Top 6 best life insurance companies for millennials in Canada

Based on PolicyAdvisor’s 2026 comparison, companies such as Manulife, Empire Life, and Canada Life offer greater flexibility, built-in benefits, and term life features that make them particularly suitable for protecting families and children.

Here’s an overview of the six best life insurance companies for millennials in Canada:

1. Empire Life: Best for competitively priced whole life insurance

Empire Life is an ideal choice for millennials seeking a permanent policy at competitive rates. The insurer offers EstateMax and OptiMax Wealth, two participating whole life insurance policies featuring guaranteed cash values, level premiums, and the potential for non-guaranteed policy dividends. 

Empire Life’s EstateMax focuses on long-term death benefit and estate protection, while OptiMax Wealth focuses on earlier cash value accumulation. Both plans offer up to $20,000,000 in coverage, which is worth considering for leaving a legacy for children or grandchildren as well as tax-advantaged wealth transfer.

The insurer also offers the Solution Series Term life plans with ART, 10-, 15-, 20-, 25-, and 30-year term options, which can help policyholders align coverage with temporary outstanding debts or mortgage periods. Annual Renewable Term (ART) is a life insurance option offered by Empire Life that renews coverage annually without new medical underwriting, making it a seamless way to extend coverage.

Eligible policies may also offer a term exchange and term conversion privilege, offering enhanced flexibility for the future. The term exchange is available for Solution ART, Term 10, 15, and 20 before the seventh coverage anniversary, while the term conversion is available for all Solution Series term plans until the policy anniversary nearest the policyholder’s 75th birthday. Some plans also have a carry-over feature, where eligible term coverage is converted to permanent life insurance, while the rest continues as a term policy alongside the new policy.

2. Equitable Life: Best for participating whole life and good dividend history

Equitable Life is a strong choice for Canadian millennials seeking lifelong coverage alongside guaranteed cash value and the potential to earn non-guaranteed dividends. The insurer’s Equimax Estate Builder and Equimax Wealth Accumulator plans are permanent life policies with coverage of up to $25 million (without a special quote), making them worth considering for those seeking higher coverage amounts.

The Wealth Accumulator plan prioritizes higher early cash values within the first 20 years, while the Estate Builder plan prioritizes higher long-term value and estate planning. These plans can be suitable for millennials who want tax-advantaged wealth transfer or want to leave behind a legacy to cover potential final expenses. Equitable also has a long history of participating policy dividends, having credited dividends annually since 1936. However, these dividends are not guaranteed and are based on the insurer’s performance. The insurer’s dividend scale interest rate is 6.40% for July 2026 to June 2027.

In addition, eligible policyholders can combine permanent insurance with substantial term riders, helping policyholders avoid purchasing permanent coverage to protect temporary needs. This hybrid approach can work well for those seeking a comprehensive coverage strategy for temporary and long-term protection. 

For millennials seeking temporary protection, the insurer’s Term 10, Term 20, and Term 30/65 plans allow families to secure substantial coverage for mortgages or other financial obligations that are expected to end after a period. Eligible Term 10 and 20 policies are guaranteed renewable and have a conversion feature. However, Term 10 and Term 20 can be converted up to age 71, whereas Term 30/65 can be converted only up to age 60.

3. Manulife: Best for wellness rewards and comprehensive term coverage

Manulife is ideal for millennials looking for affordable term life coverage with benefits that reward wellness and healthy lifestyle habits. The Family Term plan offers coverage up to $20 million with variable term lengths: Term 10, Term 20, to age 65, and a lifetime premium option. In addition, eligible Manulife policies can also be converted from term to permanent coverage, making them a good option for those seeking future flexibility. 

In addition to the standard term life policies, Manulife also offers Family Term with Vitality Plus, which offers a higher coverage amount of $25 million alongside health and wellness rewards with potential for savings on partner brands such as Amazon, Garmin, and HelloFresh. These savings and benefits can be ideal for millennials who prioritize healthy habits and fitness.

Millennials who want comprehensive coverage can consider Manulife Synergy, which is a 3-in-1 plan with life, disability, and critical illness insurance with one shared pool of coverage between $100,000 and $500,000. Synergy can also be converted to a permanent policy within 60 days of the policy’s expiry, making it ideal for future flexibility. 

Meanwhile, Manulife Par offers participating whole life insurance with guaranteed cash values, potential dividends, and different premium payment periods, making it ideal for those looking for lifetime protection.

4. Canada Life: Best for flexible term lengths and permanent coverage options

Canada Life may suit millennials in Canada who want to customize their term life insurance alongside the option to convert to permanent life insurance later. The My Term plan has term lengths ranging from 5 to 50 years, making it easier to align coverage closely with outstanding debts or mortgages. Eligible policies can also be exchanged for longer terms or be partially or fully converted to a permanent policy.

The optional Guaranteed Insurability Rider in eligible Canada Life policies can be ideal for millennials who want to purchase a new permanent policy and increase their coverage later without worrying about their health and how it would affect their ability to get coverage. 

In terms of lifetime coverage, Canada Life offers three participating whole life insurance policies: Wealth Achiever, Balanced Achiever, and Estate Achiever. Wealth Achiever focuses on stronger early cash values, while Balanced Achiever combines this with a potential long-term death benefit. Meanwhile, the Estate Achiever can aid in long-term estate planning for millennials who want to leave behind a legacy for their children and grandchildren.

5. RBC Insurance: Best for customizable terms and income protection

RBC Insurance is an ideal choice for millennials who want larger amounts of coverage for long-term income replacement or to cover a large mortgage. The YourTerm policy offers coverage of up to $25 million for term lengths between 10 and 40 years in one-year increments, making it easier to match coverage to a mortgage, an income-replacement period, or the years during which children or other family members will remain financially dependent. 

Eligible term 10 policies can also be exchanged for longer coverage before the earlier of the 8th policy anniversary or the policy anniversary nearest the insured’s 70th birthday, making them ideal for millennials whose financial priorities can change over time. In addition, eligible policies can be converted from term to whole life insurance, which works well for an applicant who needs lifelong coverage.

For millennials seeking permanent coverage, RBC Growth Insurance and RBC Growth Insurance Plus offer participating whole life insurance with guaranteed cash values and the potential to earn dividends. Growth Insurance prioritizes long-term cash value accumulation, while Growth Insurance Plus is worth considering for those seeking earlier cash value growth. Growth Insurance offers coverage between $25,000 and $25,000,000, while Growth Insurance Plus offers coverage between $250,000 and $25,000,000.

6. Beneva: Best for built-in extreme disability protection

Beneva may suit millennials in Canada who want comprehensive life insurance coverage along with additional protection against severe disabilities. The insurer’s Term Plus plans include an Extreme Disability Benefit, which can offer policyholders an advance on their death benefit (of up to 50% to a maximum of $250,000) in the event of a qualifying extreme disability. This amount is deducted from the final death benefit paid to beneficiaries. Note that it is not a separate disability income coverage.

The advance on the death benefit can be well-suited for millennials who encounter qualifying disabilities, potentially helping cover things such as rehabilitation, home modification, or lifestyle changes. In addition, term life policies also offer flexible coverage periods, term exchange, and conversion for eligible policies. 

For Canadian millennials considering lifelong protection, Beneva’s Whole Life 20 and Whole Life 100 offer non-participating policies with guaranteed premiums. These policies are suited for policyholders who solely want permanent life insurance without benefits like dividends.

Comparing the six best life insurance companies for millennials in Canada

Sample premiums reflect illustrative 2026 monthly quotes for a 40-year-old male non-smoker seeking $100,000 in term life coverage for a 10-year term. Actual premiums vary by age, sex, smoking status, health, coverage amount, product, and underwriting. Minimum coverage and available benefits vary by product and eligibility.

How we chose the best life insurance companies for millennials in Canada

PolicyAdvisor reviewed more than 30 Canadian life insurance companies before shortlisting six insurers that stood out most for millennials in Canada. We looked at whether each insurer offered competitive pricing and how the plans could support millennials navigating mortgages, growing families, income replacement, and long-term financial planning.

We also assessed whether each insurer offered flexibility to adapt coverage as time passed. This included term exchange, permanent conversion, guaranteed insurability, and relevant riders.

For consistency, our methodology uses comparable term life insurance premiums for pricing, rather than whole life premiums. Participating and non-participating whole life products have different premium structures, dividend features, and cash value benefits, making a direct price-based comparison less meaningful.

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 company.

How we rated the best term life insurance companies for families

After selecting the six insurers, we scored each company out of 5, using the same weighted factors listed above. A 5/5 insurer performs especially well across both pricing and policy flexibility, while a 4.5/5 insurer remains a strong option for millennials but may have higher sample premiums, fewer term choices, or fewer standout features that are beneficial for those in their 30s and 40s. The underlying weighted result was then rounded to the nearest 0.5 for the displayed overall rating.

PolicyAdvisor ratings for the six best life insurance companies for millennials in Canada

Ratings are based on PolicyAdvisor’s weighted methodology and illustrative 2026 term life insurance pricing. Actual premiums, eligibility, and product features vary by applicant and policy. Rankings are for comparison purposes and do not indicate the best or cheapest insurer for every individual. Pricing scores consider comparable term life premiums and available coverage options, while overall ratings also account for family benefits, policy flexibility, and underwriting accessibility.

Why do millennials need life insurance in Canada?

