Life insurance rates in Canada

Table of contents

• What are life insurance rates?
• What affects your life insurance rate?
• Sample rates for life insurance by policy type
• Life insurance for special situations
• Comparing life insurance rates
• How to get the best rate for life insurance
• Get an accurate life insurance rate

Shopping for life insurance in Canada? Your rate or premium (fees) depends on several key factors. Age, health, smoking status, and coverage type all play a role. Let's break down what you need to know. 

What are life insurance rates?

Life insurance rates (also known as premiums or fees) are the amount you pay for your coverage. Think of them like a subscription that protects your loved ones financially if you were to die . Your rate may stay the same or change depending on the type of policy you choose. Insurance companies calculate your rate based on risk factors unique to you.

What affects your life insurance rate?

Several factors determine how much you'll pay for life insurance. Understanding these can help you plan and potentially lower your costs. Here's what matters most:

Age

Younger applicants typically pay less. For example, a 30-year-old non-smoker might pay significantly less than a 50-year-old for the same coverage. The reason is simple: younger people tend to have more years ahead of them. This means lower risk for insurance companies. Every year you wait, your premiums go up. Find out the best age to get life insurance

Assigned sex at birth 

Statistics show that people assigned female at birth tend to live longer on average, which means they typically pay premiums over a longer period before a benefit is paid out. That's why they often see lower premiums. People assigned male at birth, however, face higher mortality rates at most ages due to various health and lifestyle factors. 

Smoking status

Smokers can pay 2-3 times more than non-smokers. Quitting can lead to substantial savings. Most insurance companies require you to be smoke-free for 12 months before qualifying for non-smoker rates. This includes cigarettes, cigars, vaping, and other tobacco products. The good news? If you quit, you can reapply for better rates later. Learn more about life insurance for smokers

Health and lifestyle

Your medical history, family history, and lifestyle choices impact your premium. Insurance companies look at conditions like diabetes, heart disease, and high blood pressure. They also consider your family's health history.

Do you have a high-risk hobby? Activities like skydiving or rock climbing may increase your rate. Your weight, mental health, driving history, and past surgeries may also factor in.

Coverage amount and type

More coverage means higher premiums. The type of policy you choose also affects cost. A $500,000 policy costs more than a $250,000 policy. Term life insurance is the most affordable option, but it lasts for a set period and premiums increase upon renewal.

Permanent life insurance costs more but premiums are typically guaranteed to stay the same, and coverage lasts your whole life. The trade-off? You get what you pay for in terms of coverage length and features.

Sample rates for life insurance by policy type

Rates increase with age, and smokers typically pay two to three times more than non-smokers. They can also vary with the type of product and the amount of coverage you're getting. For example, a person applying for a term life insurance policy worth $250,000 might pay considerably less than a person looking to get a participating life insurance policy for the same amount of coverage.

The following sample costs listed below are general estimates and used for illustrative purposes only. Your actual premium will depend on your individual circumstances. Your premiums may vary if your policy is rated. This means your insurance premium may be higher than the standard rate depending on your individual risk profile.

Sample costs for term life insurance

Term life insurance covers you for a specific period (5 to 40 years). It's often the most affordable option.

Best for: Young families, mortgage protection, and people with temporary needs

Sample rates based on $250,000 coverage for a 20-year term:

All rates are for demonstration purpose only. Optional benefits extra. Policy fees may apply. 

For estimates based on your age, assigned sex at birth and smoking status, see our Term Life Rates

Sample costs for permanent life insurance

Permanent life insurance covers you for life. It's an umbrella term that includes whole, universal and participating. All permanent life insurance policies provide lifetime coverage.  See below for sample costs.

Sample costs for whole life insurance

Whole life insurance provides lifetime coverage with guaranteed premiums. It builds cash value over time.

Best for: Long-term financial protection and estate planning

Sample rates for $250,000 coverage with payments for life

All rates are for demonstration purpose only. Optional benefits extra. Policy fees may apply. 

For estimates based on your age, assigned sex at birth and smoking status, see our Whole Life Rates

Sample costs for universal life insurance

Universal life insurance combines life insurance with investment flexibility. You can adjust premiums and death benefits. Universal life insurance offers flexible premiums. You can pay more to build investment value faster.

Best for: Those wanting investment flexibility within their policy

Sample rates for universal life insurance can’t be provided because universal life policies require customized quotes tailored to a person’s specific needs.

Sample costs for participating life insurance

Participating life insurance offers lifetime protection plus the potential to earn dividends.

Best for: Building tax-advantaged wealth while protecting your family

Sample rates for participating life insurance can’t be provided because these policies require highly customized quotes tailored to a person’s specific needs.

Life insurance for special situations

Life insurance isn't a one-size-fits-all solution. Some life stages and situations require special consideration. Whether you're a senior looking for coverage or a parent protecting your children's future, options exist for your unique needs.

Life insurance rates for seniors

Getting life insurance after age 65 is still possible. Your rates will be higher than when you were younger, but coverage is available. There are some factors to consider: 

• Many seniors choose permanent life insurance to cover final expenses and leave an inheritance. 
• Some policies don't require a medical exam, though they may cost more. 
• Some policies may ask health questions but skip the exam. 
• Guaranteed issue life insurance policies accept everyone, regardless of health. 

The key is finding the right balance between coverage and affordability for your stage of life.

Learn more about life insurance for seniors

Life insurance for parents

Parents have unique insurance needs. You're not just protecting yourself – you're protecting your children's future. 

How much coverage do you need? Consider your mortgage, childcare costs, education savings, and daily expenses. Many parents choose coverage that lasts until their youngest child finishes university. Some families also buy small policies for their children. These lock in low rates and can be converted to larger policies later. 

See our guide to life insurance for new parents

Comparing life insurance rates

Shopping around for life insurance is smart. Rates can vary between companies and products. Understanding why quotes differ helps you make an informed choice and find the best value for your needs.

Why life insurance quotes can differ for the same person

You might receive different quotes for the same coverage amount from different insurance companies. This happens for several reasons. Each insurance company uses its own underwriting guidelines. Some companies specialize in certain age groups or health conditions. One insurer might offer better rates for young families, while another excels at covering seniors.

The type of policy also matters. For example, a basic term policy costs less than a term policy with additional riders . Product features, benefit options, and company policies all affect pricing. That's why comparing multiple quotes is important.

Online quotes vs advisor-provided quotes

You have two main ways to get quotes: online tools or speaking with an advisor. Here’s how each one works:

Both approaches have value. It’s best to choose based on your comfort level and situation. 

How to get the best rate for life insurance

1. Apply early - Rates increase with age
2. Quit smoking -  In order to qualify for non-smoker rates
3. Stay healthy - Maintain a healthy lifestyle
4. Choose the right coverage - Make sure you’re covered for your specific needs
5. Compare options - Look at different product types

Get an accurate life insurance rate

Additional resources

This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions apply.

Reviewed by Amir Pourzakikhani