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- Life insurance in Canada starts at around $7 per month, but premiums can exceed depending on age, health, coverage amount, policy type, and the insurer
- Term life insurance is the most affordable option, while whole life and no-medical life insurance generally have higher premiums due to lifelong coverage and no medical exams, respectively
- Buying life insurance early, maintaining good health, choosing the right coverage, and comparing multiple insurers are some of the best ways to lower your premiums
- Life insurance premiums vary between insurers, even for the same applicant profile, making it important to compare quotes before purchasing a policy
The average cost of life insurance in Canada starts at around $7 per month for a healthy young adult purchasing a basic term life insurance policy. Depending on the type of policy, coverage amount, age, health, and insurer, premiums can range from $7 to over $3,276 per month. Individuals who smoke, have pre-existing medical conditions, work in high-risk occupations, or require larger coverage amounts generally pay higher premiums. On the other hand, young and healthy applicants typically qualify for lower premiums.
Quick summary: Average life insurance costs in Canada
| Cost category | Average cost (per month) |
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Disclaimer: The premiums shown above are illustrative estimates based on specific applicant profiles and policy assumptions, and your actual life insurance cost may vary depending on several factors such as your age, gender, health, smoking status, medical history, coverage amount, policy type, term length, and the insurer’s underwriting guidelines.
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Factors affecting life insurance cost in Canada
The cost of life insurance in Canada is mainly driven by factors like age, gender, health, coverage amount, and more. Some of these factors include:
- Age: The age of the individual directly affects the life insurance cost. The older the individual, the higher the premium
- Gender: Life insurance premiums may vary by gender, with women generally paying lower premiums than men due to their longer average life expectancy
- Coverage amount: The higher the coverage amount you choose, the higher the life insurance premium will be
- Health: An individual’s health also affects premium rates. A healthy individual, compared to someone with a history of medical conditions, qualifies for lower rates
- Smoking status: Any insurance company in Canada will charge a higher premium if you are a smoker. This is because the health risks associated with smoking are higher than those for a non-smoker
- Lifestyle: If you are involved in high-risk activities as a result of your hobby or occupation, then the insurer views you as higher risk. This increased liability will also result in you paying higher premiums
Life insurance costs by policy type
The type of life insurance policy you choose is one of the biggest factors affecting your premium. In general, term life insurance is the most affordable option, while permanent policies, such as whole life insurance, cost more because they provide lifelong coverage and can build cash value. No-medical life insurance also tends to have higher premiums since insurers assume more risk by offering coverage without requiring a medical exam.
What is the cost of term life insurance in Canada?
The cost of term life insurance in Canada with $500,000 in coverage can range from $14 to $200 per month, depending on the applicant’s age, gender, and health. Because term life insurance provides coverage for a fixed period and does not build cash value, it is the most affordable type of life insurance. It is well-suited for individuals and families looking to protect their income, cover a mortgage, or provide financial security during their highest-earning years.
Term life insurance cost in Canada
| Age | Male | Female |
| 20 years | $22 | $14 |
| 30 years | $22 | $15 |
| 40 years | $27 | $19 |
| 50 years | $61 | $45 |
| 60 years | $200 | $145 |
*Illustrative monthly cost of term life insurance for a 10-year period for individuals of various ages with $500,000 in coverage
What is the cost of whole life insurance in Canada?
In Canada, participating whole life insurance with $100,000 in coverage costs between $139 and $382 per month, whereas a non-participating policy may cost between $71 and $320 per month, depending on the applicant’s age and insurer. The cost of whole life insurance is generally several times more expensive than an equivalent term life policy because it provides lifelong coverage and builds cash value.
Participating whole life insurance may also pay policy dividends, depending on the insurer’s dividend performance. It is commonly chosen for estate planning, wealth transfer, tax-advantaged savings, and leaving a guaranteed financial legacy.
Cost of whole life insurance in Canada
| Age | Participating ($100k coverage) – Paid Up additions | Non-participating ($100k coverage) |
| 20 years | $139 | $71 |
| 30 years | $178 | $100 |
| 40 years | $229 | $142 |
| 50 years | $293 | $224 |
| 60 years | $382 | $320 |
*Illustrative monthly costs for a male individual of various age ranges seeking a whole life insurance policy with $100,000 in coverage for a 20-pay premium option
What is the cost of a no-medical life insurance policy in Canada?
