Life Insurance Rates by Age in Canada

Term life insurance rates by age in Canada

The average cost of term life insurance in Canada ranges significantly by age, from as low as $13 per month to $150 per month or more. Here’s a quick summary of term rate ranges based on age. We’ll go into more detail below!

Rates increase exponentially with age, to fit your increasing mortality risk. Costs go up slowly in your 20s and 30s, then there’s a sharp jump in your 40s, and then expect a major increase in your 50s. 

But there is good news! Most term policies have a set rate for the entire length of the term,so you can lock in a lower price if you buy earlier.

Life insurance rates, quick facts: 

• Canadians under age 30 pay the lowest rates for life insurance. Good health and long life expectancy lead to rates averaging between $15 and $30 per month for this age group. 
• As you enter your 30s and 40s, you may see higher premiums for term life—especially if you choose a longer term length. Most Canadians still pay under $50 per month for life insurance at this age, with some non-smokers paying as little as $15 or $20 per month for a 10- to 20-year term. 
• Beyond age 45, life insurance becomes expensive unless you select a short term and a small coverage amount. As you approach retirement, it’s most cost-effective to use term life insurance as a short-term bridge to cover smaller debts. 

What about permanent life insurance?

Permanent life insurance options, like whole life insurance, aren’t a good match for most Canadians’ financial needs. Term life insurance is considerably cheaper and offers the temporary financial protection that the average household in Canada needs. That’s why we’re focused on term life insurance rates in this article.

Term life insurance rates for women by age

^{* Average rates shown are monthly PolicyMe rates for $500,000 in coverage for a non-smoking female.}  

Term life insurance rates for men by age

^{* Average rates shown are monthly PolicyMe rates for $500,000 in coverage for a non-smoking male.}  

Coverage amounts

The rates above reflect the cost of a term life insurance policy with $500,000 of coverage, which is about average for a Canadian household. You may need more or less coverage; PolicyMe’s free online life insurance calculator is designed to help you estimate your life insurance needs.

How age impacts life insurance

The cost of life insurance is based primarily on two factors: 

1. How likely you are to die during the policy term
2. How much your insurance carrier would have to pay out to your beneficiaries if that happened

In other words, life insurance pricing is based heavily on risk; the risk of the policyholder’s death. That’s why younger applicants tend to pay less for insurance. The distance between your age and average Canadian life expectancy is a good indicator of how likely you are to outlive your policy term. 

Other factors that impact life insurance 

But age is just one part of the picture when it comes to life insurance risk. Age gives insurers a ballpark idea of how likely you are to die, but medical exams and questionnaires can take that rough idea and hone it into a more accurate individual picture of life expectancy. That’s why insurers may ask about: 

• Your smoking status: Smoking can reduce life expectancy by an average of 10 years, according to Health Canada. Smokers pay much higher premiums for life insurance—often double what the same coverage would cost for non-smokers. 
• Diagnoses and medications: Your regular medications and medical diagnoses are key to evaluating your risk. 
• Your family’s medical history: A family history of life-threatening or life-shortening medical conditions such as diabetes or high blood pressure could mean a higher life insurance quote. 
• Your occupation: If you work a desk job, it’s not likely to impact the cost of your life insurance. But high-risk lines of work like construction or law enforcement raise your chances of premature death, which means insurance companies need to charge you more for coverage.  

Don’t let the medical exam intimidate you

While it might seem easier to find a company that offers life insurance coverage with no medical exam, these policies are usually overpriced because they have to assume a very high level of risk. In other words, you may end up overpaying for more risk than you actually have. A fully underwritten life insurance policy is the best way to get the coverage amount your loved ones need with monthly premiums that best reflect your actual level of risk.

Life insurance in your 20s 

^{* Average monthly PolicyMe rates for non-smoking individuals aged 20-29 years.}  

‍Do you need life insurance in your 20s? Yes, if you have a mortgage or kids (or plan to)

Best life insurance for people in their 20s: Term life insurance

Best term length for people in their 20s: 20 to 40 years

Special considerations: Think long term. Could multiple kids and a high-earning career be in your future? Locking in a low rate now might be a smart financial move.

