Does life insurance cover suicide in Canada?

Yes, life insurance in Canada generally covers suicide, but only after the policy’s suicide exclusion period has ended. Most insurers, including Canada Life, Equitable Life, Manulife, Sun Life, and others, have a two-year suicide clause, which means if the insured dies by suicide within the first two years of the policy taking effect, the death benefit is usually not paid. Once this period expires, beneficiaries are generally eligible to receive the full death benefit, provided all policy terms and conditions have been met.

What is the suicide clause in life insurance?

A suicide clause is a standard provision found in most life insurance policies in Canada that limits or excludes the payment of the death benefit if the insured dies by suicide within a specified period after the policy takes effect. The clause is designed to protect insurers from individuals purchasing coverage with the intention of making an immediate claim due to suicide.

If the insured dies by suicide during the exclusion period, the insurer will typically deny the death benefit. Once the exclusion period ends, suicide is generally treated like any other covered cause of death, and eligible beneficiaries can usually receive the death benefit, depending on the terms and conditions of the policy.

How long does the suicide clause last?

For most life insurance policies in Canada, the suicide clause lasts two years from the policy’s effective date. This two-year exclusion period applies to term life, whole life, universal life, and no medical life insurance policies. 

In some cases, the two-year period may restart if:

• The policy lapses and is later reinstated
• A new policy replaces an existing one
• Significant changes require new underwriting (depending on the insurer and policy)

Why insurers include this clause

Insurers include a suicide clause to reduce fraudulent life insurance claims and keep premiums affordable for all policyholders. Without an exclusion period, someone could purchase a policy knowing an immediate claim was likely, creating a significant financial risk for insurers.

The clause serves several purposes:

• Prevents insurance fraud: Discourages individuals from buying a policy solely to trigger an immediate death benefit
• Keeps premiums affordable: Reduces unnecessary claim risk, helping insurers maintain stable pricing for all customers
• Promotes fair underwriting: Ensures life insurance functions as long-term financial protection rather than an immediate financial payout
• Provides long-term coverage: Once the exclusion period ends, suicide is generally covered like other causes of death, giving families financial security when they need it most

How does suicide affect life insurance payouts?

Whether a life insurance policy pays out after suicide depends on when the death occurs and the type of policy. Your policy wording will normally state exactly how your provider will deal with a death by suicide.

In case of death during the suicide clause period

If the insured dies by suicide within the policy’s suicide exclusion period, the insurer will not pay the death benefit. Instead, some insurers refund the premiums paid, although the exact amount and terms may vary by policy. For example, providers like Desjardins, Sun Life, and others state in their policies that they will return payments made or the policy’s cash value if the insured person dies by suicide before the 2-year period is up. 

On the other hand, some providers might deduct fees or other penalty costs. In this case, they may refund premiums paid up to that point, but only after first subtracting the amount of fees.

In case of death after the suicide clause period

Once the two years specified in the clause have passed, the life insurance policy will operate as usual. The provider will pay out if the individual passes away for any of the typical covered reasons, including suicide. 

If the policy remains in force and there has been no material misrepresentation or policy lapse, the insurer will usually pay the full death benefit to the named beneficiaries. The claim is processed through the insurer’s standard claims procedure, and the payout can be used for any purpose, such as replacing lost income, paying off debts, covering funeral expenses, or supporting long-term financial needs.

In the case of a joint life insurance policy

A joint life insurance policy generally includes the same two-year suicide clause as an individual life insurance policy, but how it affects a claim depends on whether the policy is joint first-to-die or joint last-to-die. For joint first‑to‑die, no benefit is payable if the first death is suicide within two years; after that, the benefit is payable at the first death. For joint last‑to‑die, there is no payout at the first death regardless of cause; the suicide clause is assessed at the death that triggers the benefit (the second death), per policy wording.

Does the suicide clause apply to every type of life insurance?

Yes, the suicide clause generally applies to most individual life insurance policies in Canada, including term life, whole life, universal life, and many no medical life insurance plans. While the exact wording may differ between insurers, most policies include a two-year suicide exclusion period that begins on the policy’s effective date.

The only exception is group life insurance, which is provided through an employer or association, and may have different terms from an individual policy. Some group plans include a suicide exclusion period, while others may not. Coverage depends on the insurer and the specific group contract.

Does medically assisted death (MAID) affect life insurance?

No, Medical Assistance in Dying (MAID) in most cases does not affect a valid life insurance claim in Canada. Since MAID is a legal medical procedure available to eligible individuals under Canadian law, many insurers do not automatically apply the standard suicide exclusion clause. Instead, they assess claims according to their policy wording and internal claims guidelines.

However, there is no industry-wide standard for how insurers classify MAID. Some providers consider it a separate category from suicide, while others treat it as a death resulting from an illness. Regardless of the approach, eligible beneficiaries can generally receive the death benefit if the policy is valid and all terms have been met.

Is Medical Assistance in Dying (MAID) considered suicide under life insurance?

Whether MAID is considered suicide depends on the insurer. Some Canadian life insurance providers classify medical assistance in dying as its own category, separate from suicide. Under these policies, the death benefit may still be paid even if MAID occurs during the policy’s two-year suicide exclusion period. Other insurers treat MAID as a death resulting from an illness rather than suicide.

Does a history of mental illness affect life insurance coverage?

Yes, a history of mental illness can affect life insurance coverage, but it will not prevent you from getting coverage. Many insurers offer coverage to applicants with conditions such as depression, anxiety, bipolar disorder, or other mental health disorders. Approval and premiums are based on factors such as your diagnosis, treatment plan, symptom stability, medications, hospitalization history, and overall health, not simply the diagnosis itself.

It is also important to note that having a mental health condition does not change the standard suicide clause. Most life insurance policies apply the same two-year suicide exclusion period to all policyholders, regardless of their mental health history.

When can the suicide clause restart?

Although the suicide clause typically expires after two years, it may restart in certain situations. This most commonly happens when a lapsed policy is reinstated, as many insurers begin a new two-year suicide exclusion period from the date of reinstatement.

The clause may also restart if you replace your existing policy with a new one or make significant changes that require new underwriting, such as applying for a higher coverage amount. Since these rules vary by insurer and policy type, it is important to review your policy documents or speak with your insurance advisor before making changes to your coverage.

What should beneficiaries do after a suicide-related death?