The cost of a 20-year no-medical life insurance policy with $500,000 in coverage ranges from $39 to $380 per month. While no-medical policies offer faster approval and do not require a medical exam, they generally cost more than fully underwritten life insurance because insurers take on greater underwriting risk. These policies are often suitable for individuals with pre-existing health conditions, those who may not qualify for traditional life insurance, or applicants who need coverage quickly.
Cost of a no-medical life insurance policy
| Age | Male | Female |
| 20 years | $50.40 | $39.15 |
| 30 years | $54.90 | $45.90 |
| 40 years | $52.65 | $41.40 |
| 50 years | $105.30 | $87.75 |
| 60 years | $380.25 | $280.35 |
*Illustrative monthly cost of a 20-year no-medical plan with $500,000 in coverage
Life insurance costs by coverage amount
The amount of term life insurance coverage you choose has a direct impact on your monthly premium. Higher coverage amounts generally cost more, although the premium increase is not always proportional. The cost of a $100,000 term life insurance policy will be much lower than that of a $250,000 term life policy. The coverage amount in the section below details the cost of different coverage amounts in Canada.
How much does a $100,000 life insurance policy cost?
A $100,000 term life insurance policy in Canada costs approximately $7 to $44 per month. While premiums remain relatively affordable for younger applicants, they increase significantly with age due to the higher insurance risk. A $100,000 may be suitable for people looking to cover final expenses, smaller debts, or supplement existing life insurance. However, it may not provide enough coverage for someone with a mortgage, dependents, or significant income replacement needs.
Cost of a $100,000 life insurance policy
| Age (in years) | Male (non-smoker) | Female (non-smoker) |
| 20 years | $9.45 | $7.71 |
| 30 years | $9.45 | $8.19 |
| 40 years | $10.53 | $9.72 |
| 50 years | $18.00 | $15.12 |
| 60 years | $44.10 | $33.57 |
*Illustrative monthly cost of term life insurance for a 10-year plan with $100,000 in coverage for a male/female non-smoker
How much does a $250,000 life insurance policy cost?
The cost of a $250,000 term life insurance policy ranges from approximately $10 to $98 per month. A $250,000 coverage is a popular choice for individuals and families looking to cover obligations such as a portion of their mortgage, income replacement, children’s education costs, outstanding debts, or other long-term expenses.
Cost of a $250,000 life insurance policy
| Age (in years) | Male (non-smoker) | Female (non-smoker) |
| 20 years | $13.94 | $10.35 |
| 30 years | $13.94 | $10.58 |
| 40 years | $16.87 | $13.50 |
| 50 years | $34.20 | $26.55 |
| 60 years | $98.33 | $71.55 |
*Illustrative monthly cost of term life insurance for a 10-year plan with $250,000 in coverage for male/female non-smoker
How much does a $500,000 life insurance policy cost?
A $500,000 term life insurance policy costs between $13 and $177 per month for healthy non-smokers. The exact premium will vary, with younger applicants typically qualifying for significantly lower rates. A $500,000 coverage can help replace income, pay off a mortgage, cover childcare, education costs, and other major financial obligations.
Cost of a $500,000 life insurance policy
| Age (in years) | Male (non-smoker) | Female (non-smoker) |
| 20 years | $21.60 | $13.95 |
| 30 years | $21.60 | $14.85 |
| 40 years | $26.55 | $18.90 |
| 50 years | $57.60 | $44.55 |
| 60 years | $176.85 | $133.20 |
*Illustrative monthly cost of term life insurance for a 10-year plan with $500,000 in coverage for male/female non-smoker
How much does a $1,000,000 life insurance policy cost?
The cost of a life insurance policy with $1,000,000 in coverage is between $21 and $330 per month. This coverage amount is commonly chosen by high-income earners, homeowners, parents with young children, business owners who need substantial coverage to replace income, pay off significant debts, fund future education costs, or leave a substantial financial legacy.
