Which is the best life insurance company in Ontario?

Ontario accounts for roughly 41% of the Canadian life insurance market. With so many options available, choosing the right provider requires balancing your coverage needs, budget, and long-term financial goals. In the section below, we have listed some of the popular choices for those buying life insurance in Ontario.

1. Equitable Life

Equitable Life is a Canadian mutual company offering participating whole life insurance with lifelong coverage, cash-value growth, and potential annual dividends. Its 6.40% dividend scale interest rate (DSIR) for 2026 is the highest in the whole life insurance market. Its KIND program adds support through benefits such as compassionate advances of up to $100,000 for terminal illness and bereavement counselling reimbursements of up to $1,000. 

Equitable Life is particularly a good choice for homeowners in the Greater Toronto Area managing large mortgages. Its affordable term policies offer excellent temporary protection, while its participating whole life policies suit established professionals looking for tax-advantaged growth.

Our advisor’s take:

We rate Equitable Life 5/5 and recommend it for clients who want participating whole life insurance with strong long-term cash value potential. Its Equimax or participating policies have credited dividends every year since 1936. It offers five dividend options, including paid-up additions that can increase both cash value and the death benefit. Moreover, we also recommend its term life insurance plans for those who want to bundle their coverage through a laddering strategy.

2. Manulife

Manulife is a strong option for Ontario residents looking for a range of life insurance products, including term and permanent coverage. It offers term life insurance plans including Manulife Family Term and Manulife Family Term with Vitality Plus coverage starting at $100,000 for single-life, joint first-to-die, and joint last-to-die policies. For families focused on an active lifestyle in urban centers like Ottawa or Mississauga, Manulife’s Vitality program offers tangible rewards for healthy living alongside robust coverage. 

For lifelong protection, Manulife also offers participating whole life insurance, backed by a participating account with $15.98 billion in assets. These policies can build cash value and may receive dividends, although dividend payments are not guaranteed.

Our advisor’s take:

We give Manulife 5/5 because it offers a wide range of life insurance products under one roof. It is also one of the first companies in Canada that took the life insurance application online. Along with its term and permanent product lineup, Manulife also offers Synergy, which combines life, critical illness, and disability insurance in one policy. Manulife’s Vitality program is another differentiator. It rewards eligible policyholders for participating in health and wellness activities, with benefits depending on the product and program terms.

3. Canada Life

Canada Life is a strong option for Ontario residents seeking permanent life insurance for family protection, wealth transfer, and mainly estate planning. It also offers a My Term plan that provides flexible coverage periods from 5 to 50 years, with guaranteed renewal and the option to convert to permanent insurance before age 70. 

For lifelong protection, Canada Life offers three participating whole life plans, which is also amongst the highest in the industry: Wealth Achiever, designed for earlier cash value growth; Balanced Achiever, which balances cash value and long-term death benefit growth; and Estate Achiever, which focuses on maximizing long-term estate value. These options make Canada Life worth considering for established professionals and families planning for long-term wealth transfer and estate preservation in Toronto and other cities in Ontario. 

Our advisor’s take:

We give Canada Life 4.5/5 because it offers multiple participating whole life policies suited for estate planning and other financial goals. We recommend Estate Achiever for estate planning benefits and those who want to leave a larger long-term death benefit to beneficiaries. We also recommend Canada Life for its financial stability, as it has consistently paid dividends to its eligible policyholders since 1848. It also has the largest participating account fund size in Canada, which is approximately around $62.8 billion.

4. BMO

BMO offers two non-participating whole life plans: Estate Protector, designed for long-term estate planning, and Wealth Accelerator, which focuses on higher early cash values. Both provide guaranteed cash values, level premiums, and an annual Performance Bonus (6.00% as of 2026) that can increase cash value and the death benefit without relying on traditional dividends. 

BMO also offers term life insurance with 10- to 30-year terms, offering guaranteed renewability, conversion, and exchange features. Its combination of guaranteed permanent coverage and flexible term protection can suit homeowners in Ottawa, Brampton, and Hamilton,  looking to protect their families while planning for future financial obligations.

Our advisor’s take:

We give BMO Insurance a strong 4.5/5 rating for its guaranteed non-participating whole life and term life insurance options. Like the other insurers listed above, we do not give it a full score because it does not offer participating whole life plans, which limits options for those seeking potential policy dividends. However, BMO is an excellent choice for those who prioritize predictable premiums, guaranteed cash values, and a guaranteed death benefit. We also like its conversion and exchange features offered with the term life insurance plans, along with its compassionate bereavement support benefits.

5. Canada Protection Plan

Canada Protection Plan (CPP), part of Foresters Financial, specializes in simplified-issue life insurance for those who want to avoid medical exams or have health conditions that make traditional coverage harder to obtain. Its term insurance lineup includes Deferred Elite Term, Simplified Elite Term, Preferred Term Life, Express Elite Term, and Preferred Elite Term Insurance, with select term plans offering up to $1 million in coverage.  

Our advisor’s take:

We give Canada Protection Plan a strong 4/5 rating for its wide range of no-medical life insurance options. What sets CPP apart is its ability to serve applicants with different health profiles, from Deferred Elite for those with less serious health concerns to Preferred Elite for healthier applicants seeking competitive rates without a medical exam. We recommend this insurer to clients with health issues because it does not ask whether they have previously been declined or postponed by another insurer. Since it requires almost no medical tests, its premium is on the higher side.

6. Beneva

Beneva stands out for its Term Plus policy, which offers coverage from $25,000 to $10 million across terms of 10 to 40 years. Its standout feature is the built-in Extreme Disability Benefit that can advance up to $250,000 of the death benefit if you experience a qualifying disability. In addition, it also offers flexible term lengths, multiple coverage options, a guaranteed insurability benefit, and a few more. For working professionals and growing families in Mississauga and other Ontario cities, this combination of life insurance and additional disability-related protection can help address both long-term family security and unexpected changes in earning capacity.

Our advisor’s take:

We rate Beneva 4/5 because Term Plus offers useful flexibility, but its main strength is term life insurance rather than a broad selection of permanent coverage options. We particularly recommend considering it if you want to secure coverage for an extended period or combine life insurance with optional protection against critical illness and disability. However, those seeking participating whole life insurance and the potential for policy dividends may find Equitable Life or Manulife more suitable.

Comparing the top life insurance companies in Ontario

 Actual premiums vary by age, sex, smoking status, health, coverage amount, product, and underwriting. Minimum coverage varies by product and eligibility. 

Our methodology for ranking the best life insurance in Ontario

Our 2026 rankings of the best life insurance companies in Ontario are based on illustrative term and whole life insurance quotes and an assessment of each insurer’s product features, coverage flexibility, and suitability for different customer needs. We evaluated 30+ insurers and shortlisted the following six providers: Equitable Life, Manulife, Canada Life, BMO Insurance, Canada Protection Plan, and Beneva. We divided our methodology into two main areas: pricing (40%) and product features and suitability (60%).

1. Pricing (40%)

We compared term life insurance premiums using a consistent applicant profile: a 40-year-old male non-smoker purchasing $100,000 in coverage for a 10-year term. We assessed relative pricing across the six insurers under the same assumed circumstances. The quoted monthly premiums ranged from $10.89 for Equitable Life to $20.16 for Canada Protection Plan.

2. Product features, suitability, and financial strength (60%)

We assessed each insurer based on the following criteria, using the following weights:

After shortlisting the six strongest companies, we ranked each insurer individually using the same weighted criteria to show where one company may be stronger than another.

How we further assigned insurer ratings:

We used the pricing comparison and product-feature assessment to identify each insurer’s strengths, limitations, and best-fit customer profiles. Our final ratings reflect the relative value of each provider’s offerings rather than price alone.

For example, Equitable Life and Manulife received 5/5 ratings for their broad product options and permanent insurance features. BMO and Canada Life received 4.5/5 ratings for their strengths in guaranteed non-participating coverage and whole life insurance plans, respectively. Canada Protection Plan and Beneva received 4/5 for their no-medical and term-focused offering and disability-related benefits, respectively, with a more limited range of permanent insurance options.

Comparing PolicyAdvisor ratings:

Disclaimer: The ratings reflect PolicyAdvisor’s assessment of each insurer’s pricing, product options, policy flexibility, standout features, and financial strength. Component scores are comparative assessments and may not represent every applicant’s experience. Premiums are illustrative and vary by age, health, smoking status, coverage amount, and policy terms. LICAT ratios and AM Best ratings are subject to change and reflect the applicable reporting dates and rated entities. Final ratings are rounded assessments and should not be interpreted as guarantees of policy performance or suitability.

