Compare life insurance quotes in Canada
Connect with one of our licensed brokers to get your best life insurance quotes from Canada’s top providers like Sun Life, Desjardins, BMO and Empire Life. Discover how affordable life insurance can be.
start comparing quotesRecent life insurance quotes from the Canadian market
Check out these sample rates from across the Canadian market – last updated in January 2025. To see how much you could be paying for a policy tailored to your unique situation, take advantage of our free comparison tool today.
- $41/month
10-year term policy with $1,000,000 coverage
for a 37-year-old, non-smoking male
- $74/month
20-year term policy with $500,000 coverage
for a 48-year-old, non-smoking female
- $498/month
Whole life policy with $1,000,000 coverage
for a 30-year-old, non-smoking male
- $632/month
Universal life policy with $2,000,000 coverage
for a 25-year-old, non-smoking female
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What is life insurance? Why do I need it?
Matt Hands, VP, Insurance
A life insurance policy is essentially a contract between you (the policyholder) and your insurance company. By paying regular premiums, either monthly or annually, your provider agrees to pay a lump sum of money to your dependents after you pass away. So if you have loved ones around you that rely on you financially, a life insurance policy can provide peace of mind as they'll still be covered after a worst-case scenario.
Here, we highlight a few key statistics about Canada's life insurance market from the Canadian Life & Health Insurance Association – including the number of policyholders, average household coverage, and annual benefits paid:
- 23 million
Canadians insured
In 2023, 23 million Canadians had life insurance, totalling to $5.7 trillion in coverage.
- $483,000
Average coverage
The average life insurance coverage for a Canadian household in 2023 increased from $474,000 in 2022.
- $17.3 billion
Benefits paid out
In 2023, insurers paid out $17.3 billion in life insurance benefits – including $9.2 billion in death benefits.
What does life insurance cover?
The money your beneficiaries receive after your passing is also known as a death benefit. This reserve can generally be used for anything they wish – so life insurance can cover a variety of needs, such as:
Mortgage
If the home hasn't been paid off yet, a life insurance policy can cover the remaining payments needed.
Income stream
If your family relies on your income for everyday expenses (e.g. groceries), life insurance can step in to help.
Funeral expenses
The death benefit can be used to cover end-of-life expenses, such as funeral, burial, or cremation fees.
Outstanding debt
If you have debt that will be passed on to your loved ones, life insurance can help pay it off.
School tuition
Life insurance can help fund your child's education in the event you're no longer there to do so yourself.
Financial gift
Even if there's no specific need, a life insurance policy can be a gift for your loved ones.
Common types of life insurance in Canada
There are many different types of life insurance policies in Canada – here, we cover some of the best life insurance options, so you can choose the right one for your needs:
Term life insurance
Whole life insurance
Universal life insurance
Other life insurance products in Canada
Here's a quick overview of a few other life insurance products you may be interested in – some of these may also be added to your primary policy as a rider:
Critical illness insurance
Disability insurance
Mortgage life insurance
Funeral insurance
Family plan insurance
No medical life insurance
Guaranteed life insurance
Joint first-to-die term life insurance
What is the best life insurance for me?
Many Canadians already have coverage through their employer, also known as group life insurance, but the individual life insurance market has been growing at a steady rate for the past decade. According to the Canadian Life & Health Insurance Association, the breakdown between premiums sold to individual vs groups was 83% to 17% for 2023 - the total amount of coverage purchased equated to $28.7 billion. Due to the rise in individual insurance purchases, premiums from individual policies now represent 65% of the total value of active policies, while group policies are now down to just 35%. Ten years ago the ratio was 58/42 in favour of individual.
83%
of life insurance premiums are purchased by individuals
17%
of life insurance premiums are purchased by groups (e.g. employers)
65%
of active life insurance coverage is for individuals
35%
of active life insurance coverage is for groups
Even if you have group life insurance, it's important to consider supplementing it with a personal policy – employer-provided plans aren't typically customized to your needs (and it can be lost if you leave your job). If you don’t have any coverage at the moment, now is also the time to think about securing a personal policy to protect the financial future of yourself and your loved ones.
To help you choose the right one for you, below is a table outlining the main differences between term life insurance products and permanent life insurance products:
| Feature | Term life insurance | Permanent life insurance |
|---|---|---|
| Coverage period | Term life insurance only covers you during the fixed term you choose – be it five years, ten years, or thirty. | Permanent life insurance covers you for an entire lifetime – from the policy start date until the day you pass. |
| Coverage needs | Term policies are well-suited if you only need financial protection for a specific period (e.g. mortgage debt). | Permanent life insurance is recommended if you have a lifetime need for coverage (e.g. estate planning). |
| Death benefit | Your death benefit is the set amount purchased – it'll also only be paid out if you pass away during the term. | Your death benefit is usually also fixed to a certain amount, but it can change in some cases – it's also guaranteed to pay out after you pass. |
| Cash value | Term life insurance policies don't accumulate cash value, so you won't be growing a reserve. | Most permanent plans accumulate cash value, so you can access funds during your lifetime. |
| Withdrawals | You can't withdraw from a term life insurance policy during your lifetime. | With permanent life insurance, you're generally able to withdraw or borrow against your cash value reserve. |
| Cost | Term life is generally much more affordable than whole life – that's because you might not need a payout. | Permanent insurance policies are eventually paid out, so expect to pay much more for this coverage. |
As outlined in the table, one of the key advantages of choosing permanent life insurance – which includes whole life or universal life – is the cash value reserve. This is a sum of money that grows tax-deferred, and it can be accessed during your lifetime for an emergency, retirement, or other financial goals. If you have a need for this feature, a permanent life insurance policy may be right for you.
