The Best Life Insurance for Couples: A Canadian Guide for 2026
See affordable life insurance quotes from PolicyMe and other top companies.
Quick answer: what’s the best life insurance for couples?
The best life insurance choice for most couples in Canada is two separate term policies, not a joint policy. Couples can choose between three different life insurance structures.
Option 1: Two individual policies (recommended)
- Two payouts means stronger income replacement
- Flexible coverage options
- Cleaner if you separate with no shared contract
- Look for: Term lengths and coverage amounts that align with your financial obligations.
Option 2: Joint first-to-die life insurance
- One payout on the first person’s death
- Good for immediate needs (mortgage, bills)
- Easier admin with one premium
- Survivor loses coverage and may need to requalify for coverage
- Look for: Term length that matches your shared debt timeline with a conversion option.
Option 3: Joint last-to-die life insurance
- Only pays out once both people pass
- Good for estate planning, not income replacement
- No support for surviving partner
Look for: A policy that covers your estimated estate taxes and speak with a trusted financial advisor.
How life insurance works for couples
For couples, life insurance works by protecting the household through insuring each partner’s contributions—whether financial or material (stay-at-home labor).
Here’s how it works: You choose a payout amount for each person that would avoid financially burdening the surviving partner and any dependents.
- Replace each person’s income/contributions
- Cover shared debt
- Protect children’s future expenses
If one of you dies, the policy will pay out a tax-free lump sum to the surviving spouse to help alleviate the sudden loss of income. If you’re concerned about a situation where both parents pass away at the same time, look into designating a trust as a contingent beneficiary to ensure financial protection for any dependents.
"Life insurance is not about being pessimistic; it's about being responsible, loving, and forward-thinking. You're not planning for death; you're planning for life to keep going for the one you love." — Ivana Govedarica, Licensed Advisor at PolicyMe
What’s the best life insurance for couples?
Term life insurance is the best type of life insurance for most couples because it’s simple, affordable, and covers a fixed term of 10-30 years. Compared to permanent policies, term life insurance can provide more coverage for lower premiums, making it easier for parents to stay insured while raising kids or paying off their mortgage.
As a couple, you can either buy a single joint life insurance policy or two term life insurance policies. Even though it’s more expensive, we recommend purchasing separate policies. Two life insurance plans provide two payouts (joint life only provides one) and are easier to split if you go your separate ways.
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+ life insurance products with in-depth research on 20+ providers. We assigned each product a star rating out of five based on a mix of average pricing, Google Review scores, and shopping convenience, then ranked the results in 12 categories.
Rankings are determined first by star rating and then by price. Our findings are entirely data-driven and do not include paid placements, but should not be considered a substitute for personalized financial advice.
Read more: Life Insurance Ratings & Reviews Methodology
Assuming you’re a pair of male and female non-smokers, you’ll pay an average of $88/month for two new policies with 10-30-year terms and $600,000 in coverage:
* For each product, we calculated the average monthly premiums for a male and female non-smoker between 30-44. The results show the approximate cost of two 10-30-year term life insurance policies with $600,000 in coverage each.
We always recommend applying for fully underwritten over no medical life insurance, especially if you’re young and healthy.
Not only are your life insurance premiums likely to be cheaper, but you could also qualify for more coverage–and you might not have to take an exam at all! Couples from 18-50 who apply for less than $2,000,000 from PolicyMe may be eligible for instant approval without a medical exam.
Term life insurance by PolicyMe
Solution by Empire Life
Term life insurance by Desjardins
* 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 female non-smoker between 30-44 shopping for a 10-30-year term life insurance policy with $600,000 in coverage.
How much life insurance do couples need?
A couple needs enough life insurance to keep surviving family members financially stable—the average coverage amount in Canada is $500,000 per term policy.