Can I get life insurance in major Ontario cities?

Yes, you can easily get life insurance in major Ontario cities such as Toronto, Ottawa, Mississauga, Brampton, Hamilton, Windsor, and others. Your city or province does not directly affect life insurance coverage or costs. The overall cost depends on age, health, smoking status, coverage amount, and policy type, rather than your city alone.

How to buy life insurance in Ontario?

Here are the steps you need to follow to get life insurance in Ontario:

• Speak with a licensed advisor: Schedule a free call to discuss your financial goals, family responsibilities, budget, and coverage needs with one of our expert advisors
• Calculate your coverage needs: Our advisors will help you determine how much insurance you need to cover debts, mortgage payments, income replacement, and future expenses
• Compare insurance plans: Review quotes, premiums, policy features, and eligibility requirements across multiple insurers
• Complete your application: Apply for your chosen policy and answer the insurer’s health questions. A medical exam may be required, depending on the policy and your profile
• Review and activate your coverage: Confirm your coverage amount, premiums, exclusions, and policy terms before accepting the policy and maintaining your payments

Schedule a call now to get started with your life insurance application process in Ontario!

Frequently asked questions

Can I get life insurance in Ontario without a medical exam?

Yes, you can get life insurance in Ontario without undergoing a medical exam. There are a few insurers that offer simplified-issue or no-medical life insurance, including Canada Protection Plan. Through these kinds of life insurance policies, you can qualify for life insurance coverage without a medical exam. 

Is life insurance tax-free in Ontario?

Life insurance death benefits paid to a named beneficiary are generally tax-free in Ontario. However, withdrawals or surrenders of permanent life insurance policies may trigger taxes, depending on the policy’s adjusted cost basis and the transaction.

How much life insurance coverage do I need in Ontario?

Your coverage needs depend on your income, outstanding debts, mortgage, dependants, and future expenses. A useful starting point is to estimate your debts, add several years of income replacement and anticipated family expenses, and subtract existing savings and life insurance coverage or simply use our life insurance calculator. 

Can I have more than one life insurance policy in Ontario?

Yes, you can own multiple life insurance policies in Ontario, such as a term policy for mortgage protection and a permanent policy for lifelong coverage. Insurers may assess your total coverage and financial needs when reviewing new applications.

What happens if I miss a life insurance premium payment?

If you miss a premium payment, your policy may enter a grace period during which you can pay the overdue amount and maintain coverage. If you do not pay within the applicable period, the policy may lapse; however, the rules are defined in the policy contract. Some permanent policies may have options to help keep coverage in force, depending on their terms.

Is life insurance through work enough in Ontario?

Employer-provided life insurance may be sufficient for some people, but coverage is often limited to a multiple of your salary or a fixed amount. It may also end when you leave your job and may not be portable. An individual policy can provide additional coverage and greater control over how long your protection lasts.

How much life insurance should you have in Canada?

There is no one-size-fits-all amount of life insurance coverage in Canada. A common rule of thumb is to have 5 to 10 times your annual income in life insurance. However, this can be too little or too much depending on your financial situation. A family with a large mortgage and young children may need significantly more coverage than a single person with substantial savings and few financial obligations.

Example: Calculating life insurance needs for someone earning $100,000 a year

In this example, about $1.23 million of additional life insurance could provide a reasonable starting point. Your result will depend on your circumstances and the assumptions used. Use our life insurance calculator to get a personalized estimate, then compare policies that fit your needs.

What type of life insurance should I choose?

The right type of life insurance depends on how long you need coverage, your budget, and the financial needs you want the policy to address. The main options include:

• Term life insurance: Provides coverage for a set period, such as 10, 20, or 30 years. It is often suitable for covering temporary needs such as a mortgage, income replacement, or children’s financial support
• Whole life insurance: Provides lifelong coverage and builds cash value. Whole life insurance may suit people looking for permanent protection, estate planning, or a guaranteed death benefit
• Universal life insurance: Combines permanent life insurance with an investment component, offering more flexibility in premiums and coverage. It can be useful for estate planning and other long-term financial needs

Tips for choosing the right amount of life insurance

When choosing the right coverage, you need to factor in a lot of factors apart from your debts, income, and other financial obligations. Here are some other tips to consider to get the right life insurance coverage:

• Consider laddering your policies: You don’t necessarily need to buy your entire coverage amount through one policy. Laddering involves combining policies with different coverage amounts and terms to match different financial needs. For example, you could combine a $750,000 20-year term policy with a $250,000 10-year policy. As shorter-term obligations end, the smaller policy expires while the larger policy continues
• Use group coverage to supplement individual insurance: Employer-provided life insurance can form part of your overall coverage, but it may have a relatively low benefit limit and may not follow you when you leave the employer. Calculate your total protection using both group and individual policies, then determine whether you need additional coverage
• Build in a financial cushion: Your coverage calculation is an estimate, and your family’s actual expenses may be higher than expected. Adding a reasonable buffer can help account for unexpected costs or changes in circumstances
• Choose coverage you need: The largest possible policy isn’t necessarily the best choice if the premiums become difficult to sustain. Consider whether the premium fits comfortably within your long-term budget
• Compare policy features, not just the death benefit: Two policies with $1 million in coverage can differ in premiums, renewability, conversion options, exclusions, dividend payout, and available riders. Consider these features alongside the coverage amount when comparing policies

How much does life insurance coverage cost in Canada?

Life insurance coverage in Canada can cost as little as $8 per month for $100,000 of 10-year term coverage for a young, healthy non-smoker. As the coverage amount increases, so does the premium; in the illustration below, $1 million costs $35.54/month for a male non-smoker and $22.95/month for a female non-smoker, while $10 million costs $310.50 and $184.50 per month, respectively.

Cost of term life insurance (2026):

*Illustrative term life insurance cost of a 10-year plan with $100,000-$10,000,000 in coverage for male/female non-smoker

How long should my life insurance coverage last?

Your life insurance should generally last as long as your family would depend on your income or as long as the financial need you are protecting remains. For many Canadians, this means choosing a term that covers the years until their mortgage is paid off, children become financially independent, or they reach retirement. 

For example, if you have young children and expect to need income replacement for the next 20 years, a 20-year term policy may be appropriate. If you have a financial need that will continue for your entire lifetime, such as estate planning or leaving a legacy, permanent life insurance may be more suitable.

How to get life insurance coverage in Canada?

Getting life insurance in Canada typically involves determining how much coverage you need, comparing policies and insurers, completing an application, and going through underwriting. Here are the simple steps you need to follow to get life insurance coverage in Canada with PolicyAdvisor:

• Calculate your coverage needs: Start by estimating your income replacement, debts, future expenses, and other financial obligations
• Compare your options: Our advisors will help compare life insurance quotes from 30+ Canadian insurers to help identify policies that fit your coverage needs and budget
• Complete your application: We will help you submit your application and provide guidance on the information and documents required
• Complete underwriting: Depending on your application, the insurer may request medical questions, a medical exam, blood or urine tests, or additional records
• Review your application: Once the insurer assesses your application, you will receive your coverage details, including the premium and policy terms
• Policy gets active: Once you pay the premiums and complete the required steps, your policy becomes active 

Schedule a call now to get free life insurance quotes!

Frequently asked questions

How is life insurance coverage calculated?

Life insurance coverage needs can be calculated by adding the money your family may need for income replacement, debts, living expenses, and future expenses, then subtracting resources such as savings, investments, and existing life insurance. Methods such as the DIME method and income multiples can provide quick estimates.

Can I have more than one life insurance policy in Canada?

Yes, you can have multiple life insurance policies if you qualify for the coverage. Having more than one policy can be useful for laddering, where policies with different coverage amounts and terms address financial needs that expire at different times.

Does employer-provided life insurance count toward how much coverage I need?

Yes, you should include your group life insurance when calculating your total coverage. However, you must check its benefit amount and whether it remains available if you leave your employer. You may need an individual policy to supplement workplace coverage and maintain protection independently of your employment.

Is $500,000 enough life insurance for a family in Canada?

Whether $500,000 is enough life insurance coverage for a family in Canada or not depends on their financial obligations, income, and a few other factors. It may be sufficient for someone with limited debt and substantial savings, while a family with a large mortgage, young children, and significant income-replacement needs may require a higher coverage amount.

How much life insurance do I need based on my salary?

A common starting point is 5 to 10 times your annual income, but your actual needs depend on your debts, dependants, living expenses, future financial goals, savings, and existing life insurance coverage. You can use our life insurance calculator to get the actual estimates.

