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How much does life insurance cost in Canada?
February 05, 2026
By Sun Life staff
Learn about life insurance costs and factors that may affect how much you pay.
In Canada, life insurance costs typically range from $20 to $500+ per month. But the exact cost varies based on individual factors (e.g. age, assigned sex at birth, health status, etc.) and the type of policy you’re buying.
For example, a healthy 30-year old male non-smoker opting for a 25-year term life insurance policy worth $250K may have to pay a premium (fee) of $25 per month. If this person wanted a permanent life insurance policy, also worth $250K, then they would be looking at paying around $155 per month. Find out how much coverage you may need with our free life insurance calculator
What factors affect life insurance rates in Canada?
Key cost factors |
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Age |
Premiums are usually lower when you’re young. |
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Assigned sex at birth |
Females typically pay 10-15% less than males. |
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Health status |
The healthier you are, the lower your premiums. |
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Smoking status |
Smokers can pay significantly more in premiums than non-smokers. |
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Coverage amount |
Higher coverage amounts mean higher premiums. |
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Policy type (e.g. term or permanent) |
Some policies will cost more than others because they offer more coverage for a longer period of time. |
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Lifestyle and hobbies |
High-risk activities like skydiving or motorcycle riding can increase premiums. |
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Age: Generally, younger applicants may pay lower premiums as they're considered lower risk. As you age, rates can increase due to higher mortality risk.
Assigned sex at birth: Typically, individuals assigned female at birth receive lower rates than those assigned male at birth of the same age and health status, as they tend to have longer average lifespans according to statistical information.
Health: Your overall health plays a big role in determining life insurance premiums. Generally, the healthier you are, the lower your rates will be. Insurance companies view good health as a sign of lower risk, which often leads to more affordable premiums.
Smoking status: Smokers can pay significantly more for life insurance than non-smokers due to increased health risks.
Lifestyle and hobbies: High-risk hobbies (e.g. skydiving, mountain climbing, etc.) and lifestyle habits can increase your premiums due to a higher risk of death.
Occupation: High-risk jobs (e.g., firefighters, pilots, etc.) may lead to higher premiums compared to other occupations due to increased risk of death.
Coverage amount: Higher coverage means higher premiums. This is because the insurer takes on more financial risks when they agree to pay out a larger sum.
Term length: Longer term policies generally have higher premiums as the insurer will take on risk for a lengthier period of time.
How much can you expect to pay for life insurance?
Life insurance costs vary based on age, assigned sex at birth, and smoking status. Here are some general guidelines:
Term life insurance costs by age
A healthy 30-year-old non-smoker might pay around $20 per month for a $250,000, 20-year term policy. See our Term Life Rates for estimates based on your age, assigned sex at birth, and smoking status.
Permanent life insurance costs by age
A healthy 35-year-old non-smoker might pay around $250 per month for a $250,000 permanent life insurance policy.
Keep in mind, there are three types of permanent life insurance – whole, participating, and universal.
- See our Whole Life Rates for estimates based on your age, assigned sex at birth, and smoking status.
- For rates on participating and universal life insurance, connect with an advisor
How to lower your life insurance premiums
Here are some strategies to help reduce your life insurance costs:
Working with a Sun Life advisor can help you trim your insurance premiums through smart strategies. They'll assess your needs, ensuring you're not over-insured, and look for special offers when available. They'll keep an eye out for new, cost-effective products that fit your needs. Regular policy reviews mean you're always paying for just the right coverage as your life changes.
With their industry knowledge, Sun Life advisors work to balance your insurance protection alongside your budget, potentially saving you money while keeping you well-covered. Connect with an advisor near you
Quitting smoking can significantly lower your life insurance premiums. Insurance companies view non-smokers as lower risk. They reward this with cheaper rates. The longer you've been smoke-free, the more you can potentially save. Sun Life offers better rates after just one year without tobacco. Kicking the habit can not only improve your health but also your wallet. Learn more about how smoking affects life insurance
- Achieve a healthier Body Mass Index (BMI): Maintaining a healthy weight can lead to lower premiums as it reduces health risks.
- Exercise regularly: Aim for 30 minutes of moderate activity five days a week to help improve overall health and potentially lower rates.
- Manage chronic conditions: Insurance companies view well-controlled conditions more favourably. For example, keeping your blood pressure or diabetes in check shows responsibility. It reduces your health risks, making you less risky to insure. As a result, you may qualify for better rates. Regular check-ups, following treatment plans, and maintaining a healthy lifestyle all help. These actions demonstrate that you're actively managing your health.
- At Sun Life, we recognize that well-managed diabetes shouldn't be a barrier to obtaining life insurance. That’s why we offer tailored coverage for people living with this condition. Learn more about Term Life Insurance for Diabetes
To select the right life insurance policy, start by assessing your financial needs. You’ll want to:
- Consider your income, debts, and future expenses like children's education.
- Determine how much coverage you need and for how long.
- Compare different types of policies, such as term or permanent life insurance.
- Look at premiums, coverage amounts, and policy features.
- Consider your health and lifestyle factors.
- Read policy details carefully before making a decision.
Remember, the best policy is one that fits your specific situation and provides adequate protection for your loved ones.
Getting multiple life insurance policies can offer more flexibility and comprehensive coverage. Different policies can serve various financial needs and goals. For example, you might have a term policy for income replacement and a permanent policy for estate planning.
Multiple policies allow you to adjust coverage as your life changes. They can also help you manage costs by combining affordable term insurance with more expensive permanent coverage. Some people use this strategy to ensure coverage continues if health issues arise later. It can also provide a safety net if one policy lapses. Remember, diversifying your life insurance can offer tailored protection for different aspects of your financial life. Learn more about having multiple policies
Applying for life insurance early in life offers several advantages. Younger applicants often enjoy lower premiums due to their typically better health status. Starting early also builds a financial safety net for future responsibilities, like supporting a family or paying off debts. Even if you don't have dependents yet, securing coverage now protects your insurability for the future.
Remember, life insurance is valuable at any age, but starting young can offer unique benefits and peace of mind. Find out more about what age to buy life insurance
Determining the right amount of life insurance coverage can be challenging. Our easy-to-use life insurance calculator simplifies this process for you. By inputting basic information about your financial situation and future goals, you can get a clearer picture of your coverage needs. The calculator factors in things like your income, debts, and family obligations. It provides a personalized estimate to help guide your decision-making. This tool empowers you to make informed choices about protecting your loved ones’ financial future.
What’s next?
Connect with an advisor
A Sun Life advisor can explain all our insurance products, how they work, and help you figure out which products meet your needs and goals.
Enter your postal code to find an advisor near you.
Call us
You can give us a call to talk to one of our licensed advisors about which insurance products are right for you.
1-866-292-2517
Mon to Fri:
8 a.m. - 8 p.m. ET
Get a quote online
Answer a few quick questions online for Sun Life GO, which is one of our term life insurance products. You could get coverage up to $1,000,000.
This article is for information and illustrative purposes only. It's not intended to provide specific financial, tax, insurance, investment, legal or accounting advice. It does not constitute a specific offer to buy and/or sell securities. We've compiled information in this article and webinar from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to its timeliness or accuracy.
