Get family life insurance quotes in Canada
In just a few steps, get a personalized life insurance quote from Canada's top providers, and speak with a broker to find the right coverage for you and your family today.
compare quotesHow to get family life insurance with Ratehub.ca
- Tell us a bit about yourself
Life insurance is specific to you and your family, so we'll need a few details to customize your policy.
- Speak with an insurance broker
We'll show you quotes from multiple providers, so a broker will be in touch to help you choose.
- Finalize your policy selection
You may need a medical exam to finalize your policy, but you'll be guided through the process.
A few things we're proud of
1,200,000
monthly users
11 years
young
Over 1M
better choices made
Trusted partner
to Canada’s top financial institutions
What is family life insurance?
Matt Hands, VP, Insurance
In Canada, family life insurance isn't necessarily one product but rather a term used to describe coverage designed to protect a family. Because of this, there are two ways you can interpret family life insurance:
- Life insurance to protect your family upon your passing – In this case, you would be the insured, and you would name any family members you want as a beneficiary (be it a parent, spouse, or child). In the event of your death, the insurance company would pay the death benefit out to your loved ones who can then use the money for various needs, such as funeral expenses, mortgage payments, or income replacement.
2. Life insurance that covers multiple family members – In this case, multiple people in your family (which may include yourself) are insured. For instance, you and your spouse may be insured, and your children may also have coverage through a rider on your policy. In the event one of the family members who are covered passes, the payout will be made to the beneficiaries. This would also be seen as a joint policy.
All in all, the basics of life insurance still remain the same – by paying regular premiums to an insurance company, the provider agrees to pay out a set amount to anyone the policyholder designates upon their passing.
Who needs family life insurance?
There are many reasons why a family would require life insurance coverage – the obvious one being that family members tend to rely on one another financially. Here are some examples of cases in which it may be especially important to have the right policy in place:
Parents with young children
Young children depend on their parents financially for everyday expenses – a death benefit can be used as income replacement or cover tuition fees down the line.
Single-income household
If there's a breadwinner in the family (or a single parent), life insurance can ensure other members won't be on their own financially in the event of a worst-case scenrario.
Stay-at-home parents
Even though stay-at-home parents aren't providing financially, life insurance can help pay to handle all their responsibilities after they're gone (e.g. childcare, cooking, cleaning).
Family with mortgage
The death benefit on a life insurance policy can help cover a mortgage that can't otherwise be paid off. This allows members, such as your spouse and child, to keep the family home.
Individuals with debt
Even if you don't have financial dependents, certain debts can be passed onto your loved ones after you pass. This is where a life insurance policy can step in to protect your family.
Family legacy planning
If you want to leave your family with a financial cushion, or set up your children or grandchildren with an inheritance, life insurance can do exactly that.
Common types of family life insurance plans
Here, we cover the most common types of life insurance plans for families. While life insurance is typically broken into two categories (term life and permanent life), couples often opt for a specialized type of coverage called joint life insurance. And children can also be insured either through their own policy or as an add-on to their parent's policy.
Term life insurance
Permanent life insurance
Joint life insurance
Life insurance for children
Common types of life insurance riders for families
Additionally, there are many riders you can add to your policy to further protect yourself and your family. While each insurer offers different options, here are a few common riders you can ask your broker about:
Child rider
As mentioned, parents can add coverage for their child onto their policy through a rider (as a much cheaper alternative than a separate plan).
Guaranteed insurability rider
This allows you to purchase more coverage in the future without the requirement of a medical check, ensuring your insurability.
Accidental death rider
If you die from an accidental cause, such as a car accident, this rider pays out an extra benefit to compensate for the unexpected loss.
Accelerated death benefit
As a living benefit, this rider allows a portion of your death benefit to be paid earlier, before your passing – if you're diagnosed with a terminal illness.
Critical illness insurance
Critical illness coverage pays a lump sum if you're diagnosed with an approved condition – the funds can then be used for expenses like income replacement or medical bills.
more about critical illnessDisability insurance
This pays out regular payments (that's a percentage of your salary) if you're unable to work due to disability. The idea is that it acts as income replacement while you're out of work.
more about disability
Compare the best family life insurance plans in Canada.
