In Canada, renewal premiums for a 10-year term life insurance policy can rise sharply, often doubling or more, depending on your age and health classification at the time of renewal. According to a 2024 LIMRA report, 31% of Canadians experience life insurance coverage gaps, often because they underestimate renewal costs or delay exploring alternatives.

That’s why it’s important to review whether renewing your existing term policy or applying for a new plan will give you better value and sustained protection. When a term policy renews, insurers recalculate premiums based on your attained age and their current rate schedule. While premiums remain fixed during the initial term, renewal almost always means significantly higher costs.

This guide explains how 10-year term renewals work in Canada, what to expect in terms of cost, and the best strategies to secure affordable coverage going forward.

How does term life insurance renewal work?

Renewing a term life insurance policy in Canada is usually straightforward, but it comes with specific conditions you should understand. Renewal works differently than buying a new policy. Premiums increase, but you don’t have to go through medical underwriting again.

Knowing how premiums are calculated, when renewals happen, and your eligibility can help you decide whether to keep your coverage, shop for a new plan, or convert to permanent insurance.

Key aspects of 10-year term life insurance renewal in Canada

• Automatic renewal clause: Most 10-year term policies include a guaranteed renewal option up to a maximum age (commonly 75–85). This means your coverage continues automatically as long as you pay the premiums. No new medical exam is required, and your current health won’t prevent renewal

• Guaranteed renewal rights: By law and contract, insurers must allow you to renew on the policy’s set renewal schedule until the maximum age stated in your contract. This holds true regardless of any changes in your health, provided premiums are paid on time

• Premium recalculation at attained age: Renewal premiums are based on your attained (current) age and your original risk class (smoker or non-smoker). Because you are older at renewal, premiums can increase sharply, sometimes doubling or more compared to the initial term

• Insurer notification: Canadian insurers typically send renewal notices 30–60 days before your policy expires. We recommend using this period to compare renewal costs against new quotes, consider conversion options, and decide whether to renew or switch

• Maximum renewal age: Most insurers allow renewals until age 75, 80, or 85, after which the coverage ends. Always check your policy’s maximum renewal age so you can plan ahead for future coverage needs

What happens when your 10-year term life insurance expires?

When a 10-year term life insurance policy reaches the end of its term, the coverage does not end immediately — but important changes occur. Understanding these changes can help you decide whether to renew, replace, or convert your coverage.

• Renewal notice: Most Canadian insurers send a renewal or expiry notice 30–60 days before the term ends. This notice outlines your renewal premium and any options available
• Renewal process: If your policy is guaranteed renewable, coverage continues automatically at the insurer’s set renewal rates unless you actively cancel. You do not need a new medical exam, but your premiums are recalculated based on your attained age and can increase significantly
• Lapse option: If you do not pay the renewal premium, the policy will lapse, and coverage will end. Unlike premium payments within a term, there is generally no “grace period” for choosing renewal once the expiry date has passed
• No-medical requirement: Most renewable term policies in Canada allow renewal without additional medical underwriting. This ensures you can maintain coverage even if your health has changed, though premiums may be much higher than buying a new policy if you are still in good health

Guaranteed renewable vs. non-renewable term life insurance

When a term life policy reaches the end of its term, the next steps depend on whether it is guaranteed renewable or non-renewable. Understanding the difference is essential for planning your long-term coverage, since it affects renewal options, premium costs, and your ability to maintain protection if your health changes.

• Guaranteed renewable term life insurance: These policies include a clause that allows you to renew for additional terms (often up to age 75, 80, or 85) without new medical evidence. Premiums are higher at renewal, but this guarantees continued coverage if your health has worsened.

• Non-renewable term life insurance: These policies expire at the end of the initial term with no option to renew. If you still want coverage, you must apply for a new policy and go through underwriting again. Premiums may be lower initially, but there is no protection against future health changes.

What is the cost of term life insurance renewal after 10 years?

Renewing a 10-year term life insurance policy in Canada is often significantly more expensive than your original premium. The renewal cost depends mainly on your age, coverage amount, and health status. Generally, younger policyholders renewing smaller coverage amounts will pay less, while older Canadians face sharply higher premiums.

For instance, a 40-year-old with $500,000 in coverage may see renewal premiums in the range of $1,200 to $1,280 per year, much higher than what they paid during the first term.

If you’re deciding whether to renew or purchase a new policy, it’s important to compare both options carefully. PolicyAdvisor’s licensed advisors can review your age, health, and coverage needs to determine the most cost-effective solution.

The table below illustrates estimated annual renewal premiums for a 10-year term life insurance policy from leading Canadian insurers, Empire Life, Desjardins, and Canada Life, based on coverage amount and renewal age.

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Renewal vs. new policy: term life insurance costs in Canada

When your 10-year term life insurance ends, you usually face two choices: renew the existing policy or apply for a new one. Renewal premiums are automatically higher because they’re based on your age at renewal and do not require new medical underwriting.

In many cases, however, buying a new term life policy at your current age can be more affordable, especially if your health has not changed. Comparing both options before paying the renewal cost is essential, as choosing a new policy can lead to substantial long-term savings.

What factors affect your term life insurance renewal premium?

Renewing a term life insurance policy in Canada is generally more expensive than purchasing a new policy at your current age. Renewal premiums are influenced by multiple factors, including age, health, coverage amount, and policy type. Understanding these factors can help you make informed decisions about whether to renew your existing policy or consider a new term plan.

While insurers set premiums, provincial regulations, economic conditions, and the company’s claims experience may indirectly influence pricing. Here are the main factors affecting renewal costs:

• Renewal age: Premiums increase with age. The older you are at renewal, the higher the cost of coverage

• Gender: In Canada, females typically pay lower premiums than males due to longer life expectancy, lower mortality rates, and generally lower exposure to high-risk occupations or lifestyles

• Medical status: Health conditions can increase premiums. However, most guaranteed renewable term policies do not require a medical exam at renewal, so changes in health do not prevent renewal, though premiums may still rise due to age

• Smoking status: Smokers are classified as higher-risk, resulting in higher premiums. If you quit smoking, your existing renewable policy usually still charges smoker rates unless you apply for a new policy.

• Coverage amount: Higher coverage amounts lead to higher premiums. Reducing the coverage is one way to lower renewal costs while still maintaining essential protection

• Policy length and type: Longer-term policies and policies with additional riders or benefits cost more than basic term coverage. Choosing the right policy term and optional add-ons can help control premiums

When considering renewal, it is essential to weigh these factors against your current financial needs and health status. Comparing the renewal premium with quotes for a new policy at your current age can sometimes result in significant cost savings, particularly for healthy individuals or those who have quit smoking.

Renewal premium differences: smoker vs. non-smoker

The premium for a smoker is significantly higher because insurers classify them as higher-risk applicants. Smoking increases the likelihood of developing serious health conditions, which raises the insurer’s expected claims cost. Premium calculations also consider other factors such as age, overall health, coverage amount, and policy type, but smoking status remains one of the most influential rating factors.

Top Canadian life insurance providers for renewals in 2025

Selecting the right insurer for your term life insurance renewal in Canada can make a significant difference in both cost and flexibility. Renewal premiums vary widely between providers, so choosing a financially strong insurer with competitive rates and reliable customer service is essential.

Canada’s leading life insurance companies, such as Canada Life, Desjardins, Empire Life, Manulife, RBC Insurance, and Sun Life, offer guaranteed renewable term life insurance policies with different renewal schedules and premium structures. Each insurer has its own approach to pricing, conversion options, and maximum renewal age, which can directly affect your long-term costs.

The table below highlights major Canadian insurers that provide term life insurance renewal options. Reviewing these differences helps you compare coverage features, understand premium increases, and make an informed decision about whether to renew your existing policy or apply for a new one.

Step-by-step guide to renewing term life insurance in Canada

Before your 10-year term life insurance policy expires, you have two main options: renew the existing policy or let it lapse. Renewing your term policy ensures continuous coverage without the need for medical underwriting, though renewal premiums are typically higher than your original rates.

Many reputable Canadian insurers offer guaranteed renewable term life insurance. Understanding the renewal process helps you make an informed decision, maintain coverage, and avoid unnecessary out-of-pocket expenses.

Here is a step-by-step guide to renewing your term life insurance:

1. Watch for your renewal notice: Insurers generally send a reminder 30 to 60 days before the policy expires. This notice provides the renewal premium and outlines your available options

2. Review your existing policy: Evaluate whether your current coverage meets your financial needs. Consider factors such as age, income, outstanding debts, number of dependents, and health status when deciding whether to continue with the policy

3. Compare renewal costs with new policy quotes: If you are in good health, it may be worth comparing the cost of renewing your current policy with obtaining a new term life insurance policy. While renewable term policies do not require new medical underwriting, premiums at renewal can be significantly higher than the original rates

4. Decide whether to renew or purchase a new policy: After reviewing costs and coverage, inform your insurer of your decision to renew or let the policy lapse

5. Consider converting to permanent life insurance: Some term policies include a conversion option, allowing you to switch to a permanent plan without additional medical underwriting. Check with your insurer for eligibility criteria and assess whether conversion better meets your long-term financial goals

6. Update beneficiaries and contact information: Ensure your beneficiary designations and their contact details are current to prevent any issues in the event of a claim

PolicyAdvisor’s experienced advisors can guide you through the renewal process, help you compare options, and answer any policy-related questions. Our team supports you not only during the renewal but also after you have renewed or purchased a new policy, ensuring you make informed decisions every step of the way.

Best alternatives to renewing your term life insurance after 10 years

As your 10-year term life insurance policy approaches expiry, you have the option to renew it or let it lapse. While automatic renewal is convenient, it is often expensive and can put a strain on your budget. Fortunately, there are several alternatives that can maintain coverage while offering more flexibility and affordability.

Convert your existing term policy to permanent coverage

Converting a term life plan to permanent insurance can provide lifetime protection and additional financial benefits. Whole life insurance offers fixed premiums for life and builds cash value, while universal life provides flexible premiums and potential investment growth. Converting your term policy allows you to secure permanent coverage without a new medical exam, though premiums will generally be higher than term rates.

Buy a new term life insurance plan

Purchasing a new term policy at your current age may be more cost-effective than renewing an existing one. You can choose a term length of 10, 20, or 30 years based on your coverage needs. A new term policy can provide more affordable premiums and ensures that your loved ones remain financially protected.

Reduce your coverage amount

Term life insurance premiums are directly tied to coverage amounts. Lowering your coverage can reduce costs while still maintaining essential protection. Consider your outstanding debts, future financial obligations, and family needs when evaluating whether a lower coverage amount is sufficient.

Ladder multiple-term life policies

Laddering involves holding multiple term policies with staggered expiry dates to match your changing financial obligations, such as a mortgage, children’s education, or other life events. This strategy allows you to maintain higher coverage when it is most needed while letting shorter-term or higher-value policies expire as your financial needs decrease

How to decide whether to renew term life insurance?

Deciding whether to renew a term life insurance policy is an important financial decision. While renewal premiums can double or triple compared to your original term, cost is only one factor. Your long-term financial goals, family situation, and health status all play a crucial role in determining the best option.

Assessing your current financial situation and future obligations can help you decide whether to renew your existing term plan or purchase a new policy that better meets your needs. We recommend considering the following factors:

• Review your policy documents: Insurers typically send a renewal notice 30 to 60 days before the policy expires. Reviewing your policy helps you understand coverage, riders, and renewal terms, which is essential before deciding whether to renew or purchase new coverage.

• Evaluate changes in coverage needs: Consider any changes in income, outstanding debts, number of dependents, or long-term financial goals. These factors can determine whether your current coverage amount remains sufficient.

• Compare life insurance quotes: Compare renewal premiums with quotes for a new term life insurance policy. Healthy individuals may find that buying a new policy is more cost-effective than renewing an existing plan at higher rates.

• Consider health status: Health plays a key role in choosing between renewal and a new policy. If you have a pre-existing condition, a no-medical-exam policy may be the better option. Conversely, if you are healthy, a new term plan can offer more affordable premiums.

• Consult an insurance advisor: Licensed advisors at PolicyAdvisor can guide you through the renewal process, evaluate options, and help determine whether renewing your existing term plan or purchasing a new policy aligns with your financial goals and protection needs.

Can I renew my 10-year term life insurance without a medical exam?

Yes, most Canadian insurers offer the automatic renewal option for 10-year term life insurance without a medical exam. Insurance companies recalculate premiums based on your age. Unless you apply for new coverage, you do not have to disclose your health status during the renewal process.

Can I switch insurance companies instead of renewing my current policy?

Yes, you can switch to a new insurer instead of renewing the existing term plan. However, while applying for a new policy from another insurer, you will have to submit a fresh application and undergo a medical examination.

What documentation do I need for term life insurance renewal?

For renewal, you need to evaluate the renewal notice and pay the new premium. If you are reducing coverage or switching to a new plan, fill in a conversion form. Renewing your existing policy doesn’t require a medical examination, unless you buy new coverage. 