In case of a suicide-related death, beneficiaries should notify the insurer promptly and provide the required documents. The insurer will review the claim, including the policy terms and the timing of the death, before determining whether the death benefit is payable. Here’s a step-by-step process for the same:

• Notify the insurer: Contact the life insurance company as soon as possible to report the death and begin the claims process, if applicable
• Submit the required documents: Provide the completed claim form, death certificate, proof of identity, and any other documents requested by the insurer
• Cooperate with the claim review: The insurer may review the policy’s effective date, cause of death, and medical records to determine whether the suicide exclusion or contestability period applies
• Review the claim decision: If the policy terms have been met, the death benefit is generally paid. If the claim is denied, the insurer will explain the reason in writing

What happens if a life insurance claim is denied because of suicide?

If a life insurance claim is denied because of suicide, it is usually because the insured died during the policy’s suicide exclusion period. If your claim is denied, you should take the following steps:

• Review the insurer’s explanation: Understand why the claim was denied and which policy provision applies
• Check the policy wording: Confirm whether the suicide exclusion or another policy condition was the reason for the denial
• Request additional information: Ask the insurer to explain how they reached their decision, if anything is unclear
• Appeal the decision if appropriate: If you believe the claim was wrongly denied, you may be able to provide additional evidence or request a formal review by the insurer

Frequently asked questions

How do life insurance companies determine if someone died by suicide?

Once an insurance claim is submitted, your insurance company will do its own investigation before making a payout. In the unfortunate instance of a death by suicide, life insurers will usually look into the cause of death. This may include reviewing medical records, law enforcement or police reports, and speaking with family members or friends. After the investigation is complete, the insurer will determine whether the death benefit is payable.

Does life insurance pay out if suicide occurs after two years?

Yes, in most Canadian life insurance policies, the full death benefit is paid if the insured dies by suicide after the two-year suicide exclusion period has expired. The policy must remain active, premiums must be up to date, and there must be no material misrepresentation on the application.

Does replacing or reinstating a life insurance policy restart the suicide clause?

Yes, replacing or reinstating a life insurance policy can restart the suicide clause. Many insurers restart the two-year suicide exclusion period when a lapsed policy is reinstated or when an existing policy is replaced with a new one. Significant policy changes that require new underwriting may also trigger a new exclusion period.

Can a life insurance claim for suicide be appealed?

Yes, a life insurance claim for suicide can be appealed. If a claim is denied, beneficiaries can request a detailed explanation from the insurer, review the policy wording, and provide additional supporting documents if necessary. If they believe the claim was incorrectly denied, they may request a formal review or appeal the insurer’s decision.

Does the suicide clause apply to no medical life insurance?

Yes, no medical life insurance policies, including simplified issue and guaranteed issue plans, include a suicide exclusion period similar to traditional life insurance policies. However, the exact terms and exclusions vary by insurer, so it’s important to review the policy wording before purchasing coverage.

Is MAID considered suicide for life insurance?

Whether Medical Assistance in Dying (MAID) is considered suicide for life insurance purposes depends on the insurer. Some Canadian insurers classify MAID as a separate category from suicide, while others treat it as a death resulting from an illness. In either case, many insurers will pay the death benefit if the policy is valid and all terms and conditions have been met. Because insurer policies differ, it’s important to review your policy wording or speak with your insurance advisor to understand how MAID-related claims are handled.

When a death initially thought to be suicide is officially reclassified and identified as a homicide in Canada, does term life insurance generally pay out? 

Most Canadian policies have a standard two-year suicide clause where self-inflicted deaths are not eligible for death benefit. If an investigation proves the death was actually a homicide (an unlawful killing by another person), the two-year suicide restriction no longer applies to the cause of death and the death benefit is paid to the beneficiary (except in the case where the primary beneficiary is found guilty of the homicide).

Which is the key document in Canada that proves the cause of death?

The main document in Canada that officially records and proves the medical cause of death is the Medical Certificate of Death (often ordered as part of a Certified Copy of Death Registration when specific medical details are required). This document is issued and signed by an attending physician or a coroner, detailing both the direct medical cause of death and the manner of death.

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.

Life insurance for seniors in Canada is available to adults aged 60 and older, including retirees and those with certain pre-existing health conditions. Depending on your age, health, and financial goals, you can choose from term life insurance, whole life, simplified issue, or guaranteed issue policies. In Canada, many insurers, including Sun Life, Canada Life, iA, and RBC Insurance, offer life insurance policies. 

Quick summary:

Can seniors get life insurance in Canada?

Yes. Most Canadian seniors can still buy life insurance, including options that do not require a medical exam, although choices and costs depend strongly on age and health. Healthy seniors may qualify for fully underwritten term or whole life insurance, which often provides lower premiums, higher coverage amounts and more policy options than no medical life insurance. 

Seniors with pre-existing medical conditions may be better suited to simplified issue or guaranteed issue life insurance that requires minimal to no medical questionnaires. Although premiums are generally higher for older applicants, guaranteed issue coverage allows many seniors with serious medical conditions to obtain life insurance without being declined.

Life insurance options for seniors in Canada

Seniors in Canada can choose from term life insurance, whole life insurance, or no medical life insurance. Here are the most common life insurance options available to Canadian seniors.

Term life insurance for seniors

• Overview: Term life insurance provides coverage for a fixed period, typically 10, 20, or 30 years. If you pass away during the policy term, your beneficiaries receive a tax-free death benefit. Since it offers temporary coverage, premiums are generally lower than those for permanent life insurance
• Best for: Healthy seniors who need affordable coverage for a specific period, such as paying off a mortgage, replacing income for a spouse, or covering outstanding debts
• Things to consider:

1. Typically, the most affordable life insurance option
2. Coverage ends when the policy term expires
3. May be renewable or convertible, depending on the insurer
4. Available term lengths become more limited with age, as most term life insurance policies only provide coverage until around age 85

Whole life insurance for seniors

• Overview: Whole life insurance provides permanent coverage that lasts for your lifetime, provided premiums are paid. It also builds guaranteed cash value over time, which can be borrowed against or accessed under certain conditions. It is a good option for those looking for lifelong financial protection, estate planning benefits, or coverage for final expenses.
• Best for: Seniors who want lifelong coverage, estate planning benefits, or to leave a guaranteed inheritance for loved ones
• Things to consider:

1. Provides lifelong protection
2. Includes guaranteed cash value growth
3. Premiums are generally higher than term life insurance

No medical life insurance for seniors

• Overview: No medical life insurance allows seniors to apply for coverage without completing a medical examination. Depending on the insurer and your health, you may qualify for either simplified issue life insurance, which requires a few health questions, or guaranteed issue life insurance. Simplified issue policies require a few health questions, while guaranteed issue policies generally require neither a medical exam nor health questions
• Best for: Canadian seniors who want life insurance without undergoing a medical exam or those with pre-existing health conditions
• Things to consider:

1. Approval is generally faster than fully underwritten life insurance
2. Available as simplified issue or guaranteed issue coverage
3. Premiums are typically higher, and coverage amounts may be lower than fully underwritten life insurance
4. Simplified issue life insurance often offers coverage of up to around $500,000, while guaranteed issue life insurance is usually capped at about $50,000
5. Guaranteed issue policies typically include a two-year waiting period before the full death benefit is paid for non-accidental deaths, while simplified issue policies may offer immediate coverage depending on the insurer

What happens if seniors have pre-existing medical conditions?

