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- Term life insurance is typically the cheapest life insurance in Canada, and insurers like Manulife, Equitable Life, iA Financial Group, Sun Life, and Canada Life often provide the most competitive rates when you compare quotes.
- Apply when you're young, healthy, and a non-smoker to secure the lowest life insurance premiums. Completing medical underwriting can lower your rates even further
- Life insurance prices vary widely across companies, so comparing multiple insurers is the most reliable way to find the lowest premium
Life insurance doesn’t have to be expensive, especially if you know how to compare your options. Many Canadians are beginning to recognize the value of buying life insurance and taking a crucial step to protect the financial future of their families. According to the Canadian Life and Health Insurance Association (CLHIA), about 23 million Canadians have life insurance. This shows strong nationwide participation and reflects steady demand.
As more people buy coverage, insurers continue to compete on price, making it easier to find low-cost options. As demand grows, insurers continue to offer competitive rates, making it easier than ever to find affordable protection.
This 2026 guide explains Canada’s most affordable life insurance options, when each makes sense, and which providers often deliver competitive rates for different profiles. The following five providers stand out for competitive pricing and affordable term coverage.
Top five affordable life insurance providers in Canada (2026)
- Manulife
- Equitable Life
- iA Financial Group
- Sun Life
- Canada Life
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What are the different types of life insurance in Canada?
Canada offers two main types of life insurance: temporary and permanent coverage. Each is designed for different financial needs and timelines.
- Temporary life insurance (term life insurance) provides coverage for a fixed period, such as 10, 20, or 30 years. It’s typically the most affordable option and is ideal for short-term needs like income replacement or paying off a mortgage
- Permanent life insurance: Provides lifetime coverage and includes two main options:
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- Whole life insurance: Offers guaranteed lifetime protection with level premiums and a guaranteed death benefit. Participating policies also build cash value and may pay dividends
- Universal life insurance: Offers lifetime coverage with flexible premiums and an investment component. Suitable for long-term or advanced financial planning, with costs that vary based on investments and fees
Term life usually delivers the lowest premiums. Let’s explore in more detail in the next segment.
What is the cheapest life insurance policy in Canada?
Term life insurance is typically the cheapest life insurance policy in Canada because it provides pure protection without investment features. Term life offers the lowest premiums for temporary needs like mortgages or income replacement.
Unlike permanent life insurance plans that provide lifetime coverage and investment components, term life focuses solely on a death benefit, which keeps its premium low.
Several factors can reduce term life premiums, including:
- Shorter coverage period
- Lower coverage amount
- Younger age at purchase
- Good health/non-smoker status
Term life insurance premiums are lowest when you’re young and increase steadily with age. A healthy non-smoker in their 20s or 30s can often secure basic coverage for under $25 per month, while costs rise more sharply after age 40 and increase significantly in your 50s and 60s.
The sample monthly premiums below illustrate how rates vary by age and gender for a standard term life policy. Individual quotes will depend on health, coverage amount, and term length.
| Age | Male | Female |
| 20 years | $22/month | $14/month |
| 30 years | $22/month | $15/month |
| 40 years | $27/month | $19/month |
| 50 years | $61/month | $45/month |
| 60 years | $200/month | $145/month |
*Illustrative monthly premiums for $500,000 term life insurance (10-year term) based on healthy, non-smoking males and females. Rates vary by insurer, age, and underwriting.
What is the cost of the cheapest whole life insurance policy in Canada
The cheapest whole life insurance policies in Canada typically come from non-participating plans.
Whole life insurance generally costs more than term life because it provides lifetime coverage and, for participating plans, includes a cash value component. If you’re looking for the most affordable whole life option, non-participating policies are typically the best choice.
The table below shows the cheapest $100,000 whole life premiums for healthy non-smoker males, by age and insurer.
| Age | Equitable | iA | Manulife |
| 20 | $680.61 | $90.45 | $1,059.00 |
| 30 | $936.04 | $120.06 | $1,496.52 |
| 40 | $1,333.79 | $163.35 | $1,798.92 |
| 50 | $2,001.46 | $236.25 | $2,358.12 |
| 60 | $3,194.96 | $362.25 | $3,399.24 |
* Premiums shown are illustrative annual rates for $100,000 of whole life coverage for healthy non-smokers, based on each insurer’s lowest-cost permanent plan. Actual premiums vary by underwriting, product design, and insurer pricing.