Millennials may need life insurance to protect their families from financial burdens and outstanding debts if they pass away unexpectedly. As Canadians move into their 30s and 40s, they typically take on financial responsibilities, such as purchasing a new house, taking on a loan, or funding their children’s education.

Here are some reasons why millennials need life insurance in Canada:

• Income replacement: Help a spouse or partner replace income during key working years
• Mortgage and debt protection: Provide financial support to repay mortgages or loans
• Childcare and domestic support: Cover daycare or additional caregiving support while children remain dependant 
• Future education expenses: Offer financial support for children’s schooling and higher education
• Lifelong dependants: Provide ongoing financial support for a child or another family member who may never become financially independent due to a disability
• Business protection: Help cover business loans or succession arrangements
• Estate planning: Offers a strategy to provide an inheritance, support wealth transfer, or help cover potential final tax liabilities, probate, or estate administration fees
• Help cover funeral and final expenses: The death benefit can be used to cover funeral costs and other final expenses after death

What is a life insurance premium?

A life insurance premium is the amount of money you pay to an insurance company to keep your life insurance policy active. In return, the insurer provides financial protection to your beneficiaries by paying the agreed-upon death benefit if you pass away while the policy is in force.

Depending on your policy, you can pay life insurance premiums monthly, quarterly, or annually. The amount you pay depends on several factors, including your age, health, smoking status, coverage amount, policy type, and term length. For example, a 30-year-old non-smoker purchasing a $500,000 term life insurance policy will generally pay less than a 50-year-old non-smoker buying the same coverage for the same term.

What factors affect life insurance premiums in Canada?

Life insurance premiums are affected by a lot of factors such as gender, age, smoking status, medical history, coverage amount, policy type, and a few others.

• Age: Younger applicants generally pay lower premiums because they have a lower risk of death
• Health and medical history: Existing health conditions, previous diagnoses, and family medical history can increase premiums
• Smoking status: Smokers and tobacco users pay higher premiums than non-smokers
• Coverage amount: Higher death benefits generally result in higher premiums
• Policy type: Term life insurance is generally more affordable than permanent life insurance
• Policy term: Longer term lengths usually cost more because the insurer provides coverage for an extended period
• Gender: Women generally pay lower premiums than men because of their longer average life expectancy
• Lifestyle and occupation: High-risk hobbies, hazardous occupations, and certain lifestyle habits can increase premiums

10 ways to lower your life insurance premium

You can get low-cost life insurance coverage by buying early, choosing the right coverage and policy, leading a healthy lifestyle, and following a few other tips.

1. Buy life insurance when you are young

Age is one of the most important factors insurers consider when calculating life insurance costs. Younger applicants pay lower premiums because they are more likely to have fewer health complications and a longer life expectancy. A 30-year-old male non-smoker seeking $500,000 in coverage for 10 years can pay $22 per month. On the other hand, a 50-year-old male will pay $61 per month. 

2. Choose the right policy type

The type of life insurance you choose has a significant impact on your premiums. Term life insurance is generally more affordable than whole life insurance because it provides coverage for a specific period without building cash value. Whole life insurance provides lifelong coverage and a cash value component, which makes it more expensive. So, if your primary goal is to protect your family during your working years, term life insurance may offer sufficient coverage.

3. Quit smoking

Smoking and tobacco use can significantly increase life insurance premiums because they are associated with higher health risks. If you quit smoking, you can apply for lower premiums, although insurers may require you to remain tobacco-free for a specified period, often 12 months or longer, depending on their underwriting guidelines.

4. Choose the right life insurance coverage amount

The higher your life insurance coverage amount, the more you will generally pay in premiums. Choosing more coverage than your family needs can result in unnecessary expenses. Before purchasing a policy, calculate how much financial protection your dependants would need. Selecting an appropriate death benefit helps you avoid paying for coverage you may not need.

5. Select a suitable policy term

The length of your term life insurance policy also affects its cost. A longer policy term will cost more. For instance, a 30-year-old male non-smoker pays $22.04 a month for a 10-year term policy with $500,000 in coverage, while he pays $42.75 for the same coverage but a 30-year policy term.

6. Compare quotes from multiple insurance companies

Life insurance premiums can vary between insurers because each company has its own underwriting guidelines, risk assessment methods, and pricing structure. The same applicant may receive different quotes for identical coverage from different providers. So, compare quotes before buying a policy.

7. Choose annual payment mode

Your premium payment frequency can affect the overall cost of maintaining your life insurance policy. Some insurers charge additional administrative or billing fees for monthly payments. Paying annually, however, can help you avoid these charges and slightly reduce your annual premium.

8. Review your existing life insurance coverage regularly

Your financial responsibilities can change over time. You may pay off your mortgage, clear outstanding debts, build savings, or become less financially responsible for your dependants. Reviewing your existing life insurance coverage can help you determine whether your current death benefit is still appropriate. If you have more coverage than you need, you may be able to reduce the death benefit and lower your premiums.

9. Avoid adding unnecessary riders

Life insurance plans can be customized with a range of riders, such as a critical illness rider, an accidental death benefit rider, and a waiver of premium rider. These riders are available at higher premiums, so pick only the necessary riders that will help you get adequate coverage when needed.

10. Maintain a healthy lifestyle

Your overall health can influence your life insurance premiums. Maintaining a healthy weight, exercising regularly, eating a balanced diet, and managing existing health conditions can help improve your health profile. Insurers consider these factors during medical underwriting, and better health may help you qualify for more favourable premium rates.

Why do seniors pay higher life insurance premiums?

Seniors pay higher life insurance premiums due to increased mortality risks and the likelihood of a claim during the policy. As people get older, their risk of developing health conditions increases, making life insurance more expensive for insurers. However, the existing level-premium term and whole life insurance generally don’t become expensive during the guaranteed premium period.

Some seniors might also have pre-existing medical conditions that can affect their ability to qualify for coverage and the premium they pay. A good option for seniors is to compare life insurance premiums across insurers and choose an appropriate coverage based on their needs and budget. 

Can a pre-existing condition affect life insurance premiums?

Yes, pre-existing medical conditions can affect your life insurance premiums. Insurers assess every application individually; they use your medical history to determine the risk of providing coverage. Pre-existing conditions such as diabetes, high blood pressure, heart disease, cancer, and others may result in higher premiums.

The exact premium will depend on the severity of the condition and how well it is managed. For example, someone with well-controlled diabetes may qualify for standard or slightly higher premiums, while someone with a more serious or uncontrolled condition may face higher rates or limited coverage options.

Can you lower your life insurance premiums after buying a policy?

Yes, you may be able to lower your life insurance premiums after buying a policy. Here is how you can do that:

• If your financial responsibilities have decreased, you may be able to lower your death benefit to reduce your premiums. However, coverage reductions are subject to insurer and policy conditions
• If you qualify for a better premium with another insurer, you can compare and get an affordable quote for yourself to save on premiums
• If your insurer allows, you can remove unnecessary riders later if you no longer need them and want to lower the premiums. Some built-in benefits cannot be removed
• For participating whole life insurance policies, you can use dividends to lower the premiums. However, the insurer may require sufficient accumulated dividends and projected future dividends to support premium offset

What should you consider before replacing an existing life insurance policy?

Before replacing an existing life insurance policy, you should consider the potential costs and risks. A new policy may have higher premiums because you are older or your health has changed since you purchased the original coverage. You may also need to undergo medical underwriting again, and the new policy may have a new two-year suicide exclusion and contestability period.

Common mistakes to avoid when trying to lower life insurance premiums

While finding ways to reduce life insurance costs is important, focusing only on getting the lowest premium can leave you with inadequate financial protection. You need to avoid these mistakes when trying to make life insurance premiums more affordable:

• Choosing inadequate coverage: Reducing your coverage amount just to save money can leave your family or dependents in financial hardship after your death
• Hiding medical conditions or smoking history: Providing inaccurate information to qualify for lower premiums can lead to claim disputes or denial of benefits. Always disclose your medical history and lifestyle honestly
• Choosing a policy based on price alone: The cheapest policy may not offer the coverage, flexibility, or benefits you need. Review exclusions, policy features, riders, and insurer reliability before making a decision
• Overlooking future needs: Your existing coverage should account for your future financial needs as well, such as a child’s education, a future home, or any additional debt. Avoid reducing coverage without considering these obligations

How to buy affordable life insurance with PolicyAdvisor?

At PolicyAdvisor, our licensed advisors can help you compare quotes from 30+ insurers. Here are the steps you need to follow to buy an affordable life insurance policy with us:

• Get in touch with our advisors and start by providing basic details about your age, health, smoking status, income, and desired coverage amount
• Our advisors help you explore policy options from 30+ Canadian insurers based on your budget, coverage needs, and eligibility
• Once you select a suitable policy, our advisors guide you through the application and underwriting process
• Review the life insurance policy terms and conditions and complete the premium payment. After completing all these steps, your life insurance coverage becomes active

Schedule a call now to buy a life insurance policy!

Frequently asked questions

Does quitting smoking lower life insurance premiums?

Yes, quitting smoking can help you qualify for lower life insurance premiums. Insurers generally charge smokers higher rates because of the increased health risks associated with tobacco use. Depending on the insurer, you may need to remain tobacco-free for at least 12 months or longer to qualify for non-smoker rates.

Is term life insurance cheaper than whole life insurance?

Yes, term life insurance is generally cheaper than whole life insurance. Term policies provide coverage for a fixed period, such as 10, 20, or 30 years, while whole life insurance offers lifelong coverage and builds cash value. If you primarily need temporary financial protection, term insurance can be a more affordable option.