Can I partially renew my term life insurance coverage to reduce costs?

Yes, certain plans enable lowering of coverage, and renew the lower amount. You can also partially convert your term plan to a permanent one while keeping the remaining as term plan coverage. This is an effective way of saving and still enjoying protection.

What happens to my term life insurance if I move provinces in Canada?

If you move to another Canadian province, the existing term life policy remains active. Update your banking and address information to ensure the policy service is smooth and convenient. If you buy a new policy after moving to a new province, the replacement options and provincial taxes may differ.

Imagine an insurance policy that not only protects your family, but also quietly builds your wealth. That’s the power of maximizing the cash value growth of a whole life insurance policy.

In today’s uncertain financial landscape, more Canadians are turning to policies that offer more than just a death benefit. According to LIMRA, whole life insurance accounted for 69% of all life insurance premiums in Canada in 2024.

With guaranteed cash value growth, tax-deferred savings, and lifetime coverage, whole life insurance has evolved into a powerful wealth-building tool. In this blog, we’ll explore how to maximize your whole life insurance policy’s cash value and unlock its full financial potential.

What is cash value growth in a whole life insurance policy?

Cash value in a whole life insurance policy acts as a living benefit that grows over time and can provide access to funds while you’re still alive. When you buy a whole life insurance policy in Canada, a portion of your premium goes toward building this cash value.

Unlike term insurance, which offers only a death benefit, whole life insurance includes a savings component that accumulates on a tax-deferred basis.

In Canada, many policyholders use the growing cash value in their whole life policies for tax-efficient estate planning or as a wealth accumulator. Your cash value grows steadily over time, even during market downturns.

The cash value grows in two key ways: through guaranteed returns and non-guaranteed dividends. If you own a participating whole life insurance policy, you may also receive dividends. The insurance company guarantees a minimum dividend rate every year based on its annual performance. 

How can you use the cash value of a whole life insurance policy?

You can access the cash value of your whole life insurance policy in multiple ways, such as policy loans, withdrawals, collateral loans, paid-up additions and more.

• Take a policy loan: You can borrow money from your policy’s cash value without paying taxes on it. The insurance company uses your cash value as collateral for a policy loan 
• Withdraw part of the cash value: You can withdraw a portion of your cash value directly from the policy. Withdrawals are tax-free up to the amount you’ve contributed (your policy’s adjusted cost basis), but any amount above that could be taxed as income
• Use the policy as collateral for a bank loan: You can assign your whole life insurance policy as collateral to secure a third-party loan, such as from a bank or credit union
• Pay future premiums using cash value or dividends: Once your policy has built up enough cash value, you can use it to cover future premium payments
• Buy Paid-Up Additions (PUAs): You can use your dividends or extra contributions to buy paid-up additions, which are small chunks of fully paid life insurance. These PUA increases both your policy’s cash value and its death benefit, compounding your wealth inside the policy over time

Secure peace of mind that lasts a lifetime.
Our tool helps you estimate whole life insurance coverage that builds value while protecting your loved ones.

How can you maximize the cash value of your whole life insurance policy?

If you want to build substantial cash value in your whole life insurance policy, you need a smart policy design. From choosing the right type of participating policy to reinvesting dividends, here are the best ways Canadians can grow their whole life insurance policy’s cash value more efficiently.

Select a participating whole life policy with a strong dividend history

Always choose a participating whole life policy from an insurer with a solid history of paying dividends. Top Canadian insurers like Sun Life, Equitable Life, and Manulife have long-standing dividend performance, which directly impacts your policy’s growth. A strong dividend scale will result in more cash value generation on your whole life insurance policy.

Choose a Wealth Accumulator plan over an Estate Planner policy

Most participating whole life insurance policies in Canada offer two design options: an Estate Planner policy and a Wealth Accumulator policy. Estate Planner policies prioritize long-term death benefit growth, which results in slower early cash value accumulation. 

In contrast, wealth accumulator plans are structured to build higher cash value in the early years, giving you access to your funds sooner. If your goal is to maximize your policy’s living benefits, like tax-efficient borrowing or income planning, a wealth accumulator design is the smarter choice.

Overfund your whole life insurance policy initially

You can boost your policy’s cash value by paying more than the base premium in the early years. This overfunding strategy allows more of your money to go toward the cash value and paid-up additions. Just be sure to stay within the tax limits in Canada to avoid having your policy taxed like an investment.

Reinvest dividends into Paid-Up Additions (PUAs)

If your policy earns dividends, one of the best ways to grow your cash value is by using them to purchase paid-up additions. 

PUAs are mini chunks of permanent life insurance that immediately add to both your cash value and death benefit. The compounding effect of reinvested dividends over time can significantly accelerate your policy’s growth.

Choose a limited-pay whole life insurance policy 

With a limited pay policy, you pay premiums for a fixed number of years (like 10-Pay or 20-Pay), and then the policy is fully paid up. These plans usually cost more upfront but accumulate cash value much faster than lifetime pay options, making them ideal for those looking to maximize value in the shortest time.

Avoid early policy loans 

While policy loans are a tax-efficient way to access funds, borrowing too early can stall your cash value growth. Interest accrues and reduces future dividends and compounding. If your goal is to build maximum value, wait several years before tapping into your cash value.

Work with an experienced insurance advisor

Whole life policies are long-term contracts, and your needs may change. Work with a Canadian life insurance advisor (such as our experts at PolicyAdvisor) who understands cash value structuring, PUAs, and dividend projections.

 A well-optimized whole life insurance policy can be adjusted with the right rider options and funding strategies to deliver stronger returns over time.

How long does it take for a whole life insurance policy to build cash value in Canada?

In Canada, a whole life insurance policy typically begins building cash value within the first 2 to 3 years, depending on how the policy is structured. However, substantial cash value growth often takes 5 to 10 years to accumulate. 

Whole life insurance policies designed as wealth accumulator plans grow faster than estate-focused ones, especially if they include paid-up additions (PUAs) or are overfunded in the early years. Choosing a participating whole life insurance policy from a reputable Canadian insurer with strong dividend performance also boosts long-term growth. 

While cash value starts small, consistent funding, reinvested dividends, and smart policy design can accelerate its growth and turn it into a powerful tax-advantaged financial asset.

Can I use the cash value of my whole life insurance policy to fund my retirement?

Yes, the cash value in a whole life insurance policy can be a valuable source of retirement income in Canada. Over time, your policy builds cash value that grows tax-deferred, and you can access it through policy loans or withdrawals. 

Policy loans, when structured properly, allow you to tap into your funds without triggering immediate taxes, making them a tax-efficient income strategy. Unlike RRSPs, this access doesn’t impact your taxable income directly. 

While it’s not meant to replace traditional retirement savings, your whole life policy can act as a supplemental retirement tool, offering flexibility, liquidity, and a financial cushion in your later years.

Is a Wealth Accumulator plan always the best whole life insurance option?

A Wealth Accumulator plan can be an excellent choice if your main goal is to build cash value quickly. These policies are structured to grow accessible funds faster in the early years, making them ideal for people who want to use their whole life insurance policy for retirement income, borrowing, or short-to-medium-term financial planning.

However, this faster cash value growth comes with a trade-off. Over time, the death benefit in a wealth accumulator plan tends to be lower than that of an estate planning policy, especially in the later years. 

Estate plans grow the death benefit more significantly over the long term, making them better for legacy planning. The best option depends on whether you prioritize living benefits or leaving a larger inheritance.

Common mistakes that can lower the cash value growth of your whole life insurance policy

Even though whole life insurance offers guaranteed growth and long-term financial security, common mistakes like paying minimum premiums, skipping PUA riders, or borrowing from your policy too early can lower the cash value of your whole life insurance policy.

• Only paying the minimum premium: Sticking to the base premium alone slows down early cash value growth, as you’re not leveraging the policy’s full funding potential
• Skipping paid-up additions (PUAs): Avoiding PUAs means missing out on one of the most powerful tools to boost both cash value and death benefit through dividend reinvestment
• Borrowing too early from your policy: Taking loans in the early years reduces compounding benefits and can negatively impact future growth and dividend performance
• Choosing the wrong type of whole life policy: A policy designed primarily for estate planning may not offer the early liquidity you need if your goal is faster cash accumulation
• Not reviewing your policy annually: Failing to assess your policy regularly with your advisor can result in missed opportunities to adjust dividends, PUAs, or payment structure

Is whole life insurance a good investment in Canada?

Whole life insurance can be a good investment in Canada if you’re looking for long-term financial security with tax advantages. While it’s not a traditional investment like stocks or mutual funds, it offers guaranteed cash value growth, lifetime coverage, and dividend potential through participating policies. 

The cash value grows tax-deferred and can be accessed through loans or withdrawals, making it a useful complement to RRSPs and TFSAs. It’s especially valuable for high-income earners, business owners, or those who’ve maxed out registered accounts. 

However, premiums are higher than term insurance, and returns are conservative. It’s best viewed as a low-risk, tax-efficient asset for wealth preservation and not as a high-growth investment. You can seek the help of experienced advisors (like our experts at PolicyAdvisor) to get the cheapest whole life insurance quotes in Canada based on your unique cash value requirements!

Losing a loved one is hard, and the cost shouldn’t make it harder. In Canada, the funeral cost may range between $7,500 and $8,500 and higher. Funeral insurance helps cover such costs. 

The Canada Pension Plan (CPP) death benefit is a fixed amount which may not be enough to cover funeral costs. This is where final expense life insurance for seniors can help. 

Also called burial insurance or final expense insurance in Canada, this coverage is designed to pay for funeral services, outstanding debts, and other end-of-life expenses so your loved ones are not left with financial hardship. 

What is final expense life insurance for seniors in Canada?

Final expense life insurance, also known as end-of-life insurance or burial insurance, is a permanent insurance that helps Canadian seniors cover the cost of their funeral after their death, without placing any financial burden on their loved ones.

The end-of-life insurance coverage ranges between $5,000 and $50,000, depending on the expenses your loved ones might incur for your funeral.

Why do Canadian seniors consider final expenses life insurance?

As a Canadian senior, you can buy life insurance to secure the future of your loved ones. You can choose a life insurance plan that provides coverage for a specific term based on your financial requirements. However, as you age, your financial priorities may change. Buying burial insurance for seniors helps your loved ones cover the cost of your funeral without facing any financial problems.

Here’s why you must consider buying final expense life insurance in Canada:

• Covering the cost of a funeral: The cost of funerals and other related expenses has grown significantly in Canada. The average cost of a funeral in Canada is estimated to range between $7,500 and $8,500. Government-sponsored coverage may not be enough to cover this amount. A final expense life insurance helps cover these gaps
• Clearing any outstanding debts: Unpaid debts may cause financial distress to your family members. The death benefit received from a life insurance policy can be used to clear any debts in your name, protecting your family from financial distress 
• Taking care of legal and medical fees: Typical health insurance plans in Canada may not cover certain end-of-life expenses. You may incur legal fees during estate planning, which adds to your overall expenses. Your final expense life insurance plan ensures that these costs are covered without exhausting your savings or putting any unnecessary financial pressure on your family
• Affordable and easy to buy: Final expense life insurance plans are affordable and easy to buy. Most of them do not require medical assessment and are easily obtainable. This can be of significant help to you, especially if you have health concerns

How does final expense insurance work for seniors in Canada?

Final expense insurance covers the cost of the funeral and other expenses related to it.. As you grow older, it is recommended that you consider buying a burial insurance plan.

Given below is the guide to how final expense insurance works for seniors in Canada:

• Buying an insurance policy: Many Canadian insurers offer protection for ages between 80 and 85 years with coverage between $5,000 and $25,000. Book a call with our expert advisors at  PolicyAdvisor to compare different quotes and buy appropriate insurance coverage

• Premiums are fixed: Premium rates for final expense life insurance in Canada are typically fixed after being issued, which will not increase with age. The premium depends on age, health, and coverage

• Tax-free payout: Your beneficiary receives a tax-free payout called the death benefit. This amount will help your loved ones fulfil their financial requirements
• Cover other expenses: Apart from clearing the cost of your funeral, burial insurance in Canada helps your loved ones manage their other financial expenses, such as mortgage payments, estate administration taxes, family debts, final income taxes, and other outstanding debts

What are the costs and premiums of final expense life insurance for seniors in Canada?

The premium rates for end-of-life insurance depend on your personal needs and the specifications mentioned in the policy document. You should compare life insurance quotes to determine the best policy for you. 

With the price of a funeral in Canada estimated to be between $8,000 and $9,000 and even more in 2025, burial insurance not only covers the funeral cost but also leaves a legacy behind for your loved ones.

*Illustrating the monthly cost of a final expense policy for smokers and non-smokers across different age groups and coverage amounts.

Do the premium rates vary by health status and age?

