13 Best Term Life Insurance Companies In Canada (2022)

According to recent statistics, 44% of Canadians don’t have life insurance coverage.

Even the most affordable term life insurance policy could pay your closest relative up to $100,000 if the worst were to happen, which could help them cover funeral costs, mortgage expenses, and provide them with financial stability.

Many tend to think of life insurance as something expensive or difficult to apply for. I’m here to tell you that’s not the case.

Below, I’ll show you where to find the best term life insurance companies in Canada, so you can find the right life insurance policy to fit your needs.

Top for Term Life
PolicyMe
PolicyMe
  • Easy online process
  • One of the lowest term life insurance prices in the country
  • The decision is instant and takes less than 10 minutes at most
  • Helpful customer service
Top Comprehensive
PolicyAdvisor
PolicyAdvisor
  • A comprehensive range of insurance products
  • A free and detailed comparison tool
  • Instant quotes from up to 20+ insurance companies
  • Easy, online approval process
Top Big Brand
Manulife
Manulife
  • Wide range of life insurance policies
  • Higher ceilings for death benefits
  • A wide variety of riders
  • Comprehensive and customizable permanent life insurance policies

Types Of Term Life Insurance In Canada

Compared to signing up for permanent life insurance policies, purchasing term life insurance coverage is relatively simple and easy.

Unlike permanent policies, which are designed to protect you for your whole life (and can be more costly), term life insurance coverage is designed to provide coverage for a defined period of time.

When viewing term life insurance policies, you’ll typically be able to choose from the following term life periods:

  • One-year term (annual)
  • Five-year term
  • Ten-year term
  • Fifteen-year term
  • Twenty-year term
  • Thirty-year term

The longer your term insurance policy is, the more affordable the life insurance premium you can expect to pay. Your premium is the monthly (or annual) cost that you’ll pay for coverage.

Choosing Your Term Insurance Length

The first question that most people have when shopping for term insurance is, “What term life insurance policy is best for me?

As I mentioned, longer terms can come with lower premiums, since you’ll be locked into a low monthly rate, no matter how much inflation increases and the value of the loonie falls.

When you opt for a shorter-term life insurance policy, your renewal rate will generally cost more than you first paid in monthly or annual premiums.

Another factor that could affect the term you choose for your life insurance coverage could be your mortgage.

Many people choose a term life insurance termination date that closely correlates to the date that their mortgage is expected to be paid off.

This ensures that their family wouldn’t have to sell their home if the insured individual were to pass away.

However, if you’re unsure of your future or considering purchasing a whole life insurance policy in the future, then a short-term life insurance policy might be the simplest temporary solution.

Best Term Life Insurance Companies in Canada

Below, I’ve included the average monthly cost for $100,000 of coverage with a ten-year term. Keep in mind that this number is just an average and can vary, depending on factors, such as:

  • Your age
  • Your gender (males represent a statistically higher risk than females)
  • The life insurance company you choose
  • Your occupation
  • Your health

1. PolicyMe

  • Monthly Cost For $100,000 Policy: $8.75/month
  • Get A Free Quote Today: website

PolicyMe is my go-to recommendation for anybody looking for a quick, affordable quote on term life insurance. It’s one of the best online insurance companies in Canada due to how simple the company makes it to sign up for a policy, and how cheap the plans are compared to competitors.

Their company motto is, “So quick, you can get it done while your coffee’s still hot.”

The entire application process can be completed online or on your smartphone, and generally doesn’t take more than half an hour, at most.

PolicyMe will ask you a few simple questions, and then you can adjust your term coverage to fit your needs.

Some perks that PolicyMe offers are:

  • Extremely affordable term policy rates
  • 10% discount for couples during their first year
  • Free additional children’s life insurance

Since the company operates entirely online, PolicyMe offers some of the most affordable term life insurance quotes on the market.

The company doesn’t have the overhead that larger banks and brick-and-mortar Canadian life insurers have, which translates to more affordable policies for customers.

2. PolicyAdvisor

policyadvisor

Term Life Insurance Cost: $9.71/month for $100,000
Get a Free Quote: PolicyAdvisor website

You can get a a side-by-side comparison of several different insurance policies that Canadian life insurance companies are offering, and that’s where PolicyAdvisor comes into play.