Do life insurance premiums increase every year?

No, life insurance premiums do not necessarily increase every year. Most level-premium term life insurance policies maintain the same premium throughout the selected term. However, annually renewable term policies generally increase in cost each year as you age.

Is it cheaper to pay life insurance premiums annually or monthly?

Paying life insurance premiums annually can sometimes be cheaper than paying monthly because some insurers charge additional billing fees for monthly payments. However, the savings depend on the insurance provider and policy.

Can I switch life insurance companies to get lower premiums?

Yes, you can switch life insurance companies if another provider offers more competitive premiums for similar coverage. However, you will generally need to complete a new application and undergo underwriting. Your current age, health, and medical history may affect the new premium. Make sure your replacement policy is approved and active before cancelling your existing coverage. You must also note that replacing a policy can restart the two-year incontestability period. 

Can improving my health help me get cheaper life insurance?

Yes, improving your health may help you qualify for lower life insurance premiums, depending on the insurer’s underwriting guidelines. Managing conditions such as high blood pressure, diabetes, and high cholesterol, maintaining a healthy weight, and quitting smoking can improve your risk profile. However, insurers may still consider your previous medical history when calculating premiums.

Can I negotiate my life insurance premiums with my insurer?

Life insurance premiums are generally not negotiable because insurers calculate rates based on factors such as your age, health, coverage amount, and underwriting risk. However, you can ask your insurer about ways to reduce your coverage and premiums.

All about life insurance coverage

Life insurance provides a tax-free death benefit to your beneficiary in case you meet an unforeseen demise while the policy is active. You can use this payout to meet immediate financial needs, pay off outstanding debts, cover mortgage payments, and manage other household expenses. The following are typically covered under a life insurance policy:

• Death from natural causes: Provides coverage for death resulting from natural causes, including old age, cancer, heart disease, stroke, and organ failure. Your beneficiaries can receive the death benefit as long as your policy is active 
• Death from illness or disease: Most life insurance policies cover deaths caused by diagnosed illnesses, including serious or chronic medical conditions. Having a pre-existing condition does not automatically disqualify you from coverage, although it may affect your eligibility, premiums, or policy terms depending on your medical history and underwriting
• Accidental death: It also covers unexpected deaths resulting from accidents, such as car crashes, falls, or other accidental injuries. Some insurers also offer an accidental death benefit rider that provides an additional payout on top of the standard death benefit if the insured dies in a qualifying accident
• Death caused by natural disasters: Most life insurance policies cover deaths resulting from natural disasters, such as floods, wildfires, earthquakes, and severe storms. However, you should review your policy wording for any specific exclusions or limitations that may apply
• Medical assistance in dying (MAiD): Most insurers cover medically assisted death in Canada. The exact payout is subject to applicable laws and the insurer’s policy conditions. The timing of the policy purchase, application disclosures, and contestability provisions may affect how a claim is assessed

Does life insurance cover any living benefits?

Yes, some life insurance policies offer living benefits that allow you to access financial support while you are still alive. These benefits are usually available through optional riders or specific permanent life insurance features rather than the standard death benefit. Depending on your policy, living benefits may include:

• Terminal illness benefit: Some policies allow you to access part of your death benefit early if you are diagnosed with a qualifying terminal illness. For example, BMO’s term life insurance covers terminal illness and lets you access death benefits of up to 50% if you are diagnosed with a qualifying terminal illness and have a life expectancy of less than 1 year
• Disability benefits: Some life insurance policies offer disability-related benefits if you become unable to work because of an illness or injury. For example, Beneva Term Plus includes a built-in extreme disability benefit that allows policyholders to receive an advance of up to 50% of their initial level death benefit or 25% of their initial decreasing coverage, up to a maximum of $250,000, after experiencing a qualifying extreme disability for six consecutive months
• Cash value access: Permanent life insurance policies, including whole life and universal life, can accumulate cash value over time. Depending on the policy, you may be able to access this value through withdrawals or policy loans

What does life insurance exclude?

While life insurance provides coverage for natural and accidental death, there are some exclusions that you need to know:

• Suicide within the first 2 years: There is a 2-year suicide exclusion from the date the policy coverage starts. If the insured dies during the first 2 years due to suicide, the insurer will deny the death benefit. The insurer may refund the premiums rather than pay the death benefit, depending on the terms and conditions
• Undisclosed high-risk activities: If you participate in high-risk activities such as skydiving, scuba diving, or motorsports without disclosing them during your application, the insurer may exclude related deaths
• Death resulting from illegal activities: Deaths resulting from illegal activities may be excluded under the policy. For example, a fatal accident caused by impaired driving or an overdose involving illegal drugs may lead to a denied claim
• Death due to war or military conflict: Some life insurance policies exclude deaths resulting from war, military operations, or armed conflict
• Providing false information: Providing false information or hiding history about your health or smoking habits can lead to claim disputes and denial of coverage

Does life insurance cover drug overdose?

Yes, life insurance may provide coverage for drug overdose. An accidental overdose involving prescribed medication may be covered if the insured followed medical instructions. However, an overdose involving illegal drugs or intentional self-harm such as suicide may result in a denied claim, depending on the suicide exclusion clause.

Does life insurance cover death outside Canada?

Yes, most life insurance policies provide coverage for death outside Canada, provided the policy terms and conditions are met. This means that your beneficiaries can receive the death benefit if you die outside Canada. However, certain policies may have exclusions for deaths resulting from war, military conflict, or undisclosed high-risk activities.

What is life insurance used for?

The primary benefit of life insurance is to support your dependents financially if you are not around. A life insurance policy will provide coverage for the following:

• Replacing the income lost after your death
• Paying off a mortgage, personal loans, and other outstanding debts
• Covering funeral and final expenses
• Funding children’s education and future needs
• Paying everyday household expenses, including groceries, utilities, and childcare
• Supporting estate planning and wealth transfer
• Covering business debts, succession costs, or buy-sell agreements

Factors affecting life insurance coverage

The amount of life insurance coverage you qualify for is dependent on a number of factors such as your age, gender, occupation, lifestyle, policy structure, and more.

• Age: Your age influences how much coverage you can qualify for and how much you pay in premiums. You will pay lower life insurance premiums if you buy it early
• Health and medical history: Insurers consider your current health, pre-existing conditions, family medical history, and previous diagnoses. Traditional policies may require medical exams; however, guaranteed acceptance plans require no medical exams
• Smoking and lifestyle habits: Smoking, tobacco use, alcohol consumption, and high-risk hobbies can affect your eligibility and premium rates
• Occupation: Your occupation can influence your eligibility if your work involves hazardous conditions or physical risks. High-risk occupations result in higher premiums
• Policy type: Term and permanent life insurance offer different coverage periods and features. Term insurance protects for a set period, while permanent policies can provide lifetime coverage and may accumulate cash value
• Financial underwriting: Insurers assess your income, existing life insurance coverage, financial obligations, and overall financial situation to determine an appropriate coverage amount. This helps ensure that the coverage you apply for is proportionate to your financial needs and insurable interest

How do I choose life insurance that aligns with my needs?

To choose the right life insurance policy, you need to consider a lot of things such as what you want to protect, how long you need coverage, and what you can afford in premiums. Here are the steps to help you choose suitable life insurance coverage:

• Assess your coverage needs: Start by identifying who depends on your income and what financial obligations you want to protect. Consider your mortgage, outstanding debts, children’s education, household expenses, and future financial commitments 
• Choose the right policy type: Consider the policy type that best suits your needs. Choose term life insurance for temporary coverage and whole life insurance if you want lifelong coverage
• Consider additional riders and benefits: Review optional riders that can extend your policy beyond the standard death benefit. Depending on your needs, these may include critical illness coverage, disability benefits, waiver of premium, or accidental death benefit
• Compare policies from different insurers: Look beyond premium costs when evaluating life insurance. Our advisors will compare life insurance quotes based on coverage limits, exclusions, underwriting requirements, available riders, conversion options, and the insurer’s financial strength. Different insurers may offer different terms for applicants with similar profiles

Schedule a free call with our licensed advisor today to discuss your coverage requirements and get personalized life insurance recommendations. 

Frequently asked questions

Does life insurance cover death from natural causes?

Yes, life insurance policies in Canada cover death from natural causes, illnesses, and accidents, provided the policy is active and no exclusions apply. 

Does life insurance cover pre-existing medical conditions?

Yes, you can get life insurance even if you have a pre-existing medical condition. However, your eligibility, premiums, and coverage terms depend on the condition, its severity, treatment history, and the insurer’s underwriting guidelines.

Does life insurance cover suicide in Canada?

Yes, life insurance policies include a two-year suicide exclusion period starting from the policy’s effective date. If the insured dies by suicide during this period, the insurer generally does not pay the death benefit and may refund premiums paid, depending on the policy terms. After this period, suicide is generally covered.

Are life insurance payouts taxable in Canada?

Yes, life insurance death benefits paid to a named individual beneficiary are tax-free in Canada. However, certain situations involving corporate-owned policies, interest payments, or estate proceeds may have different tax implications.

Can a life insurance company deny a death benefit claim?

Yes, an insurer can deny a claim if the policy has lapsed, the death falls under an applicable exclusion, or there is material misrepresentation or fraud in the application. However, claim decisions must follow the policy contract and applicable laws.

Does life insurance cover funeral expenses?