We make shopping for life insurance easy. Get started with our free quote comparison tool today.
How much does family life insurance cost?
The cost of family life insurance will differ on a case-to-case basis. The more coverage your family opts for, the more expensive the premium will be. Plus, if the insured family members present more risk, the policy will also cost more.
For reference, here are three different family scenarios and the cost of insurance for each one. Keep in mind that these are only hypothetical quotes for the sample profiles – you may pay a much different rate, depending on your familial needs. To find the exact cost for you and your family, be sure to compare life insurance quotes with us.
| Member | Policy type | Coverage | Cost |
| Mom & dad | 20-year joint term | $500,000 | $40/month |
|---|---|---|---|
| Child 1 | Child term rider | $25,000 | $12/month |
| Child 2 | Child term rider | $25,000 | $12/month |
| Child 3 | Child term rider | $25,000 | $12/month |
| Total cost | $76/month | ||
Factors that impact the cost of family life insurance
Here, we cover the main factors that impact the price of your family's life insurance. Again, increasing your coverage will increase your premiums – and policyholders that present more risk will also need to pay more.
- Age
The older the insured, the more expensive the coverage will be. So purchasing coverage early on can save your family money in the long run.
- Gender
Males tend to face higher life insurance rates due to higher statistical risk factors of death. So with all else being equal, a father's policy will cost more than a mother's.
- Health & lifestyle
Family members with health conditions will face higher rates. And lifestyle considerations also come into play – smoking and risky jobs can hike up the cost.
- Number of policyholders
A joint life policy will cost more than a single policy. And adding child riders will also up the cost. The added protection doesn't come without a cost.
- Policy types
Permanent policies cost much more than term policies. Joint policies will also cost more than single policies. And more coverage equals higher premiums.
- Policy add-ons
Again, a child rider will cost you more. Other riders like critical illness and disability insurance will also increase your premium for obvious reasons.
How much life insurance does my family need?
According to the Canadian Life & Health Insurance Association, the average household in Canada had $483,000 in life insurance coverage in 2023 – for reference, this is also about five times household income.
However, coverage needs can vary greatly by location. Those living in Alberta had the most coverage at an average of $572,000 per household. Meanwhile, families in Atlantic Canada had the least amount of protection with Newfoundland & Labrador at the bottom ($353,000).
Below is a table outlining the average coverage per household for all the Canadian regions. Keep in mind that you and your family's needs may be different, and it's important to speak to a licensed broker about your specific case.
| Province | Average household coverage |
| Alberta | $572,000 |
|---|---|
| British Columbia | $520,000 |
| Manitoba | $478,000 |
| New Brunswick | $375,000 |
| Newfoundland & Labrador | $353,000 |
| Nova Scotia | $367,000 |
| Ontario | $514,000 |
| Prince Edward Island | $395,000 |
| Quebec | $404,000 |
| Saskatchewan | $503,000 |
| Territories | $405,000 |
Top considerations for family life insurance
When purchasing life insurance for your family, here are some questions you should ask to ensure you're making the right financial decisions for you and your loved ones. Be sure to consult a trusted insurance broker for additional guidance on the following:
What coverage is needed?
Consider how much your family would need to get by in a worst-case scenario. And consider what the different coverages can offer – term life, permanent life, and joint life.
Who needs life insurance coverage?
Not everyone needs to be insured. For instance, do your children actually need coverage? Do both parents actually need coverage? Or is there one person the family depends on most?
Can I customize my policy?
Research different insurers to find one that offers what your family needs. For instance, you may want to add living benefits to your policy (and not all insurers have the same options).
Who should be the beneficiaries?
Who would need the pay out after your death? Would it be your spouse, parents, or children? If your children are younger, can you trust someone else to handle the benefit?
Are the policies flexible?
Term life policies are often flexible – in that you can either renew coverage or convert it into a permanent policy. Consider these options if you're unsure about future needs.
Can I save on life insurance?
Having the right coverage in place is the most important – but also shop the market to make sure you're getting a good rate. Compare quotes with us today to get started.