Which life insurance is the best to get?

It depends on what you are using life insurance for. A term life insurance policy is best if you want to cover short-term needs like your mortgage or other debts. A whole life insurance policy is best if you want coverage for life.

What is the number one life insurance company in Canada?

If you're looking at size and financial strength alone, Canada Life is the leading life insurance company in Canada. But you should also consider other factors when determining which is the best life insurance company for you.

What's the best amount of life insurance to get?

You should get at least 10-15x your annual income in life insurance as a minimum. But the best way to find out how much life insurance you need is to use an online life insurance calculator.

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

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

What is reinsurance and how does it work?

Reinsurance is a type of insurance that an insurance company can buy from an organization or group ( called a reinsurer) to transfer some or all of the financial risk it has undertaken. To put it simply, it is insurance for insurance companies. This can allow Canadian insurers to manage risk, increase their underwriting capacity, or use their available capital more efficiently. For most policyholders and applicants in Canada, this is something that works behind the scenes.

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What is reinsurance?

Reinsurance is insurance that an insurance company purchases from another insurer or reinsurance company to transfer part of the risk it has already accepted. The insurer can transfer part or all of certain risks to another organization. The insurer transferring the risk is also known as the ceding company, cedant, or reinsured. Meanwhile, the company assuming that risk is known as the reinsurer.

Essentially, reinsurance is a type of protection that insurance providers purchase to minimize their risk in the event of major claims, such as a natural disaster. A life insurer may decide that it does not want to retain the financial risk associated with all the policies it issues. Through a reinsurance agreement, the insurer can transfer an agreed portion of the liability or risk to a reinsurer.

Reinsurance allows insurance companies to share liability with other firms or organizations, especially in situations where the primary insurance company does not have enough cash reserves in place to pay out claims. This helps keep insurers afloat when large or multiple claims arise and ensures claimants receive the benefits they are entitled to.

What is a reinsurance company?

A reinsurance company, or reinsurer, is an insurance company that assumes some or all of the insurance risk originally accepted by another insurer. These companies enter into an agreement with an insurer to transfer, or cede, part of the insurer’s assumed risk, helping the insurer reduce liability and free up capital.

Reinsurance spreads the financial risk from one insurer to many other firms.

How does reinsurance work in Canada?

Reinsurance works by allowing an insurance company to transfer an agreed portion of the risks it has accepted to another insurance company. It involves two insurance companies: the insurer that originally accepts the insurance risk and the reinsurer that agrees to take on an agreed portion of that risk. These entities enter into an agreement under which the reinsurer assumes an agreed portion of the insurer’s risk. However, a reinsurance transaction can involve two or more parties, including multiple reinsurers.

An insurance company issues policies to thousands of Canadians but wants to limit how much insurance risk it retains on its own books. The insurer can then enter into a reinsurance contract that specifies the risks being transferred and how much of those risks the reinsurer will assume. If a covered loss occurs, the reinsurance contract determines the amount the reinsurer owes the original insurer. The original insurer can then use it to pay claims or manage financial liabilities.

Here’s how reinsurance works:

Insurer accepts a risk: An insurance company issues policies to consumers and assumes the financial risk associated with that coverage
Part of the risk is transferred: The insurer may decide to transfer a portion of the risk assumed to a reinsurer
Both parties enter into an agreement: The contract lays out which risks are covered and how liability is divided between the insurer and reinsurer
A covered claim occurs: If a loss covered by the reinsurance takes place, the reinsurer reimburses the insurer up to the amount or percentage stipulated in the agreement

For example, if a natural disaster destroys or damages thousands of homes in a region where one insurance company provides most home insurance coverage, that company may be hard-pressed to cover all the claims.

By using reinsurance, however, the insurance provider can recover part of the losses from other insurers while avoiding insolvency. In this respect, reinsurance not only protects insurance companies but also helps protect their clients by supporting the insurer’s ability to pay covered claims.

In addition to mitigating risk in extreme circumstances, reinsurance also enables insurance companies to increase their coverage capacity. Insurance companies are better equipped to take on clients with larger policy coverage because reinsurance can mitigate losses if the coverage is claimed. This is particularly useful since it enables insurers to take on more clients without increasing capital reserves accordingly.

What are the different types of reinsurance?

While there are many types of insurance one can buy, reinsurance can be structured in two primary ways: treaty reinsurance and facultative reinsurance.

Treaty reinsurance: This is a standing agreement between an insurance company and a reinsurer that covers specified classes or categories of the insurer’s risk. Under most treaty arrangements, eligible risks are automatically ceded to and accepted by the reinsurer, instead of requiring a negotiation each time. The treaty sets out details for the types of risks covered, limits, premiums, and how the insurer and reinsurer will share responsibility.
Facultative reinsurance: In this type, reinsurance is arranged for an individual policy or specific risk rather than an entire class of business. Each submission is considered separately, and both the insurer and reinsurer can decide whether to reject or accept that particular risk. Since each risk is individually reviewed and negotiated, facultative reinsurance is more selective than treaty reinsurance.

Here’s a comparison of treaty and facultative reinsurance:

Feature	Treaty reinsurance	Facultative reinsurance
Scope	Covers eligible risks within an agreed class or category	Covers an individual policy or specific risk
Acceptance	Eligible risks are covered according to the existing treaty terms	Each risk is considered separately and on its merits
Review	The reinsurer does not separately negotiate every eligible risk	The specific risk is individually reviewed
Structure	Ongoing agreement covering defined business	Individual reinsurance arrangement

Apart from these primary classifications, reinsurance can also be classified in the following ways:

Proportional reinsurance: The insurer and reinsurer share an agreed proportion of the premiums and losses of the reinsured company.
Non-proportional reinsurance: The reinsurer’s participation depends on the size of the loss. The insurer retains losses up to a specified amount, after which the reinsurer covers eligible losses above that amount, subject to limits and other terms of agreement.

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Why do life insurance companies use reinsurance?

Insurance companies primarily use reinsurance as part of their broader financial and risk-management strategy. It can help an insurer reduce insurance risk and financial volatility, stabilize solvency, or withstand catastrophic events that may trigger massive payouts. In addition, reinsurance can support underwriting capacity and provide access to a reinsurer’s expertise.

Here’s a quick overview of why insurance companies use reinsurance:

Manage insurance risk: Reinsurance lets an insurer transfer part of the risks it has accepted instead of retaining the entire exposure itself.
Increase underwriting capacity: Reinsurance can give an insurer additional capacity to take on insurance risks.
Manage capital efficiently: Reinsurance arrangements can also reduce the liability, freeing up more available capital.
Reduce financial volatility: Sharing risk with the reinsurer can help prevent financial collapse in the event of a massive payout
Protect against large losses: Reinsurance can reduce an insurer’s exposure to large or catastrophic losses
Access specialized expertise: Reinsurers can provide medical, actuarial, and risk-assessment expertise that can help insurers evaluate certain applications and claims.

How does reinsurance affect your life insurance application and claims?

While reinsurance is primarily an arrangement between insurance companies, it can sometimes play a role in how an insurer evaluates and manages a life insurance application.

Here’s how reinsurance can affect your life insurance application and claims:

Additional underwriting capacity: Reinsurance allows insurers to transfer part of the risk they take on. This can increase their capacity to insure larger or more complex risks, broadening their portfolio.
Access to specialized underwriting expertise: Reinsurers can provide medical, actuarial, and risk-assessment expertise that can help insurers evaluate certain applications and following claims.
Potential for additional application review: Some applications may be referred to a reinsurer for further assessment, allowing the reinsurer to better assess the risk or provide advice
Possible impact on the underwriting outcome: Reinsurance can potentially help an insurer consider risks it may not want to retain entirely on its own. This can let the insurer offer coverage to policyholders for higher-risk cases

Can my insurer share my medical information with a reinsurer?

Yes, your medical information may be shared with a reinsurer when it is necessary for insurance underwriting or risk evaluation, depending on the insurer and circumstances. Many insurers state that organizations with which they may share personal information can include other insurance and reinsurance companies.

proportional versus non-proportional reinsurance

Who do you deal with if your life insurance policy is reinsured?

In most cases, the policyholder continues their relationship with the insurance company that issued their policy. However, this may change depending on whether the insurer uses indemnity or assumption reinsurance.

Indemnity reinsurance: The reinsurer reimburses the insurance company for eligible claims. The insurer typically continues collecting insurance premiums and administering the policy, so policyholders do not deal directly with the reinsurer.
Assumption reinsurance: The reinsurer takes over responsibility for the affected policies, including eligible financial obligations and policy administration. Policyholders may be required to pay premiums to the reinsurer and receive coverage through them.

Insurance vs. reinsurance: what is the difference?

Insurance and reinsurance both transfer financial risk, but they serve different purposes and involve different parties. While insurance concerns individuals or businesses, reinsurance helps insurance companies manage their risks.

Here’s a quick comparison of insurance and reinsurance:

Feature	Treaty reinsurance	Facultative reinsurance
Scope	Covers eligible risks within an agreed class or category	Covers an individual policy or specific risk
Acceptance	Eligible risks are covered according to the existing treaty terms	Each risk is considered separately and on its merits
Review	The reinsurer does not separately negotiate every eligible risk	The specific risk is individually reviewed
Structure	Ongoing agreement covering defined business	Individual reinsurance arrangement

Which are the biggest reinsurance companies?

Many of the world’s largest reinsurers operate across multiple countries and work with insurance companies in several markets.

According to S&P Global, the top 10 biggest reinsurance companies based on gross premiums written for pure reinsurance business in S&P Global’s 2026 ranking:

Munich Reinsurance Co. (Germany)
Swiss Re AG (Switzerland)
Hannover Re (Germany)
Lloyd’s (United Kingdom)
Berkshire Hathaway Insurance Group (United States)
SCOR SE (France)
Reinsurance Group of America (RGA) (United States)
China Reinsurance (Group) Corp. (China)
Everest Group Ltd. (Bermuda)
RenaissanceRe Holdings Ltd. (Bermuda)

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Frequently Asked Questions

What does reinsurance mean?

Reinsurance is when an insurance company transfers part of the insurance risk it has accepted to another insurer or organization, known as a reinsurer. It is commonly referred to as insurance for insurance companies.

What are the main types of reinsurance?

Treaty reinsurance and facultative reinsurance are the two main types of reinsurance in Canada. Treaty reinsurance is a standing agreement between an insurance company and a reinsurer that covers specified classes or categories of the insurer’s risk, while facultative reinsurance is arranged for an individual policy or specific risk rather than an entire class of business.

Does reinsurance affect my life insurance policy?

Usually, reinsurance operates between your insurance company and its reinsurer rather than changing your direct relationship with the insurer. Typically, there is no change in where policyholders pay premiums.

Can my life insurance company share my application with a reinsurer?

An insurer may share relevant personal information with a reinsurance company for underwriting or risk assessment. This can happen when the insurer wants additional expertise or needs to determine how much of the risk it can retain itself versus transfer to a reinsurer.

Can reinsurance help an insurer offer more life insurance coverage?

Reinsurance can increase an insurance company’s underwriting capacity by allowing it to transfer part of its insurance risk. This can be especially relevant when an applicant is requesting a large amount of life insurance or when the insurer does not want to retain the full risk on its own.

What are the two types of reinsurance?

The two primary types of reinsurance used by insurers are treaty and facultative reinsurance. Treaty reinsurance covers a defined class of eligible risks, while facultative reinsurance considers each risk individually.

What is treaty reinsurance?

Treaty reinsurance is an agreement between the insurer and the reinsurer to cover a defined class or group of insurance business. It may automatically accept a portion of the insurer’s liability for specified classes of insurance.

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How much life insurance do I need in Canada?

According to a 2026 report published by LIMRA, the new annualized premiums reached a record $2.3 billion in 2025, up 9% year over year, while policy sales increased 4%. This data highlights how more people are now getting life insurance coverage in Canada. You should get at least 5 to 10 times your income in life insurance coverage; however, choosing the right amount also depends on factors such as your income, debts, mortgage, dependants, savings, and long-term financial goals.

How much life insurance should you have in Canada?

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

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

Yearly income	$100,000
Mortgage	$400,000
Other debts	$30,000
Children’s future education	$100,000
Savings	$100,000
Existing life insurance coverage through employer	$200,000
Estimated coverage	$1,000,000 + $400,000 + $30,000 + $100,000 − $100,000 − $200,000 = $1.23 million

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

How do I calculate how much life insurance I need?

The amount of life insurance you need depends on how much financial support your family would require if you died. Rather than relying on a single rule of thumb, consider the different expenses and financial obligations your policy may need to cover, along with the savings and insurance you already have.

The best way to figure out how much insurance you need is to use a life insurance calculator. These calculators perform an instant assessment of your personal and financial situation. They look at both your assets and liabilities. Then they estimate how much insurance you need to cover those liabilities.

To understand how that estimate is calculated, ask yourself these questions:

Outstanding debts

Your outstanding debts are one of the first things to consider because they could become a financial burden for your family after your death. Add up your mortgage, car loans, lines of credit, credit cards, and other outstanding loans to determine how much would need to be repaid. Life insurance can provide your beneficiaries with a lump sum they can use to pay these obligations without having to sell assets or rely on their regular income to make debt payments.

Family’s living expenses

After accounting for your debts, consider the ongoing expenses your family would still need to pay. These can include housing, food, utilities, childcare, transportation, insurance, and other household costs.

A dependent is anyone who needs your financial support. If you are the primary breadwinner in your household and/or have kids, then you already have dependents. You may also have elderly parents or disabled family members who depend on you financially. Their needs should all be considered when calculating the coverage amount. They will be the beneficiaries of the life insurance payout.

Future expenses

Once you have considered your debts and your family’s ongoing expenses, estimate how much of your income they would need to replace if you were no longer there.

Your family may not need to replace 100% of your after-tax income. Consider what percentage would be enough to maintain their lifestyle and meet their financial obligations.

For example, if you earn $100,000 annually and estimate your family would need 70% of that income, you would plan around $70,000 in annual income replacement. The number of years this support is required will depend on your age, dependants, retirement plans, and other household income.

Existing savings

Do you have any savings? Whether it’s in your bank account, an investment portfolio, an RRSP you opened at 19, or wads of cash stuffed under your mattress, any assets you have stored away can help reduce your life insurance coverage needs.

While some people reduce their life insurance coverage because they have savings, others may buy life insurance to protect it. That way, your dependents would not need to dip into savings that have been allocated for long-term growth (like investments) or sell assets.

Discuss with your dependents

Your coverage calculation should also reflect what your family would actually need. Discuss your finances with your spouse or other dependents and consider how your death would affect the mortgage, household expenses, childcare, education, retirement plans, and other financial commitments. This conversation can help identify expenses that may be missed in a basic calculation and give you a better idea of the financial cushion your life insurance should provide.

expanding on the DIME method for life insurance needs

How to calculate life insurance coverage using the DIME method

A life insurance calculator provides a more personalized estimate, but you can also use common rules of thumb to get a quick starting point.

DIME Method

The DIME method is often used by brokers and financial advisors to determine your life insurance needs on the fly. It stands for four major aspects that you should consider in your financial strategy: Debt, Income, Mortgage, and Education.

Debt: Add your outstanding debts other than your mortgage
Income: Estimate how many years of income your family would need to replace
Mortgage: Include the amount required to repay your outstanding mortgage
Education: Estimate future education costs for your children

The DIME method is useful as a starting point, but it does not account for everything that can affect your coverage needs. It may overlook your savings, existing life insurance, funeral expenses, investments, childcare costs, and other future financial obligations.

Is 10 times my annual income enough life insurance?

Another common rule of thumb is to buy 5 to 10 times your annual income in life insurance coverage. For example, someone earning $100,000 a year might consider $1 million to $1.5 million of coverage.

This approach is quick, but it does not account for individual circumstances. Someone with a large mortgage and young children may need considerably more coverage than another person with the same income but substantial savings and no dependants.

What type of life insurance should I choose?

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

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

Tips for choosing the right amount of life insurance

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

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

How much does life insurance coverage cost in Canada?

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

Cost of term life insurance (2026):

Coverage amount	Male (non-smoker)	Female (non-smoker)
$100,000	$9.45/month	$8.19/month
$250,000	$13.94/month	$10.58/month
$500,000	$21.60/month	$14.85/month
$1,000,000	$35.54/month	$22.95/month
$10,000,000	$310.50/month	$184.50/month

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

Age (in years)

Gender

Smoker

Yes

Coverage amount

How long should my life insurance coverage last?

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

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

How to get life insurance coverage in Canada?

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

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

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Frequently asked questions

How is life insurance coverage calculated?

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

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

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

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

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

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

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

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

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

Can I increase my life insurance coverage later?

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

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

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

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Cheapest life insurance in Canada (2026)

The cheapest life insurance policy in Canada is term life insurance, with premiums starting as low as $10 per month for young and healthy applicants. However, the most affordable life insurance policy for you depends on your age, health, coverage amount, and the insurer you choose. Some of the cheapest life insurance providers in Canada include Beneva, BMO, Canada Life, Desjardins, and a few others.

Quick summary:

Cheapest for	Company name
Term life insurance	Beneva
Whole life insurance	Foresters
No-medical life insurance	UV Insurance
Seniors	Canada Life

Age (in years)

Gender

Smoker

Yes

Coverage amount

Which type of life insurance is cheapest?

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

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

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

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

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

Age (in years)	Term life insurance	Whole life insurance	No-medical insurance
20	$10.08	$70.74	$14.40
30	$10.35	$100.35	$15.30
40	$14.13	$141.66	$19.26
50	$29.43	$223.61	$41.40
60	$86.85	$317.15	$131.13

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

What factors affect life insurance costs in Canada?

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

Personal risk profile:

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

Policy and payment structure:

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

Does gender affect premiums in Canada?

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

Which companies offer the cheapest life insurance plans in Canada?

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

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

Cheapest term life insurance companies

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

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

Cost of term life insurance by insurers

Age (in years)	Beneva	BMO	Canada Life
20	$10.80	$10.80	$11.36
30	$10.98	$11.34	$11.85
40	$14.85	$14.94	$16.30
50	$32.85	$32.85	$36.80
60	$97.11	$103.41	$107.46

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

Cheapest whole life insurance companies

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

Cost of whole life insurance by insurer

Age (in years)	Foresters	Desjardins	Sun Life
20	$70.74	$78.21	$91.17
30	$100.35	$105.66	$114.21
40	$141.66	$151.29	$166.23
50	$223.83	$235.26	$267.12
60	$319.41	$333.72	$346.41

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

Cheapest no-medical life insurance companies

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

Cost of no-medical insurance by insurers

Age (in years)	UV Insurance	Assumption Life	Canada Protection Plan (Foresters Life)
20	$13.50	$14.40	$18.00
30	$13.95	$15.30	$18.81
40	$14.85	$19.26	$20.16
50	$25.38	$41.40	$35.64
60	$80.37	$131.13	$87.66

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

What is the cheapest life insurance option for seniors?

Seniors can find the cheapest life insurance in Canada through traditional term life or no-medical exam policies. While the life insurance premiums for seniors are higher due to age and health risks, they can still find affordable coverage by comparing plans and choosing basic coverage amounts. Some of the companies offering cheap life insurance for elderly or seniors include Canada Life, Desjardins, and Sun Life.

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

Term life vs whole life insurance costs for seniors

Age (in years)	10-Year Term Life	20-Pay Whole Life
60	$98.33	$765.45
65	$173.03	$950.97
70	$293.40	$1,192.75
75	$557.33	$1,525.53
80	–	$2,070.90

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

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

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

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

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

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

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

What is the cheapest life insurance option for estate planning?

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

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

What is the most affordable life insurance option for smokers?

Smokers can get the most affordable life insurance in Canada with term life insurance. Although smokers pay higher premiums than non-smokers, term life still offers the lowest rates compared with other types of life insurance.

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

Some of the best life insurance companies, like Foresters, iA Financial Group, Beneva, Wawanesa, and a few other insurers, offer competitive term life policies for smokers. Premiums are higher; however, term life insurance remains the most budget-friendly option for smokers seeking substantial coverage at manageable costs.

Our methodology for the cheapest life insurance in Canada

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

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

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

Tips to get the most affordable life insurance premiums in Canada

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

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

How much does life insurance cost in Canada?

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

Our advisor’s take on cheapest life insurance in Canada

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

The client profile

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

Our advisor recommendation:

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

How to buy affordable life insurance through PolicyAdvisor?

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

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

Frequently asked questions

What is the cheapest type of life insurance policy?

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

Is the cheapest life insurance always the best option?

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

How much does the cheapest life insurance cost in Canada?

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

Who qualifies for the cheapest life insurance rates in Canada?

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

Which life insurance company is the cheapest in Canada?

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

Can I switch to a cheaper life insurance policy later?

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

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

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

What is the most expensive life insurance policy in Canada?