Yes, beneficiaries can use the life insurance death benefit to pay for funeral services, burial or cremation, and other final expenses. However, life insurance does not automatically pay the funeral home directly; the beneficiary generally receives the payout and decides how to use it.

Does life insurance cover accidental death?

Yes, standard life insurance policies generally cover accidental deaths, including fatal car accidents, falls, and other unexpected injuries. You can also purchase an accidental death benefit rider for an additional payout if the death meets the rider’s specific conditions.

Does life insurance cover critical illnesses such as cancer or heart attacks?

No, standard life insurance does not pay a benefit if you are diagnosed with a critical illness such as cancer or a heart attack. It pays the death benefit to your beneficiaries when you pass away. However, you can add a critical illness rider, if available, or purchase a separate critical illness insurance policy to receive a lump-sum payment after a qualifying diagnosis.

$1million term life insurance vs. $1million whole life insurance

Here is a quick overview of monthly term life and whole life insurance premium costs for $1,000,000 in life insurance:

Monthly premiums are based on illustrative rates for non-smokers aged 20-60 seeking $1,000,000 in coverage. Term life rates are based on a 10-year policy, while whole life rates are based on a non-participating policy. Actual premiums may vary based on age, health, smoking status, insurer, and underwriting assessment.

How much does $1 million term life insurance cost?

A term life insurance policy for $1 million in Canada ranges between $21.15 and $2,493.90, depending on various factors such as age, sex, term duration, and health. A term policy provides coverage that lasts for a specific period of time known as a term. This term varies by insurer and can last for either a fixed number of years (such as 10, 20, 30, or even 40 years) or until you reach a certain age (such as 65).

During the initial term, your life insurance premiums are typically guaranteed and level. When the term ends, your coverage may expire or may be renewed according to the renewal schedule specified in your policy documentation. It is worth noting that renewal premiums are typically much higher and are often based on your attained age. As a result, the cost of a $1 million term life insurance can increase.

Alternatively, many term policies also include a conversion option, which can be used to convert the policy to permanent coverage within a specified period without new evidence of insurability. This can be an ideal feature for Canadians who want to turn their temporary $1 million coverage into lifelong protection. However, if you do not want to renew the policy once it ends, you can also choose to cancel the policy.

If you die while the term life policy is active, the insurer will pay the death benefit to your beneficiaries as a tax-free lump sum. The cost of the $1,000,000 term life policy depends primarily on your age, gender, health, smoking status, and other underwriting factors.

Term life insurance costs – Male, $1,000,000 Coverage

Term life insurance costs – Female, $1,000,000 Coverage

Term life insurance rates by age

Term life insurance rates can differ based on the individual’s age. Here’s a summary of average monthly costs by age group for a typical term policy with a coverage amount of $1 million:

Premiums represent illustrative monthly averages for male and female non-smokers seeking $1,000,000 in 10-year term life insurance coverage. Each age-group average is calculated using the two available five-year age points, while the 65+ category reflects age 65 only. Actual premiums vary based on age, health, insurer, and underwriting assessment.

Premiums represent illustrative monthly averages for male and female smokers seeking $1,000,000in 10-year term life insurance coverage. Each age-group average is calculated using the two available five-year age points, while the 65+ category reflects age 65 only. Actual premiums vary based on age, health, smoking status, insurer, and underwriting assessment.

How does the term length affect the cost of $1,000,000 life insurance?

The length of your policy’s term has a direct impact on the cost of a $1,000,000 life insurance policy in Canada. Essentially, the longer the term, the higher the initial premiums, since the insurer is exposed to a greater window of risk and a higher statistical probability of a claim. 

For example, a 40-year-old male non-smoker may pay $47.25/month for a 10-year term, compared with $79.20/month for a 20-year term. A 40-year-old female non-smoker may pay $31.05/month for a 10-year term, compared with $56.70/month for a 20-year term. While shorter terms offer lower initial premiums, longer terms provide coverage for extended periods at guaranteed premiums during the initial coverage period.

Another strategy that Canadians can use is called life insurance laddering, which involves purchasing multiple term life policies with different expiration dates. For example, an individual can purchase a 10-year term policy for $100,000 to cover a car loan, alongside a 25-year term policy for $600,000 to cover a mortgage. 

This approach can help align coverage with different declining financial obligations without having to carry a short obligation for longer periods of time. The laddering structure may reduce the cost of maintaining unnecessary coverage for the full 25 years compared with purchasing one $700,000 policy for the entire period.

How much does $1 million of whole life insurance cost?

A whole life insurance policy for $1 million in Canada ranges between $283.50 and $4,161.15. Premiums for your policy depend on factors such as age, sex, payment term, and health. In addition, the cost of a whole life policy can be significantly higher for smokers and applicants with certain health risks or pre-existing conditions.

Unlike a term policy, where coverage ends when the term expires, whole life insurance policies typically stay in force as long as premiums are paid or until you pass away. A $1 million whole life insurance policy is ideal for high-net-worth Canadians looking to leave a legacy for their children or grandchildren, or for tax-advantaged wealth and estate planning.

Apart from the lifelong coverage, whole life insurance policies also offer access to liquidity through cash value and non-guaranteed dividends. The cash value can be withdrawn, used as collateral, or used to pay future premiums. However, it is worth noting that withdrawals may reduce the death benefit and the cash value. Additionally, policy loans and unpaid amounts from the loan can reduce the benefit as well.

Just like cash value, dividends in participating policies can be used to purchase additional paid-up insurance, pay future premiums, and increase the death benefit. Like term life insurance, the cost of whole life insurance is based on health, age, gender, smoking status, the death benefit, and the added expense of insuring someone for an extended period, including potentially higher-risk years.

What is the difference between participating and non-participating whole life insurance?

The primary difference between a participating and non-participating whole life insurance policy is how the policy’s benefits and cash value may grow. Participating whole life insurance policies offer lifelong coverage and cash value growth alongside non-guaranteed dividends. These dividends can be taken as cash, used to purchase additional paid-up insurance, reduce premiums, or increase policy value.

Meanwhile, a non-participating whole life insurance policy does not offer any dividends. This typically makes non-participating policies less expensive than comparable participating policies. This option can be suitable for Canadians seeking $1 million in whole life insurance solely for lifetime protection.

Non-Participating Whole life insurance – $1,000,000 Coverage

How does the premium payment period affect whole life insurance costs?

The premium-payment period affects how much you pay for a $1,000,000 whole life insurance policy and how long you need to make payments. Essentially, shorter premium periods, like 10-pay or 20-pay, have higher monthly premiums since you have to pay the cost of the entire policy within a fixed period. Meanwhile, life pay policies have comparatively lower premiums, but payment continues through your lifetime.

What does $1 million life insurance cover?

A $1 million life insurance policy provides a death benefit that can help beneficiaries manage substantial financial responsibilities following the policyholder’s death, such as paying off mortgages, income replacement for several years, or simply offering a financial backup for the beneficiaries.

Here are some common ways in which a $1 million life insurance policy can be used in Canada:

• Mortgage protection: Pay off a large outstanding mortgage or help cover ongoing housing expenses
• Income replacement: Provide several  years of financial support to a spouse, partner, children, or other dependents who rely on the policyholder’s income
• Help cover funeral and final expenses: The death benefit can be used toward funeral costs and other final expenses after death
• Children’s education: The death benefit can be used to fund future tuition, educational expenses, lifestyle expenses, and other costs associated with raising children
• Business continuity: The death benefit can provide financial support for business succession, key person protection or buy-sell arrangements if the policyholder is a business owner or partner
• Leaving a legacy: A $1 million life insurance policy can provide an inheritance or charitable gift to designated beneficiaries or institutions

Who needs $1 million life insurance coverage?

$1,000,000 in coverage may be the best option for people with major financial obligations or dependents who rely on their income. Apart from this, it is recommended that you review your coverage since a $1 million policy may not be right for everyone. Your coverage should be based on your actual needs, and not a fixed, round number. While this amount may be suitable for some Canadians, it can be too much or too little for others.

Here’s who might need $1 million in life insurance coverage:

• Parents with very young children: A million-dollar policy can help cover school costs and everyday needs, as well as unexpected costs such as medical emergencies.
• High-income earners: Someone with a high income may need a larger financial cushion to help provide their family with the same standard of living if they pass away suddenly.
• Business owners: Entrepreneurs may have more assets and financial obligations than the average person. They may use $1 million in coverage to help keep their business operating after they pass away
• People with a lot of debt: This may include a mortgage, student loan, or car loan. People with multiple debts may need a larger insurance policy to help pay them off if they pass away.
• Self-employed professionals: Freelancers, contractors, and business owners who do not have access to employer-sponsored life insurance benefits
• Single parents: Single parents looking to leave a financial safety net for their children in the event of the unexpected

Still confused if $1 million life insurance is the right amount for you? Check out our life insurance calculator. 

Is $1 million of life insurance enough in Canada?

A $1 million life insurance policy may provide sufficient financial protection for Canadians with substantial mortgages, dependents, multiple financial obligations, or income-replacement needs for several years. This can help safeguard beneficiaries if the unexpected happens to you.

For many Canadians considering a life insurance policy, a general rule of thumb is to purchase coverage that is equal to about five to 10 times your annual income. However, this is just a baseline and should be adjusted based on your financial situation, debts, and other factors.

Still confused? Contact our licensed advisors and find a plan that suits your financial needs.

What factors affect the cost of a $1 million life insurance policy?