It’s a life insurance policy search engine and comparison tool that allows you to compare quotes from Canada’s largest life insurance companies.

You can also consider it an online broker. The advice is commission-free and unbiased and is augmented by PolicyAdvisor’s online support.

3. Emma Life Insurance

emma logo
  • Monthly Cost For $100,000 Policy: $9.25/month
  • Get A Free Quote Today: website

Emma Life Insurance isn’t an insurance agency itself. Rather, the platform connects you with some of the most stable life insurers in Canada.

In fact, many of the life insurance companies that I’ve mentioned below have partnered with Emma to offer a greater variety of term life insurance products to Canadians.

At this point, you’re probably wondering, “Why use Emma, when I could work directly with the insurance agency?

The reason I recommend Emma is that the platform allows you to compare and contrast the best life insurance plans offered by multiple insurers.

Emma takes the information that you provide and uses it to match you with customized quotes that best fit your needs. You’ll receive multiple quotes from competing insurers, while only having to fill out a single application.

If you were to shop around on your own, then you’d have to complete a separate application for each insurance company that you wanted to compare. Needless to say, this could take some time.

Additionally, using Emma to find your term life policy may also result in a lower monthly premium. Since Emma’s affiliated insurance agencies are aware of the immediate competition, they may offer better deals on the spot.

If you’re still unsure of what type of life insurance policy you need, Emma also provides plenty of educational resources.

In addition to term life, Emma also allows you to shop for permanent life insurance coverage as well, which makes it a true “one-stop-shop” experience.

4. Manulife Term Life Insurance

manulife logo
  • Monthly Cost For $100,000 Policy: $8.99/month
  • Learn More: website

Manulife is, by far, one of the top life insurance companies in Canada. With over $39 billion worth of annual premiums, it’s clear that Canadian life insurance consumers approve. Some of the most popular life insurance products offered by Manulife include:

  • Standard term life insurance
  • Permanent life insurance
  • Family term life insurance
  • Business term coverage (business protection)

If you’re looking for simple, straightforward life insurance coverage, then I recommend the standard term coverage. However, the company’s other products are worth considering if you own a small business or have a family.

Getting approved for your policy is relatively simple as well, and usually doesn’t require a medical exam or extensive paperwork.

5. Desjardins Term Life Insurance

Desjardins Logo
  • Monthly Cost For $100,000 Policy: $9.50/month
  • Learn More: website

Based out of Quebec, Desjardins is among the top-five insurers in Canada, with just over $9 billion in annual premiums held by its clients. The shortest term policy offered by Desjardins is 10 years, so it’s not the best company if you’re looking for something temporary.

However, one of the benefits of Desjardins is that customers are allowed to increase their benefits at any time without having to submit to an additional medical examination. In addition to the 10-year term, Desjardins also offers 20 and 30-year terms.

The one drawback of Desjardins is that the application process isn’t quite as simple as using an online platform like PolicyMe or Emma. You’ll have to schedule an appointment and speak with a representative in person to finalize your coverage, which can take a bit more time out of your day.

6. Sun Life Insurance

SunLife Logo
  • Monthly Cost For $100,000 Policy: $9.00/month
  • Apply for Sun Life Go Term Insurance: website

Sun Life is the third-largest life insurance provider in Canada, with just under $21 billion in annual premiums. The company offers a variety of insurance products, including:

  • Term life insurance
  • Permanent life insurance
  • Universal life insurance
  • Critical illness insurance
  • Disability insurance
  • … and more

As far as the company’s term policies go, customers will be able to choose from 10, 15, 20, or 30-year terms. One of the most popular products the company offers is the Sun Life Go policy, which offers simple coverage ranging between $50,000 and $100,000.

Those looking for a greater amount of coverage can explore Sun Life’s other term coverage policies that provide up to $25 million worth of accidental death benefit coverage.

7. Empire Life Insurance

Empire life insurance Logo
  • Monthly Cost For $100,000 Policy: $9.99/month
  • Learn More: website

Empire Life is one of the smaller insurance companies in Canada. However, Empire Life offers competitive plans and pricing, along with other investment products such as GICs.

Empire Life offers 10, 20, 25, and 30-year terms, depending on your needs. Customers also have the flexibility to add features and coverage to their plan throughout their term.