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

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

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

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

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Best Term Life Insurance in Canada: Company Reviews and Ratings

Term life insurance is one of the simplest ways to protect the people who depend on you. Whether you want to leave a legacy for your family, cover outstanding debts, or protect your business, the right policy can offer real peace of mind.

Every insurer prices and structures term coverage differently. Our licensed life insurance experts reviewed the top providers in Canada so you can compare your options and choose with confidence.

Which are the best term life insurance companies in Canada?

The best term life insurance companies in Canada for 2026 are Empire Life, Manulife, RBC Insurance, BMO Insurance, and Canada Protection Plan, standing out for financial strength, fast approvals, and competitive pricing. The right choice depends on your age, health, budget, and specific needs.

Quick glance: Best Canadian term life insurance companies

Here are the top 15 term life insurance companies in Canada and what they’re best known for:

Best term life insurance companies in Canada for 2026

1. Empire Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Solution 10, 15, 20, 25, 30 +
Annual Renewable Term (ART)

Avg. cost

Female: $225
Male: $325

AM Best Rating

LICAT Ratio

150%

Company overview and financial strength:

Empire Life offers a range of term life insurance options through its Solution series, including Term 10, 15, 20, 25, and 30. These plans provide level-premium coverage with flexible renewal and conversion options to permanent policies. Designed to suit different life stages, they work well for covering financial needs like mortgages, income replacement, or short- to mid-term liabilities.

Unique selling point (USP): Empire Life lets you bundle solution series and critical illness coverage for you and your spouse into a single plan, helping reduce overall costs with just a single policy fee.

Our advisor’s take on Empire Life:

We give Empire Life a solid 5/5 and rate them as the best insurer for personalization. They give you a lot of options to choose from based on what works best for you. Their solution series offers Solution 10, 15, 20, 25, and 30. You can get an annual renewable term that lasts for 1-year increments.

For the first 7 years, you can swap a Solution 10 or 15 for a Solution 20 or 30 without a medical exam. If you decide you want to turn part of your term policy into permanent insurance, Empire now allows you to “carry over” the remaining term balance as a rider on the new policy with no medical evidence.

2. Manulife

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10, 20, 30 or to age 65

Avg. cost

Female: $250
Male: $346

AM Best Rating

LICAT Ratio

136%

Company overview and financial strength:

Manulife’s term life insurance offers flexible protection through options like Family Term and Family Term with Vitality Plus, designed for both individual and multi-life coverage. These plans provide level premiums (Term 10, 20, 30 or to age 65), high coverage limits, and the ability to insure multiple family members under one policy. Both options include useful features like terminal illness benefits, optional riders, and added support such as bereavement counselling.

Unique selling point (USP): The Manulife Vitality program rewards policyholders for maintaining a healthy lifestyle. With Manulife Vitality, policyholders can get gift cards, discounts, and even an Apple Watch!

Our advisor’s take on Manulife:

We give Manulife 5 stars as well and rate them as the best for digital innovation. This company almost needs no introduction. It’s one of the biggest insurers not just in Canada but in the entire world, an industry leader in every sense.

Manulife was one of the first companies to take the life insurance process online in Canada. Their underwriting uses an advanced AI engine (MAUDE) to approve up to $2 million in life insurance without needing a medical exam.

3. RBC Insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10-40 years (custom)

Avg. cost

Female: $244
Male: $330

AM Best Rating

LICAT Ratio

135%

Company overview and financial strength:

RBC’s YourTerm Life Insurance stands out for its high level of customization, allowing you to choose any term length between 10 and 40 years to match your exact financial timeline. It supports high coverage amounts (up to $25 million) and offers the flexibility to layer multiple terms within a single policy, helping you align coverage with different needs like mortgages, loans, or income protection.

Unique selling point (USP): RBC offers some of the best term products on the market at the most affordable premiums. Term exchange lets policyholders exchange a Term 10 policy with a Term 15, 20, or 30 policy without additional medical underwriting.

Our advisor’s take on RBC Insurance:

We give RBC Insurance 5 stars and rate them as the best company if you want value for money. They have some of the most competitive premiums in the Canadian life insurance market. The insurance company allows you to convert YourTerm to permanent insurance up to age 71 without a medical exam.

If a policyholder is diagnosed with a terminal illness (less than 12 months to live), RBC automatically includes a provision allowing you to access a portion of the death benefit early to help with medical or living expenses.

4. BMO Insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10, 15, 20, 25, 30 years (fixed)

Avg. cost

Female: $220
Male: $330

AM Best Rating

LICAT Ratio

134%

Company overview and financial strength:

BMO’s term life insurance is designed to be simple, structured, and easy to manage, offering fixed terms of 10, 15, 20, 25, and 30 years that align with common financial milestones like mortgages or child-rearing years. Despite its straightforward approach, it provides high coverage limits, guaranteed renewals up to age 85, and the option to convert to permanent insurance. The plan also includes a Term Exchange feature, allowing you to switch to a longer term without additional medical underwriting.

Unique selling point (USP): BMO Insurance includes a Business Guaranteed Insurability Option (a rider not commonly available with most insurers), allowing you to increase coverage as your business grows without additional medical underwriting.

Our advisor’s take on BMO Insurance:

We give BMO Insurance 5 stars and rate them as the best company if you’re looking for value for money. Their term life insurance is a great option for just about anyone, like individuals, couples, or business owners.

By combining the speed of Rovr AI for near-instant approvals with their unique Empathy partnership to support grieving families, BMO provides an ideal term plan that consistently delivers the best “value for money” in the Canadian market.

5. Canada Protection Plan

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Express Elite Term
Simplified Elite Term
Deferred Term

Avg. cost

Female: $315
Male: $405

AM Best Rating

LICAT Ratio

188%

Company overview and financial strength:

Canada Protection Plan focuses on simplified and no-medical term life insurance, offering options like Express Elite Term, Simplified Elite Term, and Deferred Term. These plans are designed for quick approval with minimal or no medical requirements, making them ideal for applicants with health concerns or those seeking hassle-free coverage. While coverage may be lower compared to fully underwritten policies, they provide accessible protection with flexible term options and easy online application.

Unique selling point (USP): The company offers simplified, no-medical coverage for applicants across all health categories. Most products are available through a quick, simple online application without any medical tests.

Our advisor’s take on Canada Protection Plan:

We give Canada Protection Plan 5 stars and rate them as the best provider for No-Medical policies. Express Elite is their best product for healthy individuals who just want to skip the medical visit, while Deferred Term is for those with more serious health histories.

It is easy to get their coverage even if you are considered ‘hard to insure’ by other insurers. They are also known for speed and certainty, delivering approvals in as little as 24-48 hours. The company offers their services to temporary residents, including students and work visa holders.

6. Sun Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Evolve Term
Term for Diabetes
Bridge Term

Avg. cost

Female: $270
Male: $380

AM Best Rating

A+

LICAT Ratio

143%

Company overview and financial strength:

Sun Life Evolve Term is a highly flexible term life insurance option designed to adapt as your needs change. It offers customizable coverage with higher limits and the ability to convert to permanent insurance without additional medical underwriting. Compared to the simpler Sun Life Go Term (meant for quick, lower-coverage applications), Evolve Term is better suited for long-term planning. It also offers a wide range of term lengths (choose any term between 5 to 40 years). This makes it easier to align coverage with different obligations like mortgages.

Unique selling point (USP): Sun Life stands out for its extensive product range, high coverage limits, flexible term options, and robust living and rider benefits.

Our advisor’s take on Sun Life:

We give Sun Life Insurance 4.5 stars for long-term flexibility, offering custom term lengths from 5 to 40 years alongside underwriting tailored for those managing diabetes. Sun Life term for Diabetes is a first-of-its-kind product for Canadians with diabetes (type 1, type 2, gestational, or pre-diabetes) offering higher approval chances, and access to a Diabetes Care Program through Diabetes Canada. While Sun Life’s term policies have standard features and optional benefits that can compete in the market, their premiums may cost slightly more than those of some other companies.

7. Assumption Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

FlexTerm
Golden Protection Term
Platinum Protection Term
Youth Plus

Avg. cost

Female: $245
Male: $345

AM Best Rating

A-

LICAT Ratio

167%

Company overview and financial strength:

Assumption Life offers flexible term life options such as FlexTerm and Platinum Protection, designed for easy access and straightforward coverage. A key highlight is its strong focus on simplified and no-medical plans, allowing faster approvals with minimal underwriting. These plans are well-suited for those looking for quick, hassle-free protection, with options to cover short- to mid-term financial needs and the ability to convert to permanent coverage later on.

Unique selling point (USP): Assumption Life offers a wide range of non-medical policies designed for those looking to qualify without medical underwriting.

Our advisor’s take on Assumption Life:

We give Assumption Life Insurance Company 4.5 stars and rate them as the best term life insurance provider for Simplified Issue policies. These policies do not ask you to do a medical exam, but may have some simple medical questions on the application. Assumption Life offers 4 different types of non-medical policies, making them a great option for people who may have health issues. You can also get bigger amounts of coverage if you opt for full underwriting.

However, when it comes to claims processing, only 62% of claims were processed within their 5-day target timeframe (industry average: 72%). Also, the policy lacks partial access to death benefits for terminal illness (provided by other competitors), hence the 4.5 rating from our side.

8. Industrial Alliance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Pick-A-Term
Term 10
Term 20
Term 25
Term 30
Term to 100

Avg. cost

Female: $245
Male: $340

AM Best Rating

A+

LICAT Ratio

134%

Company overview and financial strength:

Industrial Alliance offers highly flexible term life insurance through its Pick-A-Term feature, allowing you to choose a custom coverage duration instead of sticking to fixed terms. Options typically range from 10 to 40 years, with level or decreasing coverage structures to match needs like mortgages or income protection. The plans also include conversion options to permanent insurance and added flexibility in premium structure, making them well-suited for those who want more control over how their coverage is designed.

Unique selling point (USP): Industrial Alliance’s Superior Risk Tolerance Program is designed to offer more flexible underwriting for individuals with complex or higher-risk profiles, something not commonly accommodated across insurers.

Our advisor’s take on Industrial Alliance:

We give Industrial Alliance (iA) 4.5 stars and rate them as the best for flexibility. They’re one of the few insurers that let you customize your term length with their unique Pick-A-Term product. You can pick anywhere between 10 and 40 years for term coverage with iA Financial Group, letting you match your term insurance with any specific number of years, like if you’re using life insurance to cover your mortgage. However, the premium rates may be higher than those of some competitors for similar coverage.

9. Canada Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

My Term Life Insurance (Term 5 to 50 years)

Avg. cost

Female: $244
Male: $338

AM Best Rating

A+

LICAT Ratio

130%

Company overview and financial strength:

Canada Life offers a wide range of term life insurance options, including Term 10, Term 20, Term 30, Pick-a-Term, and coverage up to age 65. Its standout feature is flexibility, allowing you to tailor coverage duration and convert to permanent insurance as your needs evolve. With options that support long-term planning, business protection, and family coverage, Canada Life’s term plans are well-suited for those looking for adaptable, future-ready protection across different life stages.

Unique selling point (USP): Canada Life’s SimpleProtect offers a faster, simplified application process with digital-first underwriting, allowing eligible applicants to get coverage quickly with fewer medical requirements compared to traditional policies.

Our advisor’s take on Canada Life:

We give Canada Life Assurance Company 4.5 stars for its financial strength. This is to be expected considering they’re the biggest insurance companies in Canada. They’re extremely stable, and they have great life insurance policy options to boot. However, there is a minimum requirement of $100,000 coverage or a $500 annual premium required. There is also limited access to online account features, and hence the 4.5 star rating.

10. Equitable Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10, 20 and Term 30/65

Avg. cost

Female: $239
Male: $337

AM Best Rating

LICAT Ratio

159%

Company overview and financial strength:

Equitable Life offers flexible term life insurance options including Term 10, Term 20, and coverage up to 30 years or age 65. These plans come with guaranteed renewability up to age 85 and full convertibility to permanent insurance, giving long-term flexibility as your needs evolve. Coverage ranges from $50,000 to over $10 million, and policies can be structured as single life, joint first-to-die, or multi-life, making them suitable for individuals, couples, and families looking for adaptable protection.

Unique selling point (USP): They are great for a strategy called “laddering”, where you only pay for coverage as you need it.

Our advisor’s take on Equitable Life:

We give Equitable Life 4.5 stars and rate them as the best company for families. They make it easy for you to add coverage for multiple people on one policy. This helps families save on fees and put some cash back in their wallets. However, they offer fewer term life insurance options than some competitors. The company is also not AM Best rated, which may affect buyer confidence, hence the 4.5 rating from our side.

11. Beneva

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term Plus (Term10, 15,20,25,30 35,40)

Avg. cost

Female: $225
Male: $330

AM Best Rating

LICAT Ratio

163%

Company overview and financial strength:

Beneva primarily offers its Term Plus plan, which is designed for flexibility and customization across different life stages. It provides a wide range of term lengths (typically 10 to 40 years), along with features like guaranteed renewability, conversion to permanent insurance, and the ability to extend coverage without new medical underwriting. A key strength of Term Plus is its built-in flexibility, such as the option to increase coverage as your needs grow and an exchange program that allows you to switch to a longer term without medical evidence.

Unique selling point (USP): Beneva includes an Extreme Disability Benefit (EDB) with eligible life insurance policies, an added layer of protection not commonly bundled by default. It also offers coverage starting as low as $25,000, making insurance more accessible.

Our advisor’s take on Beneva:

We give Beneva Life Insurance 4.5 stars and rate them as the top provider if you want combined coverage. Their insurance products, riders, and features let you get a lot of different types of insurance in one place. Beneva includes an Extreme Disability Benefit for free in all of its life insurance plans (which is rare). The only con is longer turnaround times for policy approval, other than no-medical plans.

12. Desjardins

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10, 15, 20, 25, 30, and Term to 65

Avg. cost

Female: $235
Male: $320

AM Best Rating

LICAT Ratio

Company overview and financial strength:

Desjardins offers a range of term life insurance options including 10, 15, 20, 25, and 30 years, as well as coverage up to age 65. These plans come with fixed premiums, guaranteed renewability (typically up to age 85), and full convertibility to permanent insurance without medical evidence. Designed for flexibility, they allow you to adjust coverage as your needs change and are well-suited for covering temporary financial responsibilities like mortgages or family protection.

Unique selling point (USP): As part of the Desjardins Group’s cooperative model, the insurer emphasizes community focus, member dividends, and a values-driven approach rather than a purely shareholder profit model.

Our advisor’s take on Desjardins:

We give Desjardins 4 stars and rate them as the best company for seniors. The company offers a breakthrough senior-focused no-medical product with high acceptance rates. However, Desjardins offers just six fixed-term lengths, whereas some other providers provide fully customizable term durations to better suit individual needs. The rates may not be the most affordable, meaning that Desjardins isn’t always the lowest-cost option for younger, healthy applicants, and hence the 4-star rating from our side.

13. Foresters Financial

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10, Term 20, Term 30

Avg. cost

Female: $335
Male: $230

AM Best Rating

LICAT Ratio

188%

Company overview and financial strength:

Foresters offers straightforward term life insurance with options like Term 10, 20, and 30, designed for affordable, fixed-premium coverage over a defined period. These plans are renewable and convertible to permanent insurance without additional medical underwriting. A key differentiator is its member benefits model, which includes perks like scholarships, financial counselling, and community programs alongside insurance coverage.

Coverage typically ranges from $50,000 to $5 million, with optional riders such as children’s coverage and charitable benefits, adding extra value beyond standard term plans. Foresters also offers Bereavement Assistance, where beneficiaries may be reimbursed up to $1,000 for counselling services to help them deal with their loss.

Unique selling point (USP): The company is known for its charitable benefit feature. In addition to the death benefit, when a claim is paid to the beneficiaries, Foresters will donate 1% (up to a maximum of $100,000) to the eligible designated charitable organization you choose.

Our advisor’s take on Foresters:

We’ve given Foresters Financial 4 stars and rate them as the best company for their charitable benefits. Many of their products come with a unique perk: a charitable benefit feature where they will donate to a charity of your choice on your behalf. Foresters is also a great choice if you have changing needs. Their term insurance is simple and straightforward, but they also have options that give you better coverage if your needs change in the future and you need insurance to match that.

The plans may come with MyForester member benefits, which include grants, scholarships, access to well-being programs, and more, for policyholders. However, there are digital limitations with no online access to view or manage policy details. It is also not AM Best rated, which may concern some buyers. The prices tend to be higher than those of many competitors, and hence the 4/5 rating from our side.

14. Wawanesa

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10, 15, 20, 25, 30 and a unique term to age 80

Avg. cost

Female: $260
Male: $340

AM Best Rating

LICAT Ratio

165%

Company overview and financial strength:

Wawanesa offers term life insurance through its Lifetime Term plans, with flexible options including 10, 15, 20, 25, and 30 years, as well as coverage to age 80 or even age 100. These plans come with level premiums, guaranteed renewability, and the option to convert to permanent insurance without medical evidence. Policies can continue beyond the initial term with renewals and eventually provide lifetime coverage, making it a strong fit for those who want affordable term protection with extended security and flexibility over time.

Unique selling point (USP): Wawanesa uses current-age pricing, meaning your premiums are calculated based on your exact age at the time of application. Unlike some insurers that round your age up if you’re close to your next birthday, Wawanesa prices policies using your actual age, which can help lower costs.

Our advisor’s take on Wawanesa:

We give Wawanesa 4 stars and rate them as the best for their prices. Their premiums are often among the lowest in the industry, and you get your pick of either term policies from 10-30 years or up to age 80. Wawanesa can also be a good option if you want to layer your coverage.

You can get a base term plan, then add up to four term life insurance riders with different term lengths. You can do this all in one policy. The term policies are convertible, but the downside is that they can only be converted into non-participating permanent products.

15. Humania Assurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Term life insurance policies offered

Term 10 to 100

Avg. cost

Female: $245
Male: $345

AM Best Rating

A+

LICAT Ratio

184%

Company overview and financial strength:

Humania Assurance offers flexible term life insurance solutions designed for individuals and families looking for customizable long-term protection. Coverage amounts range from $50,000 to $5 million, with term options extending from 10 years up to age 100. The insurer also allows policy conversion to permanent life insurance before age 65 and offers added flexibility through child coverage without eligibility questions, along with optional critical illness and disability coverage for debt protection.

Unique selling point (USP): Humania stands out for its highly flexible coverage structure, offering term lengths up to age 100 along with built-in family-focused benefits like child coverage without medical questions and optional debt protection add-ons.

Our advisor’s take on Humania Assurance:

We’ve given Humania Assurance 4/5 stars and rate them as the best company for quick-issue policies. Their main term life insurance product is designed for quick approvals. You need to simply answer a few eligibility questions. The policies are also competitively priced. However, the conversion option to permanent life insurance is only available up to age 65. Moreover, the provider is also not AM Best rated, which may concern some buyers, and hence the 4-star rating from our side.

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

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

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

What we evaluated

We assessed each insurer using the following factors:

1. Premium competitiveness

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

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

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

2. Financial strength

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

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

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

3. Term length and coverage flexibility

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

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

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

4. Conversion and renewal options

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

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

5. Underwriting and accessibility

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

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

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

6. Policy features and additional benefits

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

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

7. Coverage amounts and product range

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

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

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

8. Advisor expertise and best-fit analysis

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

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

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

How our rankings work

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

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

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

Keeping our comparison current

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

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

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

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

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

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

1. Financial strength and stability

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

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

2. The “Conversion Privilege” rules

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

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

3. Underwriting flexibility and speed

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

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

4. Available riders (Policy Add-ons)

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

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

5. Claims reputation and bereavement support

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

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

How to get the best term life insurance in Canada?

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

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

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

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

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

Frequently asked questions

What’s the cheapest life insurance in Canada?

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

Which is the top term life insurance company in Canada?

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

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

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

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

How to get the best quotes for term life insurance?

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

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

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

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

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

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

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Best Life Insurance Companies in Canada (2026)

Choosing the best life insurance company in Canada depends entirely on your specific financial goals. However, with so many Canadian providers out there, trying to compare them all on your own can get overwhelming. That’s exactly why our team of licensed insurance advisors reviewed and rated the top Canadian insurers for 2026 to help you confidently select the right coverage.

Quick picks: Best life insurance by need

Need / Buyer Type	Top Picks	Best For
Term Life	RBC, Canada Life, iA Financial	Flexible term lengths
Whole Life	Sun Life, Equitable Life, Empire Life	Market-leading dividend scales
No-Medical Coverage	Assumption Life, Canada Protection Plan (CPP), iA Financial	Fast approval without medical exams
Parents	Equitable Life, Beneva, iA Financial	Child riders & automatic newborn coverage
Seniors (50+)	Desjardins, Wawanesa	Guaranteed-issue coverage for ages 50–75
Business Owners	Canada Life, Sun Life, BMO	Business value protection riders
Doctors & Professionals	RBC, Manulife, Canada Life	Income-based underwriting & high coverage limits
Smokers & Tobacco Users	Foresters, iA Financial, Canada Life	“Quit Smoking” incentive pricing
Pre-Existing Conditions	Canada Protection Plan (CPP), Desjardins, Assumption Life	More lenient underwriting
Children	Humania, Foresters, Equitable Life	Features such as zero-medical child riders

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

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Which are the best life insurance companies in Canada?