Cost of a $1,000,000 life insurance policy
| Age (in years) | Male (non-smoker) | Female (non-smoker) |
| 20 years | $35.99 | $21.15 |
| 30 years | $35.54 | $22.95 |
| 40 years | $45.90 | $31.05 |
| 50 years | $108.00 | $78.75 |
| 60 years | $330.30 | $253.80 |
*Illustrative monthly cost of term life insurance for a 10-year plan with $1,000,000 in coverage for male/female non-smoker
How much does a $10,000,000 life insurance policy cost?
The cost of a $10,000,000 term life insurance policy ranges from $166 to $3,276 per month. Premiums are substantially higher than those for lower-value policies because the insurer assumes a much larger financial risk. A $10,000,000 life insurance policy is suitable for high-net-worth families, business owners, executives, and professionals with significant financial obligations, business succession needs, or those with complex estate planning goals.
Cost of a $10,000,000 life insurance policy
| Age (in years) | Male (non-smoker) | Female (non-smoker) |
| 20 years | $310.50 | $166.50 |
| 30 years | $310.50 | $184.50 |
| 40 years | $426.60 | $292.50 |
| 50 years | $1,044.00 | $725.40 |
| 60 years | $3,276.00 | $2,394.00 |
*Illustrative monthly cost of term life insurance for a 10-year plan with $10,000,000 in coverage for male/female non-smoker
Life insurance costs by applicant category
Life insurance premiums can vary significantly depending on your personal circumstances and risk profile. In general, smokers, seniors, and individuals with health conditions tend to pay higher premiums because they present a greater insurance risk. Couples may have the option to reduce costs through certain joint life insurance policies, although individual policies may be more cost-effective in some cases.
How much is life insurance per month for smokers and non-smokers?
The cost of $500,000 in term life insurance for smokers ranges from $42 to $504 per month, while comparable coverage for non-smokers ranges from $21 to $177 per month. Smokers pay premiums that are often 2 to 4 times higher than non-smokers because tobacco and nicotine use are associated with a higher risk of serious health conditions, including heart disease, stroke, and cancer.
The difference in premiums becomes more noticeable with age, as the combined impact of smoking and age increases an insurer’s expected risk. Quitting smoking can significantly reduce your premiums, but most insurers require you to remain tobacco-free for at least 12 months before you may qualify for non-smoker rates. The required tobacco-free period may vary by insurer.
Cost of life insurance for smokers and non-smokers (male) for varying age groups
| Age | Smoker | Non-smoker |
| 30 years | $42.30 | $21.60 |
| 40 years | $63.00 | $26.55 |
| 50 years | $180.45 | $57.60 |
| 60 years | $503.55 | $176.85 |
*Illustrative monthly costs for a male individual seeking $500,000 in life insurance coverage for a 10-year policy
How much is life insurance per month for seniors?
The cost of $100,000 in term life insurance for male seniors ranges between $18 and $267 per month, while comparable coverage for female seniors is between $15 and $179 per month. Female applicants generally pay lower premiums than male applicants because they tend to have a longer life expectancy. As you get older, the premiums for life insurance for seniors increase due to the higher likelihood of health issues and claims during the policy term.
Cost of life insurance for seniors
| Age | Male | Female |
| 50 years | $18.00 | $15.12 |
| 55 years | $26.28 | $22.32 |
| 60 years | $44.10 | $33.57 |
| 65 years | $76.41 | $53.73 |
| 70 years | $133.29 | $92.34 |
| 75 years | $267.48 | $178.92 |
*Illustrative monthly costs for non-smoker seniors in various age ranges seeking a term life insurance policy with $100,000 in coverage
How much is life insurance per month for children?
Children’s whole life insurance typically starts at around $100 per month. Whole life insurance policies for children provide lifelong coverage and can build cash value over time, making them a long-term financial planning tool as well as a source of insurance protection.
Cost of whole life insurance for a female child
| Age | Monthly premiums | Accumulated cash value | Death benefit |
| 5 years | $100 | $0 | $180,200 |
| 20 years | $100 | $16,400 | $180,200 |
| 35 years | No payment of premiums after the first 20 years | $50,000 | $250,000 |
| 50 years | $130,000 | $400,000 | |
| 70 years | $408,000 | $713,000 |
*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 girl. 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 a male child
| Age | Monthly premiums | Accumulated cash value | Death benefit |
| 5 years | $100 | $0 | $159,200 |
| 20 years | $100 | $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
How much is life insurance per month for couples?