Can I increase my life insurance coverage later?

Yes, you may be able to increase your coverage, depending on your policy and insurer. Some policies offer options such as additional coverage, policy conversion, or guaranteed insurability riders. If your financial needs change significantly, you may also apply for a new policy, although your age and health at that time can affect the premium.

How much life insurance do I need if I am single?

If you are single and you are planning to get life insurance in Canada, you will require lower coverage. This is because you don’t have dependants who rely on you financially. However, you should consider whether you have any ongoing debts, final expenses, and other outstanding obligations to estimate the right coverage amount. 

Which type of life insurance is cheapest?

Term life insurance is the most affordable life insurance in Canada. The cheapest term life insurance rates for a healthy, non-smoking Canadian: a 20-year term policy with $100,000 in coverage starts at just $10.08 per month at age 20, compared to $70.74 per month for a 20-pay whole life policy and $14.40 per month for a no-medical life insurance policy. Premiums increase with age for all policy types; term life remains the most affordable option across every age group.

Term life insurance is the most affordable option for four primary reasons:

• No cash value: Unlike whole life insurance, term life insurance does not build cash value or investment savings, keeping premiums focused on the death benefit
• Temporary coverage: It protects for a fixed period, such as 10, 20, or 30 years. If you outlive the term, the policy simply expires unless you renew or convert it
• Simple policy design: Term life focuses solely on providing a death benefit without additional features like dividends
• Lower claim risk: Because term life covers you for a fixed period, insurers are less likely to pay a death benefit than with lifelong coverage

The table below compares the monthly cost of term life, whole life, and no-medical life insurance for non-smokers across different age groups. As age increases, premiums rise for all policy types, but term life remains the lowest-cost option at every age.

Term life vs Whole life vs No-medical life insurance costs:

Disclaimer: Premiums shown are illustrative monthly rates for a healthy, non-smoking male purchasing $100,000 in coverage for a 20-year term. Actual premiums vary based on factors such as age, gender, medical history, lifestyle, insurer, and more.

What factors affect life insurance costs in Canada?

The key factors affecting life insurance premiums include age, gender, smoking status, overall health, and a few others. Here are the key factors that affect your premium:

Personal risk profile:

• Age: Your premiums increase as you get older because the likelihood of developing health conditions and making a claim rises with age
• Health and medical history: Insurers assess your current health, pre-existing medical conditions, family medical history, height, weight, and prescription medications to determine your level of risk
• Smoking status: Smokers and tobacco users typically pay significantly higher premiums than non-smokers due to the increased risk of serious illnesses
• Occupation: People working in high-risk jobs, such as construction, mining, or aviation, may pay higher premiums due to a greater risk of injury or death
• Lifestyle and hobbies: Activities such as skydiving, scuba diving, rock climbing, or private aviation may increase premiums because they carry a higher risk of accidental death
• Gender: Women often pay lower premiums than men because they generally have a longer life expectancy

Policy and payment structure:

• Coverage amount: Higher coverage limits result in higher premiums because the insurer may have to pay a larger death benefit
• Policy type: Term life insurance is generally the most affordable option, while whole life and no-medical life insurance cost more
• Policy term: For term life insurance, longer terms generally cost more than shorter terms because coverage lasts longer
• Underwriting type: Fully underwritten policies usually offer lower premiums for healthy applicants, while no-medical life insurance costs more because insurers accept more risk without a medical assessment
• Payment frequency: Paying annually rather than monthly can reduce your overall insurance costs, as some insurers charge an instalment fee for monthly payments
• Insurance company: Premiums vary between insurers, even for the same applicant profile, because each company uses its own underwriting guidelines and pricing models. Comparing life insurance quotes from multiple insurers can help you find the lowest rate

Does gender affect premiums in Canada?

Yes, gender can affect life insurance premiums in Canada. Women generally pay lower premiums than men of the same age and health profile. This is because women have a higher average life expectancy, which typically translates to a lower risk of the insurer paying a claim earlier. For example, a healthy 30-year-old non-smoking woman can get $100,000 of 20-year term life insurance quote for about $8.19 per month, compared to $9.45 per month for a man.

Which companies offer the cheapest life insurance plans in Canada?

Based on PolicyAdvisor life insurance quote comparisons in mid‑2026, Beneva, BMO, and Canada Life consistently offer some of the lowest premiums for term life insurance, while insurers such as Desjardins and Sun Life are often competitively priced for whole life insurance. If you are looking for no-medical coverage, the most affordable insurers include Assumption Life and UV.

Also, the premium rates shift by age, coverage amount, health class, and province, so the cheapest insurer changes from person to person. As a result, the cheapest insurer for one person may not be the cheapest for another.

Cheapest term life insurance companies

Beneva, BMO, and Canada Life are among the cheapest term life insurance companies in Canada, offering consistently competitive premiums across different age groups. All three insurers provide affordable coverage; they differ in who they suit the most. 

Beneva offers the lowest premiums, with rates starting at $10.80 per month for a healthy 20-year-old non-smoker purchasing $100,000 of 10-year term coverage and rising to $97.11 per month at age 60. BMO closely matches Beneva, with premiums ranging from $10.80 to $103.41 per month, while Canada Life remains competitively priced at $11.36 to $107.46 per month.

Cost of term life insurance by insurers

Disclaimer: Illustrative monthly cost of a 10-year term with $100,000 in coverage for a male non-smoker

Cheapest whole life insurance companies

The cheapest whole life insurance companies in Canada include Foresters, Desjardins, Sun Life, and a few others. While all three insurers provide affordable permanent life insurance, they each cater to different needs. For a healthy, non-smoking applicant purchasing $100,000 of 20-pay non-participating whole life insurance, Foresters offers the lowest premiums across all age groups, starting at $70.74 per month at age 20 and increasing to $319.41 per month at age 60. Desjardins follows closely with premiums ranging from $78.21 to $333.72 per month, while Sun Life offers rates between $91.17 and $346.41 per month.

Cost of whole life insurance by insurer

Disclaimer: Illustrative monthly cost of a non-participating whole life insurance with $100,000 in coverage for a male non-smoker (20-Pay)

Cheapest no-medical life insurance companies

UV Insurance, Assumption Life, and Canada Protection Plan are among the cheapest no-medical life insurance companies in Canada, offering competitive premiums for applicants who want coverage without undergoing a medical exam. These insurers are good options for people with pre-existing health conditions, those who have been declined for traditional life insurance, or anyone looking for a faster and simpler application process. UV offers the cheapest premiums starting at $13.50 per month for no-medical life insurance plans. 

Cost of no-medical insurance by insurers

Disclaimer: Illustrative monthly cost of a 10-year no-medical plan with $100,000 in coverage for a male non-smoker

What is the cheapest life insurance option for seniors?

Seniors can find the cheapest life insurance in Canada through traditional term life or no-medical exam 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. Some of the companies offering cheap life insurance for elderly or seniors include Canada Life, Desjardins, and Sun Life.

A senior citizen can get $250,000 of 10-year term life insurance for about $98.33 per month at age 60. Even at age 70, term life costs $293.40 per month, making it considerably more affordable than whole life insurance, which costs $1192 per month. However, by age 80, many insurers no longer offer new 10-year term policies. Whole life insurance is more expensive but provides lifelong protection. Monthly premiums for a $250,000 20-pay non-participating whole life policy start at $765.45 at age 60 and increase to $2,070.90 by age 80.

Term life vs whole life insurance costs for seniors

Disclaimer: Illustrative monthly premiums for non-smoking male purchasing $250,000 of coverage for a 10-year term life policy and a 20-pay non-participating whole life policy. Actual premiums vary based on different factors.

Which is the cheapest life insurance option for individuals with pre-existing conditions?

Individuals with pre-existing conditions can access affordable life insurance through no-medical plans such as guaranteed-issue or simplified-issue policies. These plans do not require medical exams and offer faster approval, making them accessible to those who may not qualify for traditional or fully underwritten coverage. However, premiums are generally higher than traditional life insurance because insurers assume more risk.

No-medical life insurance policies generally fall into two categories:

• Guaranteed-issue: Coverage is guaranteed regardless of your health, with no medical exam or health questions. Usually imposes a two-year waiting period for non-accidental death
• Simplified-issue: Applicants answer a short series of health questions but do not need a medical exam. Depending on the insurer and your health history, coverage may begin immediately or include a deferred benefit period.