Final expense insurance premiums can differ. For example, if you are a senior in Canada, a non-smoker, and in good health, the monthly premium for coverage of $10,000 will be between $30 and $70. 

However, if you are a Canadian senior who smokes and is diagnosed with a medical condition, the premiums for the same coverage amount will cost $100 or even more, monthly.

What factors affect the price of final expense life insurance for Canadian seniors?

Several factors affect the final price of the insurance. It is important to be aware of them so that you can buy an appropriate policy offering you benefits suitable to your needs: 

• Age: The premiums will depend on your age. The older you are, the higher the premium rates will be

• Status of your health: The status of your health will determine the premium rates. Though insurance products like guaranteed acceptance offer insurance even if you are diagnosed with a pre-existing condition, the premium rates are high

• Status of smoking: The premiums for a smoker will be higher, as they are at a higher risk of potential health issues

• Gender: Premiums for women are lower since they are expected to have a longer life expectancy

• Coverage: If you choose a plan with high coverage, the premium payable will be high as well

• Type of policy: The type of policy also decides the premium rates. For example, the premium for a guaranteed accepted insurance plan will be higher compared to a simplified issue insurance plan

How does coverage affect the cost of final expense insurance in Canada?

The overall cost of your life insurance policy will depend on the coverage amount, as illustrated in the tables above. The premium for a life insurance policy with a higher coverage amount is typically higher, since the insurance company is taking more risk.

For example, a 75-year-old healthy non-smoker may pay up to $260 for coverage of $25,000, whereas another person of the same age but who is a smoker and diagnosed with a medical condition may pay up to $490 for the same policy.

What does final expense insurance cover?

A final expense life insurance plan helps your loved ones cover the cost of your funeral after your passing and handle their other financial expenses. This insurance is designed to ensure your loved ones do not face any financial problems after you are no more.

Your beneficiary can use the death benefit to clear various financial expenses, including:

• Cremation and funeral expenses: The cost of a funeral and cremation in Canada is estimated to be between $8,000 and $9,000, and can even go up to $15,000 in some cases. A burial insurance plan helps in covering these costs
• Outstanding debts: The coverage offered can be used to clear any outstanding debt you are unable to pay during your lifetime. This ensures your loved ones need not worry about any financial expenses once you have passed

• Legal fees: Your loved ones may have to pay an administrative fee during the settlement of the estate. The coverage received can help in clearing them

• Living cost: Your loved ones can use the coverage to take care of their day-to-day living expenses
• Leaving behind a legacy: Once all the costs related to the  funeral and other expenses have been cleared, any funds remaining can be used by your loved ones to take care of their other financial needs

What are the types of final expense life insurance policies for seniors in Canada?

End-of-life insurance for seniors comes in different types. A senior in Canada can choose from one of these insurance products based on their financial requirements and other final expenses. These burial insurance products help in covering the funeral costs and allow your loved ones to manage their own expenses. 

Final expense life insurance policies are of three types:

• Whole life final expense insurance
• Guaranteed issue final expense insurance
• Simplified issue final expense insurance

Whole life final expense insurance

A whole life final expense insurance is a type of permanent life insurance that provides you coverage for life in return for the timely payment of your premiums. 

Guaranteed issue final expense insurance

You can buy a guaranteed issue final expense insurance plan without undergoing a medical examination. The maximum eligible age for buying this insurance is 85 years, and it can be obtained even if diagnosed with a serious medical condition. This insurance product promises guaranteed approval of the application.

Simplified issue final expense insurance

Application for simplified issue final expense insurance plan doesn’t require a medical examination. However, answering a short questionnaire helps the insurer determine the coverage and the premium rates payable. You can consider buying this insurance since the application process is straightforward and quick.

How to choose the best end-of-life Insurance for seniors in Canada?

To choose the best end-of-life insurance, you will need to thoroughly research. Take into consideration certain factors when looking for life insurance to purchase the most suitable one.

Factors to consider before buying end-of-life insurance

You will need to take into consideration certain factors to buy the most appropriate end-of-life insurance:

• Determine your needs: Calculate the estimated coverage that covers the cost of the funeral and helps you leave behind a legacy. According to statistics by the Financial Consumer Agency of Canada, the total funeral expenses may range between $5,000 and $15,000. You must consider your outstanding debts and other expenses while deciding upon coverage

• Access your health status: Evaluate the status of your health and provide correct health-related information to receive appropriate coverage. You can buy a whole life insurance plan or a simplified issue insurance plan if you are healthy; otherwise, consider buying a guaranteed accepted insurance plan

• Budget review: Review your budget, monthly expenses, and other costs to determine if the premium rates for the coverage are affordable or not. Premium rates for burial insurance are mostly fixed, so you will have to buy a policy which fits your long-term budget
• Insurer reputation: There are plenty of insurance companies in Canada that are reputable and have strong financial ratings. You can get in touch with advisors at PolicyAdvisor, who will help you know more about these insurers and the policies offered by them

What are the common misconceptions about end-of-life expense insurance for Canadian seniors?

Seniors in Canada often misunderstand the purpose of burial insurance and believe myths that prevent them from buying a suitable policy. It is important to debunk these myths about this insurance so that you can make more informed choices when buying coverage.

Some of the common myths about final expense insurance include:

• It’s just insurance to cover funeral costs: Apart from covering the cost of the funeral, the death benefit is tax-free and can be used to cover other financial expenses too

• Too healthy to buy this insurance: You should buy final expense insurance when you are young and healthy, since the premiums are lower and stay fixed for life. With age, the health risk increases, making it difficult to get higher coverage at lower premiums
• Expecting your family to cover the cost: It is unfair on your loved ones to bear your debts after you have passed. This insurance ensures the beneficiary receives the death benefit to cover their funeral cost and also manages their financial needs

How to file a final expense insurance claim in Canada?

The claim-filing process for insurance in Canada is simple and easy, even though the process may vary among insurers. Understanding the claim-filing process helps in saving time and ensures the beneficiary receives the death benefit without undue delay.

• Inform the insurer: The beneficiary must inform the insurance company of your passing to begin the claim process

• Fill the claim form: The beneficiary will fill in the claim form, providing correct information to make the claim process easier and faster

• Submit documents: Along with the claim form, you will have to submit supporting documents

• Reviewing the claim: The insurer will review and verify the claim to make sure all the details are correct

• Payout received: Once the insurer is satisfied with the verification process, they will issue the death benefit to the beneficiary

Get in touch with the consultants at PolicyAdvisor, who will guide you through the claim-filing process for final expense life insurance and ensure all your claim-related queries are answered.

Life insurance for seniors doesn’t have to be expensive, especially if you know how to compare your options. Many Canadian seniors are beginning to recognize the value of buying life insurance and taking a crucial step to protect the financial future of their families. 

In fact, a 2024 report by LIMRA shows that 57% of Canadians now have life insurance, reflecting a steady rise in coverage since 2019. As demand grows, insurers continue to offer competitive life insurance rates for seniors. There are affordable solutions, even if you’re over 60, 70, or even 80.

In this guide, we’ll explore the cheapest life insurance options for seniors, compare popular policy types, and share tips on how to make your policy affordable.

Why do seniors need life insurance?

Even in retirement, life insurance remains a smart financial tool for Canadian seniors. It helps cover end-of-life costs, protect loved ones, pay off any mortgage or loans and ensure your legacy lives on.

• Covering final expenses: Life insurance for seniors helps pay for funeral expenses, medical bills, and outstanding debts, reducing financial stress on the family
• Supporting dependents or leaving a legacy: Affordable senior life insurance ensures financial security for a surviving spouse, children, or grandchildren, while allowing you to leave an inheritance
• Protecting retirement savings from unexpected costs: Senior life insurance prevents dipping into RRSPs, pensions, or savings for unexpected expenses like medical care
• Paying off remaining mortgages or loans: Many seniors still carry mortgage or loan balances; life insurance can cover these obligations and protect assets
• Charitable giving: Whole life insurance for seniors can fund donations to causes you care about, leaving a lasting impact
• Covering probate fees: Life insurance can pay probate fees and taxes on deemed disposition, so heirs receive their full inheritance without financial strain

Which factors influence the cost of life insurance for seniors?

Not all life insurance plans cost the same for seniors in Canada. Several factors determine how affordable your policy will be, from your age, health profile and smoking status to the type of coverage you choose and underwriting type.

• Age and health profile: Younger and healthier seniors usually qualify for the lowest life insurance rates in Canada
• Coverage amount and term length: Shorter term life insurance policies and lower coverage amounts cost significantly less than permanent plans
• Underwriting type: Fully underwritten life insurance (with medical exams) is typically the cheapest option for healthy seniors, while no-medical plans cost more
• Optional riders: Adding features like critical illness or accidental death benefits can increase premiums, so stick to essentials to keep costs low
• Smoking status: Non-smokers get cheaper senior life insurance rates, as smoking dramatically raises premiums
• Policy type: Term life insurance for seniors is usually the most affordable; whole life and guaranteed issue policies are more expensive
• Gender and lifestyle: Women and those with healthy habits (no alcohol abuse, active lifestyle) often enjoy lower rates

Which are the cheapest life insurance options for seniors?

Finding the right life insurance plan as a senior doesn’t have to be expensive. Many Canadian insurers offer affordable solutions tailored to different needs, whether you require temporary protection, lifelong coverage, or quick approval without the need for medical exams.

Some of the cheapest life insurance options for seniors in Canada include Equitable Life, iA, Sun Life, Canada Life and Manulife.

1. Equitable Life: Cheapest life insurance for non-smokers

Equitable Life delivers some of the most affordable life insurance rates in Canada, especially for non-smoking seniors. Its policies combine affordability with strong value through dividend options and estate planning benefits.

Key features of Equitable Life

• Offers low premiums for non-smokers and healthy seniors
• Provides participating whole life insurance with cash value growth
• Delivers consistent dividends through its mutual ownership model
• Flexible plans for long-term estate and legacy planning
• Available simplified issue options for easier approval

2. iA Financial: Cheapest for no-medical plans

If medical exams are a concern or health conditions make approval difficult, iA Financial’s Access Life plan offers a stress-free alternative. This plan requires no medical tests, only a short health questionnaire, while still offering a range of coverage options. 

Seniors can choose between term and permanent plans, making it easy to align protection with financial goals. Quick approval makes it an excellent option for those who value convenience and speed without compromising coverage.

Key features of iA

• No medical exams required, just a simple health questionnaire
• Available up to age 80, making it accessible for older seniors
• Offers both term and permanent coverage, giving flexibility to choose the best fit
• Perfect for those with pre-existing conditions or who want quick, hassle-free approval

3. Sun Life: Cheapest life insurance for high coverage values

For seniors seeking comprehensive, lifelong protection with significant coverage amounts, Sun Life’s Sun Par Whole Life policy stands out. This participating whole life plan not only guarantees lifetime coverage but also builds cash value and earns dividends over time, making it a strong financial planning tool. 

It’s best suited for seniors who have the means to pay higher premiums and want to maximize estate value for heirs or charitable giving. Full underwriting ensures competitive rates for those in good health.

Key features of Sun Life

• Participating whole life policy that allows policyholders to share in dividends
• High face amounts available, making it suitable for those with substantial estate planning needs
• Long-term growth through dividends, which can enhance cash value and death benefit over time
• Requires full medical underwriting, offering the most favourable rates for healthy applicants

4. Canada Life: Cheapest life insurance for estate planning

When the goal is to leave a meaningful legacy, Canada Life’s Estate Select is a top contender. This plan combines guaranteed lifetime coverage with cash value accumulation and flexible premium options. 

It’s tailored for individuals or couples who want to transfer wealth efficiently while minimizing taxes on deemed disposition and probate fees. One of its unique features is the ability to split joint coverage into two individual policies without new medical exams.

Key features of Canada Life

• Participating whole life insurance with guaranteed cash values, ensuring lifelong security
• Designed for tax-efficient wealth transfer and estate planning strategies
• Premium options include limited pay periods (such as 10 or 20 years), which allow you to pay off the policy faster
• Joint coverage can be split into individual policies without medical evidence, offering future flexibility

5. Manulife: Cheapest life insurance for quick approvals

If you need life insurance quickly, Manulife’s CoverMe No Medical plan delivers one of the fastest application processes in the market. This policy offers instant online approval for many applicants, making it ideal for seniors who need immediate coverage for final expenses or leaving a small legacy. 

Key features of Manulife

• Simple online application with instant decisions for most applicants
• Coverage up to $75,000, designed for seniors aged 50–75
• No medical exams or lab tests, ensuring a fast and easy process
• Perfect for final expense coverage or leaving behind a modest inheritance

Secure peace of mind that lasts a lifetime.
Our tool helps you estimate whole life insurance coverage that builds value while protecting your loved ones.

Can seniors over 70 get affordable life insurance?

Yes, seniors over 70 can still get affordable life insurance in Canada, though options are more limited and premiums are higher than at younger ages. The most budget-friendly choices include simplified issue and guaranteed issue policies, which don’t require medical exams and offer quick approval. 