The best life insurance companies in Canada vary by your specific needs. Leading choices include Manulife, Sun Life, Empire Life, Canada Life, Industrial Alliance and more. Below we break down exactly how each of these top companies delivers on its strengths, and where they might fall short, so you can choose the right insurance company for your life stage.

Top life insurance companies in Canada and their key strengths

1. Manulife

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Family Term (with Vitality Plus)
Manulife Par (Wealth & Estate)
Manulife Universal Life
CoverMe (Easy & Guaranteed Issue)

Best for

Health-conscious individuals willing to use the Vitality app

AM Best Rating

A+

LICAT Ratio

136%

Company overview and financial strength:

As Canada’s largest insurance company with global operations and $1.7 trillion in assets under management, Manulife demonstrates exceptional financial strength through diversified revenue streams, strong capital reserves, and consistent profitability across markets. The company focuses on digital innovation, wellness-linked benefits, and long-term value creation.

Types of life insurance offered by Manulife:

Product	Best For
Family Term (with Vitality Plus)	Health-conscious applicants
Manulife Par (Wealth & Estate)	Infinite banking & estate planning
Manulife Universal Life	Flexible permanent coverage
CoverMe (Easy & Guaranteed Issue)	Fast, no-medical coverage

Our advisor’s take: Who is Manulife best for?

Manulife is an industry giant and arguably the best option in Canada for health-conscious individuals who want to be financially rewarded for their active lifestyle. The Vitality program is completely unique in the Canadian market, allowing proactive clients to significantly lower their long-term premiums. Furthermore, for high-net-worth individuals utilizing the “Infinite Banking” strategy, Manulife Par’s Early Cash Value structure is heavily favored by financial advisors.

It is a strong fit for:

Health-conscious individuals willing to use the Vitality app to actively earn premium discounts
High-net-worth buyers utilizing the Infinite Banking strategy through early cash value policies
Buyers wanting built-in options to increase their term coverage in the first five years without a medical exam

Pros of Manulife life insurance

Wellness incentives: Manulife is the only Canadian insurer with the “Vitality” model. In 2026, Vitality Plus members can save up to 10% on their premiums by tracking steps, getting flu shots, and regular dental checkups
Early Cash Value: Certain Manulife Par designs (specifically “Wealth”) are engineered for Early Cash Value, where you can access up to 80% of your premiums as cash value as early as Year 1, making it ideal for the “Infinite Banking” strategy
The “5th Anniversary” Clause: Many Manulife term policies include a coverage increase option. You can increase your coverage amount without a new medical exam on the 1st through 5th anniversaries of the policy, provided you meet certain age requirements
Dividend Scale Stability: Manulife confirmed a 6.35% Dividend Scale Interest Rate (DSIR) for policies issued after 2018

Cons of Manulife life insurance

Vitality “Grind”: To keep your premium discounts, you must actively use the app and reach “Gold” or “Platinum” status. If you stop tracking your health, your premiums will revert to the standard rate
No Non-Par Whole Life: If you want a simple permanent policy without dividends, Manulife will steer you toward Universal Life or Term 100. They do not offer a “traditional” non-participating whole life product
Limited Dividend Options: Also, in Par whole life the dividend options are limited (only 2 Paid-up insurance & Cash) compared to other companies where they have Enhanced dividend option too.
Strict underwriting: Manulife is known for “Evidence-Based Underwriting.” While they are fast, they are less lenient with high-risk hobbies and certain medical conditions compared to other providers

2. Sun Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Sun Life Evolve Term
Sun Par (Protector II & Accumulator II)
SunUniversalLife II
Sun Life Go

Best for

Impressive product portfolio with multiple term, par and non-par plans

AM Best Rating

A+

LICAT Ratio

143%

Company overview and financial strength:

With over 150 years of history and $1.5 trillion in assets under management, Sun Life stands out for its extensive product range, high coverage limits, flexible conversion and payment options, and robust living and rider benefits. Its guaranteed issue and digital accessibility broaden its appeal, while strong financial backing and a trusted brand make it a top choice for Canadians seeking reliable, customizable life insurance solutions.

Types of life insurance offered by Sun Life:

Product	Best For
Sun Life Evolve Term (5 to 40 Years)	Highly customizable temporary protection
Sun Par (Protector II & Accumulator II)	Wealth accumulation & estate planning
SunUniversalLife II	Flexible permanent coverage
Sun Life Go (Simplified & Guaranteed)	Fast, no-medical coverage

Our advisor’s take: Who is Sun Life best for?

Sun Life is an incredibly strong option for buyers who want their insurance backed by a globally recognized, tier-one financial institution with an exceptional digital app experience. They are specifically known for their “extended conversion” privilege. If you buy a term policy in your 50s and your health deteriorates, Sun Life gives you until age 75 to swap it for a permanent policy, giving you years of extra breathing room compared to RBC or Manulife.

However, if you are a perfectly healthy 25-year-old just looking for the absolute cheapest Term 10 policy to cover a small starter home, Sun Life’s premium rates might be slightly higher than those of other online-only competitors.

It is a strong fit for:

Older term-insurance buyers who want the security of being able to convert to a permanent policy up to age 75
Individuals seeking a highly polished mobile app to manage their Universal Life investments
Investors who want to build their Universal Life cash value exclusively through ESG funds

Pros of Sun Life insurance

Extended conversion: This is Sun Life’s most significant competitive advantage. While companies like Manulife or Canada Life often cap term-to-permanent conversions at age 70 or 71, Sun Life allows it until age 75
Digital ecosystem: The Sun Life mobile app and “My Sun Life” portal are consistently rated as the best in the industry for self-service, allowing policyholders to manage everything from beneficiaries to investment allocations for Universal Life
Specialized underwriting: Beyond diabetes, Sun Life’s underwriting is idea; for being “pro-health,” offering premium credits for clients who can prove a history of consistent wellness management through medical records
Return of Premium (ROP): For CI, you can add a rider to receive 100% of your premiums back if the policy expires or you cancel it after a certain period (e.g., 15 years or at age 75) without having made a claim
ESG Investment Options: For SunUniversalLife II, Sun Life now offers the widest array of “Sustainable Investment” mandates in Canada, allowing policyholders to ensure their cash value is invested exclusively in carbon-neutral or socially responsible funds

Cons of Sun Life insurance

Premium rates: For basic term insurance, Sun Life is rarely the lowest-cost provider. Their premiums typically reflect a “brand and service premium,” often costing more than others
Diabetes Care Program: The “Diabetes Care Program” access is a value-added service via Diabetes Canada and Lark Health, providing digital coaching which is built into the cost of the diabetes-specific policy
Approval timeline: Since Sun Life handles complex, high-value cases, their standard medical underwriting remains thorough. While “Sun Life Go” is instant, a standard Evolve Term or Sun Par policy can still take 4 to 8 weeks to move through full medical requirements

3. Canada Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

My Term Life Insurance
Canada Life Generations (Par) / Estate Achiever
Simply Protected / Guaranteed Acceptance Life

Best for

Unique business protection growth life insurance rider

AM Best Rating

A+

LICAT Ratio

130%

Company overview and financial strength:

With over 18 million customer base and $723 billion in consolidated assets under administration, Canada Life holds strong financial ratings (A+ from AM Best) and maintains leading market positions across insurance, wealth management, and health benefit sectors throughout Canada. It is ideal for those seeking versatile, long-term coverage that adapts across different life stages and financial needs.

Types of life insurance offered by Canada Life:

Product	Best For
My Term Life Insurance (Term 5–50 years)	Fully customizable term lengths
Canada Life Generations (Par) / Estate Achiever	Permanent coverage for wealth transfer and estate planning
Simply Protected / Guaranteed Acceptance Life	No-medical coverage with guaranteed acceptance

Our advisor’s take: Who is Canada Life best for?

Canada Life is one of the biggest insurance companies in Canada, and its size shows in the numbers: $723 billion in assets and an A+ rating from A.M. Best. That scale translates into real product strength, including custom term lengths matched to the exact year. For example, a parent who wants coverage that ends the exact year their youngest child finishes university can pick a Term 17 instead of rounding up to a 20-year policy they don’t need.

Also they have no cap on whole life coverage, making it a strong fit for buyers who want both stability and flexibility. A high-net-worth individual planning a multi-generational estate transfer may also value the uncapped whole life coverage and the backing of one of Canada’s largest, most stable insurers.

It may be a strong fit for:

Buyers who prioritize working with one of Canada’s largest, most financially stable insurers
Buyers who want coverage matched to a specific timeline, like a mortgage or child’s remaining school years
High-net-worth individuals planning complex estate transfers

Pros of Canada Life insurance

Custom term: Unlike other insurers, which have fixed brackets (10, 15, 20, etc.), Canada Life allows you to choose a Term 17 or Term 22 to match the exact length of a mortgage or a child’s remaining years in university
Unlimited whole life coverage: No maximum coverage limit on whole life policies ideal for complex estate planning scenarios. However, any application exceeding $50 million may trigger “special underwriting”
Business protection: Unique Business Protection Growth rider lets business owners add more coverage as their business grows
Joint policy features: Their “Joint-First-to-Die” policies include a Continuation Option. If one person dies, the survivor can often continue their portion of the coverage as a single policy without providing new medical evidence

Cons of Canada Life insurance

Minimum requirements: Minimum $100,000 coverage or $500 annual premium required
Underwriting process: Because Canada Life offers high-cap and complex products (like Business Growth riders), their underwriting is more rigorous than “instant-issue” digital startups

4. RBC Insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

RBC YourTerm
RBC Growth Insurance
RBC Universal Life / Term 100
RBC Simplified & Guaranteed Life

Best for

Term laddering strategy that matches your declining debt

AM Best Rating

LICAT Ratio

135%

Company overview and financial strength:

As Canada’s largest bank with approximately $28.6B trillion in assets, Royal Bank of Canada maintains exceptional financial strength with consistently strong capital ratios, diversified revenue streams, and top-tier credit ratings from all major agencies. RBC insurance is best known for its competitive pricing, high coverage limits, and flexible term options.

Types of life insurance offered by RBC Insurance:

Product	Best For
RBC YourTerm (10 to 40 Years)	Highly customized term protection
RBC Growth Insurance (Par)	Wealth accumulation and estates
RBC Universal Life / Term 100	Lifelong coverage without dividends
RBC Simplified & Guaranteed Life	Fast, no-medical term and permanent options

Our advisor’s take: Who is RBC Insurace best for?

RBC Insurance is a good option for buyers who require precise, surgically accurate term lengths. If you have exactly 17 years left on your mortgage, RBC allows you to buy a 17-year term, preventing you from overpaying for a standard 20-year policy. Additionally, their immense capital backing makes them a go-to choice for high-net-worth business owners requiring multi-million-dollar corporate policies.

However, if you anticipate needing to convert your term policy into a permanent policy later in life (in your early 70s), RBC’s strict age 71 cutoff means you will lose that privilege years earlier than you would with competitors like Sun Life or Canada Life.

It is a strong fit for:

Homeowners utilizing a “term laddering” strategy to match exact debt amortization schedules
High-net-worth individuals and business owners requiring exceptionally large coverage limits (up to $25M)
Buyers seeking a highly customizable participating whole life policy with diverse dividend options

Pros of RBC insurance

Term flexibility: RBC allows you to pick any year between 10 and 40 (e.g., a 22-year term). Their Term Exchange feature is a top-tier benefit, allowing you to swap a shorter term for a longer one within the first five years without a new medical exam
High coverage capacity: RBC is a leader for high-net-worth cases, often handling policies up to $25 million. This is a major advantage for business owners and large estates
Dividend options: Their participating whole life (Growth Insurance) offers five distinct dividend option structures, creating unmatched policy customization potential
Accidental death benefit: In the case of accidental death, your beneficiary could receive an additional life insurance benefit amount of $10,000
Compassionate Advance: It is worth noting that RBC Universal Life includes a Compassionate Advance rider, allowing an advance of up to 50% of the death benefit (max $250,000) if diagnosed with a terminal illness
Layered Coverage: RBC is the industry leader in Layering. Because they allow you to pick any year for a term (e.g., 14 years or 29 years), you can create a “ladder” of protection that perfectly matches your declining debt

Cons of RBC insurance

Cash value access: For the “Growth Insurance” series, guaranteed cash values typically begin to accumulate and become accessible after year 5
Product limitations: RBC does not offer a non-participating whole life policy. If you want permanent coverage without the dividend system, you must choose Term 100 or Universal Life
The Age 71 “Conversion”: Most insurers (like Empire Life or Canada Life) allow you to convert a term policy into a permanent one until age 75. RBC has a “hard stop” at the policy anniversary nearest the life insured’s 71st birthday

5. BMO Insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

BMO Term Life
Estate Protector / Wealth Accelerator
Guaranteed Life Plus

Best for

Budget-conscious buyers who want affordable coverage

AM Best Rating

LICAT Ratio

134%

Company overview and financial strength:

As one of Canada’s “Big Five” banks founded in 1817, BMO Financial Group maintains exceptional financial strength with approximately $20.1 billion in assets, consistent profitability, and robust capital reserves that far exceed regulatory requirements. BMO Insurance is rated “A (Excellent)” by A.M. Best. It is a strong choice for those seeking affordable, competitively priced life insurance backed by a trusted financial institution.

Types of life insurance offered by BMO:

Product	Best For
Term Plus	Flexible term coverage from 10 to 40 years
Whole Life 20 / Whole Life 100	Participating permanent coverage with dividend growth
Universal Life	Investment-linked permanent coverage
Simplified Issue / Guaranteed Issue	Fast approval with minimal or no medical questions

Our advisor’s take: Who is BMO insurance best for?

BMO stands out for combining affordability with flexibility. As a major bank insurer, BMO is generally competitively priced on straightforward term coverage, making it a strong fit for cost-conscious buyers. It also offers a performance bonus with their whole life plans that is guaranteed to never be negative. All life insurance policyholders get access to BMO Insurance Health Advocate Plan, a comprehensive health counselling and personal assistance service.

It may be a strong fit for:

Budget-conscious buyers who want affordable term coverage from a trusted bank insurer
Business owners who want coverage that scales with their company’s value
Buyers who want a longer window to convert term to permanent coverage

Pros of BMO life insurance

Health advocacy: The BMO Insurance Health Advocate Plan is a standout feature. It provides access to Teladoc Medical Experts for second opinions and healthcare navigation
Compassionate Benefits: Their Terminal Illness Life Advance allows you to access up to 50% of your death benefit (to a maximum of $250,000) if diagnosed with a terminal illness
Empathy Concierge Service: All policies include access to a digital and human concierge that helps beneficiaries navigate grief, funeral planning, and estate administration
No-Medical Conversion to Age 70: Most Canadian insurers cut off the ability to convert term to permanent insurance at age 65. BMO allows this conversion until age 70
Business Guaranteed Insurability Option (BGIO): Lets business owners purchase additional coverage as their business’s fair market value grows

Cons of BMO life insurance

Terminal Illness Advance Restrictions: While the 50% advance is a great feature, it has strict “lock-in” rules
Non-Participating” Structure: Unlike Beneva or Canada Life, BMO’s Whole Life is non-participating. This means you do not receive a share of the company’s “surplus” profits

6. Desjardins Insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Term 10, 15, 20, 25, 30, Term to 65
5-Pay PAR / Estate Enhancer / Accelerated Growth
Guaranteed Issue Life

Best for

No medical life insurance for seniors

AM Best Rating

N/A

LICAT Ratio

N/A

Company overview and financial strength:

Desjardins Insurance is backed by Desjardins Group, Canada’s largest cooperative financial group with over $510 billion in assets. Founded in 1948, Desjardins offers trusted life insurance solutions and holds a strong A+ credit rating from S&P, highlighting its financial strength and reliability. Their dividend scale (6.3%) is one of the highest in Canada. It is preferred for those seeking flexible coverage with pre-existing conditions and for family-focused planning.

Types of life insurance offered by Desjardins:

Product	Best For
Term 10, 15, 20, 25, 30, Term to 65	Fixed-length term coverage across common durations
5-Pay PAR / Estate Enhancer / Accelerated Growth	Whole life coverage, including fast-funded and estate-focused options
Guaranteed Issue Life	No-medical coverage with guaranteed acceptance

Our advisor’s take: Who is Desjardins best for?

Desjardins offers no-medical life insurance for seniors aged 50 to 75, a coverage window most insurers do not serve without a medical exam. This is combined with simplified underwriting, which accommodates stable pre-existing conditions such as Type 2 diabetes or a past heart attack more leniently than most major insurers. Bundling two or more policies also reduces premiums.

A healthy applicant in their late twenties shopping primarily on price will typically find lower rates with a fully underwritten term policy elsewhere. Desjardins is better suited to older applicants seeking coverage without a medical exam, or those managing a well-controlled pre-existing condition who face higher premiums or declines from other insurers.

It may be a strong fit for:

Seniors aged 50–75 seeking coverage without a medical exam
Applicants managing a stable, well-controlled pre-existing condition
Buyers who want permanent coverage fully paid off in five years

Pros of Desjardins life insurance

Limited Pay Options: Their 5-pay Whole Life remains one of the fastest “fully paid” permanent products in Canada, allowing a policy to be completely funded in just five years, an industry rarity.
24/7 Nurse Access: This is provided through Desjardins Assistance Services. It is a distinct “human-centric” benefit that sets them apart from the purely digital insurers.
The “Cooperative” Dividend: While “Participating” life insurance policies (PAR) at any company pay a policy dividend, Desjardins Group also pays a Member Dividend to its co-op members
“Harmony” Underwriting: Desjardins is one of the most lenient “Big Three” insurers for specific pre-existing conditions like stable Type 2 diabetes or a past history of heart attack.
Teladoc Medical Experts: Most policies include access to a world-class network of specialists who will review your medical file and confirm a diagnosis or treatment plan, a service available not just to you, but to your spouse and children
Multi-Product “Bundle” Discounts: If you have a Desjardins mortgage or auto insurance, they apply a multi-line discount to your life insurance premiums

Cons of Desjardins life insurance

Limited term options: Desjardins offers just six fixed term lengths, whereas some other providers provide fully customizable term durations to better suit individual needs
Rates may not be the most affordable: Although pricing is competitive, Desjardins isn’t always the lowest-cost option for younger, healthy applicants

7. Industrial Alliance (iA Financial Group)

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Pick-A-Term (10 to 40 Years)
Access Life (Simplified Issue)
Genesis & Proteus (Universal Life)
iA PAR (Participating Whole Life)

Best for

Those seeking customizable term lengths

AM Best Rating

A+

LICAT Ratio

134%

Company overview and financial strength:

Operating as iA Financial Group, this company has grown to become one of Canada’s largest insurance and wealth management companies with over $346 billion in assets under management and consistently strong financial performance across diverse business lines. The company offers flexible policy design and customizable coverage options across a wide range of customer needs.

Types of life insurance offered by Industrial Alliance:

Product	Best For
Pick-A-Term (10 to 40 Years)	Highly customized term protection
Access Life (Simplified Issue)	Fast approvals for health concerns
Genesis & Proteus (Universal Life)	Advanced wealth accumulation
iA PAR (Participating Whole Life)	Estate planning and cash value

Our advisor’s take: Who is Industrial Alliance best for?

Industrial Alliance is great when it comes to customization. For consumers whose financial lives don’t fit perfectly into a standard 10- or 20-year box, iA provides the tools to build a highly customized policy that matches their exact debt timeline. Furthermore, their seamless offering of level and decreasing term insurance makes them arguably the best alternative in Canada to overpriced bank-offered mortgage insurance.

However, if you simply want a basic, out-of-the-box Term 10 policy and are shopping strictly for the absolute lowest monthly premium, iA’s customizable products might price them slightly above their competitors.

It is a strong fit for:

Those who are looking to completely customize their term length to match an exact mortgage timeline (e.g., 23 or 27 years).
Families who want to combine both flat family protection and declining debt protection under one single policy.
Applicants who prefer sharing digital health data (via the EVO platform) rather than undergoing traditional in-person medical exams.

Pros of Industrial Alliance life insurance

Customizable terms: With Pick-A-Term feature, you can opt for precise coverage periods based on your specific needs
Premium flexibility: Unique to iA, you can mix level and decreasing coverage in one policy. This is ideal for a “Mortgage + Family” strategy where your mortgage protection drops as the loan is paid, but your family protection stays level
Digital underwriting: Their EVO platform is known for its ability to accept digital health data and “wearable” health evidence that traditional insurers often ignore
Mortgage protection: Unlike bank mortgage insurance, iA’s disability rider on a decreasing term policy is portable, if you switch banks, your insurance stays with you.

