Term life
Term 10 / 20 / 30
Coverage for a set number of years at a level price. Lowest cost per dollar of coverage. Renews at a higher price, or ends.
Good for: Mortgages, young children, income replacement
Interactive tool
How Much Life Insurance Do I Need?
Add up what your family would need if you weren't here, then subtract what you already have.
A guide only, rounded up to the nearest $25,000. It doesn't include inflation, investment growth or government benefits such as the CPP survivor's pension. Your advisor will look at your full situation.
Choose your plan
Types of Life Insurance in Canada
Most families start with term life. Permanent plans suit lifetime needs such as final costs, estate planning and leaving a legacy.
Term life
Term to 65
Level price until age 65, when most people have paid off debts and children are independent.
Good for: Covering your working years
Permanent
Term to 100
Level price, coverage for life, usually no cash value. Simple, lifetime protection.
Good for: Final expenses, estate, leaving a gift
Permanent
Whole life
Lifetime coverage, level premiums and a guaranteed cash value. Participating plans can also earn dividends.
Good for: Estate planning, leaving a legacy, forced savings
Permanent
Universal life
Lifetime coverage combined with an account that grows tax-sheltered. Cash value and costs can change with returns.
Good for: Flexible premiums, estate and business planning
Rider
Money-back / return of premium
Some plans return premiums if you keep the policy for a set time or never claim. Costs more.
Good for: People who want something back
More: Term life insurance · Whole life insurance · Money-back life insurance · Critical illness insurance
Side by side
Term vs Permanent Life Insurance
| Term | Permanent | |
|---|---|---|
| How long it lasts | 10, 20, 30 years or to age 65 | Your whole life |
| Starting price | Lowest | Higher |
| Price over time | Level during the term, higher on renewal | Usually level for life |
| Cash value | None | Whole and universal life build cash value |
| Best for | Mortgage, children, income | Estate, final costs, legacy |
| Can you switch? | Many term plans can be converted to permanent without new medical questions, before a set age | — |
How to buy
How to Get Life Insurance in 5 Steps
- Get a quoteUse the live quote form above, or ask us to compare plans for you.
- Choose the amount and termUse the calculator below. Match the term to your mortgage and the years your children depend on you.
- ApplyAnswer health and lifestyle questions honestly. Depending on your age and amount, the insurer may ask for a nurse visit, blood test or doctor's report.
- UnderwritingThe insurer reviews your application and offers a price. This can take a few days to a few weeks.
- Policy in forcePay the first premium, name your beneficiaries, and keep a copy where your family can find it.
Who needs life insurance?
Anyone whose death would leave someone else with bills: parents of young children, couples with a mortgage, people supporting parents, business owners, and anyone who wants to leave money to family or charity.
Name your beneficiaries
Paying a named person keeps the money out of your estate. For children under 18, set up a trust or name a trustee.
Answer every question honestly
Missing or wrong health information can lead to a refused claim. We help you fill in the application correctly.
New to Canada?
Many insurers cover permanent residents and work-permit holders.
Insurance for new immigrantsCommon questions
Life Insurance in Canada: FAQs
How much life insurance do I need in Canada?
Enough to pay off debts, cover final costs, and replace the income your family would lose, for as many years as they'd need it, minus any savings and coverage you already have. Many families need 10 to 15 times their income. Use the calculator on this page for your own number.
Is the life insurance death benefit taxable in Canada?
No. The Financial Consumer Agency of Canada says the death benefit paid to your beneficiaries is tax-free. If your estate is the beneficiary, the money becomes part of the estate and can be used to pay estate costs and creditors, so most people name a person as beneficiary.
What's the difference between term and permanent life insurance?
Term life covers you for a set period, such as 10 or 20 years or to age 65, and costs less. Permanent life insurance (term to 100, whole life or universal life) covers you for life and costs more; whole and universal life also build cash value.
How much does life insurance cost in Canada?
It depends on your age, health, smoking status, the amount and the term. A young, healthy non-smoker can often get a large term policy for a modest monthly premium. Use the live quote form on this page to see real prices from Canadian insurers.
Do I need a medical exam to get life insurance?
Not always. Smaller amounts may only need health questions. Larger amounts or older applicants may need a nurse visit, blood or urine tests, or a doctor's report. Some plans are simplified or guaranteed-issue, with fewer questions but higher prices or lower limits.
Can new immigrants get life insurance in Canada?
Yes, in many cases. Insurers usually ask about your residency status, how long you've lived in Canada, and your travel plans. Permanent residents and many work-permit holders can apply. Ask us which insurers fit your situation.
Who should I name as my beneficiary?
Usually your spouse or partner, children or another person. You can name more than one and set the share for each. For minor children, a trust or trustee is usually suggested, because otherwise the province may hold the money until they're adults.
Is life insurance through work enough?
Often not. Group coverage is usually one or two times your salary, ends if you leave the job, and may not move with you. Many people add a personal policy they own.
Can I convert term life insurance to permanent later?
Many term policies include a conversion option: you can switch to a permanent plan without new medical questions, usually before a set age. Check the policy before you buy.
Sources
Sources
- Financial Consumer Agency of Canada: Life insurance (types, beneficiaries, tax-free death benefit)
- Canadian Life and Health Insurance Association: Canadian Life and Health Insurance Facts
Last reviewed October 18, 2026 by Pankaj Bhatia, PFA, CHS. General information only; coverage, exclusions and prices differ by insurer and are set out in each policy.
Life insurance is cheapest the day you buy it
Prices go up with age and health changes. Compare plans from Canadian insurers with a licensed advisor today.