Some of the providers offering no-medical exam or guaranteed-issue life insurance in Canada include Manulife, Sun Life, Empire Life, Canada Protection Plan, iA Financial Group, and Assumption Life. Insurers evaluate eligibility based on specific conditions, recency, and severity, which may lead them to decline coverage, impose waiting periods, or apply deferred benefits. Some of the pre-existing conditions that these companies commonly cover include:

• Diabetes 
• Heart disease or history of heart surgery
• Cancer history (recently treated or in remission)
• Chronic obstructive pulmonary disease (COPD) or other chronic respiratory conditions
• Mental health conditions such as major depressive disorder or bipolar disorder
• Liver or kidney disease

What is the cheapest life insurance option for estate planning?

Whole life insurance is generally the most suitable option for estate planning, even though it has higher premiums than term life insurance. That is because estate planning requires lifelong coverage, and whole life insurance guarantees a tax-free death benefit whenever you pass away, provided the policy remains in force. 

It can also build guaranteed cash value, making it a valuable financial planning tool. Compared to renewing multiple term policies later in life, purchasing whole life insurance earlier can provide greater long-term value. Based on PolicyAdvisor’s quote comparisons, some of the companies offering the cheapest options for estate planning include Canada Life, Desjardins, and Sun Life, and a few others.

What is the most affordable life insurance option for smokers?

Smokers can get the most affordable life insurance in Canada with term life insurance. Although smokers pay higher premiums than non-smokers, term life still offers the lowest rates compared with 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 male 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 Foresters, iA Financial Group, Beneva, Wawanesa, and a few other insurers, offer competitive term life policies for smokers. Premiums are higher; however, term life insurance remains the most budget-friendly option for smokers seeking substantial coverage at manageable costs.

Our methodology for the cheapest life insurance in Canada

Our cheapest life insurance rankings are based on quote comparisons run in mid-2026 across our network of more than 30 Canadian life insurance providers. We compared premiums for the three most common ways Canadians buy affordable coverage: term life, whole life, and no-medical life insurance. We also looked at specific groups, including seniors, smokers, people with pre-existing conditions, and buyers focused on estate planning.

We kept coverage amount, term length, smoking status, and gender across all comparisons. Unless stated otherwise, rates are for a healthy, non-smoking male buying $100,000 in coverage. Here is what we compared:

• Premium affordability by policy type: We compared term life, whole life, and no-medical life insurance to identify the lowest-cost option in each category, and considered coverage duration, cash value, and underwriting requirements when interpreting price differences.
• Insurer-level quote comparisons: We compared premiums from providers including Beneva, BMO, Canada Life, Foresters, Desjardins, Sun Life, UV Insurance, Assumption Life, and Canada Protection Plan. We identified providers with competitive rates for the specific applicant profiles and policies evaluated, rather than assuming one insurer is cheapest for everyone.
• Consistency across ages. We favoured insurers that stayed competitive across age groups over those that were cheapest at only one age. This is why Beneva, BMO, and Canada Life are highlighted for term life, and Foresters, Desjardins, and Sun Life for whole life
• Underwriting and health considerations: We distinguished between traditionally underwritten policies and no-medical options. We also considered how smoking status, pre-existing medical conditions, and eligibility requirements can affect premiums and access to coverage

Tips to get the most affordable life insurance premiums in Canada

Your age and health influence how much you pay for life insurance; there are several ways to reduce your costs. Choosing the right policy, comparing quotes from multiple insurers, and applying while you are healthy can help you secure lower rates without compromising on coverage. 

• Buy life insurance when you are young: Premiums are lowest when you are younger because you are generally healthier and present a lower risk to insurers. Buying a life insurance policy early can save you money compared with buying it later
• Compare multiple insurers: Life insurance rates can vary significantly between insurance companies for the same applicant profile. Comparing quotes across the top life insurance companies in Canada helps you find the best coverage at the lowest price
• Choose the right policy duration: Select a policy duration that matches your financial obligations, such as your mortgage or your children’s dependent years. A shorter term generally costs less than a longer one
• Consider fully underwritten coverage: If you are in good health, a fully underwritten policy usually offers lower premiums than no-medical life insurance because the insurer can better assess your risk
• Quit smoking before you apply: Non-smokers pay substantially lower premiums than smokers. Many insurers will offer non-smoker rates once you have been tobacco-free for a qualifying period, typically 12 months
• Buy only the coverage you need: Choosing an appropriate coverage amount based on your income, debts, and your family’s financial needs helps you avoid paying for unnecessary protection
• Review your coverage regularly: As your mortgage decreases, children become financially independent, or your income changes, you may be able to adjust your coverage to better match your needs and avoid paying for excess insurance

How much does life insurance cost in Canada?

The cost of life insurance in Canada can start from as low as $7 for a male non-smoker seeking $100,000 for a 10-year term policy. However, your actual premium will depend on factors such as your age, health, smoking status, coverage amount, policy type, and insurer. For a detailed breakdown of life insurance costs by coverage amount, age, policy type, and applicant profile, see our guide to how much life insurance costs in Canada.

Our advisor’s take on cheapest life insurance in Canada

At PolicyAdvisor, our licensed advisors help Canadians compare life insurance quotes from over 30 insurers to find the most affordable coverage based on their age, health, budget, and financial goals. Recently, one of our advisors assisted a 35-year-old father who wanted to protect his family’s finances while keeping his monthly premiums as low as possible.

The client profile

• Age: 35 years old
• Coverage required: $500,000
• Health: Healthy, non-smoking male
• Primary goal: Affordable coverage to replace income and protect his young family

Our advisor recommendation: 

After comparing quotes from several leading Canadian insurers, we found that Beneva offered the most competitive premium for a 20-year term life policy, with BMO and Canada Life close behind. While whole life insurance would have provided lifelong coverage and cash value, the client only needed protection until his mortgage was paid off and his children became financially independent. Based on those goals, term life insurance quotes from Beneva delivered the best value at the lowest cost.

How to buy affordable life insurance through PolicyAdvisor?

You can apply for the most affordable life insurance in Canada by comparing top insurers and choosing a policy that fits your budget and coverage needs. At PolicyAdvisor, we partner with more than 30 top Canadian insurers, including Manulife, Canada Life, and Sun Life, so you can compare the cheapest rates side by side.

Once you find the right policy, you can apply online instantly or speak with a licensed advisor for personalized support. PolicyAdvisor also provides reliable after-sales assistance, helping you manage your policy after purchase. Schedule a call to get life insurance quotes tailored to your needs today!

What is the cheapest type of life insurance policy?

Term life insurance is the cheapest type of life insurance. Since it only covers you for a set period (like 10 or 20 years) and does not build cash value, premiums are significantly lower than permanent policies.

Is the cheapest life insurance always the best option?

No, the cheapest life insurance policy isn’t always the best choice. While affordability is important, the right policy should also provide enough coverage, match the length of time you need protection, and offer features that suit your financial goals. Choosing the lowest premium without considering your needs could leave you underinsured or paying for a policy that doesn’t provide the benefits you require.

How much does the cheapest life insurance cost in Canada?

The cheapest life insurance in Canada is term life insurance, with premiums starting at around $10 per month for a healthy, non-smoking 20-year-old purchasing $100,000 of 20-year term life insurance. Your actual premium depends on factors such as your age, health, smoking status, coverage amount, and the insurer you choose.

Who qualifies for the cheapest life insurance rates in Canada?

The lowest life insurance premiums are typically available to young, healthy non-smokers with no significant medical conditions or high-risk hobbies. Applicants who purchase coverage at a younger age, maintain a healthy lifestyle, and qualify for fully underwritten policies generally receive the best rates.

Which life insurance company is the cheapest in Canada?

There is no single insurer that is the cheapest for everyone. Beneva, BMO, and Canada Life often offer the lowest term life insurance premiums, while Foresters, Desjardins, and Sun Life are competitively priced for whole life insurance.

Can I switch to a cheaper life insurance policy later?

Yes, you can replace your existing life insurance policy with a cheaper one if you qualify. However, your new premium will be based on your current age and health, so switching isn’t always less expensive. It is best to compare quotes and ensure your new policy is active before cancelling your existing coverage.

Should I choose term life or whole life if I want the lowest premiums?

If your goal is to pay the lowest possible premium, term life insurance is the better choice because it offers temporary coverage at a much lower cost than whole life insurance. However, if you need lifelong protection, guaranteed cash value, or estate planning benefits, paying more for whole life insurance may provide better long-term value.

What is the most expensive life insurance policy in Canada?

Permanent insurance and no medical exam insurance are the most expensive types of insurance policies in Canada. A permanent policy gives you lifelong coverage and a cash value component, which contributes to its higher premiums. You can use this cash value to access growth and build wealth during your lifetime. 