Cons of Industrial Alliance life insurance

Premium rates: Due to the extreme customization of Pick-A-Term, iA is often slightly more expensive than a “standard” term policy. You are paying for the flexibility
Universal Life Complexity: While Genesis offers incredible investment choice, the “internal costs” can be high if the policy isn’t monitored annually by an advisor
Simplified Issue price: While Access Life is very accessible, the premiums are significantly higher than “Standard” underwritten plans. If you are healthy, the “No Medical” convenience comes at a high price

8. Equitable Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Term 10, 20, 30 & Term to 65
Equimax (Estate Builder & Wealth Accumulator)
Equitable Generations

Best for

Top-tier dividend returns & strong cash value growth

AM Best Rating

N/A

LICAT Ratio

159%

Company overview and financial strength:

Operating as one of Canada’s largest mutual life insurance companies since 1920, Equitable Life maintains impressive financial strength with over $12.7 billion in assets under administration. Their Life Insurance Capital Adequacy Test (LICAT) ratio stands at 159%, which is significantly above the OSFI supervisory target of 100%. It has a strong focus on family-oriented coverage, participating whole life plans, and policyholder-first benefits.

Types of life insurance offered by Equitable Life:

Product	Best For
Term 10, 20, 30 & Term to 65	Standard temporary protection with “term laddering”option
Equimax (Estate Builder & Wealth Accumulator)	A 6.40% dividend scale interest rate for strong participating cash growth
Equitable Generations	A Universal Life product offering adjustable premiums with tax-advantaged investment choices

Our advisor’s take: Who is Equitable Life best for?

Equitable Life is one of Canada’s top insurance companies, making it an outstanding choice for individuals focused on long-term wealth accumulation and participating whole life insurance. Because they do not have to split profits with public shareholders, their market-leading dividend scale consistently outpaces many competitors in long-term cash value growth. However, they might not be the right fit if you require instant digital approval for a multi-million-dollar policy.

It may be a strong fit for:

Buyers focused on participating whole life insurance seeking top-tier dividend returns and strong cash value growth.
Families utilizing “term laddering” strategies to seamlessly match declining debts like mortgages.
Parents looking to add affordable, flat-fee coverage for all current and future children under a single policy.

Pros of Equitable Life insurance

High Dividend Scale: Equitable Life currently holds one of the highest Dividend Scale Interest Rates (DSIR) in the Canadian market at 6.40% . This makes their participating whole life policies exceptionally competitive for cash growth
Mutual Company Structure: This is Equitable’s biggest edge. Since they are a mutual company, they have no public shareholders; profits are shared directly with participating policyholders through dividends
KIND Program: All new policies include the KIND program. This is a bundle of compassionate benefits, including compassionate advance, bereavement counselling, and SNAP advance
Laddering Expertise: Equitable Life is a favourite for “Term Laddering” (e.g., having a $500k Term 10 and a $500k Term 20 simultaneously). Their consolidated billing system allows you to pay one monthly premium for multiple term “layers,”.
Family-Focused (Child Term Rider): You can add a Children’s Protection Rider (CPR) that covers all current and future children for a single flat fee

Cons of Equitable Life insurance

Limited term offerings: They focus on the “Core Three” (Term 10, 20, 30) and a Term to Age 65. They do not offer the highly customizable term lengths
Manual Application for High Limits: While they have a digital application, policies exceeding $2 million or those for older applicants (age 70+) often move to a slower, traditional underwriting process
Universal Life Complexity: The new Equitable Generations product offers high flexibility but requires active management and advisor guidance to ensure it remains properly funded over the long term
Limited Issue Ages for Long-Term: The Term 30 option has a relatively low maximum issue age of 55. Applicants older than this are funneled toward Term 10 or 20

9. Empire Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Solution 10, 15, 20, 25, 30 + Solution ART
Solution 100, EstateMax, Optimax Wealth
Empire Life Simplified 10 & 20, Guaranteed Life Protect

Best for

Unique "Side Account" feature for their participating policies

AM Best Rating

LICAT Ratio

150%

Company overview and financial strength:

Founded in 1923, Empire Life demonstrates strong financial stability with approximately $20.8 billion in assets under management and consistently high financial strength ratings (A from A.M. Best), specializing in individual and group insurance and investment products. The company has a clear edge in personalized coverage and flexible solutions across different life stages and financial goals.

Types of life insurance offered by Empire Life:

Product	Best For
Solution 10, 15, 20, 25, 30 + Solution ART	Term coverage with a built-in exchange privilege
Solution 100, EstateMax, Optimax Wealth	Permanent coverage for estate and wealth planning
Empire Life Simplified 10 & 20, Guaranteed Life Protect	No-medical coverage for faster approval

Our advisor’s take: Who is Empire Life best for?

Empire Life’s Side Account sets it apart from most participating insurers: instead of dividends sitting passively, policyholders can direct extra funds into an interest-earning account that automatically covers future premiums if income changes. An applicant with irregular income, such as a business owner, may value the Side Account’s ability to smooth over slower months without lapsing their policy.

Combined with instant approval for healthy applicants, this makes Empire Life well suited to buyers who want built-in financial flexibility without sacrificing speed.

It may be a strong fit for:

Applicants with variable income who want built-in flexibility to manage premium payments
Buyers who want fast approval without a lengthy underwriting process
Families seeking coverage that spans from pediatric to senior estate planning within one product suite

Pros of Empire Life insurance

The “Side Account” (EstateMax/Optimax): Empire Life offers a unique “Side Account” feature for their participating policies. You can deposit extra funds here to earn a competitive interest rate, which can then be used to automatically pay future premiums if your cash flow changes
Bundling Discount: They offer a “Multi-product” discount. If you add CI Protect to a Solution Series life policy, you save on the policy fees
Term Exchange Privilege: All “Solution” term policies include a built-in exchange privilege, allowing you to swap a 10-year term for a 20 or 30-year term without a medical exam (usually between the 1st and 7th policy anniversaries)
Demographic flexibility: Solution 100 range from 0 to 75, allowing for both specialized paediatric coverage and senior estate planning within the same product suite
Instant approval: Their Fast & Full platform uses an algorithmic process called Empire Express. For applicants in good health meeting specific criteria, it can provide an approval decision in minutes without human intervention
Automatic Paid-Up at 100: A unique “pro” to consider is that all Solution Series policies become fully paid-up at age 100. If you hold the policy that long, you stop paying, but the coverage remains for life, a feature often reserved only for more expensive permanent plans at other companies

Cons of Empire Life insurance

Age restrictions: For their flagship permanent products (EstateMax, Optimax, and Solution 100), the maximum issue age is 75. These policies are not available for individuals over 75 years old
Limited term options: Term length options are more limited compared to some competitors. They also lack the “Pick-a-Term” feature (e.g., a 17-year term) that other companies offer
Additional costs: Empire’s base rates are very competitive, but adding multiple riders (like the Double AD&D or Paid-Up Additions rider) can significantly increase the premium, sometimes doubling the base cost

10. Beneva

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Term Plus
Whole Life 20 / Whole Life 100
Universal Life
Simplified Issue / Guaranteed Issue

Best for

Buyers who want disability protection bundled in

AM Best Rating

LICAT Ratio

163%

Company overview and financial strength:

Beneva was formed in 2023 through the merger of La Capitale and SSQ Insurance, creating one of Canada’s largest mutual insurance companies. As of 2026, Beneva manages $30.3 billion in assets and maintains a strong solvency ratio of 163% which is well above the 120% regulatory requirement, indicating exceptional capital depth.

Types of life insurance offered by Beneva:

Product	Best For
Term Plus	Flexible term coverage from 10 to 40 years
Whole Life 20 / Whole Life 100	Participating permanent coverage with dividend growth
Universal Life	Investment-linked permanent coverage
Simplified Issue / Guaranteed Issue	Fast approval with minimal or no medical questions

Our advisor’s take: Who is Beneva best for?

Beneva stands out for bundling an Extreme Disability Benefit into every life insurance policy at no extra cost, effectively doubling your protection where most insurers would charge for this as a separate rider. It’s also a strong option for growing families, due to the automatic 60-day Newborn Benefit. For example, a young couple expecting their first child may value the combination of automatic newborn coverage that they’d otherwise have to add separately with most other insurers.

It may be a strong fit for:

Buyers who want disability protection bundled in, not sold as a separate add-on
Growing families, thanks to the automatic 60-day Newborn Benefit
Applicants in Quebec seeking strong local advisor support

Pros of Beneva life insurance

Strong dividends: Participating policyholders received an average dividend of 6.2%
Rapid Approval Window: For simplified and standard term products, Beneva uses a digital underwriting platform that provides decisions in under 60 minutes for many healthy applicants
Newborn Benefit: Automatically covers new children, biological or adopted, for 60 days at no extra premium or paperwork
Extreme Disability Benefit: Includes an Extreme Disability Benefit for free in all of their life insurance plans. You get double the coverage than usual
Fracture Benefit: Pays a lump-sum payment (typically ranging from $1,000 to $5,000) for bone fractures, an “accident-style” benefit that is rarely built into traditional life insurance.
Telehealth & Psychosocial Support: Policies often include access to telehealth phone assistance and specialized psychosocial support tools

Cons of Beneva life insurance

Complex Claims for High-Value Policies: Policies exceeding $5 million or complex Universal Life cases can still face longer processing times
Regional Strength: Advisor network and brand recognition remain stronger in Quebec than in Western Canada or the Maritimes
Cost of Riders: Standout features like the Fracture Benefit are paid add-ons, so a fully loaded policy can cost more than a basic term policy

11. Canada Protection Plan

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Express Elite / Simplified Elite / Deferred / Preferred Elite Term
Preferred Elite Life / Simplified Elite Whole Life
Guaranteed Acceptance Life, Deferred Whole Life

Best for

No medical or simplified issue coverage

AM Best Rating

N/A

LICAT Ratio

188%

Company overview and financial strength:

Specializing in simplified issue life insurance for Canadians with health challenges, Canada Protection Plan has demonstrated steady financial growth since its founding in 1992, now operating as a division of Foresters Financial with enhanced financial backing and stability.

Types of life insurance offered by Canada Protection Plan:

Product	Best For
Express Elite / Simplified Elite / Deferred / Preferred Elite Term	Term coverage with varying levels of medical underwriting
Preferred Elite Life / Simplified Elite Whole Life	Permanent coverage for lifelong protection
Guaranteed Acceptance Life, Deferred Whole Life	No-medical coverage with guaranteed acceptance

Our advisor’s take: Who is Canada Protection Plan best for?

Most life insurers ask “how healthy are you?” before “how much coverage do you need?” CPP flips that order. It’s built for people who’ve already been told no elsewhere, or who don’t want to go through a medical exam to find out.

Take two applicants: a healthy 28-year-old with no health history will almost always pay less through a fully underwritten term policy elsewhere, since CPP’s simplified pricing reflects the risk of skipping exams altogether. But for someone with a health issue, they may find CPP is one of the few insurers that says yes. That accessibility comes at a cost, both in premium and in coverage caps, but for the right applicant, it’s the difference between having coverage and having none at all.

It may be a strong fit for:

Applicants previously declined by traditional insurers
Temporary residents, students, or work permit holders who don’t qualify elsewhere
Families who want the added Surviving Child Benefit as a safety net

Pros of Canada Protection Plan life insurance

Member Benefits: Because CPP is part of a fraternal benefit society (Foresters), policyholders often get unique “member perks” like competitive Scholarships (for children of policyholders), community grants, etc
Terminal Illness Benefit: Most CPP policies include a Terminal Illness Advance at no extra cost, allowing access up to 75% of the death benefit (up to $250,000)
Simplified underwriting: CPP remains the leader for “No Medical” and “Simplified Issue” coverage. Most applicants receive a decision in minutes to 48 hours
Accessibility for Temporary Residents: Students, and work permit holders can qualify for coverage, whereas many “Big Five” bank insurers require permanent residency or citizenship
Surviving Child Benefit: If both parents are insured with Foresters/CPP and pass away, the company provides a monthly payment of $900 per child (up to age 18) to the legal guardian

Cons of Canada Protection Plan life insurance

Premium rates: Since they take on higher risk (by skipping medical exams), their premiums are generally higher than “fully underwritten” companies for the same amount of coverage
Coverage caps: Most “No Medical” products are still capped at $500,000, whereas traditional insurers can go into the millions
The 2-Year Rule: On “Deferred” and “Guaranteed” products, if the insured dies of natural causes within the first 24 months, the beneficiary usually only receives a refund of premiums plus interest, not the full face value
Limited Riders: Because CPP focuses on simplicity and speed, they lack the sophisticated riders. For example, you won’t find the Business Guaranteed Insurability Option with them

12. Foresters Financial

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Your Term, Advantage Plus, Strong Foundation
Advantage Plus, SMART UL, Advantage Max
PlanRight, Foresters Prepared

Best for

Community-minded buyers who value built-in charitable giving

AM Best Rating

LICAT Ratio

188%

Company overview and financial strength:

With a 150-year history and over $19.6 billion in total assets (as of year-end 2025), Foresters Financial maintains excellent financial strength, carrying an “A” (Excellent) rating from A.M. Best. What sets Foresters apart is its structure: it operates as a member-owned fraternal benefit society, meaning it uniquely combines life insurance products with extensive community investment programs and built-in member perks.

Types of life insurance offered by Foresters Financial:

Product	Best For
Term Life (Your Term, Advantage Plus, Strong Foundation)	Temporary, family-focused protection with flexible term lengths
Permanent (Advantage Plus, SMART UL, Advantage Max)	Lifelong protection & wealth building
No Medical (PlanRight, Foresters Prepared)	Instant coverage decisions without requiring medical exams

Our advisor’s take: Who is Foresters Financial best for?

Foresters Financial is a good choice for individuals who view their life insurance as more than just a financial transaction. Because they operate as a fraternal benefit society, their policies are packed with unique, people-centric features like orphan benefits, free legal document preparation, and charitable giving that traditional insurance companies simply do not offer.

However, if you are shopping strictly on price and simply want the cheapest possible term policy on the market, Foresters is likely not the right fit, as their rates reflect the added value of their member ecosystem.

It is a strong fit for:

Community-minded buyers who value built-in charitable giving and extensive member perks (like scholarships and grants)
Smokers who are actively trying to quit and want a pathway to lock in non-smoker rates immediately
Families seeking unique, compassionate built-in protections, such as the Orphan Benefit

Pros of Foresters Financial life insurance

Charitable Options: Their “Charitable Benefit” is a standout feature. Foresters will pay an additional 1% of the face value (up to $100,000) to a designated charity upon the insured’s death, which does not reduce the benefit paid to your beneficiaries
Built-in Return of Premium on Death: Most insurers charge a significant extra fee for this, but Foresters includes it at no extra cost. If you die of a cause not covered by the CI policy, they refund all premiums paid to your beneficiary
Membership Benefits: Members get access to LawAssure (online wills/powers of attorney), Foresters Care (community grants), and the Competitive Scholarship program (worth up to $8,000 over four years)
Simplified Underwriting: For many products, they offer AppPro, an e-app that can provide instant decisions. For the new Advantage Max, they offer no medical exams for coverage up to $1 million (for ages up to 50)
Quit Smoking Incentive Plan: Included in the new Advantage Max and several term products. It allows smokers to pay lower, non-smoker rates for the first two years of the policy. If they provide evidence they have successfully quit by the end of year two, those lower rates become permanent
Orphan Benefit: If both parents are Foresters members and pass away, the society pays $900 per month per child to the legal guardian until the child turns 18

Cons of Foresters Financial life insurance

Premium rates: Because of the “Member Benefits” and community funding, Foresters is rarely the “cheapest” on the market. You are paying a premium for the social impact and perks
30-Day Survival Period: Like most Canadian CI policies, you must survive 30 days after diagnosis for the lump sum to be paid

13. Humania Assurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

HuGO Life (T10 to T30, T80, T100)
No Medical (10, 20 and Term 100)

Best for

People seeking instant, digital term insurance approvals

AM Best Rating

N/A

LICAT Ratio

184%

Company overview and financial strength:

Founded in 1874 and formerly known as La Survivance, Humania Assurance demonstrates solid financial stability with approximately $670 million in assets while specializing in innovative, tech-driven insurance solutions (specifically through its HuGO platform) primarily serving Quebec and expanding across Canada. Their solvency ratio (LICAT) is an impressive 184%, which is well above the regulatory target.

Types of life insurance offered by Humania Assurance:

Product	Best For
HuGO Life (T10 to T30, T80, T100)	Standard & extended temporary protection
No Medical (10, 20 and Term 100)	Hard-to-insure individuals

Our advisor’s take: Who is Humania Assurance best for?

Humania Assurance is a fantastic choice for tech-savvy buyers who want a fast, completely paperless application process. Their HUGO platform is a market leader in providing instant approvals, which is ideal for healthy applicants who want coverage immediately without waiting weeks for nurse visits or doctor reports.

However, if you are looking for a complex, investment-linked policy (like Universal Life) to build wealth, or if you need permanent coverage to stretch into your 90s for estate planning, Humania’s term-heavy portfolio will not meet your needs.

It is a strong fit for:

Young professionals seeking instant, digital term insurance approvals without medical exams
Parents who want to quickly add guaranteed coverage for a child with a pre-existing condition
Quebec residents who can benefit from their specific provincial tax-advantaged health products

Pros of Humania Assurance life insurance

Automatic Qualification: This is Humania’s standout feature. If you are approved for HuGO Life, you may automatically qualify for HuGO Critical Illness and Debt Disability insurance without answering any additional health questions
Employment-based underwriting: Their simplified products often rely on “active income” status rather than a physical medical exam to determine eligibility for disability benefits
Quebec Tax Advantage: As a mutual company rooted in Quebec, they leverage provincial tax-exempt status for certain health-related insurance products, which often results in lower net costs for Quebec residents
Dependent Child Life Insurance: Their rider is exceptionally lenient, offering up to $25,000 in coverage for children with zero medical questions asked, even if the child has a pre-existing condition

Cons of Humania Assurance life insurance

Limited portfolio: Humania does not offer whole life and universal life insurance (investment-linked life insurance) as a primary purchase
The T100 Conversion Rule: While they offer a Term 100 (permanent) policy, you can only convert an existing term policy to it before reaching age 65. If you miss this window, you lose the ability to go permanent
Age Ceilings: Most HuGO term coverage ceases exactly on the policy anniversary in the year you turn 80. There is no option to extend standard term coverage beyond this point, making it less ideal for “legacy” planning

14. Ivari

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Term 10, 20 & 30
Universal Life (Single or Joint)
Simplified Life / Guaranteed Life

Best for

Those seeking highly affordable universal life plans

AM Best Rating

A+

LICAT Ratio

129%

Company overview and financial strength:

Formerly Transamerica Life Canada before rebranding in 2015, Ivari maintains strong financial stability with approximately $11.5 billion in assets while specializing in life insurance and critical illness coverage distributed through independent advisors across Canada.

Types of life insurance offered by Ivari:

Product	Best For
Term 10, 20 & 30	Flexible temporary coverage
Universal Life (Single or Joint)	Affordable permanent insurance
Simplified Life / Guaranteed Life	No-medical options for applicants with prior health conditions

Our advisor’s take: Who is Ivari best for?

Ivari’s unique SelectOptions feature means you aren’t permanently trapped in a 30-year contract if your financial situation changes at year 15 or 20. Furthermore, if you are working with an advisor to set up a Universal Life policy purely for lifelong, flat-cost protection, Ivari is frequently the most cost-effective solution on the market.

However, if you are looking for participating whole life insurance to earn yearly dividends, or if you simply want the absolute cheapest 10-year term available online, Ivari’s specific product lineup will not be the right fit.

It is a strong fit for:

Buyers wanting a 30-year term policy that includes built-in options to decrease coverage and cost later in life.
Families or business owners seeking highly affordable Universal Life plans
Parents who want to add a guaranteed insurability child rider to their policy

Pros of Ivari life insurance

SelectOptions Flexibility: This is Ivari’s “X-Factor.” It turns a standard 30-year term into a flexible plan where you can lower costs as you age or even convert to a small permanent policy without new medical evidence
Universal Life Price Leader: Ivari consistently ranks as one of the top three most competitively priced insurers for Universal Life in Canada, particularly for “Level Cost of Insurance” structures
Child-Focused Options: Their Children’s Insurance Rider is highly affordable and provides a “Guaranteed Insurability” option, allowing your children to buy their own adult policies later regardless of their future health
Laddering Expertise: Ivari allows you to “layer” different term lengths (e.g., T10 for a car loan and T30 for a mortgage) under a single policy, reducing policy fees and simplifying billing

Cons of Ivari life insurance

Premium rates: While Ivari is a price leader in Universal Life, their standard Term 10 and Term 20 rates can sometimes be slightly higher
No Traditional Whole Life: Ivari focuses exclusively on Universal Life for permanent needs. If you are specifically looking for a “Participating Whole Life” policy, Ivari does not offer this
Underwriting Rigor: While they have simplified options, their high-value policies (over $1M) often have a stricter-than-average underwriting process

15. Assumption Life

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

FlexTerm
Platinum Protection
Golden Protection
Silver/Bronze Protection

Best for

People looking for faster approval processes

AM Best Rating

A-

LICAT Ratio

167%

Company overview and financial strength:

Assumption Life was founded in 1903 in Moncton, New Brunswick with deep roots in Atlantic Canada. The company is particularly known for no-medical and simplified issue life insurance. With over $2.3 billion in assets under management and an A- (Excellent) rating from A.M. Best, the company demonstrates solid financial security and reliable claims-paying ability.