Having a pre-existing medical condition doesn’t automatically prevent Canadian seniors from getting life insurance. Many insurers offer coverage to applicants with conditions such as diabetes, high blood pressure, heart disease, or a history of cancer, although eligibility, premiums, and coverage options may depend on the type and severity of your condition, your overall health and the insurer’s underwriting requirements.

If you have a pre-existing condition, you may qualify for one of the following options:

• Simplified issue life insurance: Requires a short health questionnaire but no medical exam, making it suitable for seniors with minor or well-managed medical conditions. For example, applicants with controlled Type 2 diabetes or well-managed high blood pressure may still qualify for simplified issue coverage or even traditional life insurance with some insurers. Coverage amounts are generally higher than guaranteed issue policies, but premiums may be higher than fully underwritten plans
• Guaranteed issue life insurance: Requires neither a medical exam nor health questions and is designed for seniors with serious or multiple health conditions who may not qualify for other types of coverage. These policies typically have lower coverage limits (often up to $50,000), higher premiums, and usually include a two-year waiting period before the full death benefit is payable for non-accidental deaths

How much does life insurance for seniors cost in Canada?

The cost of life insurance for seniors can range from approximately $98 to $2070 per month, based on a $250,000 policy. However, the exact cost will vary based on your age, health, coverage amount, smoking status, and the type of policy you choose. 

Cost of life insurance for seniors over 60 in Canada

Seniors over 60 can typically qualify for term life insurance, whole life insurance, and no-medical life insurance, provided they meet the insurer’s eligibility requirements. Applicants in good health generally have access to more policy options, higher coverage amounts, and lower premiums than those applying later in life.

The monthly cost of life insurance for seniors over 60 in Canada can range from about $98 for a 10-year term policy to around $320 for a no-medical life insurance policy, for a sample $250,000 policy. Applying in your early 60s can help you lock in lower premiums before age-related health risks begin to significantly affect pricing.

Cost of life insurance for seniors over 70 in Canada

Life insurance remains available for seniors over 70 in Canada, although policy choices may become more limited depending on the insurer and your health. While some insurers continue to offer term life insurance, many applicants in this age group choose whole life or no-medical life insurance for lifelong coverage and simplified eligibility.

For a $250,000 policy, monthly premiums for seniors over 70 generally range from about $293 for a 10-year term policy to approximately $1,088 for a no-medical life insurance policy. If you have well-managed health conditions, you may still qualify for fully underwritten coverage, which can offer better rates than no-medical policies.

Cost of life insurance for seniors over 80 in Canada

Seniors over 80 can still purchase life insurance through select Canadian insurers, although eligibility, coverage amounts, and policy types are typically more limited. At this age, whole life insurance and guaranteed issue life insurance are often the most widely available options, while new term life policies are generally available with select insurers.

The cost of a 20-pay non-participating whole life insurance policy for an 80-year-old starts at approximately $2,070 per month for $250,000 of coverage. Because premiums are significantly higher at this age, many seniors choose lower coverage amounts to help cover funeral expenses, estate settlement costs, or leave a tax-free benefit for their beneficiaries.

Life insurance cost for seniors in Canada (2026)

Disclaimer: Sample monthly premiums shown are based on a $250,000 life insurance policy.Actual premiums may vary based on your age, health, smoking status, coverage amount, policy type, and the insurer’s underwriting criteria

How much does $250,000 of life insurance cost for a 70‑year‑old in Canada?

The cost of a $250,000 life insurance policy for a 70-year-old in Canada depends on the type of policy you choose and your health. Based on our sample rates, a 10-year term policy starts at approximately $293 per month, a 20-pay whole life policy costs around $1,193 per month, and a 20-year no-medical life insurance policy starts at about $1,088 per month.

Is life insurance worth it for seniors?

Yes, life insurance can be worth it for many seniors in Canada who want to protect their loved ones from financial burdens after they pass away. It can help cover final expenses, outstanding debts, probate fees, estate settlement costs, and provide financial support to a spouse or other dependents.

Some of the key benefits of life insurance for seniors include:

• Covering final expenses: The average traditional funeral and burial in Canada costs between $8,000 and $15,000. The Canada Pension Plan (CPP) death benefit is a flat $2,500, leaving a massive shortfall that life insurance can cover immediately
• Protecting your spouse: Provides financial support to help replace lost retirement income and cover everyday living expenses after your passing
• Preserving your estate: Helps beneficiaries pay estate settlement costs, probate fees, and other settlement costs without having to sell family assets or investments
• Leaving a financial legacy: Provides a tax-free death benefit that can help support children, grandchildren, or other loved ones in the future
• Paying off outstanding debts: Covers remaining mortgages, personal loans, credit card balances, or other financial obligations that could reduce the value of your estate
• Providing seniors with peace of mind: Ensures loved ones have financial protection and won’t face unexpected expenses after the policyholder passes away 

Is a senior’s life insurance policy a costly mistake?

No, the cost of life insurance for seniors is not a costly mistake, given its benefits. When you consider how the death benefit can be used to pay off debts, cover final expenses, and protect your estate, life insurance becomes a valuable investment rather than a costly mistake.

While premiums generally increase with age, life insurance can provide valuable financial protection when you choose the right coverage. To avoid overpaying, compare quotes from multiple insurers, choose the right policy type, and buy only the amount of coverage you need. Applying earlier can also help you secure lower premiums and a wider range of coverage options.

