Life Insurance in Ontario
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Term life insurance quotes in Ontario
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 Ontario?
After reviewing premiums for policies with $500,000 in coverage from 20 insurance providers across the province, we found the average cost of life insurance in Ontario is $54.83 per month, or $657.96 per year, for healthy, non-smoking policyholders aged 30 to 39. PolicyMe has some of the most affordable term life insurance in Ontario, compared to industry rates.
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?
The cost of life insurance isn’t affected by which province you live in, so your Ontario address won’t impact your rates. But, there are a few key factors that will affect how much you pay:
- Your age at the time of applying
- Your coverage levels and type of policy
- Your policy term length
Factors like your health, smoking status, and lifestyle factors like your job occupation or extracurricular activities (e.g. high-risk careers paths or hobbies) can also affect your premiums. Policy riders or add-ons, such as disability insurance or accidental death and dismemberment (AD&D) coverage typically lead to higher premiums as well.
What are the best life insurance companies in Ontario?
There isn’t an all-round “best” life insurance company with the “best rates” or policies in Ontario. The right fit for you will depend on your coverage needs, budget, lifestyle, and more.
To help you find the best life insurance provider based on what you value the most, we’ve assessed the best life insurance providers across nine core categories.
Category | Provider | Rating | Average premium* |
|---|---|---|---|
Best term life insurance | PolicyMe | ★★★★★ (5.0) | $20/month |
Best whole life insurance | Assumption Mutual Life | ★★★★★ (4.5) | $30/month |
Best universal life insurance | Desjardins | ★★★★★ (4.5) | $30/month |
Best no medical life insurance | Beneva | ★★★★★ (4.5) | $25/month |
* We compared each product's yearly costs to the average cost of similar products for the same type of applicant. For term life insurance, we pull premiums for $500,000 in coverage, for permanent and no medical life insurance, we pull premiums for $50,000 in coverage. Your life insurance premium will vary based on your sex, age, health, and policy specifications
How prices are compared
Compared each product’s yearly costs to the average cost of similar products for the same type of applicant. Unless otherwise noted, all figures show the approximate price difference for a female non-smoker aged 30-44 shopping for a term life insurance policy with $500,000 in coverage, or a permanent or no medical life insurance policy with $50,000 in coverage.
PolicyMe offers one of the most affordable Term Life Insurance policies in Canada, with rates as low as 23% below the industry average. Our streamlined application process delivers cost-effective coverage backed by Securian Canada, which has been rated "A" or higher by A.M. Best for over 75 years.
Most applicants don't require a medical exam, and there are family-friendly features like complimentary child coverage and a first-year couple's discount. The downside is PolicyMe's insurance rates aren't so competitive for high-risk cases such as seniors and smokers.
Pros
- $100,000 - $5 million in coverage available for 10-30 years
- $10,000 of complimentary coverage per child with every policy
- 31-Day missed payment grace period
- 30-Day trial period
- 10% First-year couple's discount
- Below-average rates for applicants under the age of 60
- Buy online or over the phone
- Convertible
- High Google review scores
- Pay by credit card
- Renewable
Cons
- Above-average rates for seniors
- No accidental death and dismemberment or disability riders
- No brick-and-mortar offices
Term Life Insurance
Term: 10-30 years
Coverage: $100,000 - $5 million
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Term 100 Life Insurance
Term: lifetime coverage
Coverage: $10,000 - $5 million
How prices are compared
Compared each product’s yearly costs to the average cost of similar products for the same type of applicant. Unless otherwise noted, all figures show the approximate price difference for a female non-smoker aged 30-44 shopping for a term life insurance policy with $500,000 in coverage, or a permanent or no medical life insurance policy with $50,000 in coverage.
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 seniors
- No accidental death and dismemberment or disability riders
- No brick-and-mortar offices
- Above-average rates for older applicants and seniors
- Phone call may be required to quote and purchase
FlexTerm
Term: 10-35 years
Coverage: $100,000 - $10 million
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YouthPlus
Term: until age 25
Coverage: $35,000 - $175,000
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Non-Participating Whole Life
Term: lifetime
Coverage: $5,000 - $10 million
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ParPlus and ParPlus Junior
Term: lifetime
Coverage: $5,000 - $4 million
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Bronze, Silver, Gold and Platinum Protection Whole Life
Term: lifetime
Coverage: $5,000 - $750,000
How prices are compared
Compared each product’s yearly costs to the average cost of similar products for the same type of applicant. Unless otherwise noted, all figures show the approximate price difference for a female non-smoker aged 30-44 shopping for a term life insurance policy with $500,000 in coverage, or a permanent or no medical life insurance policy with $50,000 in coverage.