Coverage amounts are usually smaller, often ranging from $5,000 to $100,000, making them ideal for final expenses or leaving a small legacy. Comparing quotes and choosing a shorter term or permanent plan with lower coverage can help keep costs down.

Is term or whole life insurance better for seniors?

For seniors, the choice between term and whole life insurance depends on needs and budget. Term life insurance is usually cheaper and ideal for short-term needs like covering debts or providing income for dependents. However, it expires after a set period. 

Whole life insurance offers lifelong coverage with a cash value component, making it better for leaving a legacy or covering final expenses. Seniors who want permanent protection and don’t mind higher premiums often prefer whole life, while those on a tight budget typically choose term coverage.

Are no-medical life insurance policies cheaper for seniors?

No-medical life insurance policies are generally not cheaper for seniors. These plans skip medical exams, making them convenient for those with health issues, but insurers take on a higher risk. As a result, premiums are usually higher than fully underwritten policies that require health checks. 

However, for seniors with pre-existing conditions or those who want fast approval, no-medical policies can still be the most practical choice despite the higher cost. If affordability is the main concern, a fully underwritten policy often offers the lowest rates for healthy seniors.

Does smoking affect life insurance rates for seniors in Canada?

Yes, smoking significantly increases life insurance rates for seniors in Canada. Insurers classify smokers as higher-risk applicants because of health complications linked to smoking, such as heart disease and cancer. As a result, premiums can be 50% to 100% higher than for non-smokers. 

Some companies may offer more competitive rates after you’ve quit smoking for at least 12 months and can prove a tobacco-free lifestyle. Simplified/guaranteed issue policies may have less severe smoker rate differentials compared to fully underwritten plans, but premiums are still higher for smokers.

How can seniors lower the cost of life insurance premiums in Canada?

Seniors in Canada often face higher life insurance premiums due to age and health factors, but there are practical ways to reduce costs. By making smart policy choices and improving personal risk factors, seniors can save significantly on premiums.

• Choose a smaller coverage amount: Selecting only the amount needed for final expenses or debts helps keep premiums low
• Opt for term life instead of permanent insurance: Term policies usually cost less than whole life insurance and work well for short-term needs
• Maintain good overall health: Seniors who stay healthy and pass medical exams often qualify for cheaper, fully underwritten policies
• Quit smoking to get non-smoker rates: Life insurance premiums can drop by up to 50% after being tobacco-free for 12 months
• Compare quotes from multiple insurers: Different companies offer different rates, so shopping around can lead to big savings
• Avoid unnecessary add-on riders: Extra features like accidental death or critical illness riders increase costs, so only choose essentials
• Apply for coverage as early as possible: Premiums rise with age, so applying earlier locks in a lower rate for the future

The life insurance market in Canada is constantly growing, with total premiums estimated to be $34.7 billion or $880 per person in 2025, according to data by Statista. This clearly shows that a large number of Canadians consider life insurance to be important and would like to obtain a policy to secure their financial future.

However, Canadians face significant challenges in buying life insurance due to concerns related to complexity and affordability, making it difficult for them to decide upon a life insurance policy.

In this blog, we will take a look at how to buy life insurance in Canada, explore top providers, and understand essential tips that can help individuals secure a life insurance policy easily.

What is life insurance?

Life insurance is a financial product that provides coverage to you and protects the future of your loved ones in case of your death. After you pass away, the beneficiary receives a tax-free lump-sum amount known as the death benefit. This can be used by your loved ones to take care of their financial requirements.

According to data by the Canadian Life and Health Insurance Association (CLHIA), at least 30 million Canadians have some form of insurance in 2023. It was estimated that around 23 million people in Canada had life insurance, with insurance companies having paid claims worth $17 billion. 

Various reputable insurance companies in Canada offer different types of life insurance policies, such as term life, whole life, as well as no-medical life insurance plans. You can compare different life insurance quotes before buying a suitable plan.

Why should you buy life insurance in Canada?

Life insurance helps in securing the future of your loved ones even in your absence. There are several benefits of having life insurance, including income replacement, clearing debts, covering future costs and more. In this section, are some of the benefits of having a life insurance policy, that can help you decide your coverage needs.

• Replacement of income: In case you pass away, the death benefit of your life insurance policy will help your family take care of their financial needs
• Debt protection: Life insurance can help in clearing any outstanding dues you may have. This ensures your loved ones are not under unnecessary financial burden
• Future costs: It can help you cover future expenses such as the cost of your children’s education, mortgage payments, retirement, etc.
• Tax benefits: As a Canadian citizen, you can enjoy certain tax benefits if you have an active life insurance policy

How to buy life insurance in Canada: A step-by-step guide

You can either buy life insurance in Canada online or offline. However, you must know the steps you will need to follow to purchase the most suitable policy. These may include understanding your coverage needs, comparing life insurance quotes by various providers, filling out the application form, submitting various documents for the underwriting process and more. 

• Be aware of your coverage needs: Before buying a life insurance plan in Canada, you will need to know how much coverage you will require. You can take into account your current income, your age, the number of dependents, and also your long-term financial requirements to know how much coverage will work for you
• Know which type of policy you need: Life insurance comes in various types. Based on your immediate and future needs, you can choose the life insurance product that you feel will provide you the best benefits
• Compare life insurance quotes: You will have to thoroughly compare quotes provided by various life insurers in Canada to find the best coverage and rates. You can also visit the PolicyAdvisor website to use our free life insurance calculator to compare quotes for various life insurance plans 
• Fill in the application form: Once you have figured out the life insurance scheme you will buy, you will then have to fill in the application form and submit it along with all the necessary documents for verification
• Wait for application to be approved: The insurer will take up to two to four weeks to approve the application. Once that is done, you can then proceed to view your policy documents
• Read the policy documents: The final step is the most important. You must read the policy documents and inform yourself of all the inclusions, exclusions, coverage, and other fine print mentioned. Once you are satisfied with the terms and conditions mentioned in the policy documents, you can proceed to sign the policy documents

Things to consider when buying life insurance in Canada

Before buying a life insurance policy, you must conduct your own due diligence. Evaluate your financial needs, check out the variety of coverage options and look for the insurer’s reputation. You must also read policy documents carefully, look for additional riders or specific exclusions.

This ensures that you do not end up making any financial decisions you may regret later, or buy a life insurance plan which may not be suitable for you. 

• Financial needs: Your financial needs will play a huge role in determining the type of coverage you will need
• Know the type of policy you will need: Life insurance has various types. Know which one would work for you, based on your financial needs
• Coverage: You can use online life insurance calculators to determine the coverage you will require
• Check your budget: Buy a policy keeping in mind your future budget. You don’t want to under-insure or over-insure yourself
• Insurer’s reputation: Some of the best life insurance companies in Canada come with strong financial ratings and reputations. Do check out the insurer’s credentials before buying life insurance
• Read the policy document carefully: Before you sign on the dotted line, read the terms and conditions mentioned in the policy document
• Riders: Look for riders or add-on plans you can obtain. They provide additional coverage and can be helpful long-term

How much does a life insurance policy in Canada cost?

The cost of a life insurance policy will depend on factors such as age, income, status of smoking status, and the type of policy obtained. For example, a 35-year-old Canadian individual with a term life coverage of $500,000 may have to pay a monthly premium between $20 and $35. 

Whole life insurance premium rates are high as compared to what you would generally pay for term life insurance. It is therefore important that you compare various quotes to know how much coverage you require and based on your financial situation and future goals, which type of life insurance product you must buy.

The table below depicts the monthly premiums of a 20-year term life insurance policy for an individual seeking $500,000 from the top insurers in Canada.

Cost of a life insurance policy in Canada

The cost of a life insurance policy in Canada depends on several factors, including age, health status, coverage amount, type of policy, and lifestyle. Younger and healthier individuals generally pay lower premiums than older individuals with medical conditions. 

Term life insurance is typically the cheapest option, providing coverage for up to 30 years, while permanent insurance premiums are expensive but offer protection and a cash value component. 

How much life insurance coverage do I need in Canada?

Get in touch with our advisors at PolicyAdvisor who will help you determine the total insurance coverage you will need when looking to buy a life insurance plan. You will have to consider certain factors like replacement income, outstanding debts, future expenses, etc, to obtain the most suitable coverage. Knowing the factors affecting your coverage can help you decide how much protection you will need, and buy the most suitable life insurance coverage:

• Replacement of income: You can determine how much coverage you require by multiplying your annual income by the number of years left for your retirement. For example, if you are aged 35 years and your annual income is $50,000, then considering your retirement age to be 60 years, the total coverage you will need is 50,000 x (60-35), which is $1,250,000 
• Outstanding debts: Take into consideration outstanding debts and mortgage payments to determine the appropriate coverage for yourself
• Future expenses: Your future expenses, such as your children’s education, mortgage payments, emergencies, spouse’s retirement, etc., can help you decide on a suitable life insurance coverage
• Current investments and savings: Deduct existing investments and savings before deciding upon the appropriate coverage for yourself

Get in touch with our experts at PolicyAdvisor who will offer guidance to use our built-in life insurance calculator to get instant life insurance quotes. You will need to enter details such as your gender, age, smoking status, postal code, term, and whether you wish to buy insurance individually or have dependents.

What are the types of life insurance policies available in Canada?

Life insurance in Canada can be of several types, based on term duration, underwriting guidelines, etc.. These policies cater to the specific needs of an individual, so based on your financial requirements, choose the one most suitable for you.

• Term life insurance: A term life insurance policy provides coverage to your loved ones and helps in taking care of immediate financial needs, such as funding your children’s education, paying the mortgage, etc.
• Whole life insurance: A whole life insurance policy not only provides coverage for life but also cash value, which you can withdraw during your lifetime. If you are looking to leave behind an inheritance or for long-term estate planning, then it is recommended that you purchase a whole life insurance policy
• No-medical life insurance: You do not need to undergo any medical assessment, and answering a health-related questionnaire is enough. You are not required to share any medical information, and the approval time is faster for such policies. However, the premiums will be higher, and the coverage is just enough if you have short-term financial requirements
• Universal life insurance: A universal life insurance policy not only provides coverage but also offers the option to adjust your premiums, death benefit, and obtain tax-advantaged investment choices. This type of insurance is suitable for high-income Canadian citizens

How to choose between permanent and temporary coverage?

You can choose between permanent and temporary insurance plans. Permanent coverage locks in the premium rate and builds cash value, while temporary insurance only offers coverage and becomes difficult to buy with age. 

Being aware of what different insurance products offer will give better clarity in choosing between permanent and temporary coverage, and buying a suitable insurance plan.

• Whole life insurance and permanent life insurance provide permanent and long-term coverage. If you are looking for insurance and want to build cash value, you can consider obtaining these types of policies
• Term insurance offers only insurance for a limited term. In case of your passing, the beneficiary receives a death benefit, which can be used to clear immediate financial liabilities left behind by you

Who needs life insurance?

Life insurance benefits various Canadians. Canadian citizens from different walks of life can obtain life insurance to take care of their different financial requirements. Whatever your future financial requirements are, life insurance ensures peace of mind and protects the future of your loved ones. 

• Families: Life insurance protects the future of your family members even after you have passed away. Buy this insurance when you are young and wish to lock in cheaper rates or have debt
• Business owner: Ensures continuity of your business and helps in securing loans, and provides protection in case of loss of key partners
• Senior citizens: Canadian senior citizens must obtain life insurance to strengthen the future of their loved ones and cover their final expenses

Should I add riders to my policy while buying life insurance in Canada?

Life insurance plans come with riders or add-on policies that offer extra benefits and features to your base life insurance plan. You can obtain these riders by paying an extra fee. There are various types of riders that you can choose from and improve your coverage.

• Accidental Death and Dismemberment (AD&D) rider: Offers an additional payout in case of an accident-related death
• Critical illness rider: If you are diagnosed with a critical illness, a lump-sum amount is paid 
• Waiver of premium rider: Your premiums are waived off in case of disability or inability to work
• Disability income rider: The policyholder receives a monthly income in case they become disabled
• Child term rider: Your children are covered under this rider. This rider can help in paying for your child’s education and other future expenses and protect their future
• Return of premium rider: On surviving the policy term, the premiums paid will be reimbursed

What are the benefits of buying rider plans?

Adding riders to your existing coverage enables you to customize your plan, protect your finances, and enjoy peace of mind.

• Riders allow you to customize your existing insurance policy based on your changing financial requirements
• Certain riders cover illness and disability, which helps in savings
• You enjoy peace of mind as the rider covers additional financial risks

Can I buy life insurance online in Canada?

Yes, you can purchase life insurance online in Canada. Various Canadian insurance companies offer you the option of browsing their life insurance plans, comparing insurance quotes, and purchasing life insurance. 