Factors affecting life insurance costs for seniors

The cost of life insurance premiums for Canadian seniors depends on factors such as their age, health history, smoking status, gender, and the type of policy that they have purchased. The following factors can affect the cost of life insurance for seniors in Canada:

• Age: Age is one of the biggest factors affecting your premium. Seniors who apply in their 50s or early 60s pay lower premiums than those applying in their 70s or 80s
• Gender: Women generally pay lower life insurance premiums than men because, on average, they have a longer life expectancy. The difference in pricing varies by insurer and policy type
• Health and medical history: Conditions such as diabetes, heart disease, high blood pressure, or a history of cancer may affect your eligibility and premium. Depending on your health, you may qualify for fully underwritten or no medical life insurance for seniors in Canada
• Policy type: Term life insurance is usually the most affordable option for healthy seniors, while whole life and no medical life insurance generally have higher premiums because they provide lifelong coverage or easier eligibility
• Coverage amount: Higher coverage amounts result in higher premiums. Choosing coverage based on your actual financial needs can help keep your policy affordable
• Medical underwriting: Policies that require a medical exam often offer lower premiums for healthy applicants. No medical life insurance for seniors in Canada provides easier access to coverage but usually comes at a higher cost
• Smoking status: Smokers pay significantly more for life insurance due to the increased health risks associated with tobacco use

Best life insurance companies for seniors in Canada (2026)

Some of the best life insurance companies for Canadian seniors include Manulife, Canada Life, Wawanesa, Industrial Alliance (iA), and Canada Protection Plan. Take a deep dive into their offerings and ratings

Top life insurance companies for seniors (2026)

How much life insurance coverage do seniors need in Canada?

Unlike younger applicants who have greater financial obligations, seniors need life insurance mainly to cover final expenses. However, others may require a larger policy to replace income for a surviving spouse, pay off debts, leave an inheritance, or cover estate settlements.

To know the exact coverage seniors need, here are the factors that they should consider:

• Outstanding mortgage, loans, and other debts
• Expected funeral, burial, or cremation costs
• Whether your spouse or dependents rely on your retirement income
• Any estate taxes or probate costs your beneficiaries may need to pay
• Existing savings, pensions, investments, and other financial assets
• The financial legacy you want to leave to your loved ones

When is it a good time to get life insurance for seniors?

The best time for seniors to buy life insurance is as early as possible. Applying in your 50s or early 60s can help you qualify for lower premiums, higher coverage amounts, and a wider range of policy options. As you age, life insurance generally becomes more expensive, and health conditions may limit your eligibility for certain policies. 

Is it too late to get life insurance after 70 in Canada?

No, it is not too late to get life insurance after age 70 in Canada. While your options may be more limited than they were at a younger age, many insurers still offer whole life, simplified issue, and guaranteed issue life insurance to seniors in their 70s. Some insurers also offer term life insurance, depending on your health at the time of application

Common mistakes seniors make when buying life insurance

The most common mistakes seniors make when buying life insurance include waiting too long to apply, choosing the wrong type of policy, buying too much or too little coverage, and not comparing quotes from multiple insurers. Avoiding these mistakes can help you secure the right coverage at a more affordable premium while ensuring your family’s financial needs are met.

• Waiting too long to apply: Premiums generally increase with age, and delaying your application can limit your coverage options
• Buying more coverage than you need: Many seniors base their coverage on financial obligations they no longer have. Choosing a larger policy than necessary can lead to higher premiums without added value
• Choosing the wrong policy type: Select between term, whole life, or no-medical life insurance based on your age, health, budget, and long-term needs
• Not disclosing your medical history: Always provide accurate health information to avoid delays, policy changes, or claim issues
• Focusing only on the lowest premium: The cheapest life insurance for seniors in Canada may not provide the coverage, features, or flexibility you need. Compare benefits, exclusions, renewal options, and insurer reputation alongside the premium
• Not comparing multiple insurers: Premiums, eligibility requirements, and policy features vary by insurer, so comparing quotes can help you find better value

Our advisor’s take on the best life insurance for seniors

At PolicyAdvisor, our licensed advisors help seniors compare life insurance policies based on their age, health, budget, and financial goals. Recently, one of our advisors assisted a 68-year-old retiree who wanted affordable coverage to help cover final expenses and leave a financial benefit for their spouse without paying for more insurance than they need.

The client profile

• Age: 68 years old
• Coverage required: $100,000
• Health: Non-smoker with well-controlled high blood pressure
• Primary goal: Cover final expenses and provide financial security for a surviving spouse

The policy comparison: After comparing quotes from several leading Canadian life insurance providers, we recommended a fully underwritten whole life insurance policy. Although no-medical life insurance offered a faster approval process, the client’s good overall health meant they qualified for significantly lower premiums through traditional underwriting while receiving the same lifetime protection and a higher coverage amount

Our advisor’s recommendation

For most seniors, the best life insurance policy depends on why they need coverage rather than age alone. Seniors in good health can often save money by choosing a fully underwritten policy, while those with more complex medical histories may benefit from simplified issue or guaranteed issue life insurance. Comparing senior life insurance quotes in Canada online from multiple insurers helps identify the best combination of affordability, coverage, and long-term value for your individual needs.

How to choose the best life insurance policy as a senior

Seniors can easily buy life insurance in Canada once they have figured out their needs. For a more customized experience, you can speak to a licensed Canadian life insurance advisor at PolicyAdvisor. 

• Figure out your coverage needs: Start by thinking through your reason for buying life insurance and what you need to secure. This will help you determine what kind of coverage you need. Our advisors will help you with the best plans available based on your coverage needs
• Get free life insurance quotes: Our quoting tool searches the Canadian insurance market for you in seconds. Compare senior life insurance quotes in Canada online
• Apply for the quote: Once you have selected the right policy, our advisors will help you apply for the right life insurance quote online. Schedule a call now to get started!

Frequently asked questions

Is life insurance for seniors over 60 in Canada available without a medical exam?

Yes, seniors in Canada who are over 60 can get life insurance without a medical exam. Many insurers offer simplified issue and guaranteed issue life insurance policies, which are designed for applicants who want coverage without undergoing a medical examination.

How much life insurance do seniors need?

Normally, experts say you should get 10-15x your annual income in coverage. Canadian life insurance for seniors is different; many are already retired and only want to help pay for final expenses or leave an inheritance for their family. 

Is life insurance for seniors different from other types of insurance?

Life insurance for seniors generally costs more than it does for younger applicants because age and health increase the insurer’s risk. While many seniors choose lower coverage amounts to help cover final expenses or estate costs, they can still purchase higher coverage amounts if they qualify and need them.

