How Much Does Life Insurance Cost in Canada?

The Number One Question Canadians Ask

"How much does life insurance cost?" is the most common question we hear — and for good reason. Most people assume it's expensive and put it off. The reality often surprises them.

Life insurance in Canada is more affordable than most people think, especially when you're young and healthy. Here's a breakdown of what you can expect to pay.

What Determines Your Life Insurance Premium?

Your monthly premium is calculated based on several key factors:

• Age: The younger you are, the lower your premium. Every year you wait costs more.

• Health: Your current health, medical history, and family history all factor in.

• Coverage amount: Higher coverage means higher premiums, but not always proportionally.

• Term length: A 30-year term costs more than a 10-year term for the same coverage amount.

• Smoking status: Smokers pay significantly more — often 2-3x the non-smoker rate.

• Gender: Women typically pay slightly less than men due to longer life expectancy.

Sample Monthly Premiums for Canadians

Here are approximate monthly costs for a healthy, non-smoking Canadian on a 20-year term policy:

• Age 30, $500,000 coverage: $25 – $40/month

• Age 30, $1,000,000 coverage: $45 – $70/month

• Age 40, $500,000 coverage: $50 – $75/month

• Age 40, $1,000,000 coverage: $90 – $130/month

• Age 50, $500,000 coverage: $120 – $180/month

These are estimates — your actual rate will depend on your specific health profile and the insurer. That's why shopping across multiple insurers matters.

Why Rates Vary Between Insurers

Each insurance company has its own underwriting guidelines and risk models. The same applicant can receive quotes that vary by 20-40% between insurers. This is exactly why working with an independent broker — rather than going direct to one company — saves Canadians money.

PureTerm's licensed brokers shop 15+ Canadian insurers to find the lowest rate for your specific profile.

The Cost of Waiting

Life insurance premiums increase with age. A $1,000,000 policy at age 30 might cost $50/month. At age 40, that same policy could cost $100/month or more. Over a 20-year term, waiting 10 years to buy could cost you $12,000 or more in additional premiums.

Find Your Exact Rate in 2 Minutes

Use PureTerm's free coverage calculator to get a personalized estimate based on your age, health, and coverage needs. A licensed broker will then shop 15+ insurers to find your best available rate — at no cost to you.