The cost of $500,000 in term life insurance for couples typically ranges from $33 to $550 per month for non-smoking couples and from $76 to $1,283 per month for smoking couples. Couples can choose between two individual life insurance policies or a joint life insurance policy, with the latter potentially offering lower premiums in certain situations. Joint policies also simplify policy management by covering both partners under a single contract. However, individual policies may provide greater flexibility and, in some cases, better value depending on the couple’s coverage needs.
Cost of life insurance in Canada for smoking and non-smoking couples
| Age group | Monthly premium (Non-smoking couples) | Monthly premium (Smoking couples) |
| 35 years | $33 | $76 |
| 45 years | $64 | $185 |
| 55 years | $168 | $518 |
| 65 years | $550 | $1,283 |
*Quotes based on a $500,000 joint term policy in coverage for smoker and non-smoker couples in regular health seeking coverage for a 10-year term
Life insurance costs by insurance company
The cost of term life insurance from Canada’s leading insurers typically charges between $14 to over $230 per month for the sample policy shown below. Premium differences occur because each insurer uses its own underwriting guidelines, pricing models, and risk assessment criteria. As a result, two insurers may offer different premiums for the same applicant and coverage amount.
The table below compares illustrative monthly premiums from some of Canada’s leading insurance companies for the same applicant profile.
Life insurance monthly costs by insurer
| Applicant age | Sun Life | Manulife | Empire Life | Equitable Life | Canada Life |
| 20 years | Male: $25.20 Female: $16.65 |
Male: $25.71 Female: $17.06 |
Male: $22.05 Female: $14.40 |
Male: $22.04 Female: $14.84 |
Male: $68.40 Female: $16.19 |
| 30 years | Male: $25.65 Female: $17.55 |
Male: $23.28 Female: $16.84 |
Male: $22.05 Female: $15.30 |
Male: $22.04 Female: $15.74 |
Male: $23.38 Female: $16.63 |
| 40 years | Male: $31.95 Female: $23.40 |
Male: $29.13 Female: $22.66 |
Male: $27.00 Female: $19.35 |
Male: $26.99 Female: $19.79 |
Male: $29.98 Female: $24.00 |
| 50 years | Male: $72.00 Female: $51.30 |
Male: $67.16 Female: $48.37 |
Male: $61.65 Female: $45.90 |
Male: $61.28 Female: $45.89 |
Male: $67.12 Female: $53.28 |
| 60 years | Male: $230.85 Female: $161.55 |
Male: $213.74 Female: $151.20 |
Male: $199.80 Female: $144.45 |
Male: $199.78 Female: $144.44 |
Male: $203.58 Female: $147.43 |
*Illustrative monthly cost of a 10-year term with $500,000 in coverage for a male/female non-smoker
How does term length affect life insurance premiums?
The cost of term life insurance ranges from about $22 to $144 per month in the example below, depending on your age and the length of the policy. For the same applicant and coverage amount, 10-year term policies are the most affordable, while 20-year and 30-year terms cost more because they provide coverage for a longer period and increase the likelihood of a claim during the term.
Cost of life insurance as per term length
| Age | 10-year term | 20-year term | 30-year term |
| 30 years | $22.04 | $28.80 | $42.75 |
| 35 years | $22.04 | $30.15 | $53.55 |
| 40 years | $26.99 | $42.75 | $85.05 |
| 45 years | $40.05 | $69.30 | $143.92 |
*Illustrative monthly cost of a 10-year, 20-year, and 30-year term life insurance with $500,000 in coverage for a male non-smoker
Do individuals with pre-existing health issues pay higher life insurance premiums?
Yes, individuals with pre-existing health conditions generally pay higher life insurance premiums because they pose a greater risk to insurers. The exact increase depends on the type and severity of the condition, how well it is managed, your age, and the insurer’s underwriting guidelines. In some cases, applicants may still qualify for standard premium rates if their condition is stable and well-managed.