What is the best life insurance for seniors?

The best life insurance for seniors depends on your age, health, budget, and financial goals. Term life insurance is often suitable for temporary needs, while whole life insurance offers lifelong protection. Seniors with health concerns may benefit from simplified issue or guaranteed issue life insurance.

Is whole life insurance better than term life insurance for seniors?

It depends on your needs. Term life insurance is generally more affordable and provides coverage for a set period, while whole life insurance offers lifelong protection, guaranteed premiums, and cash value growth. The right choice depends on your financial objectives and budget.

How can seniors get the best life insurance rates?

Seniors can often secure better rates by applying as early as possible, maintaining good health, choosing an appropriate coverage amount, avoiding tobacco use, and comparing quotes from multiple insurers before purchasing a policy. If you are in good health, qualifying for a fully underwritten policy can also help reduce your premiums.

Is life insurance worth it after age 70?

Yes, life insurance can still be worthwhile after age 70 if you want to cover funeral expenses, pay off outstanding debts, protect a surviving spouse, or leave a financial legacy. While premiums are generally higher than for younger applicants, many insurers continue to offer whole life, simplified issue, and guaranteed issue policies for seniors.

Can I get life insurance for my 80‑year‑old parent in Canada?

Yes, you can purchase life insurance for your 80-year-old parent in Canada, provided you have their consent and meet the insurer’s requirements. While coverage options are more limited at this age, many insurers still offer whole life, simplified issue, and guaranteed issue life insurance. The exact eligibility, coverage amounts, and premiums vary based on the insurer and your parent’s health.

Up to what age can you buy life insurance in Canada?

The maximum age to buy life insurance depends on the insurer and the type of policy. Many insurers offer term life insurance up to ages 75-85, while whole life, simplified issue, and guaranteed issue policies may be available up to age 85 or older. The maximum entry ages and coverage limits vary by insurer.

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 to choose the best life insurance company in Canada?

While choosing a life insurance company, some of the factors that you should keep in mind are the underwriting, claims process, riders and optimizations, policy costs, and customer service. 

• 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 to get the best term life insurance 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. 

What is term life insurance in Canada?

Term life insurance is a type of life insurance that provides financial protection for a set number of years. If the insured dies during that coverage period, the insurer pays a tax-free lump sum to their chosen beneficiaries. Since term life insurance does not have a savings or investment component, it typically costs much less than permanent life insurance. This is great for applicants seeking higher coverage amounts for lower premiums. 

For example, a healthy 35-year-old parent may be able to purchase $500,000 in coverage for somewhere between $25 and $40 per month. The same amount of coverage for whole life insurance could cost around $250 to $400 per month. This makes whole life roughly ten times more expensive than a term life policy.

Term life insurance in Canada: At a glance

Types of term life insurance in Canada

Although term life insurance provides temporary coverage, insurers offer it in several structures to suit different needs. The most common options are Term 10, Term 20, and Term 30 policies, while some insurers also provide level term, annual renewable term (ART), and return of premium (ROP) term policies.

Here’s a quick overview of the different types of term life insurance in Canada:

Pros and cons of term life insurance

How does term life insurance work in Canada? 

Term life insurance has one of the most straightforward processes among insurance policies. You choose how much coverage you need and how long you want it to last. In exchange for regular premium payments, your insurer agrees to pay your beneficiaries a tax-free death benefit if you pass away during the policy term.

Here’s how a term 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. As a general rule of thumb, many applicants choose coverage anywhere between 7 and 15 times their annual income.

Step 2: Choose your policy term

Once you have selected the coverage amount, you need to choose how long your coverage should remain in place. Most Canadian insurers offer the following periods:

Step 3: Complete your application and pay your premiums

Once you have chosen your coverage amount and 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.

Once the application is completed, you will need to pay your premiums. You can make premium payments monthly or annually. Some insurers offer lower overall costs if you choose to pay annually instead of monthly.

Step 4: 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. 

Unlike investment or estate assets, term life insurance proceeds are typically paid directly to named beneficiaries, helping them access funds more quickly during a difficult time. 

How to choose the right term life insurance coverage amount?

Choosing the right amount of term life insurance is one of the most important decisions you will make when buying a policy. The coverage amount should be enough to help your loved ones maintain financial stability by replacing the lost income and support you provide if you were to pass away unexpectedly.

When deciding the coverage amount, you should keep in mind factors such as:

• Outstanding mortgage balance
• Personal loans or other debts
• Daily living expenses
• Future childcare costs and education expenses
• Funeral and final expenses
• Income replacement for several years

For many families, a common rule of thumb suggests choosing coverage between 7 and 15 times their annual income. This offers a sizable amount that can cover most future expenses with ease. 

Using the DIME method to calculate term 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 major financial obligations your family may need to cover if you pass away.

Let’s assume Sarah is 35 years old, married, has one young child, and is the primary income earner for her family.

Here’s an estimate of her term life insurance needs using the DIME method:

Based on the DIME method, Sarah may consider approximately $1.7 million to 2 million in term life insurance coverage. This amount could help her family pay off outstanding debts and offer financial security for the foreseeable future. While it is a handy index, your ideal coverage amount may differ based on factors such as savings, investments, and long-term financial goals.

Do you need a medical exam for term life insurance?

Not always. Many Canadians can qualify for term life insurance without a medical exam. However, this depends on your age, health, lifestyle, and the amount of coverage you apply for. Many insurers now offer accelerated underwriting and simplified issue options, which allow eligible applicants to qualify without a medical exam. Some insurers also offer no-medical life insurance, although these policies may have lower coverage limits and higher premiums.

However, you may still need a medical exam if:

• You are applying for a high coverage amount
• You are older or have certain pre-existing medical conditions
• The insurer requires additional health information based on your application

Most term life insurance policies in Canada may require you to submit a health questionnaire and furnish information about your height, weight, blood pressure, and medical history. If you are a smoker, you may be subject to additional blood, urine, or cotinine tests. Some applicants may also be required to undergo an electrocardiogram (ECG).

How much does term life insurance cost in Canada?

The cost of a term life insurance policy ranges between $21.60 and $741.60 per month. Your premiums depend on the coverage amount and personal factors, such as gender, age, smoking status, and health. 