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
Term: 10-30 years
Coverage: $50,000 - $20 million
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Life Insurance
Coverage: Over 50 with $5,000 - $20,000 in lifetime coverage and no medical exam
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Term to 100
Term: lifetime coverage
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Universal Life
Coverage: with investment options
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Whole Life Guaranteed
Coverage: to 100 with participating dividends
How prices are compared
Compared each product’s yearly costs to the average cost of similar products for the same type of applicant. Unless otherwise noted, all figures show the approximate price difference for a female non-smoker aged 30-44 shopping for a term life insurance policy with $500,000 in coverage, or a permanent or no medical life insurance policy with $50,000 in coverage.
Whether you compare it to fully underwritten term life insurance or other no medical products, Term Simplified carries an extremely competitive price tag.
Despite Beneva's high Google rating and "A" financial stability grade from A.M. Best, we have two reservations: 1) you can't get a quote (or even basic product details) online and 2) there seems to be very little coverage available.
Pros
- $10,000+ in coverage available for 10-30 years
- 6 Available riders
- Below-average rates for all ages
- Choice of fixed or decreasing coverage
- High Google review scores
Cons
- Phone call may be required to quote and purchase
Term Plus
Term: 10-30 years
Coverage: $10,000 - $5 million
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Term Simplified
Term: 10-30 years and no medical exam
Coverage: $10,000 - $5 million
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Term 100
Term: lifetime coverage
Coverage: with $10,000 - $10 million
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Enhanced Term 100
Term: lifetime coverage
Coverage: with $10,000 - $10 million
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Universal Life Insurance
Term: lifetime coverage
Coverage: with $10,000 - $10 million
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Simplified Whole Life
Term: lifetime coverage and no medical exam
Coverage: with $10,000 - $99,999
* 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 30-66 shopping for $50,000 in coverage for permanent life insurance and no medical life insurance plans, and $500,000 in coverage for term life insurance plans.
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. The rates listed in this article are based on publicly available rates as of December 2025.
PolicyMe does not receive compensation for any life insurance reviews.
How much life insurance does the average Ontarian need?
Wondering where your budget should sit for how much life insurance you need? Let’s assess some average data from Ontarians to build a sample life insurance policy.
Debt: $22,802
New insights from Equifax show that the average debt for Ontarians is $22,802.1
Income: $60,800
The average annual income for Ontario residents age 15 and over is $60,800.2
Mortgage: $945,408
StatsCan reports an average mortgage debt of $945,408 for Ontarians of all ages.3
Education: $35,832
The average annual tuition fee in Ontario is $8,958 for an undergraduate program, which totals up to $35,832 for a four-year program.4
According to our research, the average Ontarian would benefit from $1,064,842 in term life insurance coverage.
Following the classic Debt, Income, Mortgage and Education (DIME) method, we’ve estimated that the average Ontarian may need a life insurance policy with around $1.1 million at least. On average, a term life insurance policy with a death benefit of that amount costs $525 per year, or $44 per month, for policyholders under age 40.
It’s important to note that this data may look different for Ontarians who live in major cities like Toronto or Ottawa, or for those who reside in rural areas. For a more accurate estimate of your insurance coverage needs, you can use PolicyMe’s online term life insurance calculator to assess three possible levels of coverage.
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If you’re wondering how our policies are so affordable, here’s why:
Around 40% of a Big Bank's policy price comes from distribution and underwriting costs.
Using technology for good, we cut out unnecessary costs and passed those savings back to you.
Our life insurance policies are fully underwritten with the same quality protection you deserve, but at a lower monthly price.
Enjoy some of the best life insurance rates in Ontario…
And the easiest application, too!
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 Ontario: Quick facts
61 life insurance providers
Ontarians can browse and purchase life insurance policies from up to 61 licensed companies, which is the highest count of all provinces, followed by Quebec.5
Ontarians are top life insurance buyers
Following Alberta and British Columbia, Ontario has the third highest life insurance coverage average in Canada of $514,000, topping the national average of $483,000.6
The age of Ontario life insurance buyers align with the national average
Canada’s median age for life insurance policyholders is 41, and Ontario falls right in line with a median age of 40 for life insurance buyers.7
Life expectancy is above average
Life expectancy in Ontario is 82.02 at birth, which is higher than the Canadian national average of 81.4 years.
Group benefits cover less
Employer-sponsored group life insurance policies cover around 35% of active policies in Canada, whereas individual term life policies total 40%.5
$17.3 billion paid out in 2023
Canadian life insurance providers paid out $17.3 billion in life insurance benefits in 2023, with $9.2 billion in death benefits to beneficiaries and $8.1 billion to living policyholders as disability benefits, cash surrenders, or dividends.5
How do you get term life insurance in Ontario?