Types of life insurance offered by Assumption Life:

Product	Best for
FlexTerm	Affordable temporary coverage
Platinum Protection	Simplified issue permanent insurance
Golden Protection	Easier approval with moderate health concerns
Silver/Bronze Protection	Guaranteed issue / no-medical accessibility

Our advisor’s take: Who is Assumption Life best for?

Assumption Life is often overlooked by consumers simply because it is a smaller insurer. But in certain situations, it can become one of the strongest options available, particularly when accessibility and ease of approval matter more than getting the absolute lowest premium.

For example, a healthy 32-year-old looking purely for the cheapest 30-year term life insurance will often find more competitive pricing with larger national insurers. However, a 54-year-old with diabetes, medication history, or prior health complications may find Assumption Life considerably easier to qualify with through their simplified issue solutions.

It may be a strong fit for:

People looking for faster or simpler approval processes
Applicants who have previously been declined by traditional insurers
Consumers who want to avoid extensive medical testing

Pros of Assumption Life insurance

Accelerated Underwriting (FlexTerm): Approves FlexTerm coverage up to $2,000,000 without a medical exam for applicants 45 and under

Digital Underwriting (Lia): Assumption Life’s digital platform can approve simplified products and issue a policy contract in as little as 15–30 minutes

Transportation Benefit: Included in most policies. Pays up to $2,000 toward transporting the insured’s remains if death occurs more than 200km from home

Extreme Disability Benefit: Pays a portion of the death benefit early if the insured suffers a catastrophic loss, such as sight or limb loss, at no extra cost on select plans

Insurability Benefit: Increases coverage up to 25% (max $125,000) without a medical exam after marriage, a new child, or a new mortgage

ParPlus Dividends: As a mutual company, ParPlus policyholders are members and share in the company’s profits through dividends

Cons of Assumption Life insurance

Coverage Caps on Simplified Products: “No Medical” plans are generally capped at a lower coverage amount than fully underwritten policies

The 2-Year Rule: Bronze and Deferred products have a 24-month waiting period before paying the full death benefit for natural causes

Strict Renewal/Conversion Ages: FlexTerm is renewable to age 90 but must convert to a permanent policy before age 75, or premiums rise sharply in later years

16. Wawanesa

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Policies offered

Lifetime Term
Whole Life
Term to 100
Instant Issue Life

Best for

Budget-conscious buyers seeking life insurance

AM Best Rating

LICAT Ratio

165%

Company overview and financial strength:

Wawanesa Life Insurance was founded in 1896 in Manitoba as a mutual company i.e. it’s owned by its policyholders, not shareholders. It has earned a strong reputation for financial stability, managing over $11.3 billion in assets and maintaining an A rating from A.M. Best. A standout feature is their unique pricing model: Wawanesa bases premiums on actual age rather than the nearest age, making them the only insurer in Canada to do so. This approach can result in significantly lower costs and high savings on life insurance for many applicants.

Types of life insurance offered by Wawanesa:

Product	Best For
Lifetime Term (T10 to T30, Term to 80)	Standard & extended temporary protection
Whole Life (Pay to 100 & 20-Pay)	Simple permanent protection
Term to 100	Lifelong coverage without cash value
Instant Issue Life	Fast, accessible coverage

Our advisor’s take: Who is Wawanesa best for?

Wawanesa is a good option for budget-conscious buyers seeking term insurance. Because of their “Actual Age” pricing and complete lack of annual policy fees, they are recommended if you are buying a smaller policy (e.g., $250,000) where a $100 annual policy fee at another company can heavily inflate your premium.

However, they are not the right fit if you want to aggressively build wealth through a Universal Life policy, or if you reside in Quebec where their individual life products are currently unavailable.

It is a strong fit for:

Budget-conscious shoppers seeking the absolute lowest price on standard term life insurance
Applicants who are just past their “half-birthday” and want to avoid being charged as a year older by traditional insurers
Individuals looking for smaller face amounts where hidden policy fees usually destroy the value of the policy

Pros of Wawanesa life insurance

Mutual company structure: Wawanesa Life is owned by its policyholders, not shareholders. This mutual structure ensures that profits are reinvested to benefit members, focusing on long-term stability and customer service rather than short-term gains.
Zero policy fee structure: This remains a major differentiator. While competitors may charge a small fee annually for “administration,” Wawanesa embeds this, making them very competitive for smaller face amounts
Actual Age Pricing: They are still the only major Canadian insurer to use chronological age rather than “nearest age”
Laddering Options: Their inclusion of a Term 25 and Term to Age 80 allows for highly specific debt-matching strategies

Cons of Wawanesa life insurance

Regional Restriction: Wawanesa Life does not currently offer individual life insurance or investment products to residents of Quebec
No Universal Life: They focus strictly on Term and Whole Life. If you want a policy where you can actively manage an investment portfolio inside your life insurance, Wawanesa isn’t the right choice
High-Risk Hobbies: They can be more conservative (stricter) with applicants who participate in high-risk activities like backcountry skiing, private aviation, or technical scuba diving compared to others

Best life insurance companies in Canada by category (2026)

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

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

Best life insurance for term life insurance seekers

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

Best life insurance for whole life insurance buyers

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

Best life insurance for no-medical coverage

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

Best life insurance for parents and homeowners

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

Best life insurance for seniors

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

Best life insurance for business owners and self-employed individuals

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

Best life insurance for doctors and professionals

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

Best life insurance for smokers

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

Best life insurance for applicants with pre-existing conditions

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

Best life insurance for children

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

Learn more about the different types of life insurance in Canada

How we rated the best life insurance companies

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

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

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

How to choose the best life insurance company in Canada?

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

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

How much does life insurance cost in Canada?

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

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

Term life insurance cost comparison

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

Insurance company	Male non-smoker	Female non-smoker
Wawanesa	$9.45/month	$8.73/month
Empire Life	$9.90/month	$8.19/month
Equitable Life	$9.74/month	$8.19/month
Manulife	$9.70/month	$8.23/month
Beneva	$9.90/month	$8.55/month
BMO Insurance	$9.90/month	$8.55/month
Canada Life	$10.80/month	$8.82/month
Sun Life	$13.95/month	$11.70/month
RBC Insurance	$11.25/month	$8.91/month
iA Financial	$10.80/month	$9.00/month
Desjardins	$10.89/month	$9.00/month
Assumption Life	$11.79/month	$9.36/month

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

Whole life insurance cost comparison

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

Insurance company	Male applicant	Female applicant
Sun Life	$114.21/month	$102.42/month
iA Financial	$114.03/month	$104.13/month
BMO Insurance	$195.12/month	$188.01/month
Equitable Life	$215.62/month	$200.28/month
Wawanesa	$183.87/month	$168.30/month
RBC Insurance	$236.41/month	$220.77/month
Manulife	$291.59/month	$266.35/month
Canada Life	$487.89/month	$459.00/month
Empire Life	$221.94/month	$156.15/month

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

Which type of life insurance is more affordable?

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

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

How to get the best life insurance in Canada?

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

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

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

Frequently asked questions

Which is the top insurance company in Canada?

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

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

What’s the cheapest life insurance in Canada?

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

Young
Healthy
Non-smoker
Female

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

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

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

How to get the best quotes for term life insurance?

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

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

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

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

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

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

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

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

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

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

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

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

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

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How much does whole life insurance cost in Canada?

The cost of whole life insurance typically ranges from $54 to $2,552 per month, depending on your age, health, coverage amount, premium payment option, and the insurer you choose. While whole life insurance costs more than term life insurance, the higher premiums provide benefits that last a lifetime, including permanent coverage, level premiums, and tax-advantaged cash value growth. Some policies, such as participating policies, may also earn annual dividends, depending on the insurer and policy type, further increasing their long-term value.

Quick summary of whole life insurance costs in Canada

Cost category	Typical monthly premium range
By plan type	Participating policy: $118-$382 Non-participating policy: $57-$319
By coverage amount	$100,000: $57-$382 $250,000: $132-$914 $750,000: $350-$2,552
By applicant category	Male applicants: $71-$319 Female applicants: $57-$278 Smoking status: $57-$413 Children: Typically starts at $100 Seniors: $277-$960
Payment option	10 Pay: $70-$319 20 Pay: $54-$323 Life Pay: $38-$209
By insurers	Foresters Life: $57-$319 Desjardins: $69-$334 Sun Life: $80-$346 Industrial Alliance: $81-$367 Canada Protection Plan: $102-$355

Disclaimer: The illustrative monthly premiums below are based on the examples used throughout this guide. Your actual premium will vary based on your personal profile, coverage needs, and the insurer you choose.

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

What affects the cost of whole life insurance in Canada?

The whole life insurance cost depends on your personal profile, coverage needs, and the type of policy you choose. The following factors affect how the cost of your whole life insurance policy will be determined in Canada:

Personal factors:

Age: Cost of whole life insurance by age is one of the biggest factors to consider. Buying a policy at a younger age typically results in significantly lower premiums because insurers view younger applicants as lower-risk
Health: Your overall health, medical history, and any pre-existing conditions affect your premium. Applicants in good health typically qualify for lower whole life insurance rates
Smoking status: Smokers usually pay considerably higher premiums than non-smokers due to the increased health risks associated with tobacco and nicotine use. Many insurers offer non-smoker rates after you have been tobacco-free for at least 12 months
Gender: Women often pay lower premiums than men because, on average, they have a longer life expectancy and lower mortality rates

Coverage and policy structure:

Coverage amount: Choosing a higher death benefit increases your premium since the insurer assumes a larger future payout
Policy type: Participating whole life insurance generally costs more than non-participating policies because it offers the potential to earn annual dividends, which may increase your policy’s cash value and death benefit over time
Premium payment option: The payment schedule you choose also affects your monthly premium. Policies with a 10-pay or 20-pay option have higher premiums because the policy is paid off in fewer years, while life pay spreads payments over a longer period, resulting in lower monthly costs
Insurance company: Premiums can vary between insurers because each company uses its own underwriting guidelines, dividend scale, and pricing structure. Comparing quotes from multiple insurers can help you find the best value for your needs
Policy riders: Adding optional riders, such as a child rider, disability waiver of premium, or guaranteed insurability rider, increases the overall cost of your policy but provides additional protection and flexibility

Whole life insurance cost in Canada by plan type

Different types of whole life insurance come with different premium costs and long-term benefits. In Canada, you can choose between participating and non-participating whole life insurance. Participating policies generally have higher premiums because they may pay annual dividends, while non-participating policies offer lower premiums with guaranteed benefits but no dividend potential.

What is the cost of participating whole life insurance?

The cost of participating whole life insurance typically starts at $138.42 per month for a 20-year-old non-smoker with $100,000 in coverage under a 20-pay premium option. For a female applicant with the same coverage, the premium starts at $118. Participating policies may be suitable for individuals seeking lifelong coverage, guaranteed cash value growth, and the potential to earn eligible annual dividends, which may increase the policy’s cash value and death benefit over time.

Cost of participating whole life insurance

Age (in years)	Male (non-smoker)	Female (non-smoker)
20	$138.42	$118.89
30	$177.84	$156.15
40	$228.96	$207.00
50	$292.23	$270.81
60	$382.14	$351.81

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

What is the cost of non-participating whole life insurance?

The cost of non-participating whole life insurance typically ranges from $57 to $319 per month. It is generally more affordable than participating whole life insurance and may be a good option for individuals looking for permanent coverage, guaranteed cash value, and predictable premiums without dividend participation.

Cost of non-participating whole life insurance

Age (in years)	Male (non-smoker)	Female (non-smoker)
20	$70.74	$57.24
30	$100.35	$88.74
40	$141.66	$127.53
50	$223.83	$181.71
60	$319.41	$277.92

*Illustrative costs for non-smoking male and female of various age ranges seeking a non-participating whole life insurance policy with $100,000 in coverage for a 20-pay premium option

Whole life insurance cost by coverage amount in Canada

The amount of coverage you choose directly affects the cost of your whole life insurance policy. In general, higher coverage amounts come with higher premiums because the insurer assumes a larger death benefit payout. For instance, the cost of whole life insurance with $100,000 in coverage will be lower than that of $250,000 in coverage because the insurer is assuming a smaller death benefit. The tables below show illustrative monthly premiums for different coverage amounts.

How much is a $100,000 whole life insurance policy?

The cost of a $100,000 whole life insurance policy typically ranges from $57.24 to $382.14 per month for non-smokers. This coverage amount is well suited for covering final expenses, leaving a modest inheritance, or supplementing an existing life insurance policy. It also provides lifelong protection while building guaranteed cash value over time.

Cost of a $100,000 whole life insurance policy

Age (in years)	Male (Non-participating)	Male (Participating)	Female (Non-participating)	Female (Participating)
20	$70.74	$138.42	$57.24	$118.89
30	$100.35	$177.84	$88.74	$156.15
40	$141.66	$228.96	$127.53	$207.00
50	$223.83	$292.23	$181.71	$270.81
60	$319.41	$382.14	$277.92	$351.81

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

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

The average cost of whole life insurance with $250,000 in coverage ranges from $132 to $914 per month for non-smoking applicants, depending on age, gender, and whether you choose a participating or non-participating policy. This coverage amount may be suitable for individuals or families looking to replace a portion of their income, pay off outstanding debts, or help cover future financial obligations.

Cost of a $250,000 whole life insurance policy

Age (in years)	Male (Non-participating)	Male (Participating)	Female (Non-participating)	Female (Participating)
20	$156.38	$323.10	$132.30	$285.98
30	$225.45	$415.58	$204.75	$377.55
40	$328.05	$540.22	$298.35	$495.00
50	$521.55	$697.28	$427.95	$644.40
60	$765.45	$914.40	$649.80	$842.40

*Illustrative monthly premiums for non-smoking males and females of various age ranges seeking a whole life insurance policy with $250,000 in coverage for a 20-pay premium option

How much is a $750,000 whole life insurance policy?

The cost of a $750,000 whole life insurance policy typically ranges from $350 to $2,552 per month for non-smokers, male and female. This higher coverage amount is designed for individuals with more complex financial needs, such as protecting a family’s lifestyle, supporting estate planning goals, or preserving wealth for future generations.

Premiums are higher for $750,000 in coverage because the insurer guarantees a larger death benefit. Like all other whole life insurance policies, it also offers lifelong coverage and guaranteed cash value growth according to the policy terms. Participating policies may also be eligible to earn annual dividends.

Cost of a $750,000 whole life insurance policy

Age (in years)	Male (Non-participating)	Male (Participating)	Female (Non-participating)	Female (Participating)
20	$450.00	$892.35	$350.77	$801.90
30	$666.00	$1,162.35	$581.62	$1,059.07
40	$980.55	$1,522.12	$881.77	$1,401.30
50	$1,523.25	$1,966.95	$1,241.10	$1,829.93
60	$2,167.65	$2,552.18	$1,891.12	$2,382.75

*Illustrative monthly premiums for non-smoking males and females of various age ranges seeking a whole life insurance policy with $750,000 in coverage for a 20-pay premium option

Whole life insurance cost by applicant type in Canada

The cost of whole life insurance varies from one applicant to another because insurers assess each person’s level of risk before determining their premium. In general, younger applicants, women, and non-smokers tend to pay lower premiums, while older applicants and smokers typically pay more due to the higher likelihood of future insurance claims. The tables below show how whole life insurance premiums vary across common applicant types.

Cost of whole life insurance based on gender

The cost of whole life insurance for non-smokers typically ranges from $70.74 to $319.41 per month for males and $57.24 to $277.92 per month for females, depending on age. The premium for whole life insurance is generally lower for women, and they pay lower premiums than men. This is because females have a longer average life expectancy, resulting in a lower mortality risk for insurers over the lifetime of the policy.

Whole life insurance costs: Male vs female

Age (in years)	Male	Female
20	$70.74	$57.24
30	$100.35	$88.74
40	$141.66	$127.53
50	$223.83	$181.71
60	$319.41	$277.92

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

Cost of whole life insurance based on smoking status

The cost of whole life insurance for smokers typically ranges from $84.60 to $413.34 per month, compared to $57.24 to $319.41 per month for non-smokers. Smokers pay higher premiums because tobacco and nicotine use increase the risk of serious health conditions and reduce life expectancy, increasing the likelihood of future claims.

Whole life insurance cost for a smoker vs. a non-smoker

Age (in years)	Male (Non-smoker)	Male (Smoker)	Female (Non-smoker)	Female (Smoker)
20	$70.74	$100.08	$57.24	$84.60
30	$100.35	$139.14	$88.74	$118.53
40	$141.66	$205.07	$127.53	$177.17
50	$223.83	$289.29	$181.71	$246.55
60	$319.41	$413.34	$277.92	$349.26

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

Cost of whole life insurance for children

The whole life insurance cost for children can start from $100 per month for a 20-pay participating whole life policy. Purchasing whole life insurance for a child at a young age allows parents or grandparents to lock in lower lifetime premiums while providing lifelong coverage and guaranteed cash value growth. Over time, eligible dividends may increase the policy’s cash value and death benefit, depending on the policy and dividend option selected.

Cost of life insurance for a male child

Age	Monthly premiums	Accumulated cash value	Death benefit
5 years	$100/month	$0	$159,200
20 years	$100/month	$17,000	$159,200
35 years	No payment of premiums after the first 20 years	$50,000	$218,000
50 years		$129,000	$347,000
70 years		$401,000	$634,000

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

Cost of whole life insurance for seniors

The cost of whole life insurance for seniors typically ranges from $277.92 to $960.57 per month for seniors aged 60 to 80 with $100,000 in coverage under a 20-pay option. Premiums are generally higher for seniors because the likelihood of future insurance claims increases with age. Despite the higher cost, whole life insurance can help cover final expenses, leave a tax-efficient inheritance, and support estate-planning goals for seniors’ beneficiaries.

Whole life insurance costs for seniors

Age (in years)	Male (Non-participating)	Male (Participating)	Female (Non-participating)	Female (Participating)
60	$319.41	$382.14	$277.92	$351.81
65	$409.14	$445.77	$345.06	$404.64
70	$544.95	$485.41	$441.54	$468.81
75	$782.37	$671.04	$607.05	$569.07
80	$960.57	$904.77	$745.38	$750.87

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

Whole life insurance costs by premium payment option

The whole life insurance cost ranges between $38 and $323, depending on your age and the payment option you choose. Your premium payment option determines how long you will pay for your whole life insurance policy and how much you will pay each month. Shorter payment periods generally have higher monthly premiums because the policy is paid off sooner, while longer payment periods spread the cost over more years.

20 Pay: Pay premiums for 20 years, after which your policy remains fully paid up for life while your lifelong coverage and cash value continue to grow
T65: Pay premiums until age 65, making it a popular option for those who want to complete payments before retirement while keeping lifelong coverage
Life Pay: Pay premiums until age 100, resulting in the lowest monthly premiums by spreading the cost over the longest payment period

Whole life insurance cost by payment option

Age (in years)	20 Pay	T65	Life Pay
20	$70.74	$54.81	$38.97
30	$100.35	$74.34	$52.65
40	$141.66	$128.70	$82.89
50	$223.83	$322.83	$131.76
60	$319.41	–	$209.16

*Illustrative monthly premiums for a male non-smoker of various age ranges seeking a non-participating whole life insurance policy with $100,000 in coverage

Cost of whole life insurance by insurer in Canada

Whole life insurance premiums can vary noticeably between insurers, even for applicants with the same age, gender, coverage amount, and policy type. For example, a 20-year-old non-smoking male pays $70.74 per month with Foresters Life, compared to $113.49 per month with Canada Protection Plan for the same $100,000 of coverage. Differences in underwriting, pricing, and product design mean that the same applicant may receive different premiums from different insurers. Hence, comparing quotes from the best whole life insurance companies helps you find the perfect combination of premium, policy features, and long-term value.