Our licensed experts at PolicyAdvisor help you compare various life insurance policies and get the best quotes based on the details provided with the help of our in-built life insurance calculator, which you can use for free. Our PolicyAdvisor insurance advisors are available to offer to help you with any insurance-related queries, even after you have obtained a new policy.

Given below are some of the advantages of buying life insurance online:

• The application process is free and fast
• You get online tools to know instant quotes
• You can browse for various policies and take your time deciding on the one best for you
• You get access to various insurance companies and the policies offered.
• It is easier to manage your policy 

What are the common mistakes to avoid when buying life insurance?

You should thoroughly compare different life insurance policies to determine the one best for you. By being aware of the potential mistakes, such as overlooking exclusions, underestimating your financial needs or delaying your insurance purchase, you can ensure that you not only buy the best life insurance plan but also do not end up over-insuring or under-insuring yourself.

By evaluating your coverage needs, and comparing different insurance quotes, you can buy a suitable life insurance policy, and avoid making costly errors. 

• Not looking at the features, but only the price
• Not comparing enough life insurance policies and insurance quotes
• Underestimating the coverage necessary
• Waiting too long to buy life insurance. You must note that with age, the premiums may increase as well
• Not reviewing the exclusions under the policy
• Either getting less coverage or getting more than what is sufficient
• Choosing the wrong beneficiaries or not informing them
• Not updating beneficiaries after life events (e.g., divorce)

Planning your family’s financial future doesn’t end at retirement. For many Canadian seniors, life insurance becomes even more important to help cover rising healthcare costs, final expenses, and provide a lasting legacy.

For Canadian seniors over 50, getting life insurance in Canada can be challenging due to age limits, health checks, or complex processes.

Traditional policies often come with age limits, health checks, and long application processes. But today’s market offers more flexible options. No medical exam life insurance is now a popular solution for older adults and those with health concerns.

In this article, we will help you:

• Compare traditional and no medical exam life insurance
• Understand your options for life insurance over 50
• Explore actual premium examples
• Get expert advice to find the right coverage for your budget, health, and family goals

This guide will help you understand the differences between traditional insurance policies and no-medical-exam insurance policies, their benefits and drawbacks, and how to decide which life insurance product to purchase.

Understanding life insurance options for Canadian seniors

As a senior residing in Canada, you can choose from various types of life insurance policies based on your needs. You have to pay a regular premium to the insurer in return for the coverage and a regular lump-sum amount that protects the future of your loved ones.

There are various types of life insurance policies you can opt for depending on your financial needs and family requirements.

Traditional life insurance for seniors

Traditional life insurance provides coverage which offers both financial protection and peace of mind. Based on your financial requirements, you can decide which type of traditional life insurance policy you should buy. Understanding what different insurance helps you decide whether to buy a suitable life insurance policy: 

• Term life insurance for seniors: Term life insurance provides coverage for a set period of time, which can go up to 25 years or until the age of 85 years for senior citizens in Canada. You need to pay a premium that remains constant during the policy period. If you have any outstanding debt or similar financial requirements to fulfil, you can apply for this insurance policy. In case of your untimely death, the nominee will receive a tax-free benefit to clear debts and cover other financial obligations. However, renewal for senior term life insurance becomes expensive due to increased health-related risks and age

• Whole life insurance for Canadian seniors: A whole life insurance policy is an option a Canadian senior individual can consider. This type of policy not only provides coverage but also ensures that you are able to build a cash value over a period of time that is tax-free but can be withdrawn if needed. However, a whole life insurance renewal will cost more than a renewal for a term life insurance policy for a Canadian senior person

• Universal life insurance options: A universal life insurance policy provides not only coverage but also invests a part of your premium in different investment tools. Investments carry risks, and returns aren’t guaranteed, unlike whole life

A policyholder can adjust their premium and death benefits to match their financial needs. While this may look like an attractive option, the premium for such insurance rises with age, making the policy expensive over time. You can opt for such insurance if you do not mind the high cost and the risk.

No medical exam life insurance for Canadian seniors

No medical exam life insurance is designed for applicants, often seniors, who want coverage without the need for a physical examination or lab tests. Instead of a medical check, insurers assess eligibility using a short health questionnaire or basic lifestyle questions. 

These policies are generally easier to qualify for than traditional life insurance, making them suitable for individuals with pre-existing health conditions or those seeking quick approval. 

The approval time for policy issuance is generally quick and does not take more than two days in Canada.

Types of no medical exam policies available

Simplified issue life insurance

If you don’t want to undergo a medical examination but are comfortable answering a short questionnaire related to your health, you can consider applying for simplified issue life insurance. The approval period is generally two days.

• Health questionnaire requirements: You will need to answer typically between three and 40 questions, mostly related to your health and lifestyle. These questions help the Canadian life insurers determine the coverage and premiums for your policy. Ensure you answer all the questions and provide correct information
• Coverage amounts available ($10,000-$500,000): Insurers in Canada offer coverage under this type of policy ranging between $10,000 and $500,000, depending on the applicant’s age. However, for senior citizens, the coverage might be lower
• Waiting periods and restrictions: No medical exam insurance policies may include a waiting period of up to two years, depending on factors such as the policyholder’s age, pre-existing medical conditions, etc., while some may not have one. It is important to check the policy document’s fine print to know about the policy terms and the waiting period before signing on the dotted line

For whom are simplified issue policies suitable?

Seniors with mild to moderate health conditions can apply for a no-medical exam policy. If an individual doesn’t qualify for traditional insurance, then they can consider buying this type of insurance scheme. If you are healthy for your age, then you will be able to get high coverage and lower premiums. The other reason to apply for this type of policy is the short approval time.

Guaranteed Acceptance life insurance

Under this type of policy, you will not be required to either undergo a medical examination or answer any questions. In most cases, approval is guaranteed. However, the coverage for a senior person in Canada can range between $25,000 and $50,000.

• No health questions or medical exams: The senior Canadian applicant will neither be required to undergo a medical examination nor answer any questions to obtain this type of insurance policy
• Coverage limits (typically $5,000-$25,000): The coverage limit for such a type of insurance policy is not very high and generally ranges between $25,000 and $50,000
• Graded death benefit periods: For such a policy, there is a waiting period of about two years. In case the policyholder expires due to any reason other than accidental death, the nominee will receive a percentage of the death benefit or the return of the premium paid to date
• Premium costs vs. coverage ratios: Due to the absence of any medical underwriting, the coverage offered is low, while the premium rates are higher compared to other life insurance products
• Accelerated underwriting programs: The insurer takes into account factors such as prescription, technology, and health data to eliminate the need for medical examination, even for higher coverage
• Digital health assessments: On filling out the health-related questionnaire online, the insurer can access the risk and decide on the coverage and premium rates
• Prescription database checks and medical record reviews: The senior applicant’s medical history and prescription records can be accessed by the insurer (subject to consent) for verification
• Faster approval times: Accelerated underwriting expedites the approval time, typically taking not more than two days, and in some cases provides instant approval for low-risk seniors. For those looking for high coverage, quick approval, and guaranteed acceptance, applying for a no-medical-exam life insurance policy is a good option

Top Canadian insurance companies offering no medical exam coverage 2025

Insurance companies like RBC, Manulife, Sun Life, etc. offer no medical exam life insurance to seniors over 50 years of age. Get in touch with our consultants at PolicyAdvisor, who will help you understand the insurance and compare various insurance quotes. Our advisors are available not only during the application process but also offer help during the policy term and clear any insurance-related queries.

In the table given below, you can check out some of the insurance companies in Canada that offer no medical exam life insurance, including the type of coverage, the coverage amount, and their features:

What is the coverage amount and the cost of the premium for life insurance products in Canada?

The cost of the premiums depends on factors such as the type of life insurance product, coverage amount, age, and risk factor. Knowing the cost of coverage and premiums can help you decide which life insurance you must buy that will provide you with long-term benefits, along with securing the future of your loved ones.

What are the pros and cons of traditional insurance and no medical exam insurance for Canadian seniors?

Seniors over the age of 50 can choose between traditional insurance or no medical exam insurance plans, depending on their future financial needs, income, number of dependents, etc. 

These types of insurance plans not only provide coverage and protect the future of your loved ones, but also help you protect your assets, cover any expense in case you have a pre-existing medical condition, or simply for estate planning. Both traditional insurance and no medical exam insurance plans have their benefits, which you can obtain based on your requirements.

These types of life insurance products come with their drawbacks, too. It is important that you are aware of their shortcomings and accordingly decide which type of life insurance plan will work for you.

Benefits of traditional insurance policies

Traditional policies offer protection, helping in securing the future of your loved ones. This insurance also enables building a cash value that ensures you can take care of your future financial needs. Knowing the benefits offered by traditional insurance can help you decide whether to buy this type of policy.

Benefits of no medical exam life insurance

No medical exam life insurance provides coverage without requiring you to undergo a medical assessment. If you are looking for quick approval, have a pre-existing medical condition, or are at risk of policy denial, you can consider buying no medical exam life insurance. Though the premiums for this insurance are higher, it conveniently offers coverage without having to undergo a medical examination. Know the benefits to make an informed decision.

Drawbacks of traditional life insurance policies

Traditional life insurance offers benefits such as offering coverage, building a cash value; it has its drawbacks, such as the lack of flexible options, slow cash value growth, etc. This section tells you about the disadvantages of traditional life insurance so that you can decide whether this insurance is suitable or not. 

Drawbacks of no medical exam policies

No medical exam life insurance is easy to buy, since it offers quick and convenient coverage. It comes with certain disadvantages, such as high premiums with limited coverage. This type of life insurance is typically more expensive and less comprehensive as compared to a traditional life insurance plan. 

Life insurance application process for Canadian seniors

Senior Canadians must secure the future of their loved ones by buying either a traditional life insurance plan or a no medical exam insurance plan. These products not only provide peace of mind but also help in paying outstanding dues, estate planning, or simply leaving a legacy behind.

In this guide, you will be able to understand the steps you will have to follow while applying for a traditional life insurance plan. Apart from the application process, the guide also lists the documents you will have to submit for verification. 

Traditional life insurance application steps

Knowing the traditional life insurance application process helps you prepare for the medical examination and have your documents to simplify buying life insurance coverage. In this section you will be able to understand the steps to apply for traditional life insurance.

• The first step is to fill in the application form. Provide all the necessary information and submit it along with all the required documents
• The next step is to undergo a medical examination. One will have to schedule an appropriate date and time at which they will be subjected to the examination
• The insurer will verify the details provided and, based on that, decide the coverage and premium. The whole process may take between 4 weeks and 6 weeks for issuance

No medical exam application process

The no medical exam life insurance process is generally quick and convenient since there is no medical examination required. However, knowing the steps to apply for no medical life insurance makes the whole process of buying this insurance simpler and faster. It is important to note that the application process will differ slightly for simplified issue and guaranteed acceptance life insurance, respectively.

• Simplified issue applications:

• • • Fill in a digital form and complete the health-related questions
    • The insurer will verify your prescription records to determine the status of the applicant’s health
    • The risk assessment process is sped up with the help of data and technology
    • The application for such policies gets approved almost instantly, within a few hours to a few days

• Guaranteed acceptance process:

• • The applicant will only need to provide their basic information.
  • These types of policies are issued within a few hours
  • There is, however, a waiting period of 2-3 years, after which all benefits are fully activated

What documentation is required for traditional policies and no medical exam policies?

Both traditional and non-medical exam policies can be obtained after submitting the required documents. The documents seniors are required to submit are: 

• Government-issued identification such as a passport, driving license, provincial ID card, etc.
• Income proof such as tax returns, pension statements, etc.
• Banking details for the ease of payment of premiums
• The basic details of the nominees and other beneficiaries

How can seniors in Canada choose the right life insurance policy?

Canadian seniors can choose the right insurance by evaluating their coverage needs, health status, and budget. Seniors in Canada can understand what each life insurance policy offers and whether they are suitable or not. Based on this information, they can decide to buy a suitable and affordable life insurance plan.

You can also get in touch with our experts at PolicyAdvisor who will guide you through the process of comparing different life insurance quotes and helping you choose the most suitable plan.

When to choose traditional life insurance?

It is important to know when traditional life insurance can be suitable for a senior citizen in Canada. Being aware of these points will help the applicant buy the most appropriate insurance plan for themselves. 

• If the applicant is healthy for their age
• If the person is looking for large coverage, then traditional insurance is ideal
• For someone looking for long-term financial protection, having a traditional life insurance policy is appropriate
• If estate planning is a key priority for someone, they should consider traditional insurance policies

When to choose a no medical exam insurance plan?

Consider buying a no-medical exam policy if you have a pre-diagnosed medical condition, want quick approval, and lower coverage in future. 

• If the applicant has pre-existing medical conditions
• If the person is looking for a quick, hassle-free approval of their coverage
• If the senior person needs smaller coverage
• Someone who has had their previous insurance application denied can consider such insurance policies

Which Canadian life insurance companies offer plans for seniors in Canada?