Your budget might seem like the most important factor when getting life insurance, but there are a few steps you’ll also need to check off to get the best life insurance policy for your specific needs:
1. Choose the type of life insurance
Term life insurance is typically the best coverage for those who have temporary financial responsibilities, like a mortgage, dependent kids or family members, or outstanding debts. But, permanent life insurance, like whole life insurance, may be a better fit if you have lifetime dependents who require long-term financial planning.
2. Understand your coverage options and needs
Start by calculating how much money your loved ones would need if you passed away. Experts generally recommend seven to ten times your annual income, but you can also use a life insurance calculator or speak with an insurance advisor to make the best choice.
3. Compare life insurance providers in Ontario
Research reputable insurance companies in your area and take a look at reviews from current and past policyholders. Be sure to check out their financial stability, such as A.M. Best or Fitch’s ratings, and look at what type of coverage and riders they offer. You may be able to request quotes from some companies before filling out a full application, which can give you a better idea of how much you’d likely pay. Consider speaking to an insurance broker if you want to fast-track the process and review various quotes and policy options at once.
4. Fill out an application form
Once you choose an insurance provider that seems like a good fit, fill out a life insurance application. You may be able to do this online or through an agent, and you’ll need to provide your name, contact information, and health or lifestyle details.
5. Gather your documents
You will likely need to submit documents, fill out a health questionnaire, and complete a medical exam during the application process. These steps will help your provider adjust your premium to your risk level during the underwriting phase, which can also bring your rate down.
6. Approval, review, and sign
Once your policy is approved, you’ll want to thoroughly read through it to understand your coverage, exclusions, premium payment schedule, and more. You can correspond with an insurance agent during this step if you have any questions.
Why term life is the best life insurance type for most families in Ontario
Term life insurance is typically cheaper and more valuable to Ontario policyholders and their loved ones because it keeps you covered during the years you need it most. However, permanent life insurance may be the smarter choice for individuals with long-term responsibilities, like lifelong dependents, or those who want to leave a financial legacy.
To help you make the best choice for your life insurance coverage, we’ve unpacked the most common questions about permanent and term life insurance:
Permanent life insurance products can offer a cash value component that grows over time, but it isn’t the wisest investment option. These policies are far more expensive than term life insurance and the return from their investment components don’t measure up to those of FHSAs, RRSPs, or TFSAs. So, you might be better off saving on life insurance premiums with a term policy and investing your money in another tax-deferred contribution.
For those with children who may need medical, emotional, or financial support beyond the age of 18, it may be a good idea to discuss your permanent life insurance options with an advisor. However, many term plans can be converted into permanent plans, so it’s a good idea to also review term life policies with convertibility options.
Not necessarily. Term life insurance helps you protect your family at a budget-friendly rate, which gives you financial flexibility for other expenses or investments. Term policies are a great way to have life insurance when it’s needed most, at a price that doesn’t greatly impact your bank account and allows you to grow your finances in other areas for you and your loved ones.
FAQs: Life insurance in Ontario
Term life insurance typically costs between $40 to $138 per month for policyholders under the age of 40 in Ontario. Factors like your age, health status, lifestyle, policy length, coverage, and riders (e.g. critical illness insurance) will impact how much your policy costs. For example, a 30-year-old non-smoker in good health may pay a lower premium for a 20-year term length than a 40-year old smoker with pre-existing health conditions.
Life insurance is not taxable in Ontario. Beneficiaries of life insurance in Ontario will receive the full amount of the policy payout in the form of a lump sum, which is tax-free. This is especially true for a term life insurance plan.
However, there can be complications with taxation for a permanent life insurance policy. If your permanent policy accumulates cash value over time and you withdraw from your policy, that portion will be taxed. Interest earned on payouts may also be taxed as income.
There isn’t a specific “best” life insurance provider in Ontario. The best insurer for you will depend on your budget, coverage needs, policy management preferences, and more. For example, if you want affordable, quick term life insurance coverage from a provider that offers a completely digital application process, an insurance solution like PolicyMe would be a great choice.
Yes, life insurance is worth it in Canada, especially if you have dependent family members or large financial responsibilities like a mortgage or major loans. Term life insurance can give you peace of mind for your family’s financial security if you passed away, helping them cover anything from mortgage payments, childcare cost, replace lost income, or manage your final expenses. Term life plans are especially worth it because they are generally affordable and give you coverage for a specific period where you need it most.