Whole life insurance cost for top insurers in Canada:

Age (in years)

Foresters Life

Desjardins

Sun Life

iA Financial Group

Canada Protection Plan

20 years

Male: $70.74

Female: $57.24

Male: $78.21

Female: $69.66

Male: $91.17

Female: $80.46

Male: $94.68

Female: $81.90

Male: $113.49

Female: $102.96

30 years

Male: $100.35

Female: $88.74

Male: $105.66

Female: $95.13

Male: $114.21

Female: $102.42

Male: $114.03

Female: $104.13

Male: $131.49

Female: $121.50

40 years

Male: $141.66

Female: $127.53

Male: $151.29

Female: $134.01

Male: $166.23

Female: $150.93

Male: $177.03

Female: $147.96

Male: $171.81

Female: $160.56

50 years

Male: $223.83

Female: $181.71

Male: $235.26

Female: $191.70

Male: $267

Female: $222.03

Male: $251.73

Female: $210.15

Male: $237.69

Female: $221.13

60 years

Male: $319.41

Female: $277.92

Male: $333.72

Female: $294.48

Male: $346.41

Female: $306.90

Male: $366.75

Female: $303.75

Male: $355.32

Female: $317.25

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

Whole life insurance calculator in Canada

Wondering how much insurance you might need? The above numbers give you some idea of what Whole Life Insurance might cost, but check out our life insurance calculator to get a full, holistic view of what it takes to solidify your financial security. There you can start comparing quotes and insurance plans for whole life coverage

Is whole life insurance worth the cost?

Yes, whole life insurance can be worth the cost if you are looking for lifelong financial protection and long-term wealth-building benefits. Whole life insurance typically costs more than a comparable term life insurance policy, but the higher premiums provide lifelong financial benefits, including:

Lifetime coverage that never expires as long as premiums are paid
Guaranteed cash value growth that accumulates over time
Level premiums that remain unchanged throughout the life of the policy
Tax-advantaged cash value growth while the policy remains in force
Support for estate planning and wealth transfer through a generally tax-free death benefit paid to beneficiaries
Potential annual dividends on participating whole life policies, which may increase the policy’s cash value and death benefit over time

How does the cost of whole life insurance compare to term life insurance?

Whole life insurance generally costs more than term life insurance for the same coverage amount because it provides lifelong coverage and accumulates cash value over time. For example, the average cost of whole life insurance per month for a $100,000 whole life insurance policy ranges from $57 to $382, while a $100,000 term life insurance policy costs around $7 to $44 per month, making term life insurance the more affordable option for short-term coverage needs.

If you only need life insurance for a specific period, such as while paying off a mortgage or supporting your family, term life insurance may be the more cost-effective option. If you need lifelong coverage or want to build cash value over time, whole life insurance may be worth considering.

A whole life insurance policy can be used during your lifetime and can help benefit your beneficiaries after you pass away.

What happens when you pay off whole life insurance?

Once you pay off a whole life policy, it becomes fully paid-up, meaning no further premiums are required. This type of policy is known as limited pay whole life insurance.

The policy remains active for life, and the death benefit stays intact. The cash value will continue to grow, and you can still access it through loans or withdrawals.

This is especially helpful if you are buying a whole life policy for your children. While you pay the premiums till your child is 20 years old, they remain protected for life and have access to cash value that they can use for any future financial obligations, such as education costs.

Here’s what a paid-up policy would look like for a 5-year-old child:

Paid-up life insurance for a 5-year-old

Age (in years)	Accumulated Cash Value	Life Insurance Value	Monthly Premiums
5	$0	$100,000	$35
20	$5,000	$100,000	$35
35	$20,000	$105,000	$50
50	$60,000	$160,000	$0
70	$180,000	$300,000	$0

How to reduce the cost of whole life insurance

Although whole life insurance generally costs more than term life insurance, there are several ways to make coverage more affordable, such as buying early, choosing the right coverage amount, comparing quotes, and more. Here are some of the ways in which you can reduce the cost and get the cheapest whole life insurance:

Buy coverage early: Purchasing whole life insurance at a younger age helps you lock in lower premiums for life
Choose the right coverage amount: Choose a coverage amount that aligns with your financial needs without paying for more coverage than necessary
Maintain a healthy lifestyle: Good overall health and remaining tobacco-free can help you qualify for lower premiums
Consider a non-participating policy: If dividend potential isn’t important to you, a non-participating policy can provide permanent coverage at a lower cost
Select a longer premium payment period: Options such as Life Pay generally have lower monthly premiums than shorter payment schedules like 20 Pay because premium payments are spread over the entire policy period
Compare quotes from multiple insurers: Premiums can vary significantly between insurance companies for the same coverage. Comparing quotes lets you evaluate plans from Canada’s leading insurers

How does PolicyAdvisor help you compare whole life insurance?

Comparing whole life insurance is about more than finding the lowest premium. Here’s what we at PolicyAdvisor can offer to you:

Compare 30+ insurers: Get quotes from Canada’s leading insurance companies rather than comparing products from a single insurer
Review multiple policy options: Our platform helps narrow down available products based on your coverage needs, budget, and personal profile
Get AI-powered comparisons: Answer a few questions online to receive personalized quotes and compare your options quickly
Trusted by hundreds of thousands of Canadians: PolicyAdvisor has helped more than 650K customers and facilitated over $10 billion in insurance coverage
Speak with a licensed advisor: Our advisors can explain policy details, answer your questions, and help you evaluate the long-term implications of different whole life policies
Pay $0 in fees: PolicyAdvisor does not charge customers broker, administration, setup, or hidden fees. You pay the same premium as you would buying directly from the insurer
Compare and apply online: You can get quotes, review your options, customize your coverage, and complete your application from the comfort of your home

Schedule a call now to get instant whole life insurance quotes!

Frequently asked questions

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

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

How does adding riders affect whole life insurance premiums?

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

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

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

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

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

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

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

Which premium payment option has the lowest monthly cost?

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

How can I reduce the cost of whole life insurance?

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

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

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

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

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

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Whole life insurance in Canada and how does it work

Whole life insurance can provide lifelong financial protection while offering features that go beyond a traditional term policy. It can be used for estate planning, leaving a legacy, covering final expenses, or building cash value. It comes as no surprise that many Canadians choose it for lifelong protection and tax-advantaged cash growth. This article explains whole life insurance and how it works so you can invest in a policy that keeps you and your loved ones protected.

Whole life insurance explained

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

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

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

Key features of whole life insurance:

Feature	Details
How it works	Pay premiums to receive guaranteed lifetime coverage while building cash value
Coverage period	Lifetime
Cash value	Guaranteed cash value grows over time and may be accessed through policy loans or withdrawals
Death benefit	Generally tax-free payment to your beneficiaries
Dividends	Available on participating whole life policies (dividends are not guaranteed)
Premiums	Usually fixed for life or for a limited payment period
Typical coverage amounts	$25,000 to $10 million or more

How does whole life insurance work in Canada?

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

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

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

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

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

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

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

Types of whole life insurance in Canada

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

Participating whole life insurance

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

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

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

Non-participating whole life insurance

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

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

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

Limited-pay whole life insurance

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

10 Pay
20 Pay
Pay to Age 65

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

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

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

What is a children’s whole life insurance policy?

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

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

Learn more about life insurance for children

How much whole life insurance coverage do you need?

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

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

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

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

Using the DIME method to estimate whole life insurance

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

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

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

DIME Factor	Amount
Debt (credit card balance and personal loan)	$75,000
Income replacement (10 years of annual income at $180,000)	$1,800,000
Mortgage (remaining mortgage balance)	$600,000
Education (future education savings for one child)	$150,000
Total estimated life insurance needed	$2,625,000

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

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

Pros and cons of whole life insurance

Pros:

✓Guaranteed lifetime coverage and cash value growth

✓Tax-deferred cash value growth

✓Potential to receive annual dividend payments that can be used to reinvest, withdraw, or buy more insurance

✓The investment component is managed by the insurance company, and it does not fluctuate with the market

✓The amount you pay will stay the same for the duration of the entire life insurance policy

✓Your death benefit or coverage amount can grow over time with cash value or dividends

✓Your policy can be paid off in a short time frame so you don’t have to worry about it later

Cons:

✗Higher premiums than term life insurance

✗Cash value builds slowly during the early policy years

✗May offer lower short-term return compared to some investment products

✗Cancelling or surrendering the policy early can result in surrender fees and potential tax consequences

✗Whole life policies involve cash value accumulation and annual dividends, which can be challenging to grasp at first

How much does whole life insurance cost in Canada?

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

Cost of $100,000 whole life insurance policy:

Age (in years)	Male (Non-participating)	Male (Participating)	Female (Non-participating)	Female (Participating)
20	$70.74/month	$138.42/month	$57.24/month	$118.89/month
30	$100.35/month	$177.84/month	$88.74/month	$156.15/month
40	$141.66/month	$228.96/month	$127.53/month	$207.00/month
50	$223.83/month	$292.23/month	$181.71/month	$270.81/month
60	$319.41/month	$382.14/month	$277.92/month	$351.81/month

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

How are whole life insurance premiums calculated?

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

Personal factors:

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

Policy and coverage factors:

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

How do whole life insurance premiums work?

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

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

Why is whole life insurance expensive?

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

What is the cash value of whole life insurance?

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

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

How does cash value grow?

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

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

How to use cash value in whole life insurance?

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

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

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

Method	How it works	Tax implications	Impact on policy
Policy loan	Borrow against your policy’s cash value Policy acts as collateral	Generally tax-free May become taxable if policy lapses or is surrendered	Coverage remains in force Cash value continues to grow (subject to policy terms) Unpaid loan and interest reduce the death benefit
Cash withdrawal	Withdraw a portion of your cash value while keeping the policy active	Tax-free up to your adjusted cost basis (ACB) Excess withdrawals may be taxable	May reduce the cash value and death benefit
Pay premiums	Use accumulated cash value to cover premium payments	Generally not taxable	Keeps the policy active without out-of-pocket premiums Reduces available cash value
Surrender the policy	Cancel the policy Receive the cash surrender value after applicable surrender charges and policy loans	Gains above your adjusted cost basis (ACB) may be taxable	Coverage ends permanently Death benefit is forfeited

What happens to cash value when the insured dies?

When the insured dies, the cash value is not paid out to the beneficiaries and is returned to the insurance company. In most whole life policies, the insurer pays the beneficiaries only the death benefit, while the accumulated cash value is generally not paid separately. The cash value, however, helps the insurer fund the guaranteed death benefit.

What are whole life insurance dividends?

If you purchase a participating whole life insurance policy, you may receive annual dividends from your insurer. These dividends are based on the performance of the insurer’s participating account and may be paid to eligible policyholders.

The dividends are issued when the participating account performs better than expected in terms of investment returns, claims experience, and operating expenses. Additionally, dividend scale interest rates and payouts vary by insurer and can change over time. While these amounts are not guaranteed, they add flexibility and long-term value to your policy

How to use your whole life insurance dividends?

Similar to the cash value component, you can use your dividends to purchase additional paid-up life insurance, receive cash payments, or even repay your outstanding policy loans.

Paid-up additions: Purchase additional fully paid-up life insurance, increasing both cash value and the death benefit
Cash payment: Receive the dividend directly as cash
Premium reduction: Use dividends to pay some or all of your premium payments
Deposit with the insurer: Leave dividends on deposit to earn interest, subject to the insurer’s rates
Loan repayment: Apply dividends toward outstanding policy loans

Can you cancel your whole life insurance policy?

Yes, most whole life policies can be cancelled at any time. However, since these policies build cash value, cancelling them differs from cancelling a term life policy. If you surrender your whole life insurance policy, the insurer generally pays you the available cash surrender value after deducting any applicable surrender charges, outstanding policy loans, or unpaid interest. Once cancelled, your coverage ends, and your beneficiaries will no longer receive a death benefit.

Like most life insurance policies in Canada, whole life insurance also includes a free-look (cooling-off) period, typically lasting 10 to 30 days after you receive your policy. During this period, policyholders can review and cancel the policy, receiving a full refund of any premium paid.

Age (in years)

Gender

Smoker

Yes

Coverage Amount

What does whole life insurance not cover?

While whole life insurance covers natural and accidental death, there are certain exclusions and situations where a claim may be denied or the policy may become void.

Common exclusions and limitations include:

Suicide: Most policies have a two-year suicide exclusion. If death occurs during this period, the death benefit is generally not paid, although premiums may be refunded
Risky activities: Activities such as skydiving or scuba diving may result in higher premiums, standard coverage, or an exclusion, depending on the insurer’s underwriting assessment
Fraud or misrepresentation: False or incomplete information on an application can result in claim denial or policy cancellation
War and terrorism: Some policies may restrict or exclude coverage for deaths related to war, armed conflict, or terrorism
Undisclosed medical conditions: Failing to disclose requested health information can lead to claim denial, policy cancellation, or the policy being declared void

Exclusions vary by insurer and policy. Review policy wordings for specific limitations and definitions that apply to your coverage.

What other types of life insurance can I get in Canada?

If you are looking for alternatives to whole life insurance, these are the other types of life insurance that you can get in Canada, such as term life insurance, term-to-100 insurance, universal life insurance, funeral insurance, and no-medical life insurance.

Term life insurance: A type of life insurance that lasts for a certain number of years, called a term. Usually inexpensive and great for short-term needs
Term-to-100 life insurance: A type of life insurance policy that covers you for your entire life, but does not have a cash value or investment component as whole life does
Universal life insurance: A type of permanent life insurance that gives the policyholder more control over the investment part of the policy
No-medical life insurance: A type of insurance coverage that does not require a medical exam, and can ask just a few or no health questions at all. Usually gives lifelong coverage but comes with a lot of downsides

How does whole life compare to other life insurance policies available?

Whole life insurance is one of the many types of life insurance available in Canada. Depending on your financial goals, you may also consider term life insurance, universal life insurance, or no-medical life insurance.

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

Feature	Whole life insurance	Term life insurance	Term to 100 insurance	Universal life insurance	No-medical life insurance
Coverage duration	Lifetime	Fixed term (e.g., 10, 20, or 30 years)	Lifetime (coverage to age 100)	Lifetime	Term or permanent
Premiums	Higher but generally fixed for life	Lowest and fixed during the term	Fixed until age 100 (or for life, depending on the policy)	Flexible within policy limits	Higher than comparable medically underwritten policies
Cash value	Yes (guaranteed growth)	No	No	Yes (investment-linked)	Usually, only if it is a permanent policy
Medical exam required	Usually required	Often required, but non-medical options are available	Usually required	Usually required	No medical exam required, but it has a waiting period
Investment component	Guaranteed cash value accumulation	None	None	Flexible investment options	Depends on the policy type
Death benefit	Guaranteed for life	Guaranteed if premiums are paid during the term	Guaranteed for life if premiums are maintained	Can be adjusted within policy rules	Guaranteed if policy terms are met
Policy flexibility	Moderate (cash value options with fixed coverage)	Limited (renew or convert before expiry)	Low	High (flexible premiums, investments, and death benefit)	Moderate, depending on the insurer and policy type
Best for	Estate planning, lifelong financial protection, and leaving an inheritance	Income replacement, mortgage protection, raising a family, and temporary financial obligations	Lifelong coverage without paying for cash value or investment features	High-income earners seeking lifelong coverage with investment flexibility	People with health conditions or those needing quick approval
Typical cost	Highest	Lowest	Lower than whole life but higher than term life	Higher than term; varies based on investment choices	Higher than comparable medically underwritten policies

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

Best whole life insurance providers in Canada

In Canada, you can buy whole life insurance from some of the best companies, including Sun Life, Canada Life, Equitable Life, Manulife, and a few others. The right insurer depends on your coverage amount, participating-account objectives, payment period, financial strength, underwriting, policy guarantees, and dividend history.

You can also read our blog on the best whole life insurance companies in Canada to compare the top options available. Here is a quick overview of some of the best companies you can consider:

Equitable Life: A strong option for those who value a mutual-company structure and participating whole life coverage.
Manulife: Offers multiple premium payment options, including 10-pay, 20-pay, pay-to-90, and pay-to-100, along with its Vitality Plus option
Empire Life: Known for balanced whole life offerings through EstateMax and Optimax Wealth, with options for different long-term financial goals
Sun Life: Offers high coverage amounts and flexible policy features that can suit high-net-worth estate planning needs.
Foresters Financial: Offers competitive whole life options for smokers, including a Quit Smoking Incentive

Is whole life insurance worth it?

Yes, whole life insurance can be worth it if you are seeking lifelong financial protection, guaranteed cash value growth, and estate planning benefits. Unlike term life insurance, whole life insurance is not designed solely to replace your income for a limited period. It provides permanent financial protection while building cash value, in exchange for comparatively higher premiums.

Who is whole life insurance best suited for?

Whole life insurance is a good choice for those who:

Want guaranteed lifetime coverage
Want to leave a tax-free inheritance for your family
Need funds to cover estate taxes or final expenses
Have dependents who will rely on your financial support
Want to build guaranteed cash value over time

Who may not need whole life insurance?

Whole life insurance may not be an ideal choice if:

Your priority is affordable coverage at lower premiums
You want temporary coverage
You have limited financial obligations

Can whole life insurance be used for corporate business planning?

Yes, whole life insurance can be used for corporate and business planning in Canada, particularly by incorporated business owners. With a corporate-owned life insurance (COLI) policy, the corporation owns and pays the premiums and is generally named as the beneficiary.

The policy can help with business succession, shareholder agreements, estate planning, and providing liquidity to cover financial obligations when an insured business owner dies. Depending on the policy structure, the corporation may also build cash value that can support longer-term financial planning.

Is whole life insurance tax deductible?

While premiums paid for personal whole life insurance aren’t tax deductible, the policy offers several tax advantages, such as:

Tax-deferred cash value growth: Whole life policies entail a cash value component that grows on a tax-deferred basis. That means you won’t incur taxes on the cash value growth until you withdraw it
Tax-free death benefit: The death benefit paid to beneficiaries isn’t taxable
Tax-free loans against cash value: If you borrow against your whole life policy’s cash value, the loan amount isn’t subject to taxes
Tax-free interest-earning deposits: If you choose to receive your annual dividends in an interest-earning deposit, they remain tax-free unless withdrawn

How many years do you pay on a whole life policy?

The number of years you pay for a whole life insurance policy depends on the payment structure chosen at the time of purchase. Typically, whole life policies offer lifetime payments, limited payments, or single-premium policies.

Lifetime payments: You pay premiums throughout your entire life to keep the policy active. This option spreads the cost over time, resulting in lower annual premiums
Limited payment policies: You pay premiums for a set number of years, such as 10, 20, or 30 years, or until a specific age (like 65). After this period, the policy is fully paid, but coverage continues for life
Single premium: You make a one-time lump sum payment upfront, and the policy remains active for your lifetime without any further premiums

Do you get your money back at the end of a whole life insurance?

No, you don’t get your premiums back at the end of a whole life policy. Instead, you get a cash surrender value that depends on the total cash value minus any applicable charges that the insurer may levy.

If your policy has a cash value of $50,000 and has accumulated $5,000 in dividends, but has $2,000 in surrender charges, your cash surrender value would be $53,000. This is calculated in the following way:

$50,000 + $5,000 – $2,000 = $53,000.

The cash value can be withdrawn or used as collateral for a loan. The death benefit is paid to beneficiaries upon your passing, provided the policy remains active.

Does your money grow in Canadian whole life insurance?

Yes, your money grows in a whole life insurance policy through its cash value component. It not only provides lifelong protection but also builds cash value over time.

A portion of your premiums is allocated to this cash value, which grows at a guaranteed rate, often supplemented by dividends if you have a participating policy.

The cash value can serve as a valuable financial resource; you can borrow against it, use it for future premiums, or even access it for retirement or other expenses.

This growth is tax-advantaged, meaning you won’t pay taxes on the cash value growth as long as it remains within the policy. Whole life insurance offers both security and a way to build wealth over time, making it a popular choice for Canadians seeking long-term financial planning.

Do you need a medical exam for whole life insurance?

In many cases, yes. Most traditional whole life insurance policies in Canada require medical underwriting, particularly if you are applying for a higher coverage amount. Depending on your age, health, and smoking status, insurers may require you to take tests to assess your health conditions.

However, many insurers also offer simplified issue and guaranteed acceptance whole life insurance with little or no medical underwriting. It is worth noting that simplified issue and guaranteed issue whole life insurance policies will typically have lower coverage limits and higher premiums, compared to traditional policies with medical underwriting.

What age to get whole life insurance?

Although there is no ideal age to get a whole life policy, the sooner you buy one, the better it will be for you. The youngest age limit to get life insurance in Canada is 18 years. Starting early on it can have certain benefits such as:

Lower premiums: Premiums are significantly cheaper when you’re young and healthy
Guaranteed coverage: Secures lifelong coverage, even if health conditions develop later
Builds cash value early: More time for your policy to accumulate cash value, creating a financial safety net
Long-term savings: Spread costs over a longer period, making it more affordable
Future financial security: Provides stability for dependents and can be used for estate planning or retirement

Case study: A whole life insurance example

Let’s look at how whole life insurance works in a real-world example. John is a 30-year-old Canadian who’s thinking about estate planning. He wants lifetime insurance coverage so he can leave a financial benefit for his family after he dies.

The chart below shows the cash value of his policy over time.

