How Much Does A Life Insurance Cost In Canada? Updated 2024

When it comes to life insurance in Canada, the average cost is not as simple to determine as it is for other types of life insurance. That’s because life insurance premiums are based on a variety of factors that can drastically change the cost, making averages difficult to calculate. 

How insurers calculate your life insurance cost (premiums)

Life insurance companies calculate your premium based on a range of personal information including age, health, occupation and lifestyle choices. Underwriting assessments may be done to determine how much risk you might pose to an insurer and certain lifestyle risks such as smoking or extreme sports will mean higher premiums while some health risks may make it impossible to get coverage at all. 

How much should your life insurance policy cost monthly?

The amount you should be paying for your life insurance policy monthly depends largely on your individual situation but it also helps to have an idea of what the standard costs are so that you know whether or not you’re getting a deal.

Generally speaking, basic policies can be quite affordable especially if you’re young and healthy with lower risk factors such as no smoking or dangerous hobbies. A good starting point would be anywhere from $50-$100 per month depending on your age, lifestyle and health conditions. 

The older you get the higher the premium cost as well since insurers consider advanced age as one of their main risk factors for issuing life insurance policies. Of course, these are just general guidelines and there are many other variables that could influence your quote so do your research before selecting a plan.

What affects the cost of life insurance? 

Age

Life insurance premiums typically increase as the policyholder gets older. This is because the likelihood of the policyholder dying increases with age.

Gender

In general, life insurance premiums for women are lower than those for men. This is because women tend to live longer than men, on average.

Smoker

Smokers generally pay higher life insurance premiums than non-smokers. This is because smoking is a known risk factor for many serious health conditions, including cancer and heart disease.

Job

Some occupations, such as those in the military or law enforcement, may be considered higher risk and result in higher life insurance premiums.

Lifestyle

Factors such as diet, exercise, and overall health can affect life insurance premiums. A healthy lifestyle may result in lower premiums, while a lifestyle that includes risky behaviors such as skydiving or motorcycling may result in higher premiums.

Policy type

The type of life insurance policy chosen can affect the premium. Term life insurance, which provides coverage for a specific period of time, typically has lower premiums than permanent life insurance, which provides coverage for the entire lifetime of the policyholder.

Coverage amount

The amount of coverage chosen will affect the premium. A larger coverage amount will typically result in a higher premium.

Policy length

The length of the policy can also affect the premium. A longer policy term will generally have a higher premium than a shorter term policy.

Child riders

Some life insurance policies offer the option to add a child rider, which provides coverage for the policyholder's children. Adding a child rider to a policy will generally result in a higher premium.

Seniors

Life insurance premiums for seniors may be higher due to the increased risk of death at an older age. However, there are also specialized life insurance policies available specifically for seniors, which may have lower premiums.

How to get your life insurance quote?

Getting a life insurance quote is relatively straightforward. Typically, you would begin by deciding on the type of policy and the coverage amount that you want. 

Once that information is gathered, you can then look at different providers to determine who offers the best rate for what you need. The initial quote will provide an estimate of your premium based on the details provided. It’s important to remember that this is an estimate only and may change after further information is gathered during the underwriting process. 

What’s the best age to buy life insurance?

When it comes to finding the best age to buy life insurance, there are no hard-and-fast rules. Generally speaking, experts recommend buying a policy sooner rather than later as premiums tend to increase with age and health conditions can be harder to prove with time. 

Is a medical exam required to get life insurance?

Most policies will require a medical exam in order for you to be approved for coverage. This is done so that your provider can assess certain risk factors such as family history, lifestyle choices, pre-existing medical conditions, etc., in order to determine what kind of premium will be charged for your chosen coverage amount. 

What is the cheapest form of life insurance?

The cheapest form of life insurance typically depends on your age and risk factors associated with it, but term life insurance tends to have lower premiums than permanent life policies due to its shorter duration and limited payout options. Term life insurance gives you protection in case something unexpected happens during the specified period of time - usually 10-30 years - while not committing you financially for a longer period if your circumstances change over time.

The benefits of having life insurance

It's important to have life insurance, even if you think you can't afford it. Here are some of the benefits of having life insurance:

It provides peace of mind: The peace of mind that comes with knowing you have life insurance is invaluable. Knowing that your loved ones will be taken care of financially if something happens to you is a great feeling, and can provide much-needed comfort in difficult times.

It can help cover funeral costs: The average funeral in Canada costs more than $6,000. This can be a burden for your loved ones, especially if they are already dealing with the loss of a loved one. Having life insurance can help cover the costs of your funeral, so your loved ones don't have to worry about that added stress.

It can help pay off debts and other expenses: Debts and other expenses can be a major burden for your loved ones if you die. That's why life insurance is so important — it can help them pay off any outstanding debts and other expenses, so they can focus on grieving and moving on.

Term life insurance vs whole life insurance

When it comes to life insurance, there are two main types of policies: term life insurance and whole life. Here's a quick overview of the differences between the two life insurance products:

Term life insurance is only for a specific period of time, usually 10 or 20 years. After that period expires, you need to renew or cancel your policy. If you don't renew, your policy will no longer be in effect and your beneficiaries will not receive any benefits. Here are the pros of term life insurance policies:

• It's affordable: Term life insurance rates are relatively affordable, especially when compared to permanent life insurance.
• It has a high coverage amount: The maximum coverage amount for most term life policies is $1 000 000.