Seniors in Canada seeking life insurance can explore a range of plans from reputable insurers with strong financial track records. At PolicyAdvisor, our licensed advisors will help you compare providers, understand your options, and find the right insurer and plan to suit your needs.

Best traditional life insurance 

Various reputable insurers in Canada offer a range of traditional life insurance options, offering suitable coverage catered to different financial goals and family requirements.

Things to keep in mind before purchasing life insurance

Before buying insurance, you must compare various plans to ensure you have an insurance plan that offers maximum benefits. There are other factors that can help decide better what type of coverage will be suitable. 

• Look for insurance policies offered by insurers with strong financial ratings
• Check the customer service of the insurance company. Look at how quick their turnaround period is
• Look for insurance companies with a good claim payment history that are known to issue claims on time
• Compare the premium rates for different plans. The premiums for no medical exam insurance plans are generally high
• Check if the insurance scheme offers benefits such as rider plans, accumulation of cash, etc.

Common mistakes Canadian seniors make when buying life insurance

Buying life insurance as a senior in Canada can be a smart way to protect your loved ones, but it’s easy to make costly mistakes during the process. These errors can lead to higher premiums, unsuitable coverage, or even policy denial. Understanding what to avoid can help you secure the right plan with minimal stress and maximum value.

There are some commons which if avoided can help in buying a comprehensive and suitable life insurance plan. 

• Not taking into account additional expenses that a person may incur in the future
• Not taking into account inflation can result in a person buying insurance not suitable for them
• It is recommended to clear all outstanding dues before purchasing insurance, so that one doesn’t face additional financial burden going forward
• One should take into consideration the needs of their spouse before purchasing insurance
• Providing inaccurate information about your health or withholding medical conditions can result in purchasing insurance that is not suitable
•  It is important to understand the questionnaire and answer it truthfully. Failure to do so may result in complications related to underwriting
• The applicant’s insurance application may get rejected due to failure to submit the correct documents

Life insurance offers peace of mind, but what happens when the claim is denied? In fact, Canadian insurers paid out a record $128 billion in claims in 2023, highlighting the importance of a life insurance payout. Unfortunately, many life insurance claims still get rejected due to preventable issues like non-disclosure, policy lapses, or overlooked exclusions. 

For Canadian seniors and their families, a denied life insurance claim can be devastating both emotionally and financially. In this guide, we break down why claims get denied, what red flags to watch for, and how seniors can protect their loved ones from unexpected surprises during an already difficult time.

Why do life insurance claims get denied for seniors in Canada?

While life insurance provides financial protection for your loved ones, insurers in Canada can deny claims for several preventable reasons. Some of the main reasons for life insurance claim denial in Canada include

1. Non-disclosure of medical history

Many life insurance claim denials in Canada occur because the policyholder failed to disclose pre-existing health conditions. Insurers rely on full medical transparency during the application process. 

If a senior omits information about chronic illnesses like diabetes, heart disease, or past surgeries, the insurer may consider it misrepresentation and deny the death benefit.

2. Missed premium payments

A lapse in premium payments can lead to life insurance policy rejection, regardless of how long the policyholder maintained it. Canadian insurers generally allow a 30-day grace period to catch up on missed payments. 

However, if the premium remains unpaid beyond this window and the policy lapses, any life insurance claim filed after the insured’s death will be automatically rejected.

3. Policy lapse before death

A lapsed life insurance policy offers no coverage, making any subsequent claim invalid. Seniors may accidentally let their policy lapse due to forgotten payments, outdated billing methods, or cognitive decline. 

4. Suicide within the contestability period

Most Canadian life insurance policies include a two-year contestability or exclusion period for suicide. If the policyholder dies by suicide during this time, the insurer may deny the life insurance claim and return only the premiums paid. 

5. Fraud or misrepresentation

Deliberate misinformation or falsification of details on the insurance application can lead to claim rejection, even after the contestability period has passed. This includes lying about age, smoking habits, medical diagnoses, or financial status. Insurers in Canada conduct thorough investigations, especially if the claim is filed soon after policy issuance, and they reserve the right to deny a life insurance claim if fraud is detected.

6. Wrong beneficiary details

Incorrect, outdated, or disputed beneficiary information can lead to delay or complete rejection of the life insurance claim process. If the named beneficiary is no longer alive, or if the form contains typographical errors or legal ambiguities, the insurer may withhold payment until proper verification is complete. 

7. Cause of death falls under policy exclusions

Canadian life insurance policies often contain an “exclusion clause”, which is a list of specific circumstances under which the insurer will not pay the death benefit. If the cause of death falls under any of these exclusions, the life insurance claim may be denied. Common exclusions include:

• Death due to criminal or illegal activity: If the policyholder dies while engaging in unlawful acts, such as drug trafficking, burglary, or armed assault, the insurance company may deny the claim
• Death resulting from high-risk or extreme hobbies: High-risk activities like skydiving, scuba diving, race car driving, or mountaineering are often excluded from coverage unless the policyholder purchases an additional rider to cover these activities
• Homicide involving the beneficiary: If the beneficiary is under investigation or suspected of involvement in the policyholder’s death, the insurer will typically place the life insurance claim on hold
• Death caused by war or military conflict: Some life insurance policies exclude deaths that occur during war, armed conflict, or military service
• Death during acts of terrorism or civil unrest: Deaths caused by terrorism, riots, or civil uprisings may not be covered by some insurance companies. Seniors who travel internationally should verify whether their policy contains such exclusions

8. Incomplete or inaccurate claim documentation

Even valid life insurance claims can be delayed or denied if beneficiaries fail to provide the correct paperwork. Missing documents like the original policy contract, death certificate, medical records, or proof of identity can lead to claim denial.

Are Canadian seniors at a higher risk of life insurance claim rejection?

Canadian seniors may face a slightly higher risk of life insurance claim rejection due to a combination of health-related and administrative factors. Seniors in Canada are more likely to have pre-existing medical conditions such as heart disease, diabetes, or cancer. If these health issues are not fully disclosed during the life insurance application process, insurers may consider it misrepresentation and deny the claim.

Seniors who purchase life insurance later in life also tend to choose no-medical or guaranteed issue policies, which often include a two-year waiting period. Claims filed within that period, particularly for natural causes, may be denied or receive only a limited payout.

Additionally, Canadian seniors are more prone to unintentional policy lapses due to missed premium payments or outdated payment methods. Seniors can reduce the risk of life insurance claim denial by working with licensed insurance advisors (such as our experts at PolicyAdvisor), staying current on payments, disclosing all relevant health information, and keeping beneficiary details up to date.

What does Contestability Period mean in life insurance claims?

The contestability period is a standard clause in Canadian life insurance policies that typically lasts for the first two years after the policy takes effect. During this period, the insurance provider has the right to thoroughly review any claim to verify the accuracy of the information provided in the application. 

If the insurer discovers misrepresentation, omission of health conditions, or false financial or lifestyle details, they can deny the life insurance claim or cancel the policy entirely.

This clause protects insurance companies from fraud or non-disclosure, especially when a death occurs soon after the policy is issued. After the contestability period ends, the insurer can only deny a claim in cases of proven fraud, making the policy much more secure for long-term beneficiaries.

How can seniors prevent life insurance claim denials in Canada?

Canadian seniors can significantly reduce the risk of life insurance claim rejection by following best practices throughout the life of their policy. Being proactive, transparent, and organized ensures that beneficiaries receive the intended death benefit without complications or delays.

Here are a few ways how seniors can prevent claim denials in Canada:

• Disclose all medical conditions honestly when applying: Seniors must provide complete and truthful medical information when applying for life insurance. Withholding details about pre-existing conditions can lead to claim rejection during the contestability period
• Ensure timely premium payments to keep the policy active: Missing even one payment may cause a policy lapse, resulting in denied claims. Setting up automatic payments helps maintain continuous life insurance coverage
• Review and understand all policy exclusions: Seniors should read the exclusion clause carefully to understand causes of death not covered by the insurer, such as death due to illegal activity, high-risk hobbies, or acts of war
• Update beneficiary details after major life changes: It is important to regularly review and revise beneficiary designations following events like marriage, divorce, or the death of a named beneficiary to avoid delays or disputes during claim processing
• Keep policy documents accessible for family members: Seniors should store their life insurance policy, payment records, and insurer contact information in a secure, accessible location to ensure a smooth claims process for beneficiaries
• Select a life insurance policy suited to age and health: Choosing between term, whole life, or guaranteed issue life insurance must be based on personal health status, budget, and coverage needs to prevent unexpected limitations in benefits
• Conduct annual policy reviews with a licensed advisor: Regular reviews help ensure the policy stays valid and reflects any updates in health, financial goals, or family structure, keeping the coverage aligned with the policyholder’s current needs

Does a policy lapse automatically lead to life insurance claim denials?

Yes, in most cases, a lapsed life insurance policy will result in an automatic claim denial. A policy lapse occurs when the policyholder fails to pay premiums within the grace period, typically 30 days in Canada. Once the policy lapses and the coverage becomes inactive, the insurer is no longer obligated to pay out the death benefit if the insured passes away during that time.

Canadian seniors should be especially cautious about maintaining active life insurance coverage. Missed payments due to forgetfulness or financial hardship can jeopardize their family’s protection. Setting up automatic payments or appointing a trusted contact to monitor policy status can help prevent unintentional lapses and reduce the risk of denied claims.

Does non‑disclosure of smoking habits lead to life insurance claim denials in Canada?

Yes, failing to disclose smoking habits on a life insurance application can lead to claim rejection in Canada. Life insurance companies classify this as a form of misrepresentation, as smoking significantly increases health risks and affects premium rates. 

During the contestability period, the insurer can investigate and deny a claim if it discovers that the applicant concealed their tobacco use. Canadian seniors should always disclose smoking or nicotine use honestly to avoid future disputes and protect their beneficiaries from claim denial.

Is a medical exam necessary to avoid life insurance claim denial for seniors in Canada?

No, a medical exam is not always necessary to avoid life insurance claim denial for seniors in Canada. However, full disclosure of any pre-existing health condition is mandatory. Many insurers offer no-medical or simplified issue life insurance options, especially for older adults. 

Even if no exam is required, seniors must provide accurate and complete health information during the application. Insurers can still deny a life insurance claim if they later discover omitted or false medical details. 

How can the beneficiary make a life insurance claim after a senior’s death?

Canadian life insurance companies require proof of death, identity verification of the beneficiary, and policy validation before releasing the death benefit. Here is a step-by-step guide on how a beneficiary can make a life insurance claim in Canada:

Notify the insurance provider immediately: Contact the insurer’s claims department by phone or email and report the death. To initiate the process, you will need to provide the policy number (if available), the full name of the insured, and the date and location of death.

Gather and submit essential documentation: The insurance company will require several key documents. These must be submitted either digitally or by mail, depending on the provider’s process.

Required documents:

• Original or certified copy of the death certificate issued by the provincial vital statistics office or funeral home. It must confirm the date, time and cause of death.
• Completed claim form that includes the beneficiary’s details, relationship to the insured, preferred payment method, and a declaration that the information is true and complete
• Proof of identity of the beneficiary, which may include a valid government-issued ID (e.g., driver’s licence, passport, or permanent resident card). Some insurers may also require proof of address
• Original policy document or policy number. If the original policy document is unavailable, provide the policy number and the insured’s full name and date of birth
• Medical records, coroner’s report, or autopsy report if the death is sudden, accidental, occurs during the contestability period, or involves suspicious circumstances
• Proof of relationship, in special cases when a beneficiary is not a spouse or child
• Beneficiary’s banking information, including a void cheque or direct deposit form with accurate banking details

Verify policy status and exclusions: Ensure the policy was active and in good standing at the time of death. Review the terms to confirm there are no exclusions (e.g., suicide within 2 years, high-risk activity, fraud) that could affect the payout.

Submit the claim through the correct channel: Insurers may accept claims via email, online portal, or physical mail. Follow their instructions closely and keep records of what you submit and when.

Track your claim and follow up regularly: Most life insurance claims in Canada are processed within 30 days, provided there are no complications. Keep in contact with the insurer to monitor progress and respond quickly to any additional requests.

What should a beneficiary do in case of a life insurance claim denial?

If a life insurance claim is denied in Canada, the beneficiary still has several legal and procedural options to appeal the decision and pursue the benefit. Life insurance companies must provide a reason for the claim denial. In most cases, beneficiaries can challenge it through proper documentation, legal channels, and expert guidance.