Age: 30
Gender: Male
Policy type: Whole life (non-participating)
Death benefit: $250,000
Annual premium: $1,565
Payment type: Life pay (premiums paid annually for life)

Features	Whole life insurance
Cash value	Yes
Dividends	No, non-participating policies do not pay dividends
Premiums	Typically fixed for the life of the policy
Death benefit	Paid tax-free to the beneficiary
Cash value access	May be accessed through a policy loan, withdrawal, or surrender, subject to the policy terms and potential tax consequences

Figures are based on an insurance illustration for a Desjardins non-participating whole life policy purchased through PolicyAdvisor.com for a 30-year-old male in normal health.

John can access the cash value of his policy during his lifetime, subject to the policy’s terms. However, accessing the cash value can reduce the policy’s value or death benefit and may have tax implications.

How to find the right whole life insurance policy?

Choosing the right whole life policy requires careful consideration of several factors to ensure it aligns with your financial goals. Here’s a step-by-step guide to help you make an informed decision:

Choose the amount of coverage you need: Determine how much coverage will adequately protect your family. Consider factors like income replacement, debt, future expenses, and long-term financial goals
Examine riders: Riders are optional add-ons that enhance your policy. Popular options include critical illness coverage, waiver of premium, and accelerated death benefits. Assess which riders suit your needs
Look at the rate of return on cash value: Whole life policies build cash value over time. Evaluate the guaranteed rate of return and any potential dividends if you’re considering a participating policy
Be aware of surrender charges: If you cancel your policy early, surrender charges may apply. Understand these fees and how long they last to avoid surprises
Understand the different approval processes: Some policies require a medical exam, while others offer simplified or guaranteed issue options. Choose the process that best suits your health status and preferences
Check the insurer’s financial strength: A financially strong insurer is more likely to meet its long-term obligations. Review ratings from agencies like AM Best or Moody’s to gauge stability
Speak with our advisors: Our experienced advisors help you compare life insurance quotes from 30+ top insurers across Canada so you can choose a plan that best meets your needs

Frequently asked questions

How long does it take to build cash value?

Cash value begins accumulating once your policy is in force, although growth is generally slower during the first few policy years. It typically accelerates over the long term. The timing and amount of cash value growth depend on the specific policy, premium structure, and whether the policy is participating or non-participating.

Are whole life insurance dividends guaranteed?

No, dividends are only available on participating whole life policies and are not guaranteed. They depend on the insurer’s financial performance. Insurers determine dividends based on factors such as the performance of the participating account, investment results, mortality experience, and expenses. An insurer’s historical dividend payments do not guarantee future payments.

Can I have more than one whole life policy?

Yes, many Canadians own multiple life insurance policies to meet different financial needs. Having multiple policies can help address different financial needs, such as estate planning, business protection, or leaving an inheritance. You may also combine permanent coverage with a term life policy when you need additional coverage for a specific period, such as while raising children or paying a mortgage.

Can I get life insurance riders with whole life insurance?

Yes, you can enhance a whole life insurance policy by adding riders, depending on the options your insurance provider offers. Commonly available riders include a term rider, child rider, accidental death and dismemberment benefit rider, guaranteed insurability rider, return of premiums rider, critical illness rider, and disability waiver of premiums rider, among others.

What happens if I miss a premium payment on my whole life insurance policy?

Missing a premium payment on your whole life policy can have varying consequences depending on the policy’s terms. Many policies include a grace period, typically 30 days, during which coverage remains active. If you fail to pay within this window, the insurer may use the policy’s cash value to cover premiums. If no cash value is available, the policy may lapse, leading to a loss of coverage. Some policies offer options like automatic premium loans to prevent lapses.

Can I use my whole life insurance policy as collateral for a loan in Canada?

Yes, you can use your whole life insurance policy as collateral for a loan, thanks to its cash value component. Many Canadian lenders accept this arrangement, allowing you to borrow against your policy. Alternatively, you can take a policy loan directly from the insurer. In both cases, it’s important to maintain the policy and repay the loan to avoid reducing the death benefit or risking a policy lapse.

How soon can I cash out my whole life insurance policy?

It depends on your provider. Most Canadian companies will let you access your policy’s cash value on the anniversary after 5 or more years. This depends on whether you want to withdraw it, borrow against it, or access it any other way. But you may want to wait. The longer you let whole life insurance cash value accumulate, the bigger the amount you can use and the more benefit you can have.

How much can I borrow from a whole life policy?

You can normally borrow up to 90% of your policy’s cash value if you want to take out a policy loan directly from your insurance provider. If you want to borrow from a bank or lender and just use your policy as loan collateral, you can borrow up to 100% of the premiums you paid.

How long does whole life insurance last?

Whole life insurance is designed to provide coverage for the insured’s entire lifetime, rather than for a fixed term. The policy remains in force as long as its requirements are met, such as paying premiums when due or maintaining sufficient policy value where applicable.

Should you buy whole life insurance for your child?

Yes, many Canadian parents and grandparents purchase whole life insurance for children to give them lifelong coverage at a young age. Buying coverage while a child is young can lock in lower premiums for life, guarantee their future insurability regardless of changes in health, and begin building cash value that they can access later in life, subject to the policy terms.

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Best life insurance for couples in Canada (2026 guide)

Life insurance for couples in Canada can help protect shared financial responsibilities such as a mortgage, debts, child-care costs, and future family expenses. This applies whether you are married, common-law, newly married, or planning to start a family. When comparing life insurance for married couples, you can choose two separate life insurance policies or, depending on the insurer and product, joint or combined coverage.

While separate life insurance policies are the best fit for most couples due to their flexibility, joint life insurance can be a more suitable and cost-effective option for couples who want to protect shared financial obligations, simplify policy management, or reduce policy fees. The right type of couples life insurance depends on your incomes, mortgage and debts, dependants, and budget.

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

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Top 5 best life insurance companies for couples in Canada

Choosing the right life insurance company for couples in Canada is just as important as choosing the right type of policy. While many insurers offer great benefits, the following companies offer greater flexibility, built-in benefits, and features that make them particularly suitable for partners with shared financial goals.

Here’s an overview of the five best life insurance companies for couples in Canada:

BMO Insurance

BMO Insurance is an excellent choice for couples who want their coverage to remain stable even after a life-changing event. Even if one insured person in a joint policy passes away, the surviving insured member can continue coverage at the same premium, provided the coverage amount remains unchanged.

This feature is great for couples seeking hassle-free coverage, especially at older ages when premiums are higher. In addition, BMO also offers the Empathy service, which provides emotional and logistical support to the policyholder’s beneficiaries.

Beneva

Beneva is well suited for couples who want more than just a death benefit. The policies include valuable built-in features such as the Extreme Disability Benefit and Guaranteed Insurability Option, ensuring policyholders can increase coverage later on without additional medical underwriting (under qualifying circumstances).

Additionally, eligible policies also have the option to add valuable riders such as child coverage and accidental death benefits, allowing couples to customize their protection and help ensure the financial safety of their beneficiaries.

Empire Life

Empire Life has one of the most seamless application processes, combining a streamlined online application process with competitive policy features. Couples can benefit from policy fee savings, strong term conversion options, and the ability to choose from a wide selection of term and permanent life insurance plans.

Policyholders can also add critical illness insurance under the same policy, making it easier for them to build a comprehensive financial protection plan. Additionally, the joint first-death plan offers temporary insurance to the surviving partner for an additional 90 days. This gives the spouse time to figure out their next steps without suddenly being unprotected.

RBC Insurance

RBC Insurance stands out for its Pick-a-Term feature, which lets partners choose a customized term length rather than selecting only standard options such as 10 or 20 years. This flexibility allows them to match coverage with major financial obligations like mortgages, education, or even retirement planning.

Many eligible policies also feature a seamless conversion option, allowing couples to transition from term to whole life without additional medical underwriting. Couples can also benefit from policy fee savings when purchasing joint coverage.

Manulife

Manulife is an excellent option for couples who want to combine life insurance with wellness incentives. Through the Manulife Vitality program, policyholders can earn points and receive rewards for maintaining healthy lifestyle habits, such as exercising, participating in activities, and completing health assessments.

Additionally, Manulife life insurance offers a Waiver of Premium option for couples. If either partner becomes totally disabled due to injury or illness, the premiums for the entire joint policy are waived, ensuring coverage remains active while household income is impacted.

Quick overview of the five best insurance companies for couples in Canada:

Insurer	Best for	Standout feature
BMO Insurance	Long-term flexibility	Surviving insured can continue coverage at the same premium (subject to policy conditions)
Beneva	Built-in policy benefits	Extreme Disability Benefit and Guaranteed Insurability Option
Empire Life	Fast digital applications	Digital underwriting, policy fee savings, Critical Illness integration
RBC Insurance	Custom term lengths	Pick-a-Term feature and joint policy fee savings
Manulife	Wellness-focused couples	Manulife Vitality rewards program and Waiver of Premium

What is the best life insurance for couples in Canada?

The best life insurance for couples in Canada depends on a couple’s financial goals, family situation, and long-term plans. Leading insurers such as BMO, Empire Life, RBC Insurance, and Manulife offer unique features that suit couples seeking financial protection.

While many assume a joint policy is best, separate life insurance policies can offer greater flexibility, personalized coverage, and better long-term value. Joint first-to-die insurance covers two people but generally pays one benefit when the first insured dies. Meanwhile, joint last-to-die insurance generally pays the benefit after the second insured dies. This can make it useful for estate expenses and wealth transfer.

Here’s a quick overview of life insurance for couples in Canada:

Feature	Details
Types of coverage	Individual life insurance Combined (Or multi-life) life insurance Joint first-to-die life insurance Joint last-to-die life insurance
Separate policies	Each person has their own coverage, beneficiary, and death benefit Couples with shared financial obligations
Joint first-to-die	Covers two people and generally pays once after the first death
Joint last-to-die	Pays after the last insured person dies
Combined/multi-life	Can include two separate policies under one contract
Best insurance companies	BMO Beneva Empire Life RBC Insurance Manulife
Can unmarried couples apply?	Common-law partners can purchase life insurance individually or jointly if they meet the insurer’s eligibility requirements

Types of life insurance available for couples in Canada

In Canada, couples can choose between joint life insurance policies that cover both partners under a single plan or individual policies that provide separate coverage for each person. Based on the type you choose, the following options are available:

Joint first-to-die life insurance
Joint last-to-die (survivorship) life insurance
Two separate life insurance policies
Combined or multi-life insurance policy

Here’s a quick overview of the different policy types:

Joint first-to-die life insurance

A joint first-to-die life insurance policy covers two people under a single contract and pays the death benefit after the first insured person passes away. Once the benefit is paid, the policy ends, and the surviving partner no longer has coverage.

Couples commonly choose this option to ensure the surviving spouse has financial protection for living expenses, debts, child care, or mortgage payments. While it is comparatively less expensive than two separate policies, note that joint first-to-die life insurance only provides one death benefit.

Joint last-to-die (survivorship) life insurance

A joint last-to-die policy insures two people under one contract but pays the death benefit only after both insured individuals have passed away. Since the insurer does not pay until the death of both partners, premiums are often lower than buying two separate policies.

This option is great for parents or partners who wish to protect their children and other beneficiaries from debts and to support estate planning and wealth transfer.

Two separate or single life policies for couples

In this case, each spouse owns an individual policy with their own coverage amount, beneficiaries, and policy features. Each policy pays its own death benefit when the insured passes away, offering beneficiaries two separate payouts over time.

This is the most flexible option, working well for couples with different incomes, debts, health conditions, or long-term financial goals. Additionally, separate policies are easier to maintain in the event of a divorce or separation. Since they are not under a joint policy, the individuals continue to be insured without any complications or reassessment.

Combined or multi-life insurance policy

A combined or multi-life insurance policy allows two people to have two coverages within a single insurance contract. It combines features of joint policies while offering personalized and individual solutions under one policy.

Each insured person has their own benefit, but the policy is offered under one application and one premium payment schedule. Beneficiaries receive two death benefits, one for each policyholder. Despite being combined, the death benefits are separate for each individual. Since there are two policies under one contract, couples can save on policy or administration fees, reducing the overall costs.

Comparing life insurance options for couples in Canada

Each policy type has its own series of benefits and features. Separate term insurance for a husband and wife is ideal for families, while joint first-to-die life insurance is ideal for individuals seeking protection for mortgages and other major expenses. Meanwhile, a joint last-to-die policy is well suited for estate planning and creating a legacy.

Here’s a comparison of the major life insurance options available for couples in Canada:

Feature	Joint first-to-die life insurance	Joint last-to-die (survivorship) life insurance	Two separate life insurance policies	Combined or multi-life insurance policy
Who is covered?	Two people under one policy	Two people under one policy	Two people have two separate policies, their own policy	Two individual policies linked under one account
When is the death benefit paid?	After the first insured person dies	After both insured individuals have passed away	When each insured person dies, according to their own policy	Single payout based on the policy type
Number of payouts	One	One	Two (one per policy)	Two (one per coverage)
Policy ends when	After the first claim is paid	After the second insured dies and the claim is paid	Each coverage ends independently according to its terms	Each coverage ends independently according to its terms
Best suited for	Income replacement, mortgage protection, and covering shared debts	Estate planning, wealth transfer, and leaving an inheritance	Couples who want flexible, personalized coverage	Couples who want separate coverage with simplified administration
Coverage flexibility	Low	Low	High	High
Premiums	Often lower than two comparable permanent policies	Often lower than two comparable permanent policies	Based on each individual’s age, health, and coverage needs	Similar to separate policies, though some insurers may offer administrative discounts
If one partner dies, does the surviving partner remain insured?	No, the policy ends after the payout.	Yes, but no benefit is paid until the surviving partner also passes away	Yes, the surviving partner’s policy remains active	Yes, the surviving partner’s policy remains active

It is also worth noting that many insurers offer a conversion or survivor privilege when couples purchase life insurance. This allows the surviving partner to purchase a new individual policy within a short window (usually 30 to 90 days) without undergoing a medical exam or answering new health questions.

When are separate life insurance policies better for couples?

Separate policies can provide greater independence when each person has different insurance needs. It is also great for couples with different incomes, allowing them to customize the policy according to their financial obligations.

Here’s when a separate policy makes sense:

You need different amounts of insurance: One partner may earn substantially more, carry more debt or have greater financial obligations. Separate policies allow each person to choose a different death benefit that covers their outstanding obligations.
You need different coverage periods: One partner may have a mortgage that lasts 20 years, while the other has a car loan for 10 years. Separate policies can help couples choose a term that aligns with their obligations
You want two separate death benefits: If you are a parent who wishes to leave behind a legacy for your children or help manage final costs, separate policies offer a death benefit for each death. This offers greater financial support than a joint policy
You want independence: Separate policies offer increased flexibility after separation or divorce, allowing individuals to retain their policies without being affected

When does joint or combined life insurance make sense for couples?

A joint or combined policy can make sense when both partners’ insurance needs are closely connected, or they wish to simplify the process and save on administration fees.

Here’s when a joint policy makes sense:

You want to protect a shared debt: A joint policy is great if you wish to protect a shared obligation, such as a mortgage or a car loan. The benefit is paid after the first death and may provide the surviving partner with financial support to manage debts or replace household income
You want one policy to manage: Many insurers allow two coverages to be kept under one contract instead of managing two entirely separate policies, reducing the complexity and paperwork
You want to reduce policy fees: Many combined or multi-life products can reduce administrative or policy fees when couples purchase a joint policy. Insurers even offer savings on premiums when purchased as a family

What happens to joint life insurance after divorce or separation?

A joint policy cannot automatically be assumed to split into two individual policies following a separation. If a couple separates, they will have to reach out to the insurer regarding splitting the policy and associated administrative processes. Couples purchasing joint coverage should review the policy’s separation or conversion provisions before buying instead of assuming that coverage can always be divided later.

How much does life insurance cost for couples in Canada?

The cost of a life insurance policy for couples in Canada ranges from $224.10 to $615.15. The premiums depend on the plans chosen and the coverage, as well as personal factors such as age, smoking status, and health.

Here is a sample life insurance rate for two 35-year-olds for Term100 from Beneva:

Feature	Individual life (Male)	Individual life (Female)	Combined/ Multi-life	Joint First to Die	Joint Last to Die
Beneva/ Monthly prem	$332.1	$288.45	$615.15	$457.2	$224.1
Life covered	Single	Single	Both	Both	Both
Coverage Amount	500k	500k	500k + 500k	500k	500k
Saving	–	–	1%	26%	64%

Age (in years)

Gender

Smoker

Yes

Coverage amount

Should couples buy joint or separate life insurance?

For most Canadian couples, it is recommended to obtain separate life insurance policies, as this allows each partner to customize their coverage and modify riders or terms independently. However, two individual policies for couples could cost as much as $620.55, whereas a joint policy costs as little as $224.1 per month.

Separate policies provide two death benefits and have customised features, making it easier to maintain coverage if the partners divorce or separate. On the other hand, joint policies can be a good option for couples seeking lower premiums or fewer complications.

Pros and cons of purchasing a joint policy for couples

Pros:

✓One policy covers both partners

✓Easier to manage with a single premium and policy document

✓May cost less than two comparable permanent policies

✓Well suited for protecting shared financial obligations like a mortgage

Cons:

✗Typically pays out only once (depending on the policy type)

✗Less flexibility to customize coverage for each partner

✗May not be ideal if partners have different insurance needs

✗Creates additional complications if the partners divorce or separate

✗Equivalent Single Age (ESA) may increase costs when there is a significant age difference

Pros and cons of purchasing individual policies for couples

Pros:

✓Each partner chooses their own coverage amount, policy type, and term

✓Each policy pays its own death benefit

✓Surviving partner remains insured after the other partner dies

✓Easier to update coverage as financial needs change

✓Greater flexibility for beneficiaries and policy riders

Cons:

✗Usually costs more than a comparable joint policy, especially for permanent insurance

✗Two policies to manage and pay for

✗Separate underwriting and applications for each partner

✗Beneficiary updates must be made separately for each policy

More choice. Lower price.

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How much life insurance coverage do couples need?

For many Canadian families, a rule of thumb is to purchase life insurance worth around five to 10 times annual income. However, this is just a baseline and should be adjusted based on your financial situation.

Here are certain things to keep in mind before you decide how much coverage you need:

Mortgage balance
Other debts
Income that would need to be replaced
Child-care requirements
Education costs
Existing savings and investments
Existing workplace or personal life insurance

Still confused? Use our life insurance calculator to estimate how much coverage you need.

What mistakes to avoid when purchasing life insurance for couples in Canada?

Many couples purchase life insurance to protect their loved ones, but choosing the wrong policy, waiting too long, or having insufficient coverage can leave their family financially vulnerable.

Here are some of the common mistakes you should avoid as a couple while purchasing life insurance in Canada:

Waiting too long: Many couples postpone buying life insurance until they have children or purchase a home. Purchasing coverage early protects you from higher premiums later on due to age and health conditions
Buying too little coverage: Some couples choose the lowest premium without considering how much coverage their family would actually need. Ensure the policy amount sufficiently covers debts, future income replacement, and living expenses
Choosing the wrong type of policy: Many couples automatically choose a joint policy because it appears simpler or less expensive. However, a term life policy or a joint last-to-die policy might offer better estate planning and coverage in certain situations
Forgetting the Stay-at-Home Partner: Many couples think they only need insurance on the person who earns the most money. If a stay-at-home partner passes away, the surviving partner must pay for child care, cleaning, and cooking.
Not reviewing coverage after major life events: Many couples forget to review their coverage amount or duration after major events like child birth, starting a business, purchasing a home, or taking on significant debt. This can leave them without sufficient coverage or term in the future.

When should couples in Canada get or review life insurance?

Couples in Canada should get or review life insurance when their circumstances and stages of life change. This can include when you:

Move in with your partner
Start a family
Buy or rent a home
Start a business
Take on a new loan or other financial obligation

Apart from this, major financial decisions such as buying a home, becoming parents or taking on additional debt are also good opportunities to review life insurance for married couples or new partners. Since age is an essential factor in evaluating life insurance premiums, purchasing coverage early can help you potentially unlock lower rates.

Can you change or cancel your life insurance policy as a couple in Canada?

Yes, most life insurance policies in Canada can be changed or cancelled. However, your available options depend on the type of policy you own and the rules specific to your insurer and policy. Common changes include increasing coverage, converting term coverage to permanent coverage, or replacing a joint policy with individual policies.

Here are some of the most common changes couples make to their life insurance coverage:

Option	What it means
Increase your coverage	Purchase additional life insurance if your financial responsibilities grow
Replace your policy	Switch to a new policy with a different insurer or coverage amount
Convert a term policy	Many insurers allow you to convert eligible term life insurance into permanent coverage before a specified age or deadline
Replace a joint policy	Couples who have different goals, or who divorce or separate, may replace a joint policy with individual policies
Cancel your policy	Stop paying premiums and end your coverage if you no longer need life insurance

It is also worth noting that many life insurance policies in Canada include a “free-look” period to review and cancel for a refund. As a couple, you should review your life insurance coverage and goals after major life events, such as purchasing property, having children, or planning for retirement. Contact our advisors today for a comprehensive plan based on your needs.