Here is a sample term life insurance rate for $500,000 coverage:

*Monthly premiums for non-smoking male

Some insurers also offer lower overall premiums if you choose to pay annually instead of monthly. Speak with your advisor to compare the payment options and determine which offers the best value for your policy.

How are term life insurance premiums calculated?

Life insurance companies calculate your premium by assessing the likelihood of paying a claim during the policy term. This is primarily based on your age, health status, smoking status, coverage amount, and other related features.

Here’s a brief overview of the factors that may affect term life insurance premiums in Canada:

When should you purchase term life insurance?

The best time to purchase term life insurance is while you are still young and healthy, before taking on major financial responsibilities. Buying a policy earlier can help you lock in lower premiums, as life insurance generally becomes more expensive with age and as health changes.

In terms of financial responsibilities, you can consider purchasing term life insurance before major milestones such as starting a family, buying a house, or taking on significant debts or loans. The death benefit can help protect your beneficiaries from financial hardships should you pass away unexpectedly.

Learn which is the best time to buy life insurance in Canada

What happens when your term life insurance expires?

Once your policy expires, it does not pay out automatically. Instead, you have several options, depending on your insurer and personal circumstances.

Here is an overview of the choices you can make once your term life insurance policy expires:

If you renew your policy, you will have to pay an increased premium based on your age and other factors at the time of renewal. Renewing can be a good option if you still have financial responsibilities and wish to remain covered for an extended period.

On the other hand, many applicants also convert their term life insurance into a permanent life insurance policy before a specified age or deadline. It is great for those who want lifelong coverage or are interested in estate planning.

However, you can choose to purchase a new policy with different coverage amounts or policy terms to align with your changing needs or financial planning. Alternatively, you can also choose to let the policy expire if your financial needs are met or you have enough savings to offset future costs.

Can you cancel your term life insurance policy?

Yes, most term life policies can be cancelled at any time. If you no longer need coverage, you can cancel your policy by notifying your insurer or advisor. Once cancelled, your coverage ends, and your beneficiaries will no longer be eligible to receive a death benefit. In most cases, you will not receive a refund on the premiums you have already paid. 

Additionally, most Canadian insurers are required to provide a free look or cooling-off period after you receive your policy contract. During this time, you can review the policy terms and cancel the policy for a full refund of any premiums you have paid (provided you have not raised any claims during this time). While the industry standard is ten days, some insurers may offer up to 30 days.

Are there any exclusions to term life insurance?

While term life insurance generally covers natural and accidental death, there are certain exclusions where a claim may be reduced or denied. These exclusions vary by insurer and policy, so it’s important to review your policy contract carefully.

Here’s an overview of common exclusions to term life insurance:

How does term life compare to other life insurance policies available in Canada?

Aside from term, you can get permanent life insurance. Unlike a fixed term for 10 or 20 years, these policies cover you for the rest of your life and may have an investment component.

Some of the most common types of permanent life insurance are:

• Whole
• Universal
• Term-to-100

Here’s a quick overview of how term life insurance compares to other popular options:

For a detailed comparison of the plans, check out the different types of life insurance in Canada

Is term life insurance worth it in Canada?

Yes, term life insurance is worth it for most Canadians who are seeking affordable financial protection for a specific period. The policy offers high coverage at relatively low premiums, making it a good choice for individuals with debts, mortgages, and high financial liabilities.

A term life insurance policy helps your loved ones replace lost income and pay off major outstanding debt, ensuring the burden does not rest upon them. It is one of the most cost-effective options for safeguarding your family from financial responsibilities should you pass away.

However, if you need lifelong coverage or are seeking to build cash value and estate planning, a permanent life insurance policy may be more suitable. While the premiums are significantly higher than term life, it provides more financial protection and rewards you with cash value and lifelong protection.

If your goal is to protect your family’s finances and cover immediate debts without paying the higher cost of permanent life insurance, term life insurance offers excellent value and coverage.

Our advisor’s take on term life insurance

At PolicyAdvisor, we recently helped a 35-year-old parent secure affordable term life insurance to protect their family’s financial future. They were seeking enough coverage to replace their income, pay off their newly acquired mortgage, and support their children’s future while keeping monthly premiums affordable.

Client profile

• Age: 35
• Family: Married with two young children
• Primary concern: Income replacement and mortgage protection
• Coverage goal: $1 million in affordable life insurance

Why we recommended term life insurance

• Affordable premiums for a high coverage amount during their peak earning years
• Coverage aligned with their mortgage term to help pay off outstanding debt
• Flexibility to extend the term if financial protection is still required
• The option to convert to permanent life insurance when financial needs change

How to purchase term life insurance in Canada?

PolicyAdvisor’s licensed life insurance advisors can help you compare term life insurance quotes from Canada’s leading insurers based on your age, budget, health, coverage needs, and financial goals.

Whether you are looking to protect your family, cover your mortgage, or secure affordable coverage for a specific period, our advisors at PolicyAdvisor can help you choose the right term length, coverage amount, and optional riders to fit your needs.

Connect with an advisor

Looking for the best term life insurance quotes in Canada? PolicyAdvisor makes it easy to compare quotes from Canada’s leading life insurance companies.

Our advice is 100% free, with no obligation to buy. Whether you are comparing insurers, choosing a policy term, or deciding how much coverage you need, we are here to guide you every step of the way.

Frequently asked questions

Is the term life insurance death benefit taxable in Canada?

No. Life insurance death benefit is generally tax-free in Canada. The amount is paid tax-free to the named beneficiaries if the policyholder passes away during the term.

Can I have more than one term life insurance policy?

Yes, many Canadians own multiple life insurance policies to cover different financial needs or life stages. Additionally, you can combine term and permanent policies to satisfy different financial goals.

Can I convert my term life insurance into permanent life insurance?

Yes, many Canadian insurers allow you to convert your policy before a specified age or conversion deadline without additional medical underwriting. Check your policy or consult with your advisor for eligibility requirements.

What happens if I miss a premium payment?

Most insurers provide a grace period (usually 30 or 31 days) during which you can make the missed payment and keep your coverage active. If the premium remains unpaid beyond this grace period, your policy may lapse.

Can I renew my term life insurance policy after it expires?

Yes, in many cases. Many term life insurance policies in Canada are renewable within a specified period or until a specified age. If you choose to renew, your premiums will typically increase based on your age at the time of renewal.

Does term life insurance cover accidental death?

Yes, most term life insurance policies cover accidental death, alongside death due to illness or natural causes, provided the policy is in force and no exclusions apply.