Whole life insurance lasts until you die, as long as premiums are paid. This type of policy has many different features, here are the two main ones:

• Cash value: Permanent life insurance policies will have a cash value, which grows over time. You can access the cash value in your policy by withdrawing money, borrowing against it, or cashing it in.
• Death benefit: The death benefit is the amount of money that your beneficiaries will receive if you die while your policy is still in effect. With a permanent life insurance policy, this amount will be greater than the premiums you paid, and the cash value will be subtracted from it.

How much life insurance coverage do you need?

This is a difficult question to answer, as it depends on many factors, such as your age, health, and lifestyle. However, here are some general guidelines to help you determine how much life insurance coverage you need:

If you have young children, you should have enough coverage to cover their expenses until they reach adulthood. This could include things like education costs, living expenses, and future inheritance.

If you have elderly parents or other loved ones who depend on you financially, you should have enough coverage to take care of their needs if something happens to you.

If you have a lot of debt, you should have enough coverage to pay off your debts in the event of your death.

What’s the best time to purchase life insurance?

The quick answer is: now

If you're concerned that your family won't be taken care of financially if something happens to you, it's a good idea to consider getting life insurance as soon as possible

Young people generally have fewer health problems than older adults, so they'll likely pay lower premiums. If you are healthy and don't smoke, for example, your premiums may be lower. So it's probably time to consider starting your life insurance application.

You can also visit our website for more information.

What happens if you don't have enough coverage?

In the unfortunate event of your death, if your family doesn't have enough money to cover your expenses, they will likely have to rely on the government for help. This is why having life insurance is so important, as it can help take care of your loved ones financially in case something happens to you.

However, if you don't have enough coverage, your family can find themselves in trouble. This is especially true if you don't have savings or assets they can access. So it's important to make sure you have enough life insurance to cover your needs.

5 Tips to help you save money on life insurance

There are many factors to consider when purchasing a life insurance policy. Here are the 5 best tips to help you save money on your next life insurance policy:

1. Compare rates

Get quotes from several different insurance companies to find the best deal.

2. Bundle policies

Many insurers offer discounts if you purchase multiple policies, such as home and auto insurance, from them.

3. Quit smoking

Smokers pay more for life insurance than non-smokers, so quitting smoking can save you a lot of money.

4. Choose a shorter policy

If you don't need coverage for the rest of your life, consider purchasing a shorter policy. This will reduce your premiums significantly.

5. Get healthy

To give you the best chances at getting the lowest premiums possible, you should consider making healthy lifestyle choices, if you aren't already doing it.

Real-life examples: Cost of life insurance

Josh and Mia live in Oakville, Ontario. They may have student loan debt, like many other millennials, but they also juggle other financial obligations, such as their mortgage.

As they start to think about building a family, they realize how important it is to get a life insurance policy. They want to make sure that if something happens to them, their children will be financially secure.

Because he’s both a man and a smoker, Josh's premiums are quoted as being over double the rate compared to Mia's. Even so, the couple was surprised at how affordable life insurance actually is. In fact, their monthly premiums will be less than their cell phone bill!

• Josh's approximate premium: $32.31*
• Mia's approximate premium: $13.23*

*These premiums are based on Emma rates

Since they’re still young, they know that their premiums will be lower now than if they wait, and it’s best to lock in those rates.They also understand that, given their current mortgage debt, they will not require the same $400,000 coverage amount in 10-20 years. This should assist them to lower the premium for their new policy term and keep it affordable for their family.

FAQ

What is the average cost of life insurance in 2024?

If you're a healthy 30-year-old looking for a 10-year term life insurance policy, the average cost of monthly premiums is around $13 for $100,000 in coverage.

Life insurance does not have to be expensive. 44% of Canadians believe life insurance is affordable. That's why it's our goal to make it accessible at the most affordable price.

Is 100 000 A good life insurance enough?

A 100,000 dollar life insurance policy is a good amount of coverage for most people. It would provide financial security for your loved ones if something happened to you and you were no longer able to provide for them. However, most people don't actually know how to calculate their needs. That is why our online life insurance needs calculator makes it easier for you to make a decision. and calculate your needs in just under 3 minutes.

What is better, term or whole life?

Term life insurance is better for most people. It is the most affordable and provides coverage for a specific period of time. If something happens to you during that time, your loved ones will receive a payout from the insurance policy.

Whole life is more expensive but it does not expire. Some companies also offer a cash value that builds over time. This could be a good option for someone who wants coverage for their entire life.

Do I need to get a medical exam to get life insurance?

Some life insurance companies, like Emma, offer instant approval. We don’t require any medical exams. All you have to do is answer our health quiz, and you'll be good to go!

How much is life insurance for a single person?

A $250,000 term life insurance policy will cost an average of $14 per month for a 30-year-old man and $11 for a woman.

What is the cost of a one-million-dollar life insurance policy in Canada?

$1 000 000 term life insurance policy will cost $34,66 per month for a 30-year-old, non-smoking male with Emma. For a 30-year-old non-smoking female, the cost of the term life insurance will be about $22,95 per month at Emma.

What's the cheapest life insurance company?

The cheapest life insurance company is usually the one that offers the lowest premiums. However, it's important to remember that not all life insurance policies are created equal. Make sure you read the fine print before you sign up for a policy.