Our advisor’s take on the best life insurance for couples in Canada

At PolicyAdvisor, we recently helped a married couple in their early thirties secure life insurance after purchasing their first home and welcoming their first child. They were seeking coverage to ensure the surviving spouse could continue paying the mortgage, replace lost income, and support their child.

Client profile

Ages: 32 and 34 years
Family: Married with one young child
Primary concern: Income replacement and mortgage protection
Existing debt: $620,000 mortgage
Coverage goal: $1.5 million in total life insurance
Approximate monthly premiums: $332.1 (Male) and $288.45 (Female), respectively

Why we recommended separate term life insurance

Different coverage needs: Each spouse required a different coverage amount based on their income and financial responsibilities
Two death benefits: Each policy provides its own death benefit, offering greater financial support
Conversion option: The policies included the option to convert to permanent life insurance if their long-term financial goals changed
Affordable coverage: Lower monthly premiums allowed them to get higher coverage without exceeding their budget

How to purchase life insurance for couples in Canada?

PolicyAdvisor’s licensed life insurance advisors can help couples compare life insurance quotes from leading Canadian insurers based on their ages, budget, coverage needs, and financial goals. They can help you estimate your coverage and decide between joint and separate policies.

Whether you are a married couple in Canada, raising a family, or planning your estate, PolicyAdvisor can help you compare quotes and apply online with licensed advisors. We will compare policy types, term lengths, and riders to help you choose the right protection for you and your loved ones.

Need help?

Call us at 1-888-601-9980 or book time with our licensed experts.

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Frequently Asked Questions

What is the best life insurance for couples in Canada?

For most Canadian couples, two separate term life insurance policies are the best option. They offer better flexibility and allow each partner to choose their own coverage, beneficiaries, and riders with ease.

Is joint life insurance cheaper than separate policies?

Joint life insurance can sometimes have lower premiums than purchasing two comparable individual policies because both partners are insured under a single contract. However, it only pays one death benefit. Once it is paid, coverage ends.

Can common-law couples purchase life insurance together?

Yes, most Canadian insurers allow common-law partners to purchase either separate or joint life insurance policies if they meet the insurer’s eligibility requirements. Coverage options are usually the same as those available to married couples.

Can couples have different coverage amounts?

Yes, if you have separate life insurance policies. Since each policy is its own contract, you can choose to customize it based on your needs. Additionally, you can choose separate beneficiaries.

Can couples buy life insurance online?

Yes, couples can buy life insurance online. Our trusted advisors at PolicyAdvisor can help you compare quotes.

Can we name a minor child as beneficiary?

In most cases, appoint a trustee for any minor’s share so funds can be managed for the child’s benefit until they reach the age of majority in your province.

What if one of the partners has a health condition?

You can consider separate policies so one partner’s health does not influence the other’s pricing or approval. Consider exploring fully underwritten, simplified issue, or guaranteed issue options, depending on your situation.

What happens to joint life insurance after divorce or separation?

This depends on the policy terms and agreement between the policyholders. Some joint life insurance policies can be split into separate policies or transferred to one partner, while others may need to be cancelled.

What happens to joint first-to-die insurance after one partner dies?

Once the first partner passes away, the policy will pay the death benefit and then end. However, some insurers like RBC include a survivor privilege with these policies. Under this, the surviving insured can apply for new coverage within 60 days without providing evidence of insurability.

What is spouse life insurance?

Spouse life insurance generally refers to life insurance that covers your husband, wife, or partner. A spouse in Canada may have their own individual life insurance policy, be covered with their partner under joint life insurance, or be a dependant on an employer group benefits plan.

Is term insurance good for a husband and wife?

Term life insurance can be suitable for married couples seeking coverage for a temporary obligation for a defined period, such as while paying a mortgage or supporting dependent children.

What types of insurance are most common for couples in Canada?

Life insurance for couples in Canada can include two individual policies, joint first-to-die insurance, joint last-to-die insurance, and certain combined or multi-life policies. The right policy depends on your financial needs, income, and flexibility.

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How much does a $50,000 life insurance policy cost in Canada?

The cost of a $50,000 life insurance policy in Canada ranges between $8.32 and $165.04 for term life and $26.60 and $273.20 for whole life insurance. Your premiums depend on factors such as your age, health, sex, smoking status, coverage type, and the insurer’s underwriting assessment. Read on to learn the difference in cost and the factors affecting your premiums.

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$50,000 term life insurance vs. $50,000 whole life insurance

Here is a quick overview of monthly term and whole life insurance premium costs for $50,000 in Life insurance:

Applicant example	$50,000 term life	$50,000 whole life
Age 20, non-smoker	$9.45	$28.94
Age 30, non-smoker	$9.68	$34.70
Age 40, non-smoker	$10.13	$51.26
Age 50, non-smoker	$15.39	$77.85
Age 60, non-smoker	$33.97	$133.02

How much does $50,000 term life insurance cost?

A term life insurance policy for $50,000 in Canada ranges between $8.32 and $165.04, depending on various factors such as age, sex, term duration, and health. This policy provides coverage that lasts for a specific period of time known as a term. Your term life insurance can last either a fixed number of years (like 10, 20, 30 or even 40 years) or until you reach a certain age (like age 65).

The insurance premiums are guaranteed for the initial term of the policy and are paid directly to the insurance provider. Upon the end of the term, the coverage may automatically renew, or expire depending on the plan type.

If you die while the policy is in force, your beneficiaries will receive the death benefit as a tax-free lump sum of cash. If you choose to renew the policy at the end of the term, the premiums will increase based on the renewal schedule provided at the time of the initial contract. If you do not want to continue your coverage with the renewal premiums, you can cancel the policy.

The cost of term life insurance is primarily based on the length of term, the insured person’s age, gender, health, smoking status, and the amount of the death benefit they choose.

Term life insurance costs for $50,000

Based on standard health, male, $/month

10-Year Term 20-Year Term

Age	Non-Smoker	Smoker
20	$9.45	$11.70
25	$9.45	$11.70
30	$9.68	$12.74
35	$9.90	$13.77
40	$10.13	$16.56
45	$11.57	$23.72
50	$15.39	$36.13
55	$23.03	$50.12
60	$33.97	$65.32
65	$51.74	$101.86

Term life insurance costs for $50,000

Based on standard health, female, $/month

10-Year Term 20-Year Term

Age	Non-Smoker	Smoker
20	$8.32	$9.00
25	$8.32	$9.14
30	$8.55	$9.81
35	$8.78	$11.66
40	$9.00	$15.07
45	$10.04	$19.43
50	$13.64	$25.79
55	$18.67	$35.46
60	$25.69	$49.95
65	$39.95	$57.09

How much does $50,000 whole life insurance cost?

A whole life insurance policy for $50,000 in Canada ranges between $26.60 and $273.20, depending on various factors such as age, sex, payment term, and health. Premiums generally increase with age and can be higher for smokers and applicants with certain health risks. Whole life policies generally cost more than term insurance because they provide permanent coverage and typically include a cash value component. It is a type of permanent life insurance policy available in Canada.

As long as you continue paying the required premiums, your policy continues to be in effect till you stop paying or pass away. So, it comes as no surprise that many Canadians choose it for lifelong protection and tax-advantaged cash growth.

Furthermore, whole life insurance combines this financial protection with some access to liquidity. Unlike term life policies, whole life insurance also includes a guaranteed cash value component that accumulates over time. Depending on the policy you select, the plan may also earn annual dividends that can further supplement your death benefit and cash value.

The cash value of a whole life insurance policy is accessible while the policyholder is still living. They can either borrow against or withdraw from the cash value.

Similar to term life insurance above, the cost of whole life insurance premiums is based on age, health, gender, smoking status, the size of the death benefit, and the added expense of insuring someone’s life for an extended period (their entire life).

As an individual gets older, the health risks increase. This has a direct impact on the cost of your policy. Since the coverage lasts one’s entire life and the policyholder retains the value put into the policy, whole life insurance has higher premiums.

Whole life insurance costs for $50,000 (Non-participating)

Based on standard health, cash value coverage, $/month

Male Female

Age	Non-Smoker	Smoker
20	$28.94	$34.74
25	$29.66	$37.53
30	$34.70	$45.63
35	$41.04	$55.85
40	$51.26	$70.83
45	$64.04	$90.14
50	$77.85	$114.93
55	$98.10	$157.19
60	$133.02	$212.99
65	$185.94	$273.20

What does $50,000 life insurance cover?

Your financial needs change and evolve, and there are many reasons someone may need a relatively smaller life insurance policy. A $50,000 life insurance death benefit can help beneficiaries cover expenses such as funeral costs, outstanding debts, and ongoing financial support.

Here are some reasons to consider $50,000 of life insurance:

Pay outstanding debts: Life insurance proceeds can help beneficiaries manage debts and other financial obligations
Help cover funeral and final expenses: A life insurance death benefit can be used toward funeral costs and other expenses after death
Provide additional financial support: The death benefit can provide beneficiaries or dependants with additional funds after you pass away
Leave a legacy: The death benefit can be used to make a charitable donation or leave a gift to children or grandchildren
Laddering: The smaller amount can contribute to a life insurance ladder strategy where you layer different amounts of life insurance. You can pair $50,000 in whole life while purchasing a higher amount of term life coverage

Is $50,000 of life insurance enough in Canada?

A $50,000 life insurance policy may be enough if your goal is primarily to cover final expenses, smaller debts, or provide a modest additional benefit to your beneficiaries. However, it may not provide enough protection if your family would need substantial income replacement or help covering larger long-term financial obligations.

As a general rule of thumb, Canadians should aim to secure a life insurance policy worth 7 to 10 times their gross annual income to sufficiently manage their expenses at different stages of their lives.

Still confused about whether $50,000 is enough for you? Contact our licensed advisors and find a plan that suits your financial needs.

Who might need $50,000 life insurance?

A $50,000 policy may suit a Canadian individual or family whose life insurance needs are relatively limited. It may be well suited for individuals looking to leave money for funeral expenses, repay smaller debts, or pay off the remaining mortgage amount without bearing the cost of higher premiums.

Still confused if $ 50,000 life insurance is the right amount for you? Check out our life insurance calculator.

What affects the cost of a $50,000 life insurance policy?

The cost of a $50,000 life insurance policy in Canada may be attributed to several additional factors, including an individual’s health, age, gender, job profile, and whether they have additional riders. Find out more:

Health

Health is one of the primary factors that determine your life insurance premiums because it directly affects your life expectancy and the financial risk undertaken by the insurer. When you apply, underwriters evaluate metrics like your BMI, blood pressure, cholesterol, and pre-existing chronic conditions, alongside your family medical history and smoking status. While good health unlocks lower premiums, poor medical conditions may increase premiums significantly.

Age

Age is the single biggest factor influencing the cost and availability of life insurance, since mortality increases as you get older. Younger Canadians typically receive lower rates or more favourable underwriting, compared to older applicants.

Gender

Gender is a key factor in determining the cost of a life insurance policy in Canada. Statistically, women tend to live longer than men, which can result in lower premiums for women.

Insurers calculate premiums based on life expectancy, so men may face higher premiums for the same coverage amount, such as a $50,000 policy, compared to women.

Job profile

Your occupation can also influence the cost of your life insurance policy. Jobs that are considered high-risk, such as those in construction, aviation, or mining, often lead to higher premiums because they increase the likelihood of injury or death. Conversely, low-risk occupations, such as office work, may result in lower premiums.

Additional policy riders

Policy riders and options are additional features you can add to your life insurance policy, which can increase the overall cost. Common riders include critical illness coverage, accidental death benefits, and waiver of premium.

While these riders provide extra protection and benefits, they come at an additional cost, raising the premiums of your $50000 life insurance policy. The more riders you add, the higher the premium will be.

Can you get $50,000 life insurance without a medical exam?

Yes, you can purchase a simplified issue or guaranteed issue life insurance policy without a medical exam. A simplified issue term life insurance policy can range between $8.33 and $68.49. Additionally, some insurers may request that applicants fill out a health questionnaire as part of the process.

Here are the options available if you wish to obtain $50,000 without a medical exam:

Simplified issue life insurance policy

Simplified issue is a type of life insurance underwriting for term or permanent policies that requires applicants to answer a limited number of health questions without completing a medical exam. While approval is faster, premiums are much higher than those of traditionally underwritten policies.

Guaranteed issue life insurance policy

Guaranteed issue life insurance offers coverage without any medical questions or examinations. Acceptance is generally guaranteed as long as the applicant meets the insurer’s age requirements.

This policy type is essentially a last-resort option for Canadians with serious medical conditions or those who have difficulty qualifying for life insurance coverage. Guaranteed issue features the highest premiums and lower coverage limits, owing to the higher risk assumed by the insurer.

How do I get the best quotes for $50,000 life insurance coverage?

At PolicyAdvisor, we help Canadians compare quotes from leading life insurance companies and find the right fit for their coverage needs. Book some time with our licensed 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

How much is a $50,000 whole-life policy?

The cost of a $50,000 whole-life policy for a non-smoker can range from $26.60 to $197.55 per month. For the same coverage amount, a smoker may have to pay between $28.94 and $273.20 per month.

Healthier applicants typically pay less, while individuals with health issues may face higher premiums. Additional policy riders and options can also increase the cost.

Is $50,000 of life insurance enough coverage?

Whether a $ 50,000 life insurance policy is enough coverage depends on an individual’s financial situation and goals. This amount may be sufficient to cover final expenses, such as funeral costs and outstanding debts, or to provide a modest financial cushion for loved ones.

However, if an individual has dependents, a mortgage, or significant financial obligations, they might need a higher coverage amount to adequately protect their family’s financial future.

How does an individual’s age affect the cost of their $50,000 life insurance policy?

An individual’s age significantly affects the cost of a $50000 life insurance policy. Generally, the younger you are when you purchase the policy, the lower your premiums will be. This is because younger individuals are typically at lower risk of health issues and death.

As individuals age, premiums increase due to the higher risk of health problems, making it more expensive to obtain the same coverage.

Is $50,000 term life insurance cheaper than permanent life insurance?

Yes, term life insurance is generally less expensive than permanent life insurance, owing to its limited coverage and lack of cash value accumulation. Permanent policies like whole life insurance provide lifelong coverage alongside cash value growth and non-guaranteed dividends in participating policies.

Can seniors get $50,000 of life insurance?

Yes, seniors in Canada may qualify for $50,000 of life insurance. However, eligibility depends on their age, health, and the insurer’s policy terms. Some insurance companies may limit the amount and types of coverage available based on age.

Can I get $50,000 of life insurance with no medical exam?

Yes, some insurers offer $50,000 of life insurance without a medical exam through simplified issue and guaranteed issue policies. Insurers like RBC, Humania, and Manulife offer various no-medical plans that offer coverage to Canadians without a medical exam. However, policyholders may be required to complete a health questionnaire.

Can I convert $50,000 term insurance to permanent insurance?

Yes, if your term life policy offers a conversion privilege, you may be able to convert some or all of your $50,000 term coverage to permanent life insurance before the policy’s conversion deadline. Depending on the contract, conversion may also be available without providing new medical evidence of insurability.

Is $50,000 of whole life insurance a good investment?

Yes, a whole life insurance policy for $50,000 is a good investment if you need lifelong coverage for that amount, alongside cash value growth and non-guaranteed dividends. It can be used to leave behind a legacy or help cover final expenses.

Does smoking affect the cost of $50,000 of life insurance?

Yes, smokers generally pay more for the same amount of life insurance than non-smokers. A smoker may pay 50% to 100% more than a non-smoker for the same amount of coverage, owing to the increased mortality risks associated with smoking.

Can I use $50,000 of life insurance to cover funeral expenses?

Yes, a beneficiary can use proceeds from a $50,000 life insurance death benefit to help pay funeral and other final expenses. The policyholder can leave behind the death benefit for dependants or specific beneficiaries, allowing them to use it to pay funeral costs and other associated expenses.

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Does life insurance cover suicides in Canada?

Life insurance is designed to provide financial protection for your loved ones, but not every cause of death is treated the same under an insurance policy. Suicide is generally covered by many Canadian insurers after the policy’s suicide exclusion period. Understanding how insurers assess suicide-related claims, the rules that apply, and when benefits may or may not be paid can help you make informed decisions before buying coverage.

If you or a loved one are experiencing a mental health crisis, please contact the Mental Health Support Line at 9-8-8

Does life insurance cover suicide in Canada?

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

Life insurance coverage for suicide: at a glance

Situation	What generally happens
Suicide within the first 2 years of an individual policy	The full death benefit may not be payable; the contract may provide for a premium refund or another amount
Suicide after the 2-year period	The death benefit may be payable if the policy remains valid and other terms are satisfied
Policy reinstatement	A new 2-year exclusion period may apply from the reinstatement date
Replacing a policy	The new contract may begin a new 2-year suicide period

What is the suicide clause in life insurance?

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

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

How long does the suicide clause last?

A two-year exclusion period is common in many individual term, whole life, universal life, and no-medical life policies, but it should not be assumed that every policy uses identical wording. One must review the policy’s suicide provision, effective date, reinstatement clause, etc.

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

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

Why insurers include this clause

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

The clause serves several purposes:

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

How does suicide affect life insurance payouts?

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

In case of death during the suicide clause period

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

Alternatively, some providers may choose to deduct fees. The exact payment depends on the policy wording.

In case of death after the suicide clause period

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

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

In case of a joint life insurance policy

A joint life insurance policy generally includes the same two-year suicide clause as an individual life insurance policy, but the treatment of a claim depends on whether the policy is joint first-to-die or joint last-to-die. For joint first‑to‑die, no benefit is payable if the first death is suicide within two years. Once that period has passed, the benefit is payable at the first death. For joint last‑to‑die, there is no payout at the first death regardless of cause or exclusion. The suicide clause is assessed at the death of the second individual, which triggers the benefit as per policy wording.

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

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

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

Does medically assisted death (MAID) affect life insurance?

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

The Canadian Life and Health Insurance Association states that compliant MAID will not be considered suicide for life insurance purposes. Regardless of the approach, eligible beneficiaries can generally receive the death benefit if the policy is valid and all terms have been met.

However, MAID does not remove other valid grounds for ineligibility, such as:

Material misrepresentation when the insured applied for coverage
A medical condition that was specifically excluded when the policy was issued

Does a history of mental illness affect life insurance coverage?

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

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

Does a previous suicide attempt affect a life insurance application?

Yes, a previous suicide attempt can affect a future life insurance application. Insurers like Sun Life specifically consider the applicant’s age, number of attempts, and time since the incident. Additionally, they may consider factors such as resulting medication, hospitalization, underlying psychiatric conditions, and stability of home and life.

When can the suicide clause restart?

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

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

How do beneficiaries file a life insurance claim after a suicide-related death?

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

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

What documents are needed for a suicide-related life insurance claim?

For a suicide-related life insurance claim in Canada, beneficiaries will generally need to provide the insurer with standard death-claim documents as well as any additional records required to confirm the cause and circumstances of death.

While the exact list of documents can vary based on the insurer, it may include:

Proof of death, such as an official death certificate
Coroner’s or police report
Proof of identity for the beneficiary or claimant
Physician’s statement or medical records, if requested

Beneficiaries are requested to contact the insurer after a death to know if any additional documentation may be required.

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

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

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

What should beneficiaries do after a suicide-related death?

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

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

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

Frequently Asked Questions

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

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

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

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

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

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

Can a life insurance claim for suicide be appealed?

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

Does the suicide clause apply to no medical life insurance?

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

Is MAID considered suicide for life insurance?

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

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

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

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Age	Non-Smoker	Smoker
20	$9.90	$12.83
25	$9.90	$12.83
30	$10.35	$14.04
35	$10.80	$17.01
40	$12.33	$23.94
45	$15.35	$36.13
50	$23.40	$51.92
55	$33.66	$69.67
60	$53.72	$110.17
65	$92.41	$165.04

Age	Non-Smoker	Smoker
20	$8.78	$10.17
25	$8.78	$10.40
30	$9.45	$11.97
35	$10.26	$14.99
40	$11.39	$17.87
45	$13.50	$25.66
50	$19.35	$35.19
55	$25.11	$48.96
60	$40.28	$72.90
65	$61.83	$112.45

Age	Non-Smoker	Smoker
20	$26.60	$30.33
25	$28.44	$33.89
30	$31.32	$40.28
35	$36.95	$48.83
40	$44.78	$59.45
45	$54.86	$72.99
50	$67.28	$94.50
55	$85.73	$119.16
60	$114.17	$150.30
65	$158.27	$197.55

What is reinsurance and how does it work?

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

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

What is the most expensive life insurance policy in Canada?

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

Best Term Life Insurance in Canada: Company Reviews and Ratings

Which are the best term life insurance companies in Canada?

Best term life insurance companies in Canada for 2026

1. Empire Life

2. Manulife