Ultimately, it's important to discuss your specific needs with a licensed life insurance broker in Canada. With professional guidance, you can choose the best life insurance policy for both your current financial situation and your future financial goals.
Pro tip: Leverage your TFSA and RRSP
While a permanent life insurance policy can be used as an investment tool, it can be a good idea to maximize your Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) contributions first.
TFSA: This allows your investments to grow tax-free and withdrawals are also tax-free, making it ideal for retirement savings and other financial goals.
RRSP: Contributions here are tax-deductible (reducing your taxable income), and the investments grow tax-deferred until you take it out for retirement.
Universal life insurance, for instance, offers advantages in tax planning but can be quite hands-on – often better suited for financially savvy individuals. Investing through a TFSA or RRSP typically provides better tax benefits, while investing through life insurance can be more complex, less flexible, and significantly more expensive. It’s wise to explore other options first before turning to life insurance for investing.
How much life insurance do I need?
The amount of life insurance you need to purchase will vary on a case-to-case basis. One way to calculate this is to add up any existing debts, mortgage payments, and educational costs, along with the income replacement your dependents will need – while also keeping in mind any existing coverage you may have (such as through a group policy). You may also want to factor in final expenses, such as for a funeral, burial, or cremation.
For reference, according to the Canadian Life & Health Insurance Association, the average household coverage across the country in 2023 was $483,000. The table below outlines averages by province, along with the median age of policyholders:
| Province | Average household coverage | Median policyholder age |
|---|---|---|
| Alberta | $572,000 | 38 years old |
| British Columbia | $520,000 | 41 years old |
| Manitoba | $478,000 | 38 years old |
| New Brunswick | $375,000 | 45 years old |
| Newfoundland & Labrador | $353,000 | 48 years old |
| Nova Scotia | $367,000 | 44 years old |
| Ontario | $514,000 | 40 years old |
| Prince Edward Island | $395,000 | 42 years old |
| Quebec | $404,000 | 43 years old |
| Saskatchewan | $503,000 | 38 years old |
| Territories | $405,000 | 34 years old |
Again, be sure to discuss your specific coverage needs with a trusted life insurance broker to review your financial situation in detail. And if you have more complex requirements – such as estate planning, tax planning, or succession planning – it’s especially important to consult with a professional to ensure your policy is tailored to your unique circumstances.
Pro tip: Insure against inflation
After selecting your policy's death benefit, it’s important to review it periodically to ensure it continues to meet your financial needs. The cost of living in Canada, for one, only appears to be increasing over time – you want to make sure your loved ones remain adequately covered if your policy is meant to act as income replacement.
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Pro tip: Protect your life, not just your legacy
One of the most overlooked aspects of life insurance is living benefits. Many people focus solely on death benefits and overlook the importance of coverage that provides financial support while you’re still alive – such as critical illness or disability coverage.
These policies can offer financial protection and peace of mind in case you face serious health challenges. The funds can be used to access accelerated healthcare internationally, for instance.
How much is life insurance in Canada?
The cost of life insurance will differ based on your needs as a policyholder, as well as the risk you bring – to find out the exact cost you'll be paying, be sure to compare insurance quotes for life insurance with us today.
For reference, here is a chart outlining sample life insurance quotes for term life and whole life policies by age and gender. The term life policy is representative of a 20-year period, and both policies consist of $500,000 in face-value coverage.
The cost of life insurance in Canada
Factors that go into your life insurance quote
Along with age and gender, here are some key factors life insurance companies consider when quoting you for coverage – understanding these can give you better insight into how your rate is determined:
Age
The older you are, the more expensive your life insurance policy will be. And some insurers won't offer you coverage after passing a certain age.
Gender
Males generally pay more for life insurance than females – statistically speaking, men are at higher risk of passing away earlier.
Health & lifestyle
A pre-existing condition, family history of illness, or participating in activities like heavy drinking and smoking, can come with higher premiums.
Policy type
Term life insurance is generally much more affordable than permanent life insurance, simply because the death benefit could potentially expire.
Term length
A 5-year term policy will cost less than a 30-year policy because you're far less likely to pass away during a short period of time.
Coverage amount
It's no surprise that the larger the benefit you choose, the more you'll be paying in premiums during your lifetime – added protection comes at a cost.
Pro tip: Honesty is the best policy
When filling out your life insurance application, it's crucial to be as honest as possible with all the rating factors. Providing accurate information ensures that your policy is properly underwritten so that you're covered according to your actual health and lifestyle. Misrepresenting details – whether intentionally or unintentionally – can lead to denied claims or policy cancellations when you or your loved ones need it most.