No medical exam insurance helps applicants who may not qualify for fully underwritten coverage. Guaranteed-issue plans accept all eligible applicants, though they usually have a waiting period for non-accidental death. Simplified-issue plans ask health questions and may decline applicants; coverage is not guaranteed. Premiums are higher because insurers take on more risk.

Are there affordable life insurance policies in Canada that offer quick approval?

Yes, no-medical life insurance can offer quicker approval because it may not require a medical exam or lab tests. Simplified-issue policies use a short health questionnaire, while guaranteed-issue policies may require no medical questions but can have lower coverage limits or waiting periods.

Our methodology: How we ranked the best term life insurance companies in Canada

We evaluated the leading Canadian term life insurance companies across pricing, financial strength, policy flexibility, coverage options, conversion features, underwriting accessibility, and other policy benefits to identify which insurers stand out for different types of Canadians.

Our licensed insurance advisors combine product research with their industry expertise to assess each insurer and explain where each company has an advantage and where it may have limitations.

What we evaluated

We assessed each insurer using the following factors:

1. Premium competitiveness

Price is an important consideration when comparing term life insurance. We compare the premiums across insurers and show the average cost figures available for each provider.

Our current comparison includes separate average premium figures for female and male applicants. For example, the insurers featured on this page currently show representative average costs ranging from approximately $220 to $335 for female applicants and $230 to $405 for male applicants, depending on the insurer and product.

These figures are intended for comparison purposes only. Your actual premium will depend on factors such as your age, health, smoking status, coverage amount, term length, and underwriting results.

2. Financial strength

Because life insurance can remain in force for decades, we consider the financial strength of each insurer.

Where available, we include AM Best financial strength ratings and LICAT ratios for the insurers we review. For example, the insurers on our list include companies with AM Best ratings ranging from A- to A+, while reported LICAT ratios on the page range from 130% to 188% where this information is available.

Financial strength is only one part of our assessment, but it provides useful context when comparing insurers that may be responsible for a future claim many years from now.

3. Term length and coverage flexibility

We examine the range of term options offered by each insurer and whether applicants can customize the length of their coverage.

The companies we review offer a wide range of options, from traditional fixed terms such as 10, 20 and 30 years to highly customizable products. For example, RBC offers custom terms between 10 and 40 years, while Sun Life’s Evolve Term allows applicants to choose a term between 5 and 40 years. Canada Life offers terms ranging from 5 to 50 years through My Term Life Insurance.

This matters because the ideal policy length can depend on your mortgage, family responsibilities, income-replacement needs, or other financial obligations.

4. Conversion and renewal options

We examine whether a term policy can be renewed or converted to permanent life insurance without new medical underwriting, as well as any age limits or other restrictions that apply.

Conversion flexibility can be particularly valuable if your health changes during your term and obtaining a new policy later could become more difficult or expensive.

5. Underwriting and accessibility

Not everyone has the same health history or insurance needs. We therefore consider how insurers accommodate applicants who may have difficulty qualifying for traditionally underwritten coverage.

Our comparison includes insurers offering simplified-issue and no-medical options. For example, Canada Protection Plan offers several simplified and no-medical term products, while Assumption Life offers multiple non-medical options.

We also consider factors such as application requirements, approval speed, and whether an insurer provides digital or streamlined underwriting.

6. Policy features and additional benefits

We look beyond the basic death benefit to identify features that can make one policy more useful than another.

For example, our review highlights features such as Empire Life’s flexible conversion options, Manulife’s Vitality program, RBC’s term exchange options, and Foresters’ charitable benefit.

7. Coverage amounts and product range

We consider how much coverage each insurer makes available and whether its products can accommodate different financial needs.

The insurers reviewed on this page cover a broad range of needs, from simplified-issue policies for applicants seeking easier approval to high-coverage policies designed for family income replacement, mortgage protection, business needs, or estate planning.

For example, RBC offers coverage of up to $25 million, while several other insurers offer coverage in the millions depending on the product and underwriting requirements.

8. Advisor expertise and best-fit analysis

There is no single term life insurance company that is best for every Canadian.

Our licensed insurance advisors therefore assess each insurer based on its strengths and limitations and identify where it may be particularly suitable.

Rather than relying solely on price, we provide an advisor’s take for each insurer and identify specific strengths such as personalization, digital innovation, value for money, no-medical coverage, flexibility, family coverage, or simplified underwriting.

How our rankings work

We use the factors above to determine the relative strengths of the insurers featured on this page.

Our rankings are not based on premium price alone. An insurer with a lower premium may not necessarily be the better choice if another company provides greater flexibility, stronger conversion options, broader coverage, more accessible underwriting, or features that better match a particular applicant’s needs.

This is why our list includes both an overall ranking and “best for” recommendations for specific insurance needs.

Keeping our comparison current

Insurance products, premiums, underwriting rules, and insurer financial information can change over time. We therefore review and update the information on this page as new product, pricing, and insurer information becomes available.

The information presented is based on PolicyAdvisor’s research and analysis and should be used as a comparison resource rather than personalized financial advice. Your eligibility, available coverage, and final premium will depend on your individual circumstances and the insurer’s underwriting decision.

If you’re unsure which insurer or policy is right for you, our licensed insurance advisors can help you compare your options and obtain personalized quotes.

How to choose the best term life insurance company in Canada?

Selecting the right life insurance provider is about much more than just finding the lowest monthly premium. You are entering a contract that could last for decades, so you need to ensure the company will be there when your family needs them most.

Here are the five most critical factors to evaluate when comparing Canadian life insurance companies in 2026:

1. Financial strength and stability

Life insurance is a long-term promise. You must ensure the insurer has the financial backing to pay out a massive claim 20 or 30 years from now.

What to look for: Check their AM Best rating (aim for ‘A’ or ‘A+’) and their LICAT ratio (Life Insurance Capital Adequacy Test). A LICAT ratio well above the minimum required by OSFI (Office of the Superintendent of Financial Institutions) means the company has more than enough capital reserves to absorb severe economic shocks.

2. The “Conversion Privilege” rules

Almost all Canadian term policies allow you to convert your temporary coverage into permanent insurance (like whole life) without undergoing a new medical exam. However, the deadlines vary wildly between carriers.

What to look for: The best companies allow you to convert your policy up to age 71. Budget policies may force you to make this decision by age 65. If you develop a health condition in your late 60s, that 6-year difference could determine whether you can leave an inheritance or lose your coverage entirely.

3. Underwriting flexibility and speed

How much friction are you willing to deal with to get approved?

What to look for: If you are young and healthy, look for companies utilizing “Accelerated Underwriting” (like Manulife or digital-first platforms), which can approve you in 24 hours without needles or doctor visits. If you have pre-existing conditions, look for companies like Canada Protection Plan or Assumption Life that specialize in Simplified Issue (no medical exams) policies.

4. Available riders (Policy Add-ons)

Your policy should be able to adapt to your life’s changing circumstances.

What to look for: Check if the provider offers high-value life insurance riders. Can you add a Child Term Rider to protect all your current and future children under one flat fee? Do they offer a Waiver of Premium rider that pays your insurance bill for you if you become totally disabled?

5. Claims reputation and bereavement support

The absolute worst time for your family to experience poor customer service is immediately after you pass away.

What to look for: Research the company’s claims-payout reputation. Top-tier Canadian providers not only pay valid claims quickly (often within 5 to 10 days) but also offer built-in bereavement counseling, charitable benefit donations, or advance payout provisions for terminal illnesses to help your family navigate the hardest moments.

How to get the best term life insurance in Canada?

You can find the best insurance policies for your needs on PolicyAdvisor. Our advanced AI tools help you instantly compare term life insurance quotes from 30 of Canada’s top insurers, all under 60 seconds! 

Some of the AI tools that we have built and implemented are:

• An AI-powered life insurance calculator that analyzes your unique profile, such as age, health history,and  lifestyle factors, to generate personalized quotes from top Canadian insurers
• AI-driven advisor support that assesses sentiment and engagement levels during consultations, helping our licensed experts customize policy suggestions based on individual concerns and preferences
• An AI-assisted scheduling system automatically assigns the right advisor based on availability and expertise, ensuring our customers are matched with specialists who can address their specific insurance needs efficiently

Prefer personalized guidance? Schedule a free, no-obligation call with one of our licensed advisors. Get answers to all your questions without the pressure of making a hurried decision. 

Get started now and take the first step towards securing your family’s future with PolicyAdvisor!

What’s the cheapest life insurance in Canada?

Term life insurance is the cheapest type of insurance policy in Canada. Premiums are lower because coverage is temporary, and the policies don’t have extra options like a savings & investment component, the way whole life insurance does.

