The Best Life Insurance for Parents in Canada (2026 Guide)

The best life insurance for parents in Canada

Life insurance exists to protect loved ones from the financial fallout of someone passing away — and no one needs greater protection than children. 

But where to start? With the incredible variety of life insurance quotes on offer in Canada, it’s often hard for young families to identify the right coverage to protect their financial future. 

Every family is different, but the basics of life insurance for parents are essentially the same: Your life insurance policy should: 

• Have enough coverage to pay for childcare, education, daily expenses, outstanding debts, and anything else in your financial plan 
• Last until your youngest child is financially independent
• Fit your budget without compromising your family’s financial needs

In the sections below, we’ll walk through tailored life insurance recommendations for parents at every stage of life to help you set up the safety net your family needs. 

‍

What you should be looking for

Type of policy: Term life insurance is designed to replace income and cover dependents’ expenses in the event of an unexpected or early death, so term life insurance — not permanent — is what most parents need.

Term length: Base your term length on the number of children you expect to have. If you’re planning for a larger family, account for the number of years it will take your youngest child to reach financial independence.

Coverage amount: Your life insurance benefit should encompass the cost of income replacement, outstanding debts, mortgage payments (if applicable), your children’s education, and any other costs you want covered in the event of your death.

Joint vs. separate: Joint policies are cheaper but riskier, while separate combined policies can address each parent’s insurance needs and account for changes in family structure, budget, or health over time.

How we found the best life insurance for parents 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.

Best life insurance: If you’re a new parent

If you’re a new parent, buying life insurance should be near the top of your checklist (right after “learn how to change a diaper” and “get some sleep”). When shopping for life insurance as a new parent, ask yourself: 

• Do you plan to have more children? If you’re planning to have more kids, consider a longer term length. 
• Will parenthood affect your household income? If one parent plans to be a stay-at-home parent or reduce their working hours, take this into account when calculating the income your policy needs to cover. 
• How much do you plan to spend on childcare and education? Factor these long-term costs into the amount of coverage you buy. 

For new parents, a 20-year term life insurance policy is typically a good option, since it will last until your newborn turns 18. For $500,000 of coverage (the average for Canadian households), a 20-year term policy typically starts around $20/month for nonsmoking mothers in good health. 

The best 20-year life insurance plans for new parents

^{* For each product, we calculated the average monthly premiums for a female non-smoker between 25-35. The results show the approximate cost of a 20-year term life insurance policy with $500,000 in 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 female non-smoker between 25-35 shopping for a 20-year term life insurance policy with $500,000 in coverage.}

Best life insurance: If you’re expecting

There are a number of advantages to buying life insurance before your first child is born. As a rule, the earlier you buy life insurance, the cheaper your premiums will be. You’ll also improve your approval odds and overall costs by purchasing either before pregnancy or in the first trimester, since health complications associated with later stages of pregnancy and childbirth could raise your risk level. 

When shopping for life insurance as an expectant parent, ask yourself the following questions: 

• How advanced is your pregnancy? Some life insurance companies may not approve you in the later stages of pregnancy, or you could see higher rates if key health markers like blood pressure don’t meet underwriting guidelines for non-pregnant applicants. 
• Do you intend to have multiple children? A longer term length (e.g. 20, 25, or 30 years) is ideal if you’re planning for a large family. 
• Do you expect a high-risk pregnancy? It’s a sobering thought, but if you have reason to expect a high-risk pregnancy (e.g. family history, pre-existing conditions), you may want to get a life insurance plan in place early on in the process. 

For expectant parents, a longer term length such as 25 or 30 years may be ideal, especially if you’re under age 30. For $500,000 of coverage (the average for Canadian households), a 30-year term policy typically starts around $30/month for nonsmoking mothers in good health. 

The best 30-year life insurance plans for expectant parents

^{* For each product, we calculated the average monthly premiums for a female non-smoker between 25-35. The results show the approximate cost of a 30-year term life insurance policy with $500,000 in 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 female non-smoker between 25-35 shopping for a 30-year term life insurance policy with $500,000 in coverage.}

Best life insurance: If you have young children (5–10)

As your youngest child reaches school age, your life insurance needs may shift. Ask yourself the following questions if you’re shopping for life insurance as the parent of children aged 5 to 10 years: 

• How much do you expect to spend on childcare and education? If you want your policy to account for after-school care, extracurricular activities, private school, or college tuition, factor these financial plans into your policy. 
• What assets and resources are available to your family? Remember that your life insurance can work in tandem with any other safety nets, such as savings, assets, family wealth, or group insurance coverage through a spouse or co-parent’s employer.  
• When will your mortgage be paid off? If you have a mortgage, will it be paid off before your children reach financial independence? Consider buying an additional, shorter policy to cover the years before your mortgage ends to avoid overpaying for coverage. 

