - $10 million in lifetime coverage with investment options
iA PAR Estate Solution or Wealth Solution with lifetime coverage and participating dividends
Universal Life by Canada Life
Best universal life insurance - #3
The Canada Life Assurance Company
(3.0)
Costs 1% less
than industry average
Canada Life's Universal Life insurance policy offers fairly competitive rates and a few choices of how to invest your funds. However, unlike a traditional investment account, you can't transfer your funds should you change your mind, and you'll lose all your accumulated wealth if you can't pay your premiums.
For these reasons, we recommend keeping your coverage and your investments separate unless you're confident you can keep up with your premium payments for the rest of your life.
Pros
$25,000 - $10 million in lifetime coverage available
7 Available riders
Adjustable coverage
Choice of daily interest, guaranteed interest, index, managed and stable growth investment accounts
Choice of level or coverage plus death benefit
Choice of level or increasing premiums to age 85 or 100
Choice of single or joint life coverage
Includes 1% bonus rate (until December 2025) and 0% minimum guarantee
Make partial withdrawals at any time
Cons
Above-average or close-to-average rates for most ages and smokers
Phone call may be required to quote and purchase
My Term with $100,000 - $25 million in coverage for 5-50 years
Estate Achiever Plus with $25,000 - $1 million+ in lifetime coverage and participating dividends
Universal Life with $25,000 - $10 million in lifetime coverage
Wealth Achiever Plus with $100,000 - $1 million+ in lifetime coverage and participating dividends
* We compared each product's yearly costs to the average cost of similar products for the same type of applicant. This figure shows the approximate price difference for a 30-year-old female non-smoker shopping for a universal life insurance policy with $50,000 in coverage.
Best permanent life insurance for seniors
The product
Seniors may want a permanent life insurance policy to cover final expenses, leave a legacy for their loved ones, or access cash value for expenses such as retirement income.
Life insurance costs for seniors are much higher due to the increased risk of mortality. We’ve identified a few permanent policies from top-rated Canadian insurers with competitive rates for seniors, starting at $99/month.
Company
Product
Rating
Premiums*
Foresters Life Insurance Company
Non-Par Whole Life Pay to 100
★★★★☆ (4.0)
$99/month
Policyme
Term 100
★★★★☆ (4.0)
$100/month
Beneva
Simplified Whole Life
★★★★☆ (4.0)
$130/month
* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a permanent life insurance policy with $50,000 in coverage.
Best no medical permanent life insurance
The product
No medical permanent life insurance is a type of policy that doesn’t require any underwriting via medical exams or health questionnaires.
No medical life insurance comes with higher premiums for less coverage. It’s a good option for high-risk applicants who can’t get approved for a fully underwritten or even simplified issue policy, but should generally be treated as a last resort due to the high cost.
“Apply for a fully underwritten term policy first. Then try simplified issue life insurance. If these options don't work, look into guaranteed issue life insurance as a Plan B.” — Erik Heidebrecht, Licensed Insurance Advisor
Company
Product
Rating
Premiums*
IA (Industrial Alliance)
Access Life L100 Immediate Plus
★★★★★ (4.5)
$34/month
IA (Industrial Alliance)
Access Life L100 Guaranteed Access
★★★★★ (4.5)
$75/month
Beneva
Simplified Whole Life
★★★★☆ (4.0)
$39/month
* For each product, we display the approximate monthly cost for a 30-year-old female non-smoker seeking a no medical permanent life insurance policy with $50,000 in coverage.
Best permanent life insurance for smokers
The product
Smokers often pay double the premiums for life insurance that non-smokers would pay for the same coverage.
The plans highlighted below feature competitive rates for smokers compared with other permanent life insurance policies.
Company
Product
Rating
Premiums*
Assumption Mutual Life Insurance Company
ParPlus (Life Pay Enhanced)
★★★★⯪ (4.5)
$36/month
The Empire Life Insurance Company
Term to 100
★★★★⯪ (4.5)
$37/month
IA (Industrial Alliance)
Access Life L100 Guaranteed Access
★★★★⯪ (4.5)
$104/month
* For each product, we display the approximate monthly cost for a 30-year-old female smoker seeking a permanent life insurance policy with $50,000 in coverage.
How to pick the right permanent life insurance policy
Every Canadian’s insurance needs are different. While we believe the plans featured above are among the best options for those who need permanent life insurance, it’s important to do your due diligence to make sure you’re finding the right fit:
Determine if you really need permanent life insurance: Most Canadians don’t. Research your permanent life insurance options and consider buying a term policy and investing your savings elsewhere.
Calculate how much life insurance you need: You can add up your debts, income, mortgage payments, and childcare expenses — or use PolicyMe’s free online life insurance calculator for a quick needs assessment.
Research policies: The plans highlighted above are a good starting point for your analysis, but you may also want to speak with family, friends, or a trusted insurance advisor or financial planner about your options.
Compare quotes: Once you’ve identified 1–3 plans that meet your needs, request life insurance quotes and compare the rates you’re offered.
Apply for life insurance: Fill out an application for your chosen policy and complete any underwriting tasks required, such as a health questionnaire or medical exam. (Skipping medical exams can raise your costs!)
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 the average price of a 10-30-year policy with $600,000 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. Similarly, we compared the best products for seniors using $150,000 of coverage.
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 $400,000 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 $75,000 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.
FAQs: Best permanent life insurance
No single Canadian insurance company has the best permanent life insurance options for everyone. In our analysis, permanent life insurance plans from Desjardins, Assumption Mutual, Foresters, and IA (Industrial Alliance) stood out as some of the best offerings, but you may find a better offer from another insurer.
Term life insurance from PolicyMe ranked as the best term life insurance product in Canada in our analysis of 70+ plans. Other competitive term insurance products include RBC YourTerm, Versatile Term from The Co-Operators (CUMIS Life Insurance Company), and Pick-A-Term from IA (Industrial Alliance).
For most Canadians, permanent life insurance isn’t worth the high premiums and risk of policy lapse. Because it covers the insured’s entire lifespan with a guaranteed death benefit regardless of when they die, a permanent policy costs 5–15x more to maintain than a simple term life insurance policy. While the cash value investment component of some permanent policies offers minimal to moderate growth, these plans have poor returns on investment compared with traditional savings and investment accounts.
Unless you’ve exhausted other ways to save and invest, it’s usually more cost-effective to purchase term insurance and save your money elsewhere.
For a healthy, non-smoking female aged 30–44, a term life insurance with a 10–30 year term and $1,000,000 of coverage costs around $60/month. Men pay higher rates for the same coverage, with premiums ranging from $80–$85/month.
By contrast, a permanent life insurance policy with just $100,000 in coverage costs between $50/month and $95/month for a 30-year-old non-smoking female; rates for men are comparable. Opting for permanent insurance drastically decreases the total amount of coverage any applicant is eligible for while raising costs across the board.
PolicyMe Editorial Team
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.
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