Which is the top term life insurance company in Canada?

For term life, the best life insurance companies in Canada are Empire Life, Manulife, RBC, BMO and Canada Protection Plan.

What’s the best amount of life insurance to buy?

You should get enough life insurance to cover your family’s needs. The general rule of thumb is to get 10-12 times your annual income. 

The best way to find out how much life insurance you should buy is to use our life insurance calculator. It will ask you some questions and then tell you the best amount for your needs.

How to get the best quotes for term life insurance?

You can find the best quotes for term life insurance on PolicyAdvisor.com. Our online platform lets you easily customize your plan and compare quotes from leading providers in under a minute.

Can non-residents buy term life insurance in Canada, and what are the requirements?

Yes, non-residents can get term plans in Canada, but eligibility depends on factors like residency status, country of citizenship, and medical history. Most insurers require applicants to be in Canada during the application process and undergo medical underwriting.

Some policies may have additional restrictions for applicants from high-risk countries. Proof of ties to Canada, such as property ownership or financial interests, may also be necessary.

What are the tax implications of life insurance payouts in Canada?

In Canada, life insurance death benefits are tax-free for beneficiaries. However, if the policy has a cash value component, any withdrawals or loans taken against it may be taxable. For business-owned policies, taxation depends on how the proceeds are distributed. Additionally, life insurance can play a role in estate planning, helping to offset potential taxes on assets passed to heirs.

Best life insurance companies in Canada by category (2026)

The best life insurance company in Canada ultimately depends on what you are looking to achieve. While some insurers stand out for affordable term coverage, others are great for tax-advantaged wealth creation or simplified approvals for those with health concerns.

Based on our comprehensive review, here is how the top Canadian providers align with specific financial and lifestyle needs:

Best life insurance for term life insurance seekers

RBC Insurance, Canada Life, and iA Financial are the top choices because they offer unparalleled term flexibility. Rather than forcing you into a standard 10- or 20-year policy, all three allow you to customize your policy length to the exact year (e.g., a 17-year term) to perfectly match a mortgage or loan amortization.

Best life insurance for whole life insurance buyers

Buyers looking for lifelong protection with strong cash value growth should consider Equitable Life, Sun Life, and Empire Life. Equitable Life leads the pack with a market-topping 6.40% dividend scale, while Empire Life’s unique “Side Account” offers unmatched premium flexibility for variable-income earners.

Best life insurance for no-medical coverage

Applicants who prefer simplified or guaranteed issue life insurance due to age or health issues can look to Assumption Life, Canada Protection Plan, or Industrial Alliance. These companies provide hassle-free applications with fast approval and minimal medical requirements.

Best life insurance for parents and homeowners

Families need flexible, multi-layered protection. Equitable Life stands out for its flat-fee child rider covering all future children, while Beneva includes a unique automatic 60-day Newborn Benefit at no extra cost. For homeowners, iA Financial offers a fully portable disability rider on decreasing term policies that stays with you even if you switch mortgage lenders.

Best life insurance for seniors

Older Canadians prioritize permanent coverage with simplified underwriting. Desjardins is a standout, offering guaranteed issue coverage specifically designed for seniors aged 50 to 75. Wawanesa is another excellent choice for budget-conscious seniors, as they price policies based on your actual chronological age rather than rounding up to your “nearest age.”

Best life insurance for business owners and self-employed individuals

Entrepreneurs require scalable coverage for business continuity. BMO Insurance is a top tier choice thanks to its Business Guaranteed Insurability Option, which lets owners increase coverage as their company’s valuation grows. Canada Life and Sun Life are equally strong, comfortably handling massive multi-million-dollar corporate cases.

Best life insurance for doctors and professionals

Medical and high-income professionals seek high-limit coverage with specialized underwriting. RBC Insurance and Canada Life cater to these needs with massive capacity (up to $25 million) and income-based underwriting, while Manulife’s early cash value Par policies provide an excellent vehicle for corporate wealth storage.

Best life insurance for smokers

If you smoke or use tobacco products, Foresters Financial is the premier choice thanks to its Quit Smoking Incentive Plan, which grants non-smoker rates for the first two years while you try to quit. Industrial Alliance (iA) and Canada Life also provide more forgiving requalification programs that reward lifestyle changes over time.

Best life insurance for applicants with pre-existing conditions

Applicants with chronic or past health issues benefit most from Canada Protection Plan, Desjardins, and Assumption Life. Desjardins is uniquely lenient through its “Harmony” underwriting for stable conditions like Type 2 diabetes, while CPP may provide coverage to individuals who have already declined elsewhere.

Best life insurance for children

For parents securing their child’s future insurability, Humania Assurance offers an exceptionally lenient child rider with zero medical questions asked. Foresters Financial adds incredible value through its Orphan Benefit (paying $900 monthly per child if both parents pass away), and Equitable Life provides strong permanent cash-value options for kids

How we rated the best life insurance companies

The blog is intended to help readers understand which life insurance providers and products are worth considering for different coverage needs.

• Our licensed insurance advisors and product experts evaluated 30+ major Canadian life insurers and 20,000+ options to identify the best 16 companies that stand out for different insurance needs.
• We then ranked these 16 life insurers using a simple, transparent scoring system that reflects how real Canadians shop: lowest reliable price for common profiles, strong financial ratings, flexible products (term, whole, universal, riders), and a smooth quote-to-claim experience.
• Our team checked sample quotes across multiple carriers, checked AM Best/DBRS/S&P ratings, reviewed product brochures and underwriting rules, and considered complaints and broker feedback for this blog.
• Each insurer received a 0 to 5 score based on different factors, which we turned into the ranked table and “best for” badges you see above.
• The PolicyAdvisor rating is based on the overall product offering, pricing, financial strength, flexibility and suitability for different customer needs. We don’t rank companies on price alone, since the best insurer depends on your individual circumstances and coverage goals.

We also regularly review insurer information, pricing examples and product details as they change. Your actual premium and eligibility will depend on your individual circumstances and the insurer’s underwriting requirements.

How to choose the best life insurance company in Canada?

No insurer is automatically best for every applicant. Product availability, underwriting and premiums vary, so the most suitable option depends on the coverage required and the terms for which a person qualifies. While choosing a life insurance company, some of the factors that you should keep in mind are:

• Financial Strength: Look for strong credit ratings (A or higher from A.M. Best) and a high LICAT ratio (Life Insurance Capital Adequacy Test). A ratio of 130% or higher demonstrates exceptional capital depth to survive economic downturns.
• Underwriting Flexibility: Every insurer prices risk differently. If you have a pre-existing condition (like Type 2 diabetes), participate in high-risk hobbies, or want to skip the medical exam, prioritize companies that specialize in simplified issues or clinical underwriting.
• Premium Competitiveness: Don’t just compare the initial quote. Review the guaranteed renewal rates and look out for hidden annual policy fees, which drastically inflate the overall cost of smaller coverage amounts.
• Customization & Riders: Ensure the insurer offers the exact structure you need. Look for valuable built-in features or optional policy riders, such as the ability to customize your term to the exact year (e.g., a 17-year term to match a mortgage) or terminal illness advances.
• Claims & Accessibility: A policy is only as good as its payout process. Evaluate the insurer’s reputation for ease of claims, average processing times, and whether they offer a robust digital portal that allows you (and your beneficiaries) to navigate the policy smoothly.

How much does life insurance cost in Canada?

The cost of life insurance in Canada depends on several factors, including your age, health, smoking status, coverage amount, and the type of policy you choose.

The insurer you select can affect your premiums. To help you understand the potential cost, we’ve compared premiums from Canadian life insurance providers for two common types of coverage: term life insurance and whole life insurance. These examples use $100,000 in coverage and a 30-year-old applicant, making it easier to understand how costs can differ between policy types and providers.

Term life insurance cost comparison

Term life insurance is generally a more affordable option for people who want financial protection during a particular stage of life. The table below compares illustrative monthly premiums for a 30-year-old non-smoker seeking $100,000 in coverage for a 10-year term.

The table shows why comparing insurers can be worthwhile as the quoted premium can vary between providers. However, price should not be the only consideration: policy features, conversion options, eligibility requirements, and underwriting also matter.

Whole life insurance cost comparison

For whole life insurance, the premiums are generally higher than those for term life insurance because the coverage is designed to last for life. The following examples illustrate monthly premiums for a 30-year-old applicant seeking $100,000 in whole life coverage under a 20-pay premium structure, where premiums are designed to be paid over 20 years.