Things to do in case of a claim denial

• Request a detailed explanation from the insurer: If the denial letter lacks clarity, the beneficiary should formally request a comprehensive breakdown of the rejection. This includes accessing claim documents, underwriting notes, and policy exclusions
• Verify all submitted documents and beneficiary details: Ensure that all required documents were submitted correctly and that the named beneficiary matches the policy records. Administrative errors or outdated beneficiary information can be grounds for a claim dispute
• Consult a licensed insurance advisor or broker: An experienced life insurance advisor (such as our experts at PolicyAdvisor) can help interpret the reason for denial and provide guidance on next steps. PolicyAdvisor’s experienced advisors can help you reevaluate your claim application, spot any gaps in the application that may have resulted in denial and resolve your issue efficiently
• Submit a formal appeal to the insurance company: Beneficiaries can submit an appeal with additional documentation or clarification. Providing medical records, proof of premium payments, or affidavits can support the appeal process
• File a complaint with a provincial regulator: If the insurer does not respond fairly, beneficiaries can escalate the issue by filing a complaint with their provincial insurance regulator or the OmbudService for Life and Health Insurance (OLHI)
• Consider legal action if the claim remains unresolved: As a last resort, a beneficiary may take legal action against the insurer. A legal challenge may be warranted if the denial appears to violate the terms of the life insurance contract
• Keep all communication and paperwork organized: Maintain a detailed record of all emails, phone calls, letters, and submitted forms throughout the claims and appeals process. These documents will support any regulatory or legal escalation if needed

A breast cancer diagnosis brings overwhelming emotions and practical concerns including whether you can still get life insurance after cancer. However, having breast cancer doesn’t automatically disqualify you from coverage, but the application process requires careful timing and strategy.

According to the Canadian Cancer Society, 25% of all new cancer cases in women are breast cancer. For those undergoing treatment or in remission, one of the most frequent concerns is about life insurance and breast cancer, specifically, whether they can still qualify for coverage and what options are available.

In this comprehensive guide, we’ve covered everything breast cancer patients and survivors need to know about securing life insurance in Canada, including coverage options, premium costs, and the best life insurance companies for cancer survivors.

Can I get life insurance with breast cancer?

.If you’re wondering whether you can get life insurance with breast cancer in Canada, the answer is yes, but eligibility depends on several important factors.

Life insurance and breast cancer are closely linked through the way insurers assess risk, particularly when dealing with pre-existing conditions. 

In Canada, life insurance typically pays a tax-free lump sum to your beneficiaries, regardless of how you pass away. However, breast cancer, as a pre-existing condition, may impact whether you qualify, how much you pay in premiums, and what policy options are available.  

Immediate eligibility during active treatment

If you are currently undergoing treatment for breast cancer, your options for life insurance are more limited. Most traditional life insurance companies will postpone or decline applications during active breast cancer treatment, especially if chemotherapy, radiation therapy, mastectomy, or lumpectomy procedures are ongoing

However, there are still pathways to coverage:

• No medical life insurance or guaranteed issue policies may be available. These typically don’t require medical exams but may offer lower coverage limits and higher premiums
• Group life insurance through an employer may also be accessible, often without health questions or exclusions

When should breast cancer survivors apply for life insurance in Canada?

Most insurers require a waiting period of 3 to 5 years in remission before approving standard life insurance after cancer diagnosis.

During the application process, insurers will assess:

• Stage of cancer at diagnosis: Early-stage cancers like Stage 0 or 1 may be viewed more favourably
• Type of treatment received: Localized treatments or successful surgical removal with no recurrence can improve your risk profile
• Current health status: Stable health post-treatment increases your eligibility and lowers premium costs

If you’re still within the remission window, simplified issue or no-medical policies may be good interim options for getting life insurance with stable pre-existing conditions until you’re eligible for fully underwritten coverage. Consult an advisor to navigate underwriting for stage-specific breast cancer cases.

What are the life insurance policies available for breast cancer patients and survivors?

In Canada, there are several life insurance options for breast cancer patients and survivors, depending on your current health status, treatment history, and how much time has passed since your diagnosis or remission.

Whether you are undergoing active treatment, newly in remission, or a long-term survivor, insurers offer various policy types such as guaranteed issue life insurance, simplified issue life insurance, and traditional life insurance.

Best life insurance policies for breast cancer patients and survivors in Canada

How much does life insurance cost with or after a breast cancer diagnosis?

Life insurance premiums for breast cancer patients and survivors in Canada typically range from $40–$200 per month for $100,000 coverage, with guaranteed issue policies at the higher end ($100-$200) and standard policies for long-term survivors at the lower end ($40-$80). 

These rates vary significantly on various factors such as the type and stage of cancer, time since diagnosis and treatment completion, current health status, age, smoking history, lifestyle, type of policy and coverage amount.

For example, guaranteed issue policies tend to have higher premiums and lower coverage amounts due to the lack of medical underwriting, while standard policies with full underwriting may offer better rates for long-term survivors in remission.

Which are the best life insurance companies for breast cancer patients and survivors in Canada?

Life insurance after a breast cancer diagnosis is possible in Canada, if you’ve fully recovered and a few years have passed, companies like Canada Life, Manulife, Industrial Alliance, and RBC may offer standard coverage. 

If you’re recently diagnosed or still in treatment, simplified or guaranteed issue plans from Canada Protection Plan, UV Insurance, Humania, and Assumption Life can offer coverage with fewer medical questions.

However, the best life insurance provider for breast cancer survivors largely depends on your specific circumstances, such as time since treatment, overall health, and budget. 

The following insurers are recognized for their accommodating policies and flexible underwriting for cancer survivors:

Not every marriage ends in “happily ever after.” For many Canadians, separation brings not just emotional stress but complex financial consequences. Yet many individuals overlook the role of life insurance during divorce.

As divorce becomes more common in Canada, with a crude divorce rate of 2.1 per 1,000 people and ranking 26th globally, understanding how your life insurance policy fits into a divorce settlement is essential. This article explains how divorce may impact your current life insurance coverage, why you might need a new policy post-divorce, and how to update your beneficiary.

Why does life insurance matter during a divorce?

Life insurance holds significant importance during a divorce because it ensures that financial responsibilities toward a former spouse or children remain protected, even after the policyholder’s death. Here’s why life insurance matters in a Canadian divorce settlement:

• Secures child support and spousal support obligations: Courts may require a life insurance policy to guarantee continued payments if the paying spouse passes away
• Protects the financial future of dependents: Life insurance ensures that children and ex-spouses can maintain financial stability and meet essential needs like housing, education, and healthcare
• Fulfills court-ordered divorce requirements: Judges in Canada often mandate life insurance as part of separation agreements or divorce settlements, particularly when minor children are involved
• Prevents legal and financial disputes: Including life insurance in a divorce agreement helps reduce future conflicts by clearly defining who receives the payout and under what conditions
• Covers shared debts or mortgage obligations: Life insurance can also help pay off joint loans or mortgages, preventing the surviving ex-spouse or children from inheriting debt
• Provides peace of mind: Both parties gain reassurance that the financial needs of dependents will be met, regardless of unforeseen events

What happens to your life insurance policy after a divorce in Canada?

When a couple separates or divorces in Canada, their life insurance policies do not change automatically. Many couples initially purchase life insurance together to protect shared financial responsibilities, such as mortgages, childcare, and family income. 

Typically, one spouse names the other as the primary beneficiary. However, separation does not revoke this designation unless the primary policyholder makes manual changes to the policy. Here’s what you need to know about life insurance after divorce:

• You must update your beneficiary designation manually: If you no longer want your ex-spouse to receive the death benefit, you must contact your insurer to change the beneficiary. However, if the ex-spouse is an irrevocable beneficiary, you will require their consent to make changes
• Court orders may require you to keep your ex-spouse as a beneficiary: In some divorce settlements or separation agreements, a judge may order that one spouse maintain a policy with the other spouse or children listed as beneficiaries, especially when child support or spousal support is involved
• Joint life insurance policies can be complex: If you purchased joint first-to-die or joint last-to-die life insurance, these policies can’t always be divided. You may need to cancel and replace the policy with individual coverage or reach a mutual agreement about the payout
• Group life insurance coverage through work may also require changes: If you listed your spouse as a beneficiary under an employer-provided life insurance plan, you need to update this separately with the help of your HR department
• Failing to update your policy may result in unintended payouts: If you pass away without updating your life insurance, your ex-spouse may still legally receive the benefit, even if your separation occurred years ago

How is a life insurance policy equalized between spouses in a divorce?

During a divorce or legal separation in Canada, one of the most important financial considerations is how to divide marital assets fairly. While homes, joint bank accounts, investments, and emergency funds are typically subject to equalization, life insurance policies require special treatment based on their type and structure.

Term life insurance 

Term life insurance policies do not hold any financial value unless a claim is made. Therefore, they are generally not considered divisible marital assets during property equalization. Each spouse can continue their own policy without changes, provided they are individual policyholders.

Permanent life insurance

Whole life or universal life insurance policies, which build cash surrender value, can be treated as financial assets. The cash value accumulated in these policies may be included in the equalization of family property under Canadian divorce law.

Joint life insurance policies 

Joint life insurance policies require equalization between the spouses after a divorce. If you and your spouse share a joint first-to-die or joint last-to-die life insurance policy, you must decide whether to:

• Assign the entire policy to one spouse
• Convert the joint policy into two individual policies (subject to insurer approval)
• Cancel the policy and purchase separate coverage individually

What is the process of splitting a joint life insurance policy?

Insurance providers typically allow the division of joint life insurance in the case of divorce or separation. However, this process often involves:

• Meeting minimum coverage requirements for new individual policies
• Adjusted premiums based on each individual’s current age and health status
• Legal documentation (such as a policy assignment form) to transfer ownership or divide the coverage
• In some cases, support from a family lawyer or divorce lawyer may be necessary to complete these documents correctly

Is life insurance a marital asset?

Yes, life insurance can be considered a marital asset in Canada, depending on the policy type and ownership. Term life insurance typically has no cash value, so it is not treated as a divisible asset in divorce proceedings. 

However, permanent life insurance, such as whole life or universal life, accumulates cash value over time and may be treated as a financial asset subject to equalization under provincial family law.

If both spouses contributed to premiums or if the policy was acquired during the marriage, its value may be split. Splitting a whole life policy with its associated cash surrender value is generally considered a taxable event, except when a policy is being split due to a marriage/common-law relationship breakdown.

It’s important to disclose life insurance during separation and consult a family lawyer or financial advisor (such as our experts at PolicyAdvisor) to determine how it factors into your overall divorce settlement.

What is a court-mandated life insurance order?

A court-mandated life insurance order is a legal directive issued during divorce or separation proceedings in Canada. It requiresat least one spouse to maintain a life insurance policy naming the other spouse or children as beneficiaries. The purpose of this order is to ensure that financial obligations continue to be met in the event of the payor’s death.

Courts typically mandate this coverage when one spouse relies on ongoing support for housing, childcare, or education expenses. The order may specify the minimum coverage amount, policy duration, and beneficiary designation. Non-compliance with a life insurance order can result in legal consequences, so it’s essential to follow it closely and provide proof of coverage.

How is a court-mandated life insurance monitored after the divorce?

A court-mandated life insurance order is monitored through legal documentation and regular proof of compliance. The spouse required to maintain the policy must typically provide proof of coverage, such as a copy of the life insurance policy or a confirmation letter from the insurer, to the other party or their legal representative.

• In many cases, the court order will outline specific monitoring requirements, such as:
• Naming the support recipient or child as the irrevocable beneficiary
• Submitting annual policy statements or renewal confirmations
• Notifying the other party before making any changes to the policy

If the obligated party fails to comply, the other party may take the matter back to court for enforcement or a motion for contempt, especially if the lack of coverage puts dependents at financial risk.

How to handle existing life insurance in a divorce?

If you’ve set your ex-partner to receive the death benefit from your insurance policy, a divorce won’t automatically change this. To change your beneficiary after separation, you have to go through your insurance company or speak with your advisor of record. However, there may be a few things for you to consider as you go about making the change.

Revocable versus irrevocable beneficiaries

• A revocable policy means you can change the beneficiary without first consulting them. That is if, after the divorce, you want to reassign the death benefit away from your former spouse and to another person, a revocable policy allows the reassignment without informing your ex-partner.
• In contrast, an irrevocable policy requires your ex-partner’s (the irrevocable beneficiary) consent to approve the change.

With that said, if you and your former spouse have one or multiple children together and they remain as the children’s primary caregiver, it may be best to keep your former partner as the beneficiary to ensure your children’s financial protection and stability, in case of your death.

How much life insurance do you need after a divorce?

As a newly single person (or even as a newly single parent), you should reassess how your life insurance needs have changed after a divorce. Your new life insurance needs will depend on your portion of the liabilities and how much support you have access to or would be receiving.

Also take into account whether or not you have the responsibility to take care of the children you may have had with your former partner, provide for their education, and help maintain their lifestyle post-divorce.

It’s important to secure any new post-divorce life insurance coverage as soon as possible. Not only may the coverage be a pressing financial obligation of your divorce agreement, if something happens to you and the expected coverage is not in place, but your death could also produce a complicated financial situation that may take months or years for your loved ones to settle and erode any inheritance or wealth you had intended to leave behind.