The cost of a $1 million life insurance policy in Canada can be affected by several additional factors, including the applicant’s health, age, gender, occupation, and any additional riders or benefits.

Here are some of the key factors affecting the cost of a $1 million life insurance policy in Canada:

 Age

Age is one of the biggest factors that affect your life insurance premiums, since mortality increases as you grow older. As a result, younger applicants typically pay less than older applicants in Canada.

Gender

Gender is another factor that influences your life insurance premiums in Canada. Women typically pay lower premiums compared to men, owing to their longer average life expectancy. For example, a 40-year-old male non-smoker may pay $47.25 per month for a $1 million 10-year term policy, while a female non-smoker of the same age may pay $31.05 per month.

Health and medical history

Health is one of the most critical factors that determine your life insurance premiums since it directly affects your life expectancy and the financial risk undertaken by the insurer. Insurers typically evaluate factors such as body mass index (BMI), blood pressure, family history, and medical history. An individual in good health will generally receive more affordable premiums and more favourable underwriting outcomes than an applicant with high blood pressure, obesity, pre-existing conditions, or certain illnesses.

Smoking status and lifestyle

Your lifestyle choices and habits have a significant effect on life insurance costs. Smokers generally pay much higher premiums than non-smokers, since smoking is associated with a higher risk of health issues and early death. In addition, insurers can also evaluate dangerous occupations, high-risk hobbies, certain travel patterns, and other lifestyle factors.

Even lifestyle factors like alcohol consumption or driving history can influence life insurance premium rates. Insurers assess the overall risk of your profile before offering you an insurance policy.

Type of policy 

The type of life insurance you choose also has an impact on the cost of your policy. Term life insurance is usually less expensive because it offers protection for a set time frame with no cash value. By contrast, permanent life insurance, such as whole life or universal life insurance, is more expensive because it provides lifelong coverage and includes a cash value component that can grow over time. However, it is worth noting that cash value growth depends on the policy and is not guaranteed for every permanent policy type.

Duration of coverage

The duration of the policy also has an impact on your life insurance premiums. Longer-term policies come with higher costs since the insurer’s risk increases over time. For term life insurance, a 30-year policy will generally be more expensive than a 10-year policy since the insurance company provides protection for a longer period.

Additional policy riders

Policy riders and benefits are additional features you can add to your life insurance policy, which can increase the overall cost while offering benefits that can support your family’s financial future. Common riders include guaranteed insurability, critical illness coverage, accidental death benefits, a child term rider, and a waiver of premium rider. 

While these riders provide extra protection and benefits for long-term flexibility and enhanced coverage, they come at an additional cost. This can raise the premiums of your $1 million life insurance policy. However, some insurers can offer these benefits as part of the policy at no additional cost. If you are confused about the riders you need, our licensed advisors at PolicyAdvisor can help you choose a comprehensive policy for you and your loved ones.

Can you get $1 million life insurance without a medical exam? 

Yes, you can purchase $1 million in life insurance with no medical exam using a no-medical policy like simplified-issue life insurance, which requires applicants to answer a health questionnaire. It is worth noting that a no-medical policy of this amount is typically less common and usually more expensive than a traditionally underwritten policy. Simplified-issue policies are typically the most accessible option since guaranteed issue policies have much lower coverage limits.

Simplified issue is a type of life insurance underwriting for term or permanent policies that requires applicants to fill out a health questionnaire without requiring them to complete a medical exam. While approval is typically faster, premiums are higher than those of traditionally underwritten policies. It is also worth noting that some insurers may also review the prescription databases or other data sources before offering a simplified-issue coverage of higher amounts.

How do I get the best quotes for $1 million of life insurance coverage?

At PolicyAdvisor, our team of licensed advisors help Canadians compare quotes from 30+ leading life insurance companies to help them find the plan and coverage that best suits their needs. Book some time with our advisors and find out how easy it is to get the right amount of coverage from the comfort of your own home.

Frequently asked questions

Can I withdraw my cash surrender value without cancelling my life insurance policy?

No, you cannot receive the full cash surrender value without cancelling your policy. However, some permanent life insurance policies allow partial cash value withdrawals or policy loans while keeping the coverage active. These options may reduce your death benefit or trigger tax consequences.

Does term life insurance have a cash surrender value?

No, term life insurance generally does not have a cash surrender value because it does not accumulate cash value. It provides coverage for a specified period, and the policyholder does not receive a payout if they cancel the policy before the term ends.

How long does it take to receive cash surrender value?

The time required to receive your cash surrender payout depends on the insurer’s processing procedures, documentation requirements and policy terms. You can contact your insurance company to request a surrender quotation and confirm its expected payment timeline.

Can I surrender my life insurance policy at any time?

You can generally request to surrender a permanent life insurance policy while it is active. However, surrendering early may result in substantial charges or a lower payout because the policy may not have accumulated significant cash value. Check your insurer’s surrender quotation before cancelling your coverage.

Does cash surrender value increase over time?

Cash surrender value can increase over time as a permanent life insurance policy accumulates cash value. However, the growth depends on the policy type, premium payments, applicable charges, dividends and investment performance. The actual surrender payout may also be affected by outstanding loans and surrender fees.

What is the difference between cash surrender value and death benefit?

Cash surrender value is the amount you receive when you cancel a permanent life insurance policy, after applicable deductions. The death benefit is the amount the insurer pays to your beneficiaries when you die while the policy is active. The death benefit is generally higher than the cash surrender value.

What is the best life insurance for business owners in Canada?

The best life insurance companies for business owners include Equitable Life, Industrial Alliance, Empire Life, Manulife, RBC Insurance, and Sun Life.

Sun Life

Sun Life is one of Canada’s largest financial services and insurance companies, offering a broad range of permanent life insurance products for individuals and business owners. Its whole life insurance lineup includes participating and non-participating plans, allowing business owners to choose coverage based on their financial goals.

• Plan options: Sun Par Protector II and Sun Par Accumulator II (participating), and SunSpectrum Permanent Life II (non-participating)
• Payment options: Sun Par Protector II and Sun Par Accumulator II offer 10-pay, 20-pay, and Life Pay. SunSpectrum also offers a 15-pay option
• Dividend options: Five options under participating plans, including receiving cash, reducing annual premiums, accumulating dividends on deposit, purchasing paid-up additions, and enhanced insurance
• Business planning flexibility: Sun Life offers single-life, joint first-to-die, and joint last-to-die coverage structures. These options can support shareholder protection, business succession, and estate planning. 
• Business protection rider: This rider helps business owners increase the coverage without any new medical evidence as the business interest grows 
• Standout feature: Sun Life has a participating account valued at approximately $24.2 billion, and it has paid participating policy dividends every year since 1877
• Best for: Business owners seeking a wide selection of permanent life insurance products from one of Canada’s largest insurers, with participating and non-participating options

Equitable Life

Equitable Life offers participating whole life insurance through its Equimax product line, providing business owners with lifelong coverage. As one of Canada’s largest mutual life insurance companies, Equitable Life is owned by its participating policyholders and has a long history of dividend payments.

• Plan options: Equimax Estate Builder and Equimax Wealth Accumulator
• Payment options: Life Pay, 10 Pay (available only with Estate Builder), and 20 Pay
• Excelerator Deposit Option (EDO): Business owners can request the EDO when applying for coverage. This optional feature allows additional deposits to purchase paid-up additions, helping accelerate cash value growth and increase the policy’s death benefit
• Dividend options: Multiple dividend options include receiving cash, premium reduction, on deposit, paid-up additions, and enhanced protection
• Standout feature: Equitable has paid participating policy dividends every year since 1936, demonstrating a long history of annual dividend distributions. Moreover, Equitable Life also has the highest DSIR of 6.40% in 2026
• Best for: Business owners seeking participating whole life insurance with additional deposit flexibility

Manulife

Manulife offers participating whole life insurance through its Manulife Par plan, providing flexible premium payment options and additional deposit features.

• Plan options: Manulife Par and Manulife Par with Vitality Plus
• Payment options: 10 Pay, 20 Pay, and Pay to Age 100
• Deposit options: Manulife whole life insurance plan comes with an optional deposit option allowing business owners to make additional deposits without providing new medical or underwriting information
• Dividend options: Multiple dividend options, including receiving cash, reducing premiums, accumulating dividends on deposit, and purchasing paid-up additions
• Standout feature: Manulife has a participating account valued at approximately $15.98 billion. Its multiple coverage options, including joint last-to-die coverage, can also support business partners and spouses with estate and succession planning
• Riders: It also has riders like the guaranteed insurability rider that can help business owners increase the coverage without additional medical evidence
• Vitality rewards: The Vitality program rewards policyholders for leading a healthy lifestyle. It encourages business owners to lead a healthy life
• Best for: Business owners seeking participating whole life insurance with a built-in lifetime deposit option

Empire Life

Empire Life offers participating whole life insurance through its EstateMax and Optimax Wealth plans, available with multiple payment options.

• Plan options: EstateMax and Optimax Wealth (participating whole life insurance), Solution 100 and Term 100 (non-participating plans)
• Payment options: EstateMax offers 10-pay, 20-pay, and life-pay options, while Optimax Wealth also includes an 8-pay option
• Additional deposit option (ADO): Available as an optional feature with participating policies, allowing policyholders to make additional deposits to purchase paid-up additions and accelerate cash value and death benefit growth
• Dividend options: Multiple options, including receiving cash, reducing annual premiums, accumulating dividends with interest, purchasing paid-up additions, and enhanced coverage
• Business planning flexibility: Both participating plans offer single-life and joint coverage options, with maximum coverage of up to $20 million. This can help business owners plan for shareholder protection, business succession, and estate transfers
• Best for: Business owners seeking participating whole life insurance with multiple payment options

RBC

RBC Insurance offers participating whole life insurance through its Growth Insurance and Growth Insurance Plus plans. RBC par plans are a good choice for business owners as they offer faster underwriting and turnaround times.