Depending on your medical history, insurers typically make one of the following underwriting decisions:
- Standard premiums: If your condition is minor, stable, and well-managed, you may qualify for standard rates
- Higher (rated) premiums: If your condition increases the insurer’s risk, you may be approved with a higher premium or an additional rating applied to your policy
- Guaranteed issue or no-medical life insurance: If you are declined for traditional life insurance due to a serious medical condition, you may still qualify for guaranteed issue or no-medical life insurance. These policies don’t require a medical exam but generally come with higher premiums and lower coverage limits
How to lower your life insurance premiums?
There are several ways to reduce the cost of your life insurance premiums, such as maintaining a healthy lifestyle, choosing the right policy, comparing quotes from multiple insurers, and more. Listed below are the factors that will help you lower life insurance premiums:
- Buy life insurance early: Purchasing a policy when you are younger and in good health can help you lock in lower premiums for the duration of your coverage.
- Quit smoking: Most insurers offer significantly lower premiums to applicants who have remained tobacco-free for at least 12 months
- Maintain good health: Managing your weight, blood pressure, and other health conditions can improve your eligibility for preferred rates
- Choose the right coverage amount: Buy enough coverage to meet your financial needs without paying for more insurance than necessary
- Opt for term life insurance: If you only need coverage for a specific period, term life insurance is generally much more affordable than permanent life insurance
- Consider laddering life insurance policies: Instead of purchasing one large policy, you can combine multiple term life policies with different coverage amounts and durations. This allows your coverage to decrease as your financial obligations reduce, helping lower overall premium costs.
- Choose riders carefully: Only add optional riders, such as critical illness, child, or disability riders, if they meet a specific need. Unnecessary riders can increase your premium
- Select a shorter policy term: Shorter term lengths usually cost less than longer-term policies with the same coverage amount
- Pay your premiums annually: You may reduce your overall cost when you pay annually instead of making monthly payments
- Compare quotes from multiple insurers: Compare and find the best life insurance policy for your needs
To get the most affordable life insurance quotes, reach out to our expert advisors at PolicyAdvisor. Our advisors will help you get quotes from the top life insurance providers in Canada and choose the one that best fits your needs and budget.
What are life insurance premiums?
Life insurance premiums are the payments policyholders make to maintain their coverage. They can be paid monthly, quarterly, or annually, depending on the policy. The cost of your premium will be based on factors like age, health, smoking status, coverage amount, policy type, and the insurer.
What is the average cost of life insurance in Canada?
The cost of life insurance in Canada starts at around $7 per month for a healthy young adult purchasing a basic term insurance policy. The premiums can range from $7 to over $3,276 per month, depending on your age, health, coverage amount, policy type, and insurer.
What is the cheapest life insurance in Canada?
Term life insurance is generally the cheapest life insurance in Canada. Because it provides coverage for a fixed period and does not build cash value, premiums are significantly lower than those for whole life or universal life insurance.
Why are life insurance premiums different for men and women?
Life insurance premiums are generally higher for men because, on average, men have a shorter life expectancy than women. Insurers use actuarial data to estimate risk, which results in lower premiums for female applicants with similar health and lifestyle profiles.
Is it cheaper to buy life insurance when you are younger?
Yes, buying life insurance at a younger age usually results in lower premiums because younger applicants generally have fewer health risks and a longer life expectancy. Purchasing coverage early can help lock in lower rates for the duration of your policy.
Can I get life insurance without a medical exam?
Yes, many insurers offer no-medical or simplified issue life insurance that does not require a medical exam. These policies are easier and faster to obtain but usually have higher premiums and lower coverage limits than fully underwritten life insurance.
How much life insurance do I need?
The amount of life insurance you need depends on your income, financial obligations, and future goals. While it is recommended to get coverage equal to 10-15 times your annual income, the ideal amount varies based on factors such as your mortgage, outstanding debts, living expenses, your children’s future education costs, and any existing savings or life insurance coverage. The easiest way to determine the right amount is to use our life insurance calculator, which estimates your coverage needs based on your unique financial situation and helps you choose a policy that provides adequate protection for your loved ones.
The cost of life insurance in Canada starts at around $7 per month but can exceed $3,276 per month depending on your age, health, smoking status, coverage amount, policy type, and insurer. Compare average life insurance costs per month by policy type, coverage, term length, applicant profile, and insurer to find the right plan at the best price.
