The Best Permanent Life Insurance for Canadians (2026)

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 may need permanent life insurance if: 

• You have a high net worth
• 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. 

^{* We compared each product's yearly costs to the average cost of similar products for a 60-year-old female  seeking $25,000 in coverage.}

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.

Read more: Life insurance rating and reviews methodology

Is permanent life insurance a good investment?

Permanent life insurance is primarily designed to provide lifelong coverage, not to maximize investment returns. However, some permanent policies include tax-advantaged cash value growth, which can play a role in a broader financial plan for certain Canadians.

As Susan Cruikshank, Senior Tax Manager at BDO Canada, explains: "I don't always recommend life insurance as an investment. 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."

For most Canadians, registered investment accounts such as a TFSA or RRSP, along with other traditional investment options, are often the first place to build long-term wealth. Once those opportunities have been fully utilized, permanent life insurance may offer additional planning benefits depending on your financial goals and tax situation.

 “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 sometimes 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.” – Erik Heidebrecht, Customer Service Manager and Licensed Insurance Advisor at PolicyMe

Our expert recommendation

We always recommend applying for a fully underwritten term life insurance policy first.

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.

Best term-to-100 life insurance

The product

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. 

^{* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a no medical permanent life insurance policy with $25,000 in coverage.}

Term to 100 by Empire Life

Term 100 by PolicyMe 

Simply Immediate Life by ivari

^{* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a no medical permanent life insurance policy with $25,000 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

^{* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a no medical permanent life insurance policy with $25,000 in coverage.}

Enhanced Term 100 by Beneva

Access Life L100 Immediate Plus by Industrial Alliance

Solution 100 by Empire Life

^{* 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 60-year-old female non-smoker shopping for a whole life insurance policy with $25,000 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. 

^{* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a no medical permanent life insurance policy with $25,000 in coverage.}

Universal Life by Beneva

Generations by Equitable Life Insurance Co of Canada

Universal Life by Canada Life

^{* 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

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 premiums generally increase with age, so seniors can expect to pay more than younger applicants for the same coverage. That said, several top-rated Canadian insurers offer permanent life insurance policies with competitive pricing for older adults, with rates starting at around $52/month. 

^{* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a no medical permanent life insurance policy with $25,000 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 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

^{* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a no medical permanent life insurance policy with $25,000 in coverage.}

Best permanent life insurance for smokers

Smokers can 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.

^{* For each product, we display the approximate monthly cost for a 60-year-old female non-smoker seeking a no medical permanent life insurance policy with $25,000 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: 
‍

1. Determine whether permanent life insurance is right for you: Consider your financial goals, budget and how long you need coverage before choosing between term and permanent life insurance.
2. 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. 
3. 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. 
4. Compare quotes: Once you’ve identified 1–3 plans that meet your needs, request life insurance quotes and compare the rates you’re offered. 
5. 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 July 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.

Read more: Life insurance rating and reviews methodology

FAQs: Best permanent life insurance