Best Individual Life Insurance
The best individual life insurance plans in Canada
Life insurance options for individual shoppers are easy to find in Canada — but which are the best life insurance companies for individual policies?
The best type of individual life insurance for most Canadians is term life insurance, which covers a limited period of your life (typically 10, 20, or 30 years) during which you have outstanding debts, dependents, or other financial needs that require protection.
Most Canadians don’t need permanent insurance unless they have lifelong dependents, a high net worth, and/or complex estate planning needs.
To find the best individual term life insurance providers and plans, we analyzed dozens of life insurance quotes and plan options. We looked for financial strength, lower premiums than the industry average, and benefits like online applications and built-in policy perks.
*For each product, we averaged the monthly premiums for female non-smokers between the ages of 30-44 across every term length available. The results show the approximate cost of a 10-30-year term life insurance policy with $500,000 of coverage.
While the five insurance plans highlighted below stood out in our analysis as the best options for most individuals in Canada, they’re not the only plans worth considering. Life insurance policies from Beneva, BMO, Assumption Mutual, and the Canada Life Assurance Company also scored well in our analysis of term coverage. For permanent life insurance options, the Empire Life Insurance Company and Canada Protection Plan (Foresters) are competitive carriers.
1. Term life insurance from PolicyMe
Our expert take:
PolicyMe offers one of the most affordable Term Life Insurance policies in Canada, with rates as low as 23% below the industry average. Our streamlined application process delivers cost-effective coverage backed by Securian Canada, which has been rated "A" or higher by A.M. Best for over 75 years.
Most applicants don't require a medical exam, and there are family-friendly features like complimentary child coverage and a first-year couple's discount. The downside is PM's insurance rates aren't so competitive for high-risk cases such as seniors and smokers.
Pros & Cons:
Available products
- Term life insurance with $100,000–$5 million in coverage for 10-30 years
- Term 100 life insurance with $10,000–$5 million in lifetime coverage
2. RBC YourTerm from RBC Life Insurance
Our expert take: As long as you're looking for $500,000 or more in coverage, RBC YourTerm life insurance is competitively-priced and offers a variety of conversion options. If your health changes before your term expires, you can choose between participating and non-participating permanent life insurance products without the need for a medical exam. RBC Life Insurance carries an "A" rating for financial stability from A.M. Best.
Pros & Cons:
Available products
- RBC YourTerm with $100,000–$25 million in coverage for 10-40 years
- RBC Growth Insurance and Growth Insurance Plus with $25,000–$25 million in lifetime coverage and participating dividends
- RBC Guaranteed Acceptance Life Insurance with $5,000–$40,000 in lifetime coverage
- RBC Simplified Term Life Insurance with $50,000–$1 million in coverage for 10-40 years
- RBC Universal Life and Universal Life with Bonus Interest with $25,000–$25 million in lifetime coverage and an investment account
- Term 100 Life Insurance with $50,000+ in lifetime coverage
3. Versatile Term from CUMIS Life Insurance Company
Our expert take: Versatile Term is a good budget pick for term life insurance, albeit one with shaky customer reviews. Google users claim customer service is slow and hard to reach, and because there's no option to buy online, the buying process may take a while. On the plus side, Co-Operators carries a large range of products and an "A" financial stability grade from A.M. Best.
Pros & Cons:
Available products
- Term Life 1 with $50,000–$475,000 in coverage for 1 year
- Versatile Term with $25,000–$5 million in coverage for 10-30 years
- Infinity Term with $25,000+ in lifetime coverage
- Responsibility and Responsibility PLUS with up to $25,000 in lifetime coverage
- Universal Life with $25,000+ in lifetime coverage
- Whole Life Ascend with $25,000+ in lifetime coverage and participating dividends
- Whole Life Protector with $25,000+ in lifetime coverage and participating dividends
Methodology
PolicyMe’s rankings are based on an independent, data-driven review of Canada’s best life insurance products and providers.
Our analysis combines 450,000+ quotes for 70+ life insurance products with in-depth research on 20+ providers. We assigned each product a star rating out of five based on a mix of average pricing, Google Review scores, and shopping convenience, then ranked the results in 12 categories.
Rankings are determined first by star rating and then by price. Our findings are entirely data-driven and do not include paid placements, but should not be considered a substitute for personalized financial advice.
When do you need individual life insurance?
You need individual life insurance if there are people who rely on your income for financial stability, or if you have outstanding debts that would place a burden on your loved ones if you passed away.