• Plan options: RBC Growth Insurance and RBC Growth Insurance Plus
• Payment options: Life Pay (up to age 100), 10 Pay, and 20 Pay
• Faster underwriting: RBC Insurance offers a streamlined underwriting process with quicker turnaround times, helping business owners receive coverage decisions sooner and complete their life insurance applications with less delay
• Additional deposit option: Available only with paid-up additions and 20 Pay or Life Pay, RBC’s optional deposit feature allows policyholders to make additional payments to purchase paid-up additions and accelerate long-term cash value growth
• Dividend options: Five options, including receiving cash, reducing premiums, accumulating dividends on deposit, purchasing paid-up additions, and enhanced insurance
• Standout feature: Higher coverage limits of up to $25 million, multiple coverage structures and ways to access cash value
• Best for: Business owners who want a quicker life insurance application and underwriting process

Industrial Alliance (iA)

iA Financial Group is worth considering for business owners with pre-existing health conditions who may face challenges qualifying for traditional life insurance.

• Plan options: iA Whole Life (non-participating), iA PAR Estate, and iA PAR Wealth (participating)
• Payment options: iA PAR Estate and Wealth offer 10 Pay, 20 Pay, and Pay to Age 100
• Health accommodation feature: iA offers underwriting flexibility for applicants with certain pre-existing health conditions, helping business owners explore whole life coverage options despite their medical history
• Dividend options: Participating policyholders can choose from multiple dividend options, including receiving cash, reducing premiums, accumulating dividends on deposit, and purchasing paid-up additions
• Standout feature: iA offers optional riders, including critical illness coverage, disability benefits, guaranteed insurability, and waiver of premium. Its iA PAR Wealth plan also provides guaranteed cash surrender value from the first policy anniversary. iA has an AM Best rating of A+ and a 2026 DSIR of 6.35%
• Best for: Business owners with existing health conditions who want to explore participating and non-participating whole life insurance options

Comparing the best life insurance companies for business owners in Canada

Sample premiums reflect illustrative 2026 monthly quotes for a 40-year-old male non-smoker seeking $100,000 in whole life coverage for 20-pay. Actual premiums vary by age, sex, smoking status, health, coverage amount, product, and underwriting. Minimum coverage and available benefits vary by product and eligibility.

Our methodology for ranking the best life insurance companies for business owners

Our 2026 rankings for the best life insurance companies are based on how well their whole life insurance products meet the financial and protection needs of business owners. We evaluated the top 6 companies on the basis of plan options, premium payment options, business-specific riders, and additional standout features like wellness-linked rewards, ADOs, and financial strength. 

• Pricing (25%)

We compared the insurers on the basis of participating whole life insurance costs for a 40-year-old male non-smoker seeking $100,000 in coverage with a 20-pay option for paid-up addition as the dividend choice. We ranked the insurer based on affordability; lower premiums received higher ratings.

Whole premiums are illustrative monthly costs for a 40-year-old non-smoker male seeking $100,000 of coverage for 20-pay. Actual premiums vary by age, sex, health, smoking status, product, coverage amount, and underwriting. All premiums listed on the Y-axis are in CAD (CA$).

Other features (75%)

The remaining 75% of our evaluation focused on five categories that assess the flexibility, business suitability, and additional benefits of each insurer’s whole life insurance products.

How we further assessed the ratings:

We assigned each insurer a rating out of 5 based on the above-mentioned 6 factors. We then applied the respective weightings to calculate the overall rating. The final ratings reflect the combined weighted scores across all six evaluation criteria. 

Sun Life received a 5/5 rating for its competitive premiums, broad range of whole life insurance products, and business-specific benefits. Equitable Life, Manulife, Empire Life, and RBC Insurance received 4.5/5 ratings, reflecting their participating whole life plans, flexible payment options, additional deposit features, and business continuity benefits. iA Financial received a 4/5 rating; it scored relatively lower on additional business-specific benefits and standout policy features compared with the other insurers evaluated.

PolicyAdvisor ratings for the best companies for business owners:

What life insurance is best in your 20s in Canada? 

There are many options for life insurance when you’re in your 20s! When you are young and (presumably) have a good medical history, most insurance options will be the cheapest you will ever get. Term life insurance may be best for most people in their 20s, but permanent coverage may be beneficial for you as well!

• Term life insurance: Term life insurance is the best life insurance if you’re in your 20s. Life insurance companies offer term insurance very cheap when you’re young and healthy. Term insurance policies are one of the simplest life insurance products. You pay a fixed monthly premium in return for guaranteed coverage for a specified period of time. Most term policies have the flexibility to convert coverage into permanent life insurance policies down the line if you find yourself needing longer coverage as your life changes
• Whole life insurance: Permanent life insurance or whole life insurance may also be a good choice for you, depending on your financial goals. Permanent coverage lasts your entire life and therefore is more expensive than term life insurance rates. People usually buy this type of coverage for final expenses and funeral costs, but in your 20s you can use your long life expectancy to take advantage of whole life insurance living benefits. In addition to the death benefit, permanent policies offer a cash value component. Your permanent policy accumulates a cash value over time that you can borrow, loan, or use as collateral for a bank loan. It’s not meant to replace your investment portfolio completely, but it can be a great way to generate modest cash growth while having a financial safety net
• Universal life insurance: Participating whole life insurance policies and universal life insurance policies are types of permanent policies that may also offer dividend and investment opportunities with your cash value. With these policies, you can grow your policy’s coverage amount and receive other returns through the investment portion
• No medical life insurance: No-medical life insurance and simplified issue policies are best if you have medical conditions and are looking to skip the medical exams that come with life insurance applications. Traditional policies can ding you if you have a long family history of illness (like heart disease or cancer). If this is the case for you, a no-medical policy may be able to help. This type of policy is more expensive and usually offers less coverage, but it can be a good last resort option for those with health issues

How much life insurance does a 20-year-old need in Canada?

The amount of life insurance a person in their twenties needs varies greatly, depending on their financial situation, family, homeownership, and other factors. Common amounts of life insurance coverage are $100,000, $250,000, $500,000, and $1 million. Generally, your life insurance coverage should at least be about 10 times your income. Or it should be at least enough to pay off your debt (including any credit cards, car loans, mortgages, etc.) so that your family is not held liable to settle the debt should anything happen to you.

When you’re thinking about how much coverage you need, consider:

• Funeral expenses
• Your outstanding debts (student loan, car loan, mortgage, credit card)
• The cost of education for your children or dependents
• Your annual salary, and how long you want your beneficiaries to live off of it 

You can calculate these costs manually, or head over to our life insurance calculator. You can enter simple information about your financial goals, and we can tell you exactly how much coverage you will need to secure your family’s future.  

Why should you consider buying life insurance at 20?

Buying life insurance in your 20s locks in premiums at the lowest rates. Some of the most important reasons to buy life insurance when you are 20 are as follows:

• Lock in lower premiums: Life insurance premiums are largely based on your age, health, smoking status, and coverage amount. Buying a policy at 20 can help you secure lower premiums than if you wait until your 30s or 40s. With a term life policy, you can also lock in your premium for the selected coverage period, although renewal premiums may increase when that term ends
• Easier approval: Developing a medical condition could make it harder or more expensive to qualify for life insurance later. Buying coverage at 20 allows you to secure protection while you are young and may help you avoid additional underwriting challenges when your health changes
• Cover debts that could affect your family: Even at 20, you may have student loans, personal loans, or other financial obligations. If a family member has co-signed a loan or would be responsible for your outstanding debt, life insurance can provide a death benefit to help ease that financial burden
• Prepare for future milestones: You may not have a spouse, children, or mortgage at 20, but these responsibilities could arise in the future. Buying a policy early can help you establish coverage before major life changes, such as getting married, starting a family, or purchasing a home
• Build long-term cash value with whole life insurance: If you choose whole life insurance, part of your premium goes towards building cash value over time. Starting at 20 gives the policy more time to accumulate cash value, which you may be able to access through withdrawals or policy loans

Do you need life insurance at 20 if you are a student or single?

Yes, life insurance may still be beneficial at 20 if you are single without any dependents or a student. This is because when you buy life insurance at 20, you tend to lock in lower premiums and ensure financial protection for family members who may co-sign your student loans or depend on your financial support.

What should a 20-year-old look for when buying life insurance?

Some of the things that a 20-year-old should look for when buying a life insurance policy include the policy type, premiums, coverage amount, riders, the insurer’s financial strength, and a few other factors.