As these examples illustrate, whole life premiums can vary considerably across providers and product designs. When comparing policies, consider the premium payment period, guaranteed benefits, cash value provisions, and whether the policy is participating or non-participating.

Which type of life insurance is more affordable?

If your priority is obtaining a larger amount of coverage at a lower initial premium, term life insurance is often the more affordable starting point. Whole life insurance may be worth considering if you want lifelong coverage and value the additional features available under certain policies.

The right choice depends on your financial goals, how long you need coverage, and what you can comfortably afford. Compare personalized quotes and policy features before choosing an insurer.

How to get the best  life insurance in Canada?

You can find the best insurance policies for your needs on PolicyAdvisor. Our advanced AI calculator helps you instantly compare life insurance quotes from 30 of Canada’s top insurers, all under 60 seconds! 

Prefer personalized guidance? Schedule a free, no-obligation call with one of our licensed advisors. Get answers to all your questions without the pressure of making a hurried decision. 

Get started now and take the first step towards securing your family’s future with PolicyAdvisor!

Which is the top insurance company in Canada?

The top 5 life insurance companies in Canada are Canada Life. Manulife, Sun Life, Industrial Alliance (iA), and Desjardins if you’re looking at size and financial strength alone.

In our ratings, we looked at more than just financial strength, though. Other policy details matter when you’re figuring out which ones are the best Canadian life insurance companies.

What’s the cheapest life insurance in Canada?

Term life insurance is the cheapest type of insurance policy in Canada. Premiums are lower because coverage is temporary, and the policies don’t have extra options like a savings & investment component — the way whole life insurance does.

Life insurance premiums depend on your personal details as well as your policy details. In general, you’ll get the lowest life insurance rates if you are:

• Young
• Healthy
• Non-smoker
• Female

What’s the best amount of life insurance to buy?

You should get enough life insurance to cover your family’s needs. The general rule of thumb is to get 10-12 times your annual income. But you may need more.

The best way to find out how much life insurance you should buy is to use our life insurance calculator. It will ask you some questions and then tell you the best amount for your needs.

How to get the best quotes for term life insurance?

You can find the best quotes for term life insurance on PolicyAdvisor.com. Our online platform lets you easily customize your plan and compare quotes from leading providers in under a minute.

Save time and money when you shop and compare online. Click the button below to get started now.

What are the best life insurance options for Canadians with pre-existing conditions?

Canadians with pre-existing conditions have several life insurance options, depending on their health status and coverage needs. Simplified issue life insurance requires no medical exam but may include a short health questionnaire. Guaranteed issue life insurance is available without medical questions but often comes with higher premiums and lower coverage amounts. Some insurers also offer rated traditional policies, where coverage is granted with adjusted premiums based on medical history.

Can non-residents buy life insurance in Canada, and what are the requirements?

Yes, non-residents can buy life insurance in Canada, but eligibility depends on factors like residency status, country of citizenship, and medical history. Most insurers require applicants to be in Canada during the application process and undergo medical underwriting.

Some policies may have additional restrictions for applicants from high-risk countries. Proof of ties to Canada, such as property ownership or financial interests, may also be necessary.

What should parents know about buying life insurance for their children?

Parents can purchase life insurance for their children as a way to secure future insurability and provide financial protection. Child life insurance policies typically offer lifelong coverage with fixed premiums and the option to build cash value over time.

Some policies allow children to convert coverage into larger amounts without medical exams when they become adults. Riders on a parent’s policy can also provide affordable coverage for children.

What are the tax implications of life insurance payouts in Canada?

In Canada, life insurance death benefits are tax-free for beneficiaries. However, if the policy has a cash value component, any withdrawals or loans taken against it may be taxable. For business-owned policies, taxation depends on how the proceeds are distributed. Additionally, life insurance can play a role in estate planning, helping to offset potential taxes on assets passed to heirs.

Can life insurance policies be bundled with other types of insurance for better rates?

Yes, some insurers offer bundling discounts when life insurance is purchased alongside other policies such as home, auto, or critical illness insurance. Bundling can simplify policy management, reduce premiums, and provide enhanced benefits. 

Why is whole life insurance more expensive than term life insurance?

Whole life insurance policy costs more because it provides lifelong coverage, guaranteed cash value accumulation, and a guaranteed death benefit. Participating policies may also be eligible to earn annual dividends, adding further long-term value. Term life insurance only covers you for a fixed period and does not build cash value, making it a more affordable option.

How does adding riders affect whole life insurance premiums?

Adding optional riders, such as critical illness coverage, accidental death benefits, or disability waiver of premium, increases whole life insurance premiums. Riders provide additional benefits tailored to individual needs but come at an added cost. For example, a critical illness rider might add 10-20% to the base premium.

Can I lower my whole life insurance premiums after buying a policy?

In most cases, your premiums are fixed when you purchase the policy and cannot be reduced later. However, you may be able to lower your overall costs by choosing a different payment option, reducing your coverage amount, or selecting a non-participating policy.

Can I switch from term life insurance to whole life insurance?

Yes, many term life insurance policies include a conversion option that allows you to convert some or all of your coverage to whole life insurance without completing a new medical exam. The conversion must usually be completed before a specified age or policy anniversary, depending on your insurer.

How much does a $250,000 whole life insurance policy cost?

The cost of a $250,000 whole life insurance policy ranges from $132 to $914. The actual costs may vary based on your age, gender, health, smoking status, policy type, and insurer. In general, premiums are higher for $250,000 than for $100,000 in coverage.

Which premium payment option has the lowest monthly cost?

Life Pay typically offers the lowest monthly premiums because the cost of the policy is spread over the longest payment period. In contrast, 20 Pay policies have higher monthly premiums but are fully paid up sooner.

How can I reduce the cost of whole life insurance?

You can lower your whole life insurance premiums by purchasing coverage at a younger age, choosing an appropriate coverage amount, maintaining good health, selecting a non-participating policy, opting for a longer premium payment period, and comparing quotes from multiple insurers.

How much is whole life insurance per month for a 20-pay policy with $100,000 in coverage?

The average whole life insurance cost for a male non-smoker seeking $100,000 in coverage for a 20-pay policy ranges from $70.74 to $319.41 per month. The cost of a 20-pay policy will be lower than a 10-pay policy as the premium is spread over a longer duration.

What is the cost of whole life insurance at age 65?

The cost of whole life insurance at age 65 for $100,000 in coverage with a 20-pay premium option costs approximately $345 to $446 per month, depending on gender and whether the policy is participating or non-participating. For a 65-year-old male, premiums range from $409.14 to $445.77 per month, while a female may pay $345.06 to $404.64 per month.

Whole life insurance explained

Whole life insurance is a type of permanent life insurance that provides coverage for your entire life rather than a limited term. In exchange for regular premium payments, the insurer guarantees a generally tax-free death benefit (unless it exceeds the policy’s adjusted cost basis) to your beneficiaries when you pass away.

Unlike term life policies, whole life insurance also includes a guaranteed cash value component that accumulates over time. Depending on the policy you select, the plan may also earn annual dividends that can further supplement your death benefit and cash value. As a result, premiums are typically 7 to 10 times higher than those of comparable term life policies. 

For example, a healthy non-smoker 30-year-old parent may be able to purchase $100,000 in term life coverage for somewhere between $10 per month. The same amount of coverage could cost around $70 per month for whole life insurance. While whole life policy costs significantly more, the higher premiums reflect its lifelong coverage, guaranteed cash value, and potential dividend growth.

Key features of whole life insurance:

How does whole life insurance work in Canada?

Whole life insurance combines lifelong financial protection with a built-in savings component. As long as you continue paying your premiums, you remain covered for the entirety of your life. Additionally, a portion of your premiums contributes to your policy’s guaranteed cash value, which grows over time. 

Here’s how a whole life insurance policy usually works:

Step 1: Choosing the right coverage amount: Choose a coverage amount that would secure the financial future of your family and protect your loved ones from outstanding debts or other costs. Many applicants choose anywhere between 7 and 15 times their annual income

Step 2: Choose your policy type: Next, you will select the type of whole life insurance that best aligns with your financial goals.