Life insurance in your 30s 

^{* Average monthly PolicyMe rates for non-smoking individuals aged 30-39 years.}  

‍Do you need life insurance in your 30s? Yes, if you have a mortgage, kids, or a dependent spouse

Best life insurance for people in their 30s: Term life insurance

Best term length for people in their 30s: 10 to 30 years

Special considerations: Consider laddering more than one term policy to fit your actual coverage needs—a 15 year policy for a mortgage, a 20 year policy for your children’s education, for example.

Life insurance in your 40s

^{* Average monthly PolicyMe rates for non-smoking individuals aged 40-49 years.}  

• Do you need life insurance in your 40s? Yes, if you have outstanding debts or dependents
• Best life insurance for people in their 40s: Term life insurance
• Best term length for people in their 40s: 10 to 20 years

Special considerations: Take your time and calculate the exact amount of coverage you need and the number of years you need it. Premiums get high in your 40s, but don’t overpay.

Life insurance in your 50s

^{* Average monthly PolicyMe rates for non-smoking individuals aged 50-59 years.}  

• Do you need life insurance in your 50s? Maybe, if you have outstanding debts or dependents
• Best life insurance for people in their 50s: Term life insurance or permanent life insurance for estate planning and long-term dependents
• Best term length for people in their 50s: 5 to 15 years

Special considerations: Think about a policy that covers the number of years between you and retirement. Most Canadians don’t need an active life insurance policy during retirement.

Life insurance in your 60s

^{* Average monthly PolicyMe rates for non-smoking individuals aged 60-69 years.}  

• Do you need life insurance in your 60s? Only if you have outstanding debts or lifelong dependents
• Best life insurance for people in their 60s: Term life insurance or permanent life insurance for estate planning and long-term dependents
• Best term length for people in their 50s: 5 to 10 years

Special considerations: Short term policies can help bridge a gap to retirement, if others are still relying on your income. Permanent insurance and trusts can be an option if dependents have lifelong needs—but any new life insurance policy for seniors over 65 will be very expensive. Make sure the payout is worth it.

Life insurance in your 70s

• Do you need life insurance in your 70s? No, in most cases
• Best life insurance for people in their 70s: Permanent life insurance for estate planning and long-term dependents
• Best term length for people in their 70s: Not available

Special considerations: Past age 75, you may not be able to buy coverage, depending on your provider’s available policies. You may be better off working with a financial advisor to explore estate planning options instead of a life insurance policy for seniors over 70.

What’s the best age to buy life insurance

The best age to buy life insurance is your 20s or 30s—if others rely on you financially or you plan to have a family.

Are you 40 or older? It’s not too late, although premiums are higher at this age. 

If you’re a little later in life and starting a family, purchasing property, or concerned about debts, start by getting quotes for term life insurance policies to help protect your loved ones’ financial future. Middle-aged Canadians should be thinking about estate planning as well as income replacement.

How to lower your life insurance premium (at any age)

Younger people pay lower premiums for life insurance. But anyone can pay lower premiums—regardless of age—through smart shopping and insurance planning. 

• Buy early: The younger you are, the lower your life insurance premiums will be. If you have or want a family, it’s hard to be “too young” for life insurance.
• Stick to term: Permanent policies last longer but cost up to 10x more for coverage that most Canadians don’t even need. 
• Don’t skip the exam: Underwriting for life insurance through medical exams and questionnaires helps insurance providers find you the best rate you qualify for. No-medical insurance is expensive and should be treated as a last resort for Canadians whose health conditions and other risk factors make them uninsurable with traditional policies. 
• Ask about discounts: Many Canadian life insurance providers offer them! For instance, PolicyMe gives couples who apply together a 10% discount for the first year of a new term life insurance policy. 
• Rethink riders: In some cases, it may be worth adding a rider like a critical illness or return-of-premium rider to your life insurance plan—but it adds to your monthly cost and isn’t necessary for most applicants. 
• Look into ladders: “Laddering” two term life insurance policies can help you match your coverage needs to your life stage and financial situation. For instance, if you expect to be paying for your children’s education for 10 years after your mortgage is paid off, buying a shorter-term plan for your mortgage and a longer plan to cover your children could save you money in the long run. 

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Take note

One strategy you should never use to lower your life insurance premiums is lying on an application or medical exam. Doing so could void your policy entirely, leaving your loved ones without a payout in the event of your death.

FAQs: Life insurance rates by age