The most common life insurance needs focus on children and mortgages. If you’re a parent or a homeowner, you and your loved ones likely need the financial protection of a life insurance policy. But you may also need individual life insurance if:
- You have student debt
- Your partner relies in your income
- Your parents or other family members rely on your income
- You want to build a robust financial planning strategy
- You plan to have children in the future
- You want to leave a legacy or inheritance to your loved ones or to a charitable cause
Life insurance is an important financial solution for most Canadians, but it’s not a fix for every financial goal. In particular, life insurance is not an effective investment tool. If you want to build wealth for yourself or your loved ones, a high-yield savings account or traditional investment accounts will almost always yield higher returns.
Why couples might need individual life insurance
For couples, choosing between joint and individual life insurance is a key decision in the shopping process. The biggest difference between a joint vs. individual life insurance policy is who has coverage and when the payout comes.
A joint life insurance policy:
- Covers two people (typically spouses) under one policy
- A first-to-die policy pays out when the first insured person dies
- A second-to-die policy pays out once both insured individuals have died
While a joint policy can be cheaper than holding two individual policies, there are serious drawbacks:
- With a first-to-die policy, the surviving spouse gets a payout but no longer has any insurance coverage
- With a second-to-die policy, the surviving spouse doesn’t receive a payout after their partner dies
For these reasons, we believe individual policies are best—even for couples. An individual life insurance policy:
- Covers one person under one policy
- Pays out when the insured policyholder dies
- Can be tailored to each individual’s income, health, and coverage needs
Individual policies cost a little more, but they stick with you—even if you separate from your partner or need to adjust your coverage. That’s financial security.
Separate term life insurance policies are typically the smartest choice for couples. Each partner can select a term that best suits their financial obligations. Some insurance providers even offer discounts for couples who buy separate life insurance policies. PolicyMe gives you 10% off the first year of your term policy when you apply together.
Pros and cons of an individual life insurance policy
The best part of an individual life insurance policy is the control. Though it is slightly more expensive for two people to have their own term insurance policies than to purchase a joint policy, we believe the benefits make it worthwhile.
Types of individual life insurance policies
There are two main types of life insurance policies: term and permanent (whole or universal). Term insurance is typically the most affordable coverage option and best meets the needs of most Canadians.
Term life insurance covers a set term, like 10, 20, or 30 years:
- Pays out if you die during the term
- Usually the most affordable option
- Good if you have a mortgage or are raising children
Permanent life insurance lasts your entire life, as long as you pay the premiums:
- Pays out when you die
- Builds cash value that you can borrow against or withdraw
- Can be useful for complex estate planning
With whole life insurance, you have lifelong coverage and your premiums are fixed. Your death benefit and cash value are guaranteed with non-participating whole life policies. Participating policies mean you participate in the insurer’s investment returns, and you may receive dividends.
With universal life insurance, you have lifelong coverage and your premiums (and coverage!) can flex over time. Your cash value growth is not guaranteed since it’s tied to interest rates or market performance (depending on the type). This type of coverage is marketed as a source of retirement income, but most Canadians can get better returns through investing.
Eligibility for lifetime coverage may require medical exams or basic health questionnaires.
Use a term life insurance calculator to estimate how much life insurance you need based on your situation.
How much does individual life insurance cost?
The cost of life insurance in Canada depends on your age, gender, health status, policy choice, and insurance provider. In general, female nonsmokers tend to pay less for life insurance. Here are quotes by term length, pulled from PolicyMe rates for a 35-year-old non-smoking applicant for $500,000 in coverage.
How to find the right individual life insurance for you
We’ve done our best to highlight the best life insurance policies in Canada for most individuals, but every applicant is different. The best insurance policy for most Canadians might not be the right option for you.
To make sure you’re getting the right life insurance, you can work with a licensed advisor or ask yourself the following questions:
- Do I need short-term coverage or a permanent policy? For most Canadians, a term life insurance plan that only covers 10–30 years is the right option: coverage when you need it with premiums that stop once your insurance needs go away.
- Do I have health conditions or habits that could impact my rates? Healthy Canadians who don’t smoke are eligible for the best rates with a full underwriting process. Even if you smoke or have some health conditions, it’s best to get a fully-underwriting policy if possible, but applicants with serious health issues should be prepared to face high rates and may need to consider the pros and cons of a guaranteed issue policy.
- What does my budget look like? In general, term life insurance costs Canadians in their 30s around $20–$30/month, with higher rates for older applicants and lower rates when you’re young.
- Do I need any add-ons? Common add-ons for life insurance include critical illness insurance riders, disability riders, and child coverage riders. Consider which riders (if any) you need on your policy and be prepared to pay extra for them.
FAQ: Individual life insurance
*** The life insurance premium rates in this article are based on publicly available figures as of November 2025.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.
Bonnie Stinson is an insurance writer and researcher in Toronto with a decade of experience producing helpful, accurate content for Canadians. They have published resources for some of Canada's most innovative and consumer-trusted companies in the health, legal, and fintech sectors.