A life insurance calculator can easily help you reassess your insurance needs and update your post-separation financial plan. If you find you don’t have adequate coverage, you may need to speak with a life insurance broker to help you get new life insurance coverage as soon as possible.

What type of insurance should you purchase after a divorce or separation?

The type of insurance to purchase will depend on your financial circumstances after a separation. Term life insurance is often ideal after a divorce or separation if you want to maximize your coverage while working within a budget. A term life policy is less expensive than many other life insurance options. Term life insurance only provides a death benefit if you die within a specific time-frame, such as within 10, 20, or 30 years and therefore the premiums are more affordable.

You may keep your new term life policy active for as many years as you’re responsible for spousal and/or child support payments. Once your children are a certain age, they may achieve financial independence and a policy may no longer be required.

In contrast, a permanent life insurance policy would last for the entirety of your life. This type of policy is more expensive than a term life policy, but it may provide your ex-spouse or children with a death benefit, regardless of when you pass away.

Should you write life insurance into your separation agreement?

Life insurance is critical to consider for your separation agreement during the divorce process. In most cases, if child support or alimony is obligated during divorce negotiations, the court may also require the spouse paying support to have a life insurance policy in place. As the spouse that may receive alimony payments, your ex-partner’s life insurance policy ensures that you continue to receive alimony payments, or an equivalent sum of money, even after their death.

You and your partner must work together or with a divorce lawyer to decide on many aspects of your post-separation life insurance coverage, such as:

• the amount of coverage to hold
• the length of coverage to put in place
• appointing the owner of the policy
• designating who will make premium payments
• the names of beneficiaries
• the type of beneficiary designations

If your former partner purchases life insurance with you as the beneficiary after the divorce, you may even want to specify that it’s an irrevocable policy (as mentioned above). With an irrevocable policy, they can’t unilaterally change the beneficiary without your knowledge and consent.

Without a policy, you may alternatively write into the divorce agreement that you would have priority to your ex-partner’s estate to compensate for any spousal or child support payments. However, if there’s little to nothing left at their death, you may be out of luck. In contrast, life insurance could guarantee a payout to cover or help with remaining childcare or lifestyle expenses.

Even if you’re the one making payments, asking your former spouse to have a policy ready can act as a financial safety net, if you end up as the sole parent to your children.

Lastly, it is important to reconcile any name changes that have occurred as a result of your divorce. If an individual took on their partner’s name or made other changes to their name when they were married but choose to go by another name post-divorce, ensure that all beneficiary documentation is updated with the life insurance company to reflect proper first and last names.

Should you designate your children as the life insurance beneficiary?

Instead of designating your ex-partner, you may want to consider setting your children as the life insurance beneficiary. However, this could complicate things. Many provinces don’t allow children under 18 to control the money from a death benefit. As a result, you may need to appoint a trustee, or beneficiary in trust, for your life insurance or to set up a trust under your children’s name.

Setting up a trust involves finding a reliable person to act as a trustee and drafting legal documents with a lawyer for the beneficiary designation. Without a trust prepared, a court may distribute the funds to a public trustee to manage on behalf of the minor child or children.

Because of these complications, it may be easier to designate your former spouse as the beneficiary. The exception is if you believe that your ex-partner won’t act in the best interest of your children once they receive the death benefit.

In this situation, a trust would ensure that your death benefit is used in your children’s best interest. This is because the trustee managing the funds is legally required to make sound fiduciary decisions for your children.

Tips for navigating life insurance in a divorce

Whether you’re the policyholder, the insured, or a named beneficiary, it’s important to manage life insurance with care to protect your future obligations and dependents. Here are key tips to help you navigate life insurance during a divorce in Canada:

• Review all existing life insurance policies: Start by identifying any active term or permanent life insurance policies, whether held individually or jointly. Understand who owns each policy, who the beneficiaries are, and whether there is any accumulated cash value
• Update your beneficiary designations: Many married individuals name their spouse as the primary beneficiary. After separation, review and update your designations, unless a court order requires you to keep your former spouse as the beneficiary for child or spousal support
• Follow your separation or divorce agreement: Divorce settlements often include clauses that require one or both parties to maintain life insurance coverage as a financial safety net, especially if children or support obligations are involved
• Secure independent coverage post-divorce: If you relied on joint coverage, consider purchasing a new individual policy to ensure continued protection for your children or dependents
• Consult legal and financial professionals: A family lawyer or an expert insurance advisor can help you comply with legal requirements, understand your rights, and make informed policy decisions tailored to your new financial reality

How to buy life insurance after a divorce?

Buying life insurance after a divorce involves more than just selecting a policy. It often includes meeting legal obligations and planning for new financial priorities.

You may be required by a separation agreement or court order to purchase life insurance to secure spousal or child support. It’s also important to carefully choose your beneficiary, especially if you’re considering naming children instead of your former spouse.

To make the process easier, speak with a licensed insurance advisor who understands the complexities of post-divorce planning. At PolicyAdvisor, our experts help you compare options from 30+ top-rated Canadian life insurance companies, ensuring your policy meets both legal requirements and personal goals. We also provide dedicated after-sales support so your coverage continues to reflect your changing life.

Frequently asked questions

Can my ex-spouse cancel my life insurance policy without my consent?

No, your ex-spouse cannot cancel a life insurance policy if they are not the policy owner. Only the policyholder has the legal authority to cancel, update, or modify the policy. However, if the policy is part of a divorce order and names your ex-spouse as an irrevocable beneficiary, you cannot make changes without their written consent. To protect your interests, always review ownership details and beneficiary status after separation.

Can I name my minor children as life insurance beneficiaries after divorce?

Yes, you can name your minor children as beneficiaries, but insurers typically will not pay a death benefit directly to a minor. Instead, you should appoint a trustee or legal guardian to manage the funds until your child reaches the age of majority. You can also set up a testamentary trust in your will. This step ensures the insurance proceeds are used according to your wishes for your child’s benefit.

Will my life insurance premiums increase after divorce?

Your premiums won’t automatically increase due to divorce, but they may go up if you apply for a new policy at an older age or with different health conditions. If you switch from joint to individual coverage or increase your coverage amount post-divorce, your rates may change accordingly. 

What happens to the cash value of a whole life policy in a divorce?

The cash surrender value of a whole life insurance policy is typically considered a marital asset and may be subject to division during property equalization. Courts may require disclosure of the policy’s value and decide how to split it, either by assigning it to one spouse or equalizing it through other assets. It’s important to include these policies in your financial disclosure during the divorce process.

Life insurance doesn’t have to be expensive, especially if you know how to compare your options. Many Canadians are beginning to recognize the value of buying life insurance and taking a crucial step to protect the financial future of their families. 

In fact, a 2024 report by LIMRA shows that 57% of Canadians now have life insurance, reflecting a steady rise in coverage since 2019. As demand grows, insurers continue to offer competitive rates, making it easier than ever to find affordable protection.

In this 2025 guide, we’ll walk you through how to get the cheapest life insurance quotes in Canada, explore the most budget-friendly policy types, and highlight top providers offering low-cost plans.

How to get the most affordable life insurance premiums in Canada?

Lowering your life insurance premium doesn’t just depend on the insurer; it also depends on the steps you take during the application process. By working with an experienced insurance broker, maintaining a healthy lifestyle and comparing the best options from top life insurance providers in Canada, you may get the cheapest deal based on your budget.

• Review your options before renewals: Instead of automatically renewing your current life insurance plan, shop around to see if newer plans offer better rates or updated coverage suited to your current needs
• Opt for individual life insurance: Buying personal life insurance is often more cost-effective and offers greater flexibility than mortgage insurance tied to a loan or lender
• Choose term life insurance instead of permanent coverage: Term insurance is typically the most affordable option, providing fixed coverage for a set number of years without the higher premiums associated with lifelong plans
• Go through medical underwriting if you’re healthy: Applicants in good health often receive much lower premiums when they complete a medical exam or health questionnaire during the underwriting process
• Maintain a healthy lifestyle: Quitting smoking, maintaining a healthy weight, and managing chronic conditions can significantly lower your life insurance rates by improving your risk profile
• Consult a licensed life insurance advisor: Speaking with a life insurance advisor (such as our experts at PolicyAdvisor) allows you to compare quotes from multiple insurers and identify the most affordable policy based on your age, health, and financial goals

What are the cheapest life insurance options for seniors?

The cheapest life insurance quotes for seniors in Canada typically come from traditional life insurance or no-medical policies. While the life insurance premiums for seniors are higher due to age and health risks, they can still find affordable coverage by comparing plans and choosing basic coverage amounts.

On average, life insurance premiums for seniors start at around $100/month based on coverage amount, policy type and underwriting criteria. Healthy seniors in their early 60s may find term life insurance policies with $100,000 in coverage starting from $52/month, while older individuals (80 years) may pay $200/month for the same coverage. The cost of whole life insurance for seniors ranges between $110-$130/month for $100,000 coverage.

To get the cheapest life insurance rates for seniors, it’s important to compare quotes from multiple providers and consider simplified or no-medical exam options that offer fast approval and reduced underwriting.

Depicting the cost of life insurance for seniors

*Quote for $100,000 in life insurance coverage for a non-smoking female resident of Ontario in good health

What are the cheapest life insurance options for individuals with pre-existing conditions?

For individuals with unstable pre-existing conditions, the cheapest life insurance option is usually no-medical or guaranteed issue life insurance. These policies do not require medical exams and offer fast approval, making them accessible to those who may not qualify for traditional coverage.

Some of the best life insurance providers like Manulife, Canada Life, Sun Life, Empire Life, Canada Protection Plan, iA Financial Group, and Assumption Life offer affordable no-medical life insurance options in Canada. The monthly premiums for basic coverage (e.g., $25,000 to $50,000) typically range from $75 – $240/month, depending on the age, gender, medical history and smoking status of the individual.

These plans often cover individuals with stable pre-existing conditions such as:

• Diabetes with complications
• Heart disease or recent heart surgery
• Cancer history (recent or in remission)
• COPD or other chronic respiratory conditions
• Mental health disorders like severe depression or bipolar disorder
• Liver or kidney disease

These life insurance policies come with a two-year waiting period, meaning full benefits are only paid after two years. However, they still provide immediate accidental death coverage and guaranteed approval regardless of health status.

What is the most affordable life insurance option for smokers?

For smokers in Canada, the most affordable life insurance option is typically a term life insurance policy. While smokers do pay significantly higher premiums than non-smokers, term life still offers the lowest premium rates compared to other types of life insurance.

Premiums for smokers reflect the increased health risks and shorter life expectancy associated with tobacco use. For example, a 30-year-old smoker in average health may pay over $60 per month for a 20-year term life policy with $500,000 in coverage. Alternatively, a non-smoker of the same age would pay around $30 per month for the same policy.

Some of the best life insurance companies like Canada Life, Manulife, Sun Life, and iA Financial Group offer competitive term life policies for smokers. While premiums are higher, term life insurance remains the most budget-friendly life insurance option for smokers seeking substantial coverage at manageable rates.

What are the common mistakes to avoid while getting the cheapest life insurance plan?

Buying the cheapest life insurance plan in Canada can be a smart financial move. While keeping costs low is important, it’s equally essential to make sure the policy actually meets your long-term needs. If you want to avoid compromising on protection, you need to strike the right balance between affordability and value. 

Here are the most common mistakes to avoid when choosing a low-cost life insurance plan in Canada:

• Choosing the lowest premium without reviewing coverage details: A cheap plan might come with limited coverage or shorter terms that don’t align with your financial responsibilities
• Ignoring policy exclusions and fine print: Failing to read the terms can lead to claim denials or uncovered situations when your family needs support the most
• Delaying your purchase to get a better rate later: Life insurance only gets more expensive as you age or develop health issues, and waiting can cost you more in the long run
• Underinsuring to save money: Choosing a lower coverage amount to reduce premiums may not be enough to support your family’s needs after you’re gone
• Not disclosing your full medical history: Hiding or misrepresenting health conditions can result in policy cancellation or denied claims
• Overlooking convertibility options: Some term plans allow you to convert to permanent coverage later and missing out on this can limit your flexibility as your needs change
• Skipping a quote comparison across insurers: Life insurance prices and features vary widely. Not shopping around may lead you to overpay or miss better, cheaper options

How to apply for the most affordable life insurance plan in Canada?

Applying for the most affordable life insurance plan in Canada is simple if you know where to look and what to compare. At PolicyAdvisor, you can get life insurance instant quotes in under 60 seconds using our AI-powered life insurance calculator. We partner with 30+ top Canadian insurers like Manulife, Canada Life, and Sun Life etc, to help you compare the cheapest life insurance rates side by side.

Once you find the right policy, you can apply online instantly or speak with our licensed advisors for personalized support. PolicyAdvisor also offers reliable after-sales assistance, helping you manage your policy even after purchase. Schedule a call to get the most affordable life insurance quotes based on your unique needs.