• Policy type: Decide whether term or whole life insurance better suits your needs and budget. Term life insurance offers affordable coverage for a fixed period, while whole life insurance provides lifelong protection and may cost more
• Premium affordability: Choose a premium that fits your current income and budget. If you are a student or just starting your career, make sure you can comfortably maintain payments over the long term
• Coverage amount: Consider your outstanding debts, financial obligations, and anyone who depends on your income. Avoid paying for more coverage than you reasonably need
• Policy flexibility: Look for features such as renewable and convertible term coverage. These options can help you extend your protection or convert to permanent insurance later
• Optional riders: Consider useful add-ons such as critical illness, disability waiver of premium, or guaranteed insurability riders. These can provide additional protection or let you increase coverage later without new medical underwriting
• Insurer’s financial strength: Compare the insurer’s financial ratings, claims-paying reputation and regulatory status. Check that the insurer is appropriately licensed in your province and is an Assuris member, which provides protection for eligible policy benefits if a member insurer fails 
• Exclusions and policy conditions: Review the waiting periods, exclusions, premium guarantees, and other policy restrictions before purchasing. Make sure you understand when the insurer may deny a claim or limit benefits

What factors affect life insurance rates at age 20?

The cost of life insurance at age 20 depends on policy and personal factors such as gender, smoking status, medical history, coverage amount, policy type, and lifestyle.

• Gender: Insurance premiums can differ between male and female applicants because insurers consider life expectancy and mortality statistics when calculating rates
• Smoking profile: Smoking and tobacco use can significantly increase life insurance premiums, even at age 20. Insurers generally charge smokers more because tobacco use increases the risk of several serious health conditions
• Health and medical history: Your current health, pre-existing medical conditions, family medical history, and medical examination results can affect your premiums. Conditions such as diabetes, heart disease, or high blood pressure may result in higher rates or additional underwriting requirements
• Coverage amount: The higher the death benefit you choose, the more you will generally pay in premiums. For example, a $500,000 policy will typically cost more than a $100,000 policy for the same applicant and policy type
• Policy type and term length: Term life insurance generally costs less than whole life insurance because it provides coverage for a limited period and does not build cash value. For term policies, longer coverage periods, such as 20 or 30 years, generally have higher premiums than shorter terms
• Lifestyle and occupation: Insurers may consider activities such as skydiving, scuba diving, rock climbing, and other high-risk hobbies when assessing your application. Certain occupations involving hazardous working conditions may also lead to higher premiums or additional exclusions
• Insurance company: Different insurers have different pricing structures, underwriting requirements, and risk assessment criteria. As a result, two insurers may offer different premiums to the same 20-year-old applicant for identical coverage
• Optional riders: Including riders like critical illness insurance, waiver of premium rider, accidental death benefit rider, and more also increases the overall premiums

Is life insurance cheaper at 20?

Yes, life insurance is cheaper at 20 than at older ages because younger applicants have a lower risk of developing serious health conditions or passing away during the policy term. Insurers use age as an important factor when calculating premiums, so buying coverage early can help you lock in lower rates. However, renewal premiums may increase when the initial term expires.

How do I buy the best life insurance at 20 in Canada?

To buy the best life insurance at 20 with PolicyAdvisor, here are the steps you need to follow:

• Connect with our advisor: Get in touch with one of our advisors who will help with your life insurance needs
• Assess your coverage needs: Consider your current financial responsibilities, outstanding debts, and whether anyone depends on your income. This will help determine how much life insurance coverage you need
• Choose the right policy type: Decide whether term or whole life insurance better suits your budget and long-term goals
• Compare quotes: Our licensed advisors will help you compare quotes from 30+ insurers
• Complete your application: Once you select a plan, our advisor will guide you through the application process, including any required medical questions, examinations, or underwriting documents

Schedule a call now to get life insurance!

Term life insurance rates by age

Term life insurance rates can differ based on the individual’s age. Here’s a summary of average monthly costs by age group for a typical term policy with a coverage amount of $500,000:

Premiums represent illustrative monthly averages for male and female non-smokers seeking $500,000 in 10-year term life insurance coverage. Each age-group average is calculated using the two available five-year age points, while the 65+ category reflects age 65 only. Actual premiums vary based on age, health, insurer, and underwriting assessment

Premiums represent illustrative monthly averages for male and female smokers seeking $500,000 in 10-year term life insurance coverage. Each age-group average is calculated using the two available five-year age points, while the 65+ category reflects age 65 only. Actual premiums vary based on age, health, smoking status, insurer, and underwriting assessment.

How does the term length affect the cost of $500,000 life insurance?

The term length has a direct impact on the cost of $500,000 life insurance in Canada. Essentially, the longer the term length, the higher the initial premiums. For example, a 40-year-old male non-smoker may pay $26.99 per month for a 10-year term, compared to $43.20 for a 20-year term. Similarly, a female non-smoker of the same age may pay $18.90 for a 10-year term and $32.40 for a 20-year term.

While shorter terms offer lower initial premiums, longer terms provide coverage for extended periods at guaranteed premiums during the initial coverage period. If you have long-term but temporary financial obligations such as a mortgage or a loan, a longer term may be more valuable for you.

Types of life insurance for Canadians with heart conditions

Canadians with a history of heart attacks or other cardiovascular conditions may be eligible for different types of life insurance depending on their medical history, recovery, and the insurer’s underwriting requirements. The main options include fully underwritten, simplified-issue, and guaranteed-issue life insurance.

Fully underwritten life insurance

Fully underwritten life insurance is the traditional insurance option that requires a detailed assessment of the applicant’s health, medical history and lifestyle before approval. However,  this underwriting may be unavailable for most Canadians with heart attacks or other active heart conditions. 

For Canadians with favourable recovery and who have maintained good heart health without significant complications, insurers may consider offering a traditional policy. For instance, an insurer may offer traditional coverage to an applicant with a heart attack over ten years ago and with a stable recovery period. 

Simplified-issue life insurance

Simplified-issue life insurance is typically the first option worth considering for Canadians who have recovered from a heart attack, especially when your last cardiac event was several years ago. It is a type of life insurance underwriting for term or permanent policies that requires applicants to answer a limited number of health questions or fill out a questionnaire without needing to complete a medical exam or give blood or urine samples. While approval is faster, premiums are typically higher than those of traditionally underwritten policies. 

Canadian applicants with stable cardiac health, consistent treatment, and no major complications may qualify for simplified term or permanent insurance. However, simplified-issue policies can also deny coverage to those with recent heart attacks or serious complications.

Guaranteed-issue life insurance

Guaranteed issue life insurance is often a last-resort alternative for Canadians with active heart conditions, recurring heart attacks, or serious cardiovascular complications who cannot qualify for simplified-issue life insurance. In these policies, applicants do not need to answer any medical questions or undergo examinations. Acceptance is generally guaranteed as long as the applicant meets basic eligibility requirements, such as age and residency.

This policy type is often the most accessible option for heart attack survivors with serious medical conditions or those who have recently recovered from any cardiac event and who have difficulty qualifying for life insurance coverage. Guaranteed issue policies feature the highest premiums and lower coverage limits, owing to the high risk assumed by the insurer. 

It is also worth noting that the guaranteed-issue policies may commonly have a 2- to 3-year waiting period for natural causes. During this time, if the insured dies from an illness or natural cause, the insurer may refund paid premiums or pay a reduced or graded death benefit.

Top 6 life insurance companies for heart attacks and heart conditions in Canada

Since our recommendations primarily focus on applicants with a history of heart attacks or other cardiac conditions, we have prioritized simplified-issue plans for individuals with stable recovery, and guaranteed-issue policies for individuals who may face difficulty qualifying for traditional coverage.

Here’s an overview of the six best life insurance companies for Canadians with heart attacks and heart conditions:

1. Canada Protection Plan

Canada Protection Plan (CPP) is well suited for Canadian applicants with serious heart concerns and complicated medical histories. The lineup includes multiple simplified, deferred, and guaranteed-acceptance options across term and permanent insurance. Rather than having a single no-medical policy, the insurer offers a wider range of underwriting categories and more accessible applications.

The Simplified Elite Term plan provides up to $500,000 in coverage, with protection beginning as soon as the policy is issued. This makes it ideal for individuals with stable heart conditions looking for financial protection for their loved ones. The insurer offers both term and permanent coverage, making it ideal for Canadians to align coverage with their financial obligations. Applicants with a stable cardiac history may be considered, depending on their answers to the health questionnaire.

For individuals with severe health conditions or a recent heart attack who cannot qualify for the Simplified Elite Term plan, CPP offers the Guaranteed Acceptance plan, which is a permanent policy offering up to $50,000 in coverage for eligible applicants between 18 and 75.

2. iA Financial Group

iA Financial Group is a strong choice for Canadians with heart conditions, since the insurer’s Access Life plan provides different eligibility levels based on the applicant’s medical history. This progressive series of tiers, instead of the conventional approved or declined model, makes it easier for Canadians with more complex cardiac conditions to potentially seek coverage. 

Depending on their answers, applicants may qualify for Guaranteed Access, Deferred, Deferred Plus, or Immediate Plus coverage. Access Life offers both term and permanent policies, with coverage of up to $500,000. Applicants whose heart attack occurred more than three years ago can also qualify for the Deferred Plus or Immediate Plus, provided they meet the additional eligibility requirements.

However, if an applicant cannot qualify for the simplified-issue tiers, iA offers the Guaranteed Access plan as a fallback option. It offers up to $50,000 for applicants between 18 and 50, while those above 50 are limited to $25,000 in coverage.

3. Assumption Life

Assumption Life is another strong option for Canadians with active or serious heart conditions since the insurer offers permanent life insurance without a medical exam. The Platinum Protection Plan is a simplified-issue policy with whole life or term life options that can offer up to $750,000 to eligible applicants aged 18 to 50, making it ideal for those with stable heart conditions seeking higher coverage amounts.