Cheapest whole life premiums, Female ($100,000 coverage)
| Age | Equitable | iA | Manulife |
| 20 | $595.13 | $79.65 | $1,048.56 |
| 30 | $818.47 | $104.76 | $1,475.64 |
| 40 | $1,179.27 | $142.02 | $1,781.04 |
| 50 | $1,729.47 | $203.49 | $2,308.92 |
| 60 | $2,720.73 | $312.84 | $3,127.44 |
* Premiums shown are illustrative annual rates for $100,000 of whole life coverage for healthy non-smokers, based on each insurer’s lowest-cost permanent plan. Actual premiums vary by underwriting, product design, and insurer pricing.
Which are the cheapest life insurance providers in Canada?
Some of the cheapest life insurance providers in Canada are Manulife, Equitable Life, iA, Sun Life, and Canada Life, especially for term life insurance. Rates shift by age, coverage amount, health class, and province, so the cheapest insurer changes from person to person. No insurer ranks as the lowest for every profile.
1. Manulife
Manulife delivers competitive term life pricing across many customer profiles, but actual rankings shift by age, coverage, and product type. Their CoverMe Term Life Insurance targets budget-conscious buyers who want straightforward online quotes and basic, low-cost protection.
2. Equitable Life
Equitable Life delivers competitive pricing and flexible term options. Equitable Life offers Term 10 (T10), Term 20 (T20), Term 30 (T30), and select term options with competitive pricing, especially for younger non-smokers. Actual premiums and underwriting experience vary by applicant profile.
3. Sun Life
Sun Life provides a wide range of life insurance products, including affordable term life plans that cater to various budgets. Their term policies are known for offering strong value and flexibility, with options to convert to permanent insurance later. Sun Life’s easy-to-use online quote system simplifies comparing prices.
4. Canada Life
Canada Life is a trusted Canadian insurer and offers competitive life insurance options across many segments. Their term life insurance rates can be cost-effective depending on the applicant’s age, health class, and coverage amount.
5. iA Financial Group
iA Financial Group is often competitive for younger, healthy applicants with preferred risk profiles, though rates vary by age, health, coverage amount, and insurer. Their term policies offer flexible coverage, and digital applications are available through advisors or online platforms; fully direct-to-consumer online availability varies by product and province. iA also has simplified issue products that require no medical exams, making them ideal for those who want quick and easy approval.
Comparing term vs. whole life insurance: Which policy offers the most affordable coverage?
When comparing life insurance options, term life insurance offers the most affordable coverage in Canada because it provides protection without cash value or investment features. Whole life insurance provides lifetime coverage, a guaranteed death benefit, and cash value growth, with participating plans also offering dividends, making it ideal for estate planning and long-term wealth building.
Here’s a quick comparison between term life and whole life insurance in Canada to help you choose the ideal policy for your needs:
| Feature | Term life insurance | Whole life insurance |
| Cost | Lower premiums; most affordable option | Higher premiums; more expensive over time |
| Coverage length | Fixed term (10, 20, 30 years) | Lifetime coverage |
| Cash value | No cash value or investment component | Builds guaranteed cash value over time |
| Flexibility | Many term policies are renewable and convertible to permanent coverage within specified windows; riders can be added at issue, but cannot be changed outside these options once the term starts | Can include paid-up options and dividends (in some cases) |
| Pros | Affordable, simple, good for temporary needs | Lifetime protection, cash value, fixed premiums |
| Cons | Expires after the term, and no payout is made if you outlive the term | High cost, more complex, slower cash value growth early on |
| Best for | Young families, mortgage protection, short-term needs | Estate planning, lifelong dependents, wealth transfer |
What are the cheapest life insurance options 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.
Life insurance premiums for seniors vary widely by age, coverage amount, product type, and underwriting results. Life insurance costs increase with age, but the type of policy also affects pricing. Term coverage is typically cheaper at younger senior ages, while permanent options like whole life may offer more stable pricing later on. For example, a healthy 60-year-old may pay about $55 per month for a 10-year term policy or around $149 per month for whole life coverage. Rates rise further in your 70s and 80s, especially for term insurance. The sample premiums below show how costs change by age and policy type.
To get the cheapest life insurance rates for seniors, it’s important to compare quotes from multiple providers and consider simplified or no-medical exam options that offer fast approval and reduced underwriting.
| Age | 10-year term policy | Whole life policy |
| 50 years | $35/month | $111/month |
| 60 years | $55/month | $149/month |
| 70 years | $101.76/month | $99/month |
| 80 years | — | $376.29/month |
*Illustrative monthly premiums for $100,000 coverage based on a healthy, non-smoking female. Actual rates vary by insurer and health profile.
What are the cheapest life insurance options for individuals with pre-existing conditions?