If your youngest child is 5 years or older, a 15-year term life insurance policy may be the best fit. For parents aged 30–44, monthly premiums for a 15-year policy with $500,000 in coverage start around $25/month. 

The best 15-year life insurance plans for parents of young children

^{* For each product, we calculated the average monthly premiums for a female non-smoker between 30-44. The results show the approximate cost of a 15-year term life insurance policy with $500,000 in 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 female non-smoker between 30-44 shopping for a 15-year term life insurance policy with $500,000 in coverage.}

Best life insurance: If your kids are older (11+)

If you’re buying life insurance later in life with children in middle or high school, your priorities and financial needs may be different. Ask yourself these questions as you weigh your options: 

• Is your mortgage paid off? Consider your outstanding debts and assets when estimating the total amount of life insurance you need. 
• How far are you from retirement? If you expect to retire within the next 10 years, you might need a shorter life insurance term. 
• Do you want to leave a legacy for your children? Life insurance goes hand in hand with estate planning. Your policy can cover essentials, but it may also be a way to leave some funds to your loved ones. 

If all of your children are 11 years old or older, a 10-year term life insurance policy may be the best fit. For $500,000 of coverage, this type of policy starts around $35/month for healthy, non-smoking parents in their 40s and 50s. 

The best 10-year life insurance plans for parents of older children

^{* For each product, we calculated the average monthly premiums for a female non-smoker between 40-54. The results show the approximate cost of a 10-year term life insurance policy with $500,000 in 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 female non-smoker between 40-54 shopping for a 10-year term life insurance policy with $500,000 in coverage.}

How to choose the best type of life insurance as a parent

For parents, a good life insurance policy means peace of mind. But how can you be sure you’re picking the best policy? 

Start with the basics. Why are you buying life insurance? For most parents, life insurance is a means of financial protection for dependent children; it’s a way to make sure your kids are cared for even if you die while they’re young. If that’s your primary goal, start by looking at term life insurance policies; don’t be drawn in by permanent insurance pitches promising huge cash value growth or other long-term benefits.

When term insurance isn’t right

Most Canadian parents need term life insurance, not permanent — but some families may benefit from the unique strengths of a whole or universal life insurance policy with the ability to build tax-advantaged value over time.

Permanent life insurance is typically worth considering if you have a high net worth, are in a high-earning profession, and/or have maxed out other traditional retirement and savings accounts such as RRSPs, TFSAs, and RESPs. However, this type of life insurance comes with much higher premiums and the cash value component typically yields fairly weak returns on investment, so it’s not a good investment for most young parents or anyone on a budget.

Once you understand the type of policy you’re looking for, use PolicyMe’s free online life insurance calculator or meet with a licensed insurance advisor to conduct a thorough needs assessment. Take into account all existing insurance, savings, and assets; any outstanding debts; the lost income your policy would replace; funeral costs; and more to be sure you’re accurately estimating your family’s true financial needs. 

Now it’s time to compare plans. You can use the recommendations above as a starting point, do your own research, or work with a broker to compare specific life insurance plans and quotes. Keep an eye on features that may add to your overall life insurance costs, such as optional riders. When you find a policy you like, look into the issuing carrier’s industry reputation, financial strength, and customer service record when it comes to handling claims.

Busting the myth: 99% of life insurance claims pay out

Many Canadians believe that fewer than 50% of life insurance claims pay out, but research shows that the number is close to 99%. If your family members need to file a claim on your policy, they have an excellent chance of receiving the full tax-free lump sum payout guaranteed by your plan, even if the original insurance company becomes insolvent.

That said, it’s worth looking for a company with a reputation for making the claims process — which can be stressful and emotionally difficult under the best circumstances — as quick and frictionless as possible.

When you’re confident that you’ve found the right plan, it’s time to request quotes and complete your application. Some life insurance plans require a health questionnaire or medical exam, which can reduce the overall cost of your policy by matching your premiums to your actual level of risk. 

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: Life insurance for parents