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

Whole life insurance 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-$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.

The average cost of life insurance in Canada starts at around $7 per month for a healthy young adult purchasing a basic term life insurance policy. Depending on the type of policy, coverage amount, age, health, and insurer, premiums can range from $7 to over $3,276 per month. Individuals who smoke, have pre-existing medical conditions, work in high-risk occupations, or require larger coverage amounts generally pay higher premiums. On the other hand, young and healthy applicants typically qualify for lower premiums.

Quick summary: Average life insurance costs in Canada

Disclaimer: The premiums shown above are illustrative estimates based on specific applicant profiles and policy assumptions, and your actual life insurance cost may vary depending on several factors such as your age, gender, health, smoking status, medical history, coverage amount, policy type, term length, and the insurer’s underwriting guidelines.

Factors affecting life insurance cost in Canada

The cost of life insurance in Canada is mainly driven by factors like age, gender, health, coverage amount, and more. Some of these factors include: 

• Age: The age of the individual directly affects the life insurance cost. The older the individual, the higher the premium
• Gender: Life insurance premiums may vary by gender, with women generally paying lower premiums than men due to their longer average life expectancy
• Coverage amount: The higher the coverage amount you choose, the higher the life insurance premium will be
• Health: An individual’s health also affects premium rates. A healthy individual, compared to someone with a history of medical conditions, qualifies for lower rates
• Smoking status: Any insurance company in Canada will charge a higher premium if you are a smoker. This is because the health risks associated with smoking are higher than those for a non-smoker
• Lifestyle: If you are involved in high-risk activities as a result of your hobby or occupation, then the insurer views you as higher risk. This increased liability will also result in you paying higher premiums

Life insurance costs by policy type

The type of life insurance policy you choose is one of the biggest factors affecting your premium. In general, term life insurance is the most affordable option, while permanent policies, such as whole life insurance, cost more because they provide lifelong coverage and can build cash value. No-medical life insurance also tends to have higher premiums since insurers assume more risk by offering coverage without requiring a medical exam.

What is the cost of term life insurance in Canada?

The cost of term life insurance in Canada with $500,000 in coverage can range from $14 to $200 per month, depending on the applicant’s age, gender, and health. Because term life insurance provides coverage for a fixed period and does not build cash value, it is the most affordable type of life insurance. It is well-suited for individuals and families looking to protect their income, cover a mortgage, or provide financial security during their highest-earning years.

Term life insurance cost in Canada

*Illustrative monthly cost of term life insurance for a 10-year period for individuals of various ages with $500,000 in coverage

What is the cost of whole life insurance in Canada?

In Canada, participating whole life insurance with $100,000 in coverage costs between $139 and $382 per month, whereas a non-participating policy may cost between $71 and $320 per month, depending on the applicant’s age and insurer. The cost of whole life insurance is generally several times more expensive than an equivalent term life policy because it provides lifelong coverage and builds cash value. 

Participating whole life insurance may also pay policy dividends, depending on the insurer’s dividend performance. It is commonly chosen for estate planning, wealth transfer, tax-advantaged savings, and leaving a guaranteed financial legacy.

Cost of whole life insurance in Canada

*Illustrative monthly costs for a male individual of various age ranges seeking a whole life insurance policy with $100,000 in coverage for a 20-pay premium option

What is the cost of a no-medical life insurance policy in Canada?

The cost of a 20-year no-medical life insurance policy with $500,000 in coverage ranges from $39 to $380 per month. While no-medical policies offer faster approval and do not require a medical exam, they generally cost more than fully underwritten life insurance because insurers take on greater underwriting risk. These policies are often suitable for individuals with pre-existing health conditions, those who may not qualify for traditional life insurance, or applicants who need coverage quickly.

Cost of a no-medical life insurance policy

*Illustrative monthly cost of a 20-year no-medical plan with $500,000 in coverage

Life insurance costs by coverage amount

The amount of term life insurance coverage you choose has a direct impact on your monthly premium. Higher coverage amounts generally cost more, although the premium increase is not always proportional. The cost of a $100,000 term life insurance policy will be much lower than that of a $250,000 term life policy. The coverage amount in the section below details the cost of different coverage amounts in Canada.

How much does a $100,000 life insurance policy cost?

A $100,000 term life insurance policy in Canada costs approximately $7 to $44 per month. While premiums remain relatively affordable for younger applicants, they increase significantly with age due to the higher insurance risk. A $100,000 may be suitable for people looking to cover final expenses, smaller debts, or supplement existing life insurance. However, it may not provide enough coverage for someone with a mortgage, dependents, or significant income replacement needs.

Cost of a $100,000 life insurance policy

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

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

The cost of a $250,000 term life insurance policy ranges from approximately $10 to $98 per month. A $250,000 coverage is a popular choice for individuals and families looking to cover obligations such as a portion of their mortgage, income replacement, children’s education costs, outstanding debts, or other long-term expenses.

Cost of a $250,000 life insurance policy

*Illustrative monthly cost of term life insurance for a 10-year plan with $250,000 in coverage for male/female non-smoker

How much does a $500,000 life insurance policy cost?

A $500,000 term life insurance policy costs between $13 and $177 per month for healthy non-smokers. The exact premium will vary, with younger applicants typically qualifying for significantly lower rates. A $500,000 coverage can help replace income, pay off a mortgage, cover childcare, education costs, and other major financial obligations.

Cost of a $500,000 life insurance policy

*Illustrative monthly cost of term life insurance for a 10-year plan with $500,000 in coverage for male/female non-smoker

How much does a $1,000,000 life insurance policy cost?

The cost of a life insurance policy with $1,000,000 in coverage is between $21 and $330 per month. This coverage amount is commonly chosen by high-income earners, homeowners, parents with young children, business owners who need substantial coverage to replace income, pay off significant debts, fund future education costs, or leave a substantial financial legacy.

Cost of a $1,000,000 life insurance policy

*Illustrative monthly cost of term life insurance for a 10-year plan with $1,000,000 in coverage for male/female non-smoker

How much does a $10,000,000 life insurance policy cost?

The cost of a $10,000,000 term life insurance policy ranges from $166 to $3,276 per month. Premiums are substantially higher than those for lower-value policies because the insurer assumes a much larger financial risk. A $10,000,000 life insurance policy is suitable for high-net-worth families, business owners, executives, and professionals with significant financial obligations, business succession needs, or those with complex estate planning goals.