Individuals with pre-existing conditions can access affordable life insurance through no-medical, guaranteed-issue, or simplified-issue policies. These plans do not require medical exams and offer fast approval, making them accessible to those who may not qualify for traditional coverage.
Some of the top 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.
These policies typically fall into two categories:
- Guaranteed-issue: Usually imposes a two-year waiting period for non-accidental death
- Simplified-issue: Often provides immediate coverage or deferred variants with waiting periods, depending on the product
Both types generally offer immediate accidental death coverage and approval regardless of health status.
These plans often cover individuals with stable pre-existing conditions, such as:
- Diabetes with complications
- Heart disease or recent heart surgery
- Cancer history (recent or in remission)
- Chronic obstructive pulmonary disease (COPD) or other chronic respiratory conditions
- Mental health disorders such as major depressive disorder or bipolar disorder
- Liver or kidney disease
Insurers evaluate eligibility based on specific conditions, recency, and severity, which may lead them to decline coverage, impose waiting periods, or apply deferred benefits.
What is the most affordable life insurance option for smokers?
Smokers can get the most affordable life insurance in Canada with a term life policy. Although smokers pay higher premiums than non-smokers, term life still provides 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 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 Canada Life, Manulife, Sun Life, and iA Financial Group, offer competitive term life policies for smokers. While premiums are higher, term life insurance remains the most budget-friendly life insurance option for smokers seeking substantial coverage at manageable rates.
What are the common mistakes to avoid while getting the cheapest life insurance plan?
The biggest mistakes Canadians make when buying the cheapest life insurance are focusing only on price and choosing a policy that doesn’t meet their long-term needs.
Keeping premiums low is important, but your policy should also provide adequate coverage. Balancing affordability with protection ensures you don’t compromise on your family’s financial security.
If you want to avoid compromising on protection, you need to strike the right balance between affordability and value.
Here are the most common mistakes to avoid when choosing a low-cost life insurance plan in Canada:
- Choosing the lowest premium without reviewing coverage details: A cheap plan might come with limited coverage or shorter terms that don’t align with your financial responsibilities
- Ignoring policy exclusions and fine print: Failing to read the terms can lead to claim denials or uncovered situations when your family needs support the most
- Delaying your purchase to get a better rate later: Life insurance only gets more expensive as you age or develop health issues, and waiting can cost you more in the long run
- Underinsuring to save money: Choosing a lower coverage amount to reduce premiums may not be enough to support your family’s needs after you’re gone
- Not disclosing your full medical history: Hiding or misrepresenting health conditions can result in policy cancellation or denied claims
- Overlooking convertibility options: Some term plans allow you to convert to permanent coverage later, and missing out on this can limit your flexibility as your needs change
- Skipping a quote comparison across insurers: Life insurance prices and features vary widely. Not shopping around may lead you to overpay or miss better, cheaper options
How can you apply for the most affordable life insurance plan in Canada
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.
Frequently asked questions
What is the cheapest type of life insurance policy?
The cheapest type of life insurance is term. The shorter the term, the lower the premium. Cost also depends on factors such as your personal health history, family medical history, coverage amount, and more.
What is the lowest death benefit I can get?
The lowest death benefit available in Canada depends on the insurer and product. Many term policies have minimum coverage of $100,000, while some simplified or term offerings start at $50,000. Whole life or final-expense/guaranteed life policies can provide smaller amounts, typically $5,000–$25,000, with $10,000 being common; some insurers allow minimums as low as $5,000 for end-of-life or estate planning purposes. You should compare online insurance quotes before buying just the minimum, as policies with higher coverage may cost little more, or sometimes even less, than the lowest option.
What is a 1-year life insurance policy?
A 1-year life insurance policy is a term life insurance product where your term is for one year. If you die within that year, the insurance company will pay your beneficiaries a tax-free death benefit. You may also see these called annual renewable term policies. These kinds of policies usually seem great at first glance because their premiums are very low. But read the fine print before you buy. Every year you renew this policy, your premiums will increase. Over time, you’ll end up paying a lot more than if you just got a policy with a longer term.
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. A permanent policy gives you lifelong coverage and a cash value component. 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 approve all 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.
Get the cheapest life insurance in Canada by comparing top insurers, choosing the right policy type, and applying while you’re healthy. Term life usually offers the lowest premiums; whole life provides lifetime coverage with a cash value component. Seniors, smokers, and individuals with pre-existing conditions can access affordable options through specific policies. Working with a licensed PolicyAdvisor advisor helps you compare quotes and find coverage that fits your budget.
LIMRA. “Nearly One-Third of Canadian Adults Report Living with a Life Insurance Coverage Gap.” LIMRA, March 26, 2024