8. TermLite by Specialty Life Insurance

Termlite
  • Monthly Cost For $100,000 Policy: $8.99/month
  • Learn More: website

TermLite is a branch of Specialty Life Insurance that specializes in term policies. The company has fair rates and a relatively simple application and approval process. TermLite offers 10, 20, 30, and 100 year terms. Customers can apply for up to $1 million, depending on how much coverage they need.

Some other benefits of applying for a TermLite policy include:

  • No medical exam
  • No lengthy questionnaires
  • Quick approval process

9. Humania Assurance Term Life Insurance

Humania assurance logo
  • Monthly Cost For $100,000 Policy: $10/month
  • Learn More: website

Humania Assurance offers term life policies to individuals up to 70 years old, with a termination age of 80. You’ll be able to choose between 10, 15, 20, 25, and 30-year terms, which provides a wide degree of flexibility compared to competitors that don’t offer five-year increments.

When selecting your policy, you’ll also be able to apply for additional benefits, including:

  • Accidental death insurance
  • Waiver of premiums
  • Children’s insurance

Humania also offers a popular family plan called Life Insurance Emma, which makes it easy for parents to apply for simple, affordable coverage (not to be confused with the Emma Life Insurance company that I mentioned above).

10. Canada Protection Plan Term Life Insurance

Canada Protection Plan logo
  • Monthly Cost For $100,000 Policy: $9.50/month
  • Learn More: website

Canada Protection Plan (CPP) is among the few life insurance providers that offer a range of no-medical plans to applicants of all ages, even those who have serious pre-existing conditions.

Most life insurance companies tend to stay away (or at least charge extra) for high-risk individuals, which means that CPP is among the more accepting insurers on the market.

11. BMO Term Life Insurance

BMO
  • Monthly Cost For $100,000 Policy: $11.50/month
  • Learn More: website

The Bank of Montreal (BMO) offers simplified term life coverage plans ranging from $100,000 to $5 million. In the past, BMO only offered 10, 20, and 30-year terms.

Now, you’ll be able to select five-year incremental plans, including 15 and 25-year terms, which provides a bit more flexibility and control.

BMO also provides critical illness coverage and waiver of premium benefits, for those who are interested.

12. Canada Life Term Life Insurance

Canada Life Logo
  • Monthly Cost For $100,000 Policy: $9.75/month
  • Learn More: website

Canada Life is the second-largest insurer in the country and has been in business for over 175 years. The company offers flexible terms, affordable premiums, and tax-free payment to any beneficiary of your choice.

One of the reasons why I often recommend Canada Life is that it’s one of the few insurance companies that offer terms as short as 5 years and terms as long as 50 years.

13. Industrial Alliance Term Life Insurance

Industrial Alliance Logo
  • Monthly Cost For $100,000 Policy: $9/month
  • Learn More: website

Industrial Alliance (IA) is the fifth-largest term life insurance company in Canada, with $8.6 billion in annual premiums. IA’s most popular plan is the Access Life policy, which allows customers to choose between 15, 20, and 25-year terms and purchase up to $500,000 of coverage.

If you’re looking for something a bit more flexible, then you can choose the Pick-A-Term package and choose a term between 10 and 40 years, with up to $10 million in coverage.

Term vs. Whole life insurance In Canada: What’s The Difference?

If this is your first time shopping for life insurance, then you may be wondering what the differences between a whole life insurance policy and term life insurance plans are.

While both forms of life insurance provide your family with a tax-free death benefit, the two plans differ significantly when it comes to the policy as a whole.

Term life insurance offers the most affordable coverage, as it only provides a death benefit. With term life insurance, your premium doesn’t contribute to a cash value that you can withdraw later in life.

Term life coverage provides a quick payout to your family if you pass away and nothing more.

Permanent life insurance, on the other hand, is a bit more complex. When you purchase a permanent insurance policy, a portion of your premium payment goes towards the “cash value” of your policy. The longer you pay into the policy, the more goes towards your cash value.

Often some permanent coverage plans allow you to invest the cash value into stocks, ETFs, and GICs, allowing you to grow your investment.

You may also be able to withdraw money from your permanent life insurance policy for emergencies before you die.

