Compare Prince Edward Island life insurance quotes
Looking for life insurance in PEI? We can help – in just a few steps, compare personalized quotes from the province's top providers.
compare quotesHow to get PEI life insurance with Ratehub.ca
- Tell us a bit about yourself
Life insurance is specific to you, 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.
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All about life insurance in PEI
![](https://cms.ratehub.ca/wp-content/uploads/2019/04/MattH-300x300.jpg)
Matt Hands, VP, Insurance and MoneySense
In Prince Edward Island, a life insurance policy is essentially a contract between you (the policyholder) and your coverage provider. By agreeing to pay regular premiums, your insurance company agrees to pay out a lump sum of money to your dependents after your passing. If you have loved ones who depend on you financially, life insurance can provide you with peace of mind, knowing they'll be financially supported in your absence. The payout can then be used for all different expenses, such as securing the mortgage or replacing your income.
Below, we outline a few key statistics regarding life insurance in PEI. All numbers were sourced from the Canadian Life & Health Insurance Association – representing the provincial market as of 2022.
- 95,000
People with life insurance coverage
in PEI for 2022 (CHLIA)
- 42 years old
Median age of policyholder
in PEI for 2022 (CHLIA)
- $21 billion
Life insurance coverage in force
in PEI for 2022 (CHLIA)
The life insurance industry paid out a total of $68 million in benefits within PEI in 2022 – this included $53 million from individual policies and $15 million from group policies. Canada-wide, insurers paid out a total of $16.1 billion, meaning PEI benefits made up about 0.4% of the country's total payouts.
In terms of life insurance premiums, PEI policyholders contributed $104 million in 2022 (including $86 million from individual plans and $18 million in group plans). Across the country, this number amounted to nearly $27 billion – with PEI making up about 0.4% of Canada's total life insurance premium market.
1%
less than 1% of Canada's total life insurance benefits were paid out in PEI
1%
less than 1% of Canada's total life insurance premiums came from PEI
PEI health & life insurance industry statistics
In addition, here are some key metrics of the health and life insurance industry in Prince Edward Island, in comparison to the overall market in Canada.
Types of life insurance in PEI
There are two main types of insurance in PEI: term life insurance and permanent life insurance. Permanent life insurance consists of both whole life products and universal life products.
Term life insurance
Whole life insurance
Universal life insurance
Other life insurance products in PEI
Aside from life insurance, you can also purchase other coverage products as add-ons or standalone policies – these are classified as living benefits (plans that pay out while you're still alive). Here, we cover three common ones you can consider: critical illness insurance, disability insurance, and long-term care insurance.
Critical illness insurance
This pays a lump-sum amount in the event you're diagnosed with a covered critical illness (e.g. cancer, stroke). The funds can then be used for all diffferent purposes, such as income replacement or medical bills.
Disability insurance
This pays out a portion of your income (typically 60 to 85%) on a regular basis – acting as a form of income replacement – in the event you become disabled and can no longer work. There are short-term and long-term disability options.
Long-term care insurance
This pays out funds on a regular basis for health care and personal assistance that may be required later in life. It can cover all different needs, such as nursing care, personal care, and home care.
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How much does life insurance cost in PEI?
There is no one-price-fits-all for life insurance products in PEI. As a general rule of thumb, the more risk you present as a policyholder, the higher your coverage costs will be. Additionally, opting for policies with extended coverage, such as permanent insurance instead of term insurance, will undoubtedly also increase your rates. For reference, here are three average rates we received from life insurance companies in PEI, based on three different policies.
- $345/year
20-year term policy with $500,000 coverage
for a 33-year-old, non-smoking male
- $3,876/year
Whole life policy with $400,000 coverage
for a 45-year-old, non-smoking female
- $3,616/year
Universal life policy with $500,000 coverage
for a 40-year-old, non-smoking female
Factors that impact your PEI life insurance quote
There are many personal factors that go into your PEI life insurance quote. Again, generally speaking, the more risk you bring as a policyholder, the more expensive your coverage will be.
- Age
Life insurance is much cheaper when you're young – this is because the risk factors of death are much lower. So consider locking a lower premium earlier on in your life.
- Gender
As unfair as it may be, males tend to face higher life insurance premiums than females. This is because of the statistical risk factors associated with death.
- Coverage amount
For obvious reasons, selecting a high death benefit leads to higher premiums. So be sure to consider your coverage amount carefully – you don't want to be overinsured or underinsured.
- Health & lifestyle
Healthy individuals pay much cheaper rates than those with pre-existing conditions (e.g. cancer, diabetes). And if you don't smoke, you'll also see lower rates.
- Policy type
Term insurance is much more affordable than permanent options. This is because the death benefit may not need to be paid out if the term expires before you pass.
- Term length
For term policies, the longer the time frame you select, the more expensive your coverage will be. And again, expect to may much higher premiums if you go the permanent route.
How much life insurance do I need in PEI?
Determining the right amount of life insurance coverage is essential to ensure your loved ones are financially secure. You'll want to consider any financial obligations that could be passed on (e.g. credit card debt, car loan, mortgage), along with any future expenses your beneficiaries may need (e.g. income replacement, education fees). But at the same time, be sure to factor in any savings and investments you may have as this can lower your necessary coverage amount.
For reference, we outline average amounts for PEI life insurance policies below – including the average coverage per individual, average coverage per household, and average coverage per new individual policy. For more guidance on your personal case, be sure to consult a trusted life insurance broker. And for more details on this topic, be sure to read our blog: How much life insurance do I need?
- $220,000
Average coverage per individual
in PEI for 2022 (CHLIA)
- $404,000
Average coverage per household
in PEI for 2022 (CHLIA)
- $361,000
Average coverage per new policy
in PEI for 2022 (CHLIA)
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Frequently asked PEI life insurance questions
How do I get life insurance in PEI?
We make it simple – by providing us with a few details, we'll connect you with a licensed life insurance broker who will guide you through the entire process. You'll be able to compare personalized quotes from various providers across the province, allowing you to choose the best option for your coverage needs.
Can I change my life insurance policy in PEI?
Yes, many life insurance policies offer some form of flexibility. You can often increase or decrease your coverage, convert from term to permanent insurance, or add riders for additional benefits. However, these changes may affect your premiums and require underwriting – be sure to consult with an insurance advisor to understand the implications of these changes and ensure alignment with your long-term financial needs.
What are the best life insurance companies in PEI?
Some of the top-rated life insurance companies in the province include Sun Life, Manulife, and Canada Life – keep in mind that each company has its strengths, so it's important to compare policies and consult with an insurance advisor to find the best fit for your needs.