Meanwhile,  the Bronze Protection provides a guaranteed-issue option for individuals with more serious heart concerns or a recent heart attack. The plan offers up to  $50,000 for ages 18–75 and $25,000 for ages 76–80, with a deferred death benefit during the first two years after the purchase of the policy. Assumption Life uses 19 questions for Platinum, 13 for Golden, nine for Silver, and none for Bronze.

Assumption Life’s simplified underwriting is particularly relevant for heart attack survivors in Canada since the insurer’s eligibility distinguishes applicants by time since diagnosis or hospitalization. The Golden Protection plan may be available after more than three years, while an applicant may be eligible for Platinum Protection more than five years after a cardiac event. 

Assumption Life’s Silver tier may be available for applicants whose heart attack occurred more than two years ago. However, the insurer may offer a deferred death benefit. Meanwhile, Bronze can be the fallback option if you have had a recent heart attack and cannot qualify for the other tiers.

4. Manulife

Manulife is one of the leading options for Canadians with serious heart conditions looking for higher amounts of coverage and permanent protection. The insurer’s Guaranteed Issue Life Insurance does not require any medical questions or evidence of insurability, making it ideal for complex cases. 

Eligible applicants between the ages of 18 and 70 can obtain up to $100,000 in coverage, while those between 71 and 75 can apply for up to $50,000. In addition, policyholders may be able to obtain a cash advance on a portion of the death benefit if they are diagnosed with a terminal illness after the policy starts.

5. Sun Life

Sun Life is an ideal insurer for Canadian heart patients seeking straightforward and hassle-free guaranteed-issue life insurance. The insurer’s Sun Life Go Guaranteed Life Insurance offers permanent life insurance, making it great for those seeking lifelong coverage. Individuals between the ages of 30 and 74 can choose between $5,000 and $25,000, making it ideal for leaving behind a small legacy or covering funeral costs.

In addition, policyholders may be able to obtain a cash advance of up to 50% of the death benefit if they are diagnosed with a terminal illness after the policy starts, subject to Sun Life’s discretionary approval. This amount will be deducted from the final death benefit once it is paid out. Policyholders can also request additional coverage of up to $25,000 total if they need more.

6. UV Insurance

UV Insurance is ideal for applicants with stable to moderate heart conditions who want flexible term lengths to align with their financial obligations, like a mortgage or debt, without having to worry about medical exams. The insurer offers Express and Immediate simplified underwriting processes, allowing eligible applicants to secure term or whole life coverage without hassle. 

UV’s Express policies offer coverage of up to $150,000 as a term or whole life policy, without any medical requirements like medical exams or blood tests. Meanwhile, the Immediate tier is designed for Canadians seeking higher coverage amounts and offers up to $499,999 for applicants aged 18–45. 

However, the insurer’s standout feature is its willingness to reconsider applications that have been declined, postponed, rated, or modified by other insurers. This makes UV Insurance worth considering for applicants who were previously declined coverage by another insurance company. It is also worth noting that UV Insurance does not offer any guaranteed-issue policies.

How we chose the best life insurance companies for Canadians with heart conditions

PolicyAdvisor reviewed more than 30 Canadian life insurance companies before shortlisting the six insurers that stood out most for their benefits tailored to accommodate heart attacks and related heart conditions in Canada. Since applicants are typically comparing policies due to underlying health conditions, we considered insurers that were favourable for applicants with previous insurance declines, different age profiles, and the option to avoid medical testing.

We placed the greatest weight on policy accessibility, considering how insurers accommodate applicants with different cardiac histories through simplified-issue and guaranteed-issue coverage. In addition, we compared maximum coverage amount, issue age, term and permanent options, as well as the ease of application. We also placed particular emphasis on the availability of different eligibility tiers for applicants, making it easier for them to obtain coverage.

We have excluded pricing from our methodology since life insurance premiums for applicants with heart conditions vary significantly based on the type and severity of the condition, treatment history, time since diagnosis or a cardiac event, making standardized price comparisons unreliable.

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.

After selecting the six insurers, we scored each company out of 5, using the same weighted factors. A 5/5 insurer performs especially well across both accessibility and policy flexibility, while a 4.5/5 insurer remains a strong option but may have higher underwriting requirements, fewer plan tiers, or more requirements for cardiac patients. The underlying weighted result was then rounded to the nearest 0.5 for the displayed overall rating.

PolicyAdvisor ratings for the six best life insurance companies for cardiac patients in Canada

Does life insurance pay out if someone dies from a heart attack?

In most cases, yes, standard life insurance policies will pay out if someone dies from a heart attack. This is because it usually counts as a natural cause, along with other conditions like:

• Cancer
• Infectious diseases
• COVID-19
• Stroke
• Old age

Does life insurance cover other types of heart conditions?

Yes, death caused by heart conditions like cardiomyopathy, heart murmur, or Cardiac ischemia will still count as a natural death for most existing life insurance policies in Canada. If an individual passes away while a policy is active, their beneficiaries will receive the death benefit.

How long after a heart attack can you apply for life insurance?

The time required before applying for life insurance depends on the type of policy and the applicant’s medical circumstances. Guaranteed issue policies typically do not have a medical recovery period, while simplified-issue policies and their eligibility may depend on when you had your last cardiac event.

Here’s a handy guide to understand the timeline:

Note: These are general illustrations, not fixed approval timelines. The availability of coverage depends on the insurer, medical history, and policy eligibility criteria. Eligibility depends on the severity of the heart condition, time since diagnosis or hospitalization, treatment history, current cardiac stability, and other medical factors. Some insurers may consider applicants earlier or require longer recovery periods.

What questions do insurers ask about heart attacks and cardiac conditions?

Canadian applicants with heart conditions seeking simplified-issue life insurance may need to answer questions about their heart health and medical history. While the number and type of questions vary by insurer, you may be asked one or more of the following questions:

Note: The questions listed above are illustrative and based on general underwriting practices followed by Canadian life insurers. They are not an exact or exhaustive list. Actual questions may vary depending on the insurer, policy type, applicant’s medical history, and underwriting requirements.

How to improve your chances of getting life insurance after a heart attack

While your health is the best way to ensure you receive favourable coverage, taking certain steps can help insurers identify suitable coverage for you:

• Maintain regular cardiac follow-ups: Documented treatment and stable medical records may help when seeking simplified-issue life insurance
• Keep your medical records available: Information pertaining to past surgeries, hospitalizations, medications, and recent cardiac investigations can support underwriting
• Disclose your health history accurately: Answer all application questions truthfully to reduce the risk of coverage or claim issues down the line
• Compare multiple insurers: Canadian insurers have different underwriting requirements and risk tolerances. Another insurer may assess your cardiac history more favourably and offer coverage or a rated policy
• Speak to an advisor: Our licensed advisors can help you understand your coverage options and benefits
• Review the policy’s benefit restrictions: Confirm what beneficiaries would receive if a heart-related death occurs during the first few years

Is a heart attack considered a critical illness?

Yes, a heart attack is considered a critical illness. But critical illness insurance and life insurance are different types of policies that cover different things.

Critical illness insurance is a living benefit that’s meant to help replace lost income if someone is recovering from a life-threatening illness. Life insurance only provides a death benefit to someone’s loved ones if/when they pass away.

Critical illness insurance absolutely covers heart attack. And, it’s one of the reasons why we recommend this kind of coverage so strongly. Heart disease is the second leading cause of death in Canada, just behind cancer (source: Statistics Canada). With such high chances that you could be diagnosed with one of these illnesses, having financial coverage in place can give you peace of mind just in case the worst happens.

Just as with life insurance, though, it may be difficult to get critical illness coverage after you already had a heart attack. In this case, guaranteed acceptance critical illness insurance may be the only option available.

Read the full list of health conditions covered by critical illness insurance. 

How to buy life insurance after a heart attack in Canada

PolicyAdvisor’s licensed life insurance advisors can help you compare life insurance options from 30+ leading Canadian insurers based on your age, medical history, time since the cardiac event, treatment status, and budget.

Whether you have experienced a recent heart attack, undergone cardiac surgery, or previously been declined because of a pre-existing heart condition, our advisors can help you understand which policies may be available and find a plan that suits your financial goals.

Can you get life insurance after having a heart attack?

Yes, Canadians can get life insurance after a heart attack. Simplified-issue policies are often the most accessible option for applicants with stable heart conditions, while guaranteed-issue coverage is a last resort for applicants with severe heart conditions or those who cannot qualify for other coverage.  

Which life insurance company is best for heart attack survivors in Canada?

Manulife, Canada Protection Plan, iA Financial Group, Assumption Life, and Sun Life offer guaranteed-issue or guaranteed-access plans worth comparing for Canadians with serious heart conditions. Meanwhile, UV Insurance also offers simplified coverage for applicants who meet its health-question requirements and has considerations for those previously declined elsewhere.

Can you get life insurance immediately after a heart attack?

Yes, eligible applicants may be able to obtain guaranteed-issue life insurance without a waiting period. However, some policies restrict natural-death benefits during the first two years, so getting the policy immediately does not mean that your death benefit is guaranteed instantly.

Can you get life insurance after a heart stent?

Yes, applicants who have undergone a stent placement can qualify for guaranteed-issue life insurance. Alternatively, they may also qualify for simplified-issue coverage if the applicant satisfies the insurer’s threshold requirements.

Does accidental death insurance cover a heart attack?

Generally, no. Accidental death and dismemberment insurance covers qualifying deaths and injuries caused by accidents, whereas heart attacks are typically considered as natural medical events.