Factors That Can Affect Life Insurance Premiums

Now that you’ve had a chance to look over some of the best life insurance companies in Canada, let’s go a bit deeper and look at some of the key factors that can affect your plan’s monthly premium cost.

For the most part, $100,000 term life policies are affordable and probably won’t cost more than a subscription to Netflix. However, premiums can vary, depending on your unique situation. Here’s why.

Your Age

Age is usually the biggest factor when it comes to your premium. Simply put, the older you are, the more expensive your premium may be.

Aging individuals represent a higher risk to insurers, which is why you may end up paying a bit more. This is also one of the reasons why I recommend that my younger readers start thinking about life insurance now.

The Amount Of Life Insurance Coverage You Want

The average cost of a $100,000 term life policy in Canada is $9 per month. However, those seeking a higher amount of coverage will be required to pay a bit more. For instance, a healthy 20-something individual might pay around $100 for $1 million worth of coverage.

Your Occupation

If you have a dangerous occupation, then you pose a greater risk to insurers. Some dangerous occupations that may result in higher premiums include:

  • Lumberjack and forestry
  • Construction
  • Fishing
  • Mining and gas extraction

Your Habits & Hobbies

One of the main factors that could contribute to higher insurance premiums is whether or not you’re a smoker.

Individuals who smoke tobacco have a significantly higher risk of falling victim to heart disease and cancer, and a simple medical exam will usually reveal this.

Additionally, dangerous hobbies like mountain climbing, skiing, or deep-sea diving could increase your premiums.

Pre-Existing Conditions

If you have a pre-existing medical condition that could potentially be life threatening, then you’ll almost always be required to pay a higher premium.

That being said, if you develop a medical condition after you’ve already been covered, then you shouldn’t be concerned, as you’ll already be locked into a pre-defined premium. However, your life insurance cost may increase upon renewal.

What Are The Benefits Of A Term Life Insurance Policy?

Some of the key benefits of a term policy, compared to a whole life policy are:

  • Term life insurance is easier (and faster) to apply for
  • Term life insurance often doesn’t require a medical exam
  • Term life insurance is more affordable than whole life insurance
  • You can cancel term life insurance anytime without penalty
  • Term life insurance provides peace of mind to your family
  • Term life insurance payouts are tax-free
  • Term life insurance coverage can often be increased during your policy

What Are The Negatives To Buying Term Life Insurance?

That being said, term life policies do have a few drawbacks, when compared to permanent life insurance policies, including:

  • Term policies don’t allow you to build equity in the form of cash value
  • Term policies usually require seniors to convert to a whole life policy sometime between age 65 and 80 (depending on the company’s rules)
  • Term policies don’t provide as many additional benefits as a permanent insurance policy

How Much Life Insurance Do I Need?

As you’re reviewing the best life insurance policies, you may be wondering, “How much life insurance do I need?” Term life insurance policies can provide a death benefit that ranges anywhere between $100,000 and $1,000,000.

The nice thing about term insurance is that you can increase your death benefit amount when your policy term expires.

So, if you’re young, in your twenties, and don’t own a home yet, you could purchase $100,000 of coverage with a five-year term now.

In five years, once you own a home or have a family, you could sign up for a new term insurance policy that provides greater coverage.

Is Term Life Insurance A Good Idea in Canada?

Purchasing a term life insurance plan is a great idea. Most plans are affordable and offer flexible solutions that fit your needs. If you have a family, a mortgage, or loved ones you care about, your policy will give the important ones in your life peace of mind.

If you end up deciding that you want a whole life policy, cancelling your term policy and switching to a permanent policy is a relatively simple process as well. In short, there’s no reason why every Canadian shouldn’t at least have basic term life insurance.

Final Thoughts

Best Term Life Insurance In Canada

As a young Canadian who’s trying to achieve financial stability for themselves and their family, your term life insurance policy will ensure that your loved ones are able to continue building on your work and success, instead of falling into financial hardship if the worst happens.

Another key component of building financial stability is investing. Eventually, your long-term investments could make you rich.

The key is to start today, instead of putting it off until tomorrow. Even rough markets offer opportunities to profit.

To learn more about investing, be sure to check out my conclusive investment guide for beginners next!

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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