Cost of a $10,000,000 life insurance policy

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

Life insurance costs by applicant category

Life insurance premiums can vary significantly depending on your personal circumstances and risk profile. In general, smokers, seniors, and individuals with health conditions tend to pay higher premiums because they present a greater insurance risk. Couples may have the option to reduce costs through certain joint life insurance policies, although individual policies may be more cost-effective in some cases.

How much is life insurance per month for smokers and non-smokers?

The cost of $500,000 in term life insurance for smokers ranges from $42 to $504 per month, while comparable coverage for non-smokers ranges from $21 to $177 per month. Smokers pay premiums that are often 2 to 4 times higher than non-smokers because tobacco and nicotine use are associated with a higher risk of serious health conditions, including heart disease, stroke, and cancer. 

The difference in premiums becomes more noticeable with age, as the combined impact of smoking and age increases an insurer’s expected risk. Quitting smoking can significantly reduce your premiums, but most insurers require you to remain tobacco-free for at least 12 months before you may qualify for non-smoker rates. The required tobacco-free period may vary by insurer. 

Cost of life insurance for smokers and non-smokers (male) for varying age groups

*Illustrative monthly costs for a male individual seeking $500,000 in life insurance coverage for a 10-year policy

How much is life insurance per month for seniors?

The cost of $100,000 in term life insurance for male seniors ranges between $18 and $267 per month, while comparable coverage for female seniors is between $15 and $179 per month. Female applicants generally pay lower premiums than male applicants because they tend to have a longer life expectancy. As you get older, the premiums for life insurance for seniors increase due to the higher likelihood of health issues and claims during the policy term.

Cost of life insurance for seniors

*Illustrative monthly costs for non-smoker seniors in various age ranges seeking a term life insurance policy with $100,000 in coverage

How much is life insurance per month for children?

Children’s whole life insurance typically starts at around $100 per month. Whole life insurance policies for children provide lifelong coverage and can build cash value over time, making them a long-term financial planning tool as well as a source of insurance protection.

Cost of whole life insurance for a female child

*Illustrative accumulated cash value and death benefit for a $100/month, 20-pay participating whole life insurance policy issued to a healthy 5-year-old girl. Projected cash values and death benefits assume current dividend scales and are not guaranteed; the actual policy values may vary

Cost of whole life insurance for a male child

*Illustrative accumulated cash value and death benefit for a $100/month, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy. Projected cash values and death benefits assume current dividend scales and are not guaranteed; the actual policy values may vary

How much is life insurance per month for couples?

The cost of $500,000 in term life insurance for couples typically ranges from $33 to $550 per month for non-smoking couples and from $76 to $1,283 per month for smoking couples. Couples can choose between two individual life insurance policies or a joint life insurance policy, with the latter potentially offering lower premiums in certain situations. Joint policies also simplify policy management by covering both partners under a single contract. However, individual policies may provide greater flexibility and, in some cases, better value depending on the couple’s coverage needs.

Cost of life insurance in Canada for smoking and non-smoking couples

*Quotes based on a $500,000 joint term policy in coverage for smoker and non-smoker couples in regular health seeking coverage for a 10-year term

Life insurance costs by insurance company

The cost of term life insurance from Canada’s leading insurers typically charges between $14 to over $230 per month for the sample policy shown below. Premium differences occur because each insurer uses its own underwriting guidelines, pricing models, and risk assessment criteria. As a result, two insurers may offer different premiums for the same applicant and coverage amount.

The table below compares illustrative monthly premiums from some of Canada’s leading insurance companies for the same applicant profile.

Life insurance monthly costs by insurer

*Illustrative monthly cost of a 10-year term with $500,000 in coverage for a male/female non-smoker

How does term length affect life insurance premiums?

The cost of term life insurance ranges from about $22 to $144 per month in the example below, depending on your age and the length of the policy. For the same applicant and coverage amount, 10-year term policies are the most affordable, while 20-year and 30-year terms cost more because they provide coverage for a longer period and increase the likelihood of a claim during the term.

Cost of life insurance as per term length

*Illustrative monthly cost of a 10-year, 20-year, and 30-year term life insurance with $500,000 in coverage for a male non-smoker

Do individuals with pre-existing health issues pay higher life insurance premiums?

Yes, individuals with pre-existing health conditions generally pay higher life insurance premiums because they pose a greater risk to insurers. The exact increase depends on the type and severity of the condition, how well it is managed, your age, and the insurer’s underwriting guidelines. In some cases, applicants may still qualify for standard premium rates if their condition is stable and well-managed.

Depending on your medical history, insurers typically make one of the following underwriting decisions:

• Standard premiums: If your condition is minor, stable, and well-managed, you may qualify for standard rates
• Higher (rated) premiums: If your condition increases the insurer’s risk, you may be approved with a higher premium or an additional rating applied to your policy
• Guaranteed issue or no-medical life insurance: If you are declined for traditional life insurance due to a serious medical condition, you may still qualify for guaranteed issue or no-medical life insurance. These policies don’t require a medical exam but generally come with higher premiums and lower coverage limits

How to lower your life insurance premiums?

There are several ways to reduce the cost of your life insurance premiums, such as maintaining a healthy lifestyle, choosing the right policy, comparing quotes from multiple insurers, and more. Listed below are the factors that will help you lower life insurance premiums:

• Buy life insurance early: Purchasing a policy when you are younger and in good health can help you lock in lower premiums for the duration of your coverage.
• Quit smoking: Most insurers offer significantly lower premiums to applicants who have remained tobacco-free for at least 12 months
• Maintain good health: Managing your weight, blood pressure, and other health conditions can improve your eligibility for preferred rates
• Choose the right coverage amount: Buy enough coverage to meet your financial needs without paying for more insurance than necessary
• Opt for term life insurance: If you only need coverage for a specific period, term life insurance is generally much more affordable than permanent life insurance
• Consider laddering life insurance policies: Instead of purchasing one large policy, you can combine multiple term life policies with different coverage amounts and durations. This allows your coverage to decrease as your financial obligations reduce, helping lower overall premium costs.
• Choose riders carefully: Only add optional riders, such as critical illness, child, or disability riders, if they meet a specific need. Unnecessary riders can increase your premium
• Select a shorter policy term: Shorter term lengths usually cost less than longer-term policies with the same coverage amount
• Pay your premiums annually: You may reduce your overall cost when you pay annually instead of making monthly payments
• Compare quotes from multiple insurers: Compare and find the best life insurance policy for your needs