Here’s a step-by-step guide to figure out how much you and your partner need:
Income replacement
- 10-15x the person’s annual income or economic value of the stay-at-home parent’s contributions
Debts
- Mortgage
- Joint loans, credit cards, lines of credit
- Final expenses (legal, taxes, funeral)
Childcare and family support
- Daycare and nanny expenses
- Education and tuition fees
- Daily living costs until kids become financially independent
Future goals
- Retirement for the surviving partner
- Major plans (travel, renovations)
- Buffer for inflation and unexpected costs
If one of you dies, your policy should cover the gap in income fully, not partially. Think through what each partner might need if the other person passes away—and think long term.
Common life insurance mistakes that couples can make
Most mistakes are due to gaps in coverage or poor planning, but you can easily get ahead with a bit of simple math and clear thinking.
Mistake #1: Picking the wrong term length
Too short, and your coverage will expire before your obligations are done. Too long, and you’ll overpay for coverage you don’t need.
→ Choose a length that matches your longest financial dependency.
Mistake #2: Relying on group coverage only
Workplace coverage has a very low cap (1-2x your salary) and it’s tied to your job, so you lose it if you leave or get fired.
→ Get a personal term policy that fits your family’s needs, even if you also have a group policy.
Mistake #3: Only naming a spouse
If both parents pass in the same incident, but the policies only name spouses as beneficiaries, then the payout may get stuck in probate and delay reaching your children.
→ Name a contingent beneficiary, like a trust or a relative.
Mistake #4: Underinsured the stay-at-home or lower-income partner
Each partner contributes to the household in their own way. A stay-at-home parent or lower-income earner may contribute more childcare and overall support.
→ Insure each person based on their economic contribution, not purely income.
Mistake #5: Choosing joint first-to-die just to save money
First-to-die policies can be cheaper than two term policies, but they only deliver a single payout. Plus, the survivor is left uninsured once the policy pays out.
→ Use two individual policies for better coverage, unless you only have a shared, temporary debt.
Mistake #6: Not updating
Life changes fast, and major life events like marriages, separations, births, and new debts may change how you want your policy to be structured.
→ Plan to review your policy regularly to update or confirm beneficiary information.
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 April 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.
How to choose the best life insurance policy for you
Life insurance works best when it’s tailored to your needs. To find a policy that works for the two of you, first:
- Consider term vs permanent. If your financial obligations will end or change in a decade or two, term life insurance is likely your best option. If you’re planning for end-of-life or estate planning expenses, permanent life insurance may suit you better.
- Calculate your life insurance needs. Rather than simply multiplying your income, sit down and think about your dependents, how much financial support you want to provide, and for how long. Tally up any debts you want to pay off, then subtract your savings, assets, and any existing coverage you already have.
- Choose your term length or permanent life insurance options. Think about how long your financial obligations will last and set your term accordingly. Consider your budget carefully to see if you can support the extra cost of a cash value, investment account or participating option.
- Compare permanent and term life insurance quotes. The best way to find a deal is to compare prices from multiple insurers.
As a couple, you can either buy a single joint life insurance policy with a single payout, or buy a pair of individual policies with differently-sized payouts. The latter provides more flexibility, and you can save money if one of you chooses a lower amount of coverage.
PolicyMe’s term life insurance calculator can help you size up how much life insurance you need to address your unique needs and financial goals.
FAQ: Best life insurance for couples in Canada
Jaya is a researcher and writer with 3 years of experience in insurance and finance. She writes in-depth content that bridges technical expertise with accessible insights. Her work spans topics such as life insurance, health and dental coverage, car insurance, and financial literacy, helping Canadians make informed decisions about their financial protection. With a background in market research and editorial strategy, she collaborates closely with subject matter experts to ensure accuracy, clarity, and value in every piece.
Jaya is a researcher and writer with 3 years of experience in insurance and finance. She writes in-depth content that bridges technical expertise with accessible insights. Her work spans topics such as life insurance, health and dental coverage, car insurance, and financial literacy, helping Canadians make informed decisions about their financial protection. With a background in market research and editorial strategy, she collaborates closely with subject matter experts to ensure accuracy, clarity, and value in every piece.