Step 3: Complete your application and pay your premiums: Once you have chosen your coverage amount and payment period, you will need to complete your application and name the beneficiary. Most applicants choose their close relatives, such as their spouse, children, or parents, as the beneficiary. Additionally, they can choose one or more beneficiaries

Step 4: Your policy builds cash value: One of the defining features of whole life insurance is the cash value. Each premium payment contributes toward a guaranteed cash value that grows over time on a tax-advantaged basis. Additionally, if you choose a participating whole life policy, you may earn dividends based on how the insurer performs financially

Step 5: Your beneficiaries receive the death benefit: If you pass away while your policy is active, your beneficiaries submit a claim to the insurance company. Once the claim is approved, the insurer pays the death benefit as a tax-free lump sum

Types of whole life insurance in Canada

While whole life insurance provides permanent coverage to policyholders as long as premiums are paid, many insurers offer the policy in different structures to suit different financial goals. The most common options are participating and non-participating, and limited-pay whole life insurance.

Participating whole life insurance

Participating whole life insurance is one of the most popular permanent life insurance policies in Canada. Alongside guaranteed lifetime coverage and cash value growth, eligible policies may also receive annual dividends based on the insurer’s financial performance.

These dividends can be used to purchase additional paid-up insurance, increase the policy’s cash value, reduce future premiums, or even repay policy loans. While the dividends are not guaranteed, most major Canadian insurers have historically paid them. 

Best for: Participating whole life insurance is a good choice for those who are looking for long-term wealth accumulation and estate planning.

Non-participating whole life insurance

Non-participating whole life insurance provides guaranteed lifetime protection with fixed premiums and guaranteed cash value growth. However, unlike participating whole life policies, it does not pay dividends.

Since there is no dividend component, these policies are simpler and more predictable. The returns and death benefit are guaranteed when the policy is issued, providing greater certainty over the life of the policy. 

Best for: This policy is well-suited for those looking for seeking predictable lifelong coverage. 

Limited-pay whole life insurance 

Limited-pay whole life insurance policies allow you to complete all premium payments within a predetermined period while keeping coverage for life. Common payment schedules include:

• 10 Pay
• 20 Pay
• Pay to Age 65

Although the premiums are higher since they are paid in a shorter period, policyholders no longer need to make payments once the policy becomes fully paid up. As the premiums are paid, the cash value increases on a tax-deferred basis if the policy is “exempt” under the Income Tax Act.

Once enough cash value has accumulated, you can borrow or withdraw from it (subject to policy rules) for retirement income, emergencies, or other financial needs. However, this may reduce the death benefit and cash value.

Best for: Those who want lifelong coverage but prefer to finish paying premiums within a set period.

What is a children’s whole life insurance policy?

Whole life insurance for children provides lifelong protection with added financial benefits such as growing cash value over time. Here’s why whole life insurance for children can be a smart choice:

• Cost-effective payments: Premiums for children’s whole life policies are generally lower, making it an affordable way to secure coverage for life. Since rates are locked in early, you avoid higher costs later
• Guaranteed lifetime coverage: Once a policy is in place, the child is covered for life, regardless of future health changes. As long as premiums are paid, the policy cannot be cancelled by the insurer.
• Securing insurability: Buying insurance early ensures that the child has coverage even if they develop health issues later. This helps avoid challenges in obtaining insurance as an adult
• Cash value that builds over time: Children’s whole life policies build cash value over time, offering a financial asset they can access later for education, a home, or other needs. The cash value grows tax-deferred, adding long-term benefits

Learn more about life insurance for children 

How much whole life insurance coverage do you need?

You generally need whole life insurance coverage that is 10 times your salary. Choosing the right amount of whole life insurance depends on your financial goals and the needs of your loved ones. While it offers lifelong coverage and cash value growth, it’s essential to determine how much coverage will adequately protect your family.

Two common strategies to help you decide are the ‘Ten times salary’ and the ‘Years to retirement’ rules.

The ‘Ten Times Salary’ Rule: This rule suggests buying a policy with a death benefit equal to ten times your annual salary. For example, if you earn $80,000 per year, you would aim for a policy with an $800,000 death benefit. This method ensures that your family can maintain their current lifestyle, cover debts, and manage expenses in the event of your passing. It’s a straightforward approach that offers a solid financial cushion.

The ‘Years to Retirement’ Rule: This strategy focuses on covering your income until retirement. Multiply your annual income by the number of years left until you retire. If you earn $80,000 annually and plan to retire in 20 years, you would need $1.6 million in coverage. This method ensures that your family can replace your income until you’re no longer working.

Using the DIME method to estimate whole life insurance

Another method of calculating how much coverage you need is to use the debt, income, mortgage, and education (DIME) method. It is a simple way to estimate how much term life insurance you may need by considering four key financial obligations your family could face.

Let’s assume Michael, a 45-year-old business owner, wants to ensure his family is financially secure while also leaving an inheritance.

Here’s a projection of whole life insurance coverage using the DIME method:

Based on the DIME method, Michael may consider approximately $2.6 million in life insurance coverage. However, because he also wants to leave an inheritance and reduce the tax burden on his estate, he may choose a higher coverage amount through a whole life insurance policy. 

While it is a handy index, your ideal coverage amount may differ based on factors such as savings, investments, and long-term financial goals.

Pros and cons of whole life insurance

How much does whole life insurance cost in Canada?

The cost of a whole life insurance policy ranges between $57 and $382. The premium depends on the policy type, coverage amount, and personal factors, such as gender, age, smoking status, and health. 

Cost of $100,000 whole life insurance policy:

*Illustrative monthly premiums for non-smoking males and females of various age ranges seeking a whole life insurance policy with $100,000 in coverage for a 20-pay premium option

How are whole life insurance premiums calculated?

Life insurance companies calculate your premium by assessing how likely you are to make a claim over the life of the policy. It is primarily based on your age, smoking status, health conditions, coverage amount, and other related factors.

Personal factors:

• Age: Younger applicants generally qualify for lower premiums. A 30-year-old male non-smoker pays $100.35/month for a non-participating policy with $100,000 in coverage, while a 40-year-old male non-smoker can pay $141.66/month
• Health: Good overall health can help you secure more favourable rates
• Smoking status: Smokers and tobacco users typically pay significantly more than non-smokers
• Gender: Women often pay slightly lower premiums because they generally have longer life expectancies
• Occupation: High-risk occupations may increase premiums depending on the insurer
• Lifestyle and hobbies: Activities such as skydiving, scuba diving, or motor racing may result in higher rates

Policy and coverage factors:

• Coverage amount: Higher death benefits result in higher premiums. A $500k policy will cost more than a $250k whole life insurance policy
• Policy type: Participating whole life policies usually cost more than non-participating policies because of their dividend potential
• Payment period: Limited-pay policies often have higher annual premiums than lifetime-pay policies since payments are compressed into fewer years
• Policy riders: Optional add-ons, such as critical illness, child, or disability riders, increase the overall cost of your policy
• Payment frequency: Some insurers offer modest savings if you pay annually instead of monthly

How do whole life insurance premiums work?

A whole life insurance policy will offer coverage as long as you pay the premiums. Here’s how it works:

• The premiums will remain fixed, and the coverage remains active as long as you pay the premiums
• A part of the whole life insurance cost goes towards life insurance coverage, and the other part builds the cash value
• The greater the cash value, the more interest will be accrued, and the greater the cash value

Why is whole life insurance expensive?

Whole life insurance costs more than term life insurance because it provides lifetime coverage and builds cash value. Unlike term insurance, which covers you for a set period, whole life insurance is designed to pay a guaranteed death benefit whenever you die, provided the policy remains in force. Premiums also help fund the policy’s cash value and other guarantees, which contribute to the higher cost.

What is the cash value of whole life insurance? 

Cash value in life insurance is essentially an accumulated savings component funded by a portion of the premiums you pay. This cash value amount grows over time at a guaranteed rate and can be accessed tax-deferred during your lifetime through policy loans, withdrawals, or even to cover premium payments. 

It is also worth noting that this amount is separate from the death benefit. At death, beneficiaries receive the policy’s death benefit (base amount plus any paid‑up additions and dividends on deposit, minus loans/interest). The accumulated cash value generally remains with the insurer and is not paid out in addition to the death benefit.

How does cash value grow?

During the early years of the policy, a larger portion of your premium goes toward insurance costs and administrative expenses. As a result, the cash value grows gradually. However, as the policy matures, the cash value typically increases at a faster pace. 

Additionally, if you own a participating whole life policy, annual dividends may further increase your cash value and death benefit. Unlike market-based investments, guaranteed cash value is not affected by volatility. This makes it a relatively stable long-term commitment.

How to use cash value in whole life insurance?

You can access the cash value of a whole life insurance policy by taking out a policy loan, making a partial withdrawal, using the cash to pay premiums, or fully surrendering the policy.

Each option has different tax implications and may affect your policy’s cash value or death benefit, so it’s important to understand how they work before accessing your policy.

Here’s an overview of how you can use the cash value of your whole life insurance policy: