Term life insurance is the most affordable way to replace your income for dependants during your working years — typically 10, 20, or 30 years.
Best Term Life Insurance Companies Compared Company 20-Year Term ($500K, Age 30, Non-Smoker) Online Application Conversion Option No-Exam Option Rating PolicyMe ~$22/month ✅ Fully online ✅ ✅ (up to $1M) ★★★★★ Sun Life ~$25/month ⚠️ Partial ✅ ✅ (up to $500K) ★★★★★ Canada Life ~$26/month ⚠️ Partial ✅ ✅ (up to $1M) ★★★★☆ Manulife ~$27/month ⚠️ Partial ✅ ✅ (up to $1M) ★★★★☆ RBC Insurance ~$28/month ✅ Online ✅ ✅ (up to $500K) ★★★★☆ Desjardins ~$27/month ❌ Advisor ✅ ❌ ★★★★☆ BMO Insurance ~$29/month ⚠️ Partial ✅ ✅ (up to $500K) ★★★★☆ Industrial Alliance (iA) ~$26/month ❌ Advisor ✅ ✅ ★★★★☆
Rates are estimates for a healthy 30-year-old male non-smoker. Female rates are typically 15–25% lower. Actual rates depend on health, lifestyle, and underwriting.
Term Life Insurance Rates by Age Monthly Cost: $500,000, 20-Year Term, Non-Smoker (Male / Female) Age PolicyMe Sun Life Canada Life Manulife RBC 25 $18 / $15 $21 / $17 $22 / $18 $23 / $19 $24 / $19 30 $22 / $18 $25 / $20 $26 / $21 $27 / $22 $28 / $22 35 $28 / $23 $31 / $26 $33 / $27 $34 / $28 $35 / $29 40 $40 / $34 $44 / $37 $46 / $39 $48 / $40 $49 / $41 45 $65 / $52 $72 / $58 $75 / $60 $78 / $62 $80 / $64 50 $110 / $85 $120 / $95 $125 / $98 $130 / $100 $135 / $105
How Smoking Affects Rates Age Non-Smoker (Male) Smoker (Male) Premium Increase 30 ~$22/month ~$55/month +150% 40 ~$40/month ~$110/month +175% 50 ~$110/month ~$320/month +190%
Term Length Options Term Length Best For Average Monthly Cost ($500K, Age 30) 10-year Short-term need (mortgage nearly paid, kids almost grown) $14–$18 15-year Medium-term coverage $18–$22 20-year Most common — covers peak financial years $22–$28 25-year Longer coverage to age 55 $28–$35 30-year Maximum coverage period $32–$42
How to Choose the Right Term Length Your Situation Recommended Term New mortgage (25-year amortization) 20 or 25-year term Newborn child 20-year term (covers until they’re independent) 10 years from mortgage payoff 10-year term Age 35, want coverage to 65 30-year term Single, no dependents May not need term life at all
Key Features to Compare Riders and Add-Ons Rider What It Does Typical Cost Who Needs It Critical illness rider Pays lump sum if diagnosed with covered illness +30–50% of premium Those without standalone CI coverage Disability waiver Waives premiums if you become disabled +5–10% Self-employed, no group disability Child rider Covers children’s death +$5–$10/month Parents with no child coverage Accidental death Double payout for accidental death +$2–$5/month Generally not recommended Guaranteed insurability Buy more coverage later without medical exam +5–10% Young people expecting future needs
Conversion Privileges Company Conversion Deadline Convert To Medical Exam Required? PolicyMe Age 65 Whole life No Sun Life Age 71 Whole or universal No Canada Life Age 65 Whole or universal No Manulife Age 71 Whole or universal No RBC Insurance Age 65 Whole life No iA Financial Age 65 Whole or universal No
No-Exam vs Traditional Underwriting Feature No-Exam (Simplified Issue) Traditional (Fully Underwritten) Application time 20–30 minutes online 2–6 weeks, medical exam required Maximum coverage $1,000,000–$2,000,000 Unlimited Premium cost 5–15% higher Lowest available rates Health questions Yes (shortened questionnaire) Full medical history + exam Blood/urine tests No Yes Best for Healthy applicants wanting fast approval Those seeking maximum savings or high coverage
How to Save on Term Life Insurance Strategy Potential Savings Buy young (rates lock in at purchase age) 30–50% vs buying 10 years later Compare at least 3–5 quotes 10–20% Choose online-only insurer (PolicyMe, etc.) 10–20% vs traditional Don’t over-insure (calculate actual needs) Varies Quit smoking (rates drop after 12 months tobacco-free) 50–65% Improve health markers before applying 5–15% Bundle term lengths for different needs Varies
Group Life Insurance vs Individual Term Feature Group (Employer) Individual Term Cost Often free or subsidized You pay full premium Coverage amount Typically 1–2× salary You choose (up to millions) Portability Lost when you leave employer Stays with you Customization Limited Full choice of term, riders Medical exam Usually none May be required Recommendation Keep as base + supplement with individual Primary coverage you control
Application Process Step What Happens Timeline 1. Get quotes Compare rates online 15 minutes 2. Apply Complete application (online or with advisor) 20–60 minutes 3. Underwriting Insurer reviews your application Instant to 6 weeks 4. Medical exam (if required) Paramedical exam at your home/office 30 minutes 5. Approval Policy issued and coverage begins Same day to 8 weeks 6. Free-look period Cancel within 10–30 days for full refund 10–30 days
Related Articles Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Information may be simplified, incomplete, or out of date. Consult a licensed mortgage broker, financial advisor, or other qualified professional before making financial decisions. WealthNorth may receive compensation from partners featured on this site — this does not influence our editorial content. See our privacy policy for details.