Monthly cost for $500,000 coverage (non-smoker, preferred health)
Age
10-Year Term
20-Year Term
30-Year Term
25
$15-20
$20-28
$28-40
30
$16-22
$22-32
$32-48
35
$18-25
$28-40
$45-65
40
$22-32
$38-55
$65-95
45
$32-45
$55-80
$95-140
50
$48-70
$85-125
$150-220
Rates are estimates and vary by insurer, health, and lifestyle.
Types of Life Insurance
Type
Duration
Cost
Cash Value
Best For
Term
10-30 years
Cheapest
No
Most families
Whole life
Lifetime
5-10x term
Yes
Estate planning
Universal life
Lifetime
3-8x term
Yes (flexible)
Tax-sheltered investing
Term-100
To age 100
3-5x term
No
Permanent need, budget
Term Life (Recommended for Most)
Feature
Details
Duration
10, 15, 20, or 30 years
Cost
Lowest
Renewability
Can renew at higher rates
Convertibility
Most can convert to permanent
Best for
Income replacement during working years
Rule of thumb: Coverage = 10-15x annual income, for a term that lasts until youngest child is independent.
Top Picks by Category
Best for Online Purchase: PolicyMe
Feature
Details
Application
100% online, 20 minutes
Medical exam
Not always required (up to $1M)
Insurers
Partners with top-rated Canadian insurers
Rates
Competitive — compares multiple providers
Support
Online + phone advisors
Best Overall Insurer: Sun Life
Feature
Details
Products
Term, whole, universal, critical illness
Financial strength
A+ (AM Best)
Branch network
Canada-wide
Group insurance
Canada’s largest provider
Digital tools
Comprehensive online portal
Best for Quebec: Desjardins
Feature
Details
Products
Full range (term, whole, universal)
Quebec presence
Dominant market share
Language
Full French service
Financial strength
A+
How Much Coverage Do You Need?
Method
Calculation
Example
Income multiple
10-15x annual income
$80K salary = $800K-$1.2M
DIME method
Debt + Income replacement + Mortgage + Education
Varies
Needs-based
Add up all financial obligations
Most accurate
DIME Example (Family with 2 Kids)
Category
Amount
Debt (car loan, student loans)
$30,000
Income replacement (10 years × salary)
$800,000
Mortgage balance
$400,000
Education (2 kids × $80K)
$160,000
Total coverage needed
$1,390,000
Life Insurance vs Alternatives
Coverage Source
Amount
Portability
Recommendation
Employer group plan
1-2x salary
❌ Lost if you leave
Supplement, don’t rely on
Mortgage insurance (bank)
Mortgage balance only
❌ Locked to lender
❌ Get term life instead
Individual term policy
You choose
✅ Yours forever
✅ Best option
Credit card insurance
$10K-100K
❌
Too small for families
How to Buy Life Insurance
Step
Action
1
Calculate coverage needed (DIME method)
2
Choose term length (usually 20 years)
3
Compare quotes online (PolicyMe, PolicyAdvisor)
4
Complete application (health questions, possibly medical exam)
5
Policy issued (2-6 weeks)
6
Set up automatic payment
7
Review every 5 years or after major life events
Canada’’s top life insurance companies compared (2026)
Company
Market position
Strength
Notes
Manulife
Largest in Canada
Product breadth, disability
Global insurer, strong claims
Sun Life
#2 in Canada
Wealth + insurance integration
Strong employer group plans
Canada Life
#3 (Great-West Life)
Universal life, group benefits
Government employee plans
Desjardins
Quebec dominant
French service, competitive rates
Strong cooperative model
Empire Life
Mid-size
Competitive term rates
Good for healthy applicants
Ivari
Mid-size
CI, term
Formerly TransAmerica
BMO Insurance
Bank-affiliated
Convenience, mortgage life
Often competitive on term
RBC Insurance
Bank-affiliated
Self-employed, mortgage
Comprehensive product lineup
Equitable Life
Mid-size
Participating whole life
Mutual insurer, dividend history
How to choose a life insurance company
Financial strength ratings: Look for companies rated A or higher by AM Best or DBRS. All major Canadian life insurers meet this standard.
Assuris protection: All federally and provincially licensed Canadian life insurance companies are members of Assuris, which protects policyholders if an insurer becomes insolvent — up to $200,000 in death benefits or 85% of promised benefits, whichever is higher. Similar to CDIC for banks, this provides consumer protection regardless of which insurer you choose.
Frequently asked questions
Which Canadian life insurance company has the best claim payout rate?
All major Canadian life insurers pay the vast majority of claims — claim denial rates for death benefits are very low (less than 1% for most insurers). More relevant is claims service experience: how quickly and smoothly the claim is processed. Industry reviews and J.D. Power Canada life insurance satisfaction surveys provide current comparisons.