Key Takeaways

Term life insurance is the best choice for most Canadians, especially those with minor children or large debts, like a mortgage.
The best term life insurance companies in Canada are Bank of Montreal, Canada Life, PolicyMe, Sun Life and Wawanesa in terms of the range of term lengths and coverage options they provide, affordability, customer service and features.

[fs-toc-omit]What is the advantage of getting term life insurance?

The big advantage of term life insurance is that it’s simple and budget-friendly. You get coverage for a set period—say 10, 20, or 30 years—at a lower cost compared to other types of life insurance.

It’s perfect for when you need solid protection, like while raising a family or paying off a mortgage. Since there’s no investment side to it, every dollar you pay goes straight to keeping your loved ones financially secure if something happens to you.

[fs-toc-omit]Is term life the best option for Canadians?

Term life insurance is a great option for many Canadians, offering affordable and straightforward coverage for a specific period, such as 10, 20, or 30 years.

This makes it ideal for covering needs like paying off a mortgage, supporting children until they are independent, or providing financial security during your working years. For the majority of Canadians, term life insurance is an effective way to get the necessary coverage without straining their budget.

However, the best option can vary depending on your personal needs and long-term goals. While term life insurance suits those seeking temporary protection, it doesn’t build cash value and can become costly if renewed later in life.

If you have more complex needs, such as long-term financial planning or providing for dependents with lifelong needs, a permanent life insurance policy might be more appropriate.

We always recommend to assess your specific situation or consult with a financial advisor to determine the best type of life insurance for you.

[fs-toc-omit]Best term life insurance companies in Canada

The best term life insurance providers in Canada are BMO Insurance, Canada Life, PolicyMe, Sun Life and Wawanesa Life.

‍To create this list, we looked at each company’s rates, approval times, application process, customer reviews and quality of customer service vis-a-vis their term life insurance options.

Each company has advantages and weaknesses, so consider them carefully against your life insurance needs.

The insurer that worked for your friend or family member won’t necessarily be the best choice for you.

1. PolicyMe: most affordable term life insurance in Canada

[fs-toc-h2]PolicyMe term life Insurance

Company bio: PolicyMe is an online insurance solution based in Toronto, Ontario. They’ve used technology to streamline the insurance application process and help Canadian families get personalized advice. By doing so, they've cut out inefficiencies in the process and cut down costs. PolicyMe now has almost $10B in coverage in force in Canada.

Pros

Couples who apply together get a 10% discount in their first year
Every policy has free child coverage ($10,000 per child)
Get from $100,000 to $5M in coverage
Applying online takes 20 minutes or less; get an instant decision
Policies are extra-secure, backed by Canadian Premier and a global reinsurance company
Fully-underwritten term life insurance, so you can get a better rate
Licensed Canadian advisors are available seven days a week via phone or email
You can extend or upgrade your policy within the first five years
Option to add critical illness insurance at the same time

Cons

Online only, no brick-and-mortar locations
No rider options, except for free child coverage

Customer review

“The process was quick, support was top notch and the price was competitive.” – Verified customer on Reviews.io.

Experience the PolicyMe difference: up to 20% off and apply in 20 minutes or less.

Get My Quote

2. BMO Insurance: best traditional term life insurance

[fs-toc-h2]BMO term life insurance

Company bio: The Bank of Montreal (BMO) is a multinational investment bank that now operates in Toronto. It's the oldest bank in Canada. BMO has standard term life insurance options: 10, 15, 20, 25 and 30 year terms, from $100,000 to $5M in coverage.

Read the full BMO Life Insurance review here.

3. Canada Life: best term life insurance for term length options

[fs-toc-h2]Canada Life term life insurance

Company bio: Canada Life is the second largest insurer in Canada. It has a financial strength rating of A+ and $220 million in assets. Canada Life offers a range of term life insurance plans and offers a wide variety of term lengths: from five to 50 years.

Read the full review of Canada Life insurance here.

4. Wawanesa Life: best life insurance for longer term lengths‍

[fs-toc-h2]Wawanesa Life term life Insurance

Company bio: Wawanesa was founded in 1896 in Quebec but they only started offering life insurance recently. Credit rating agency, AM Best, awarded Wawanesa a rating of A (Excellent) for the financial strength of their Life/Health subsidiary.

5. Sun Life: best for term life policy options

[fs-toc-h2]Sun Life term life Insurance

Company bio: Sun Life is the third largest insurer in Canada. Sun Life has four distinct term life products for sale. This can be a good choice for someone who is unsure about their options and wants a package deal. For example, Sun life Go Term Life Insurance offers $100,000 to $1M in coverage for 10 or 20 years.

[fs-toc-omit]Next steps

Decide how much coverage you need to replace your income and for how long. Use our life insurance calculator if you're not sure. Our calculator will even tell you if you don't need term life insurance at all!
Decide if you value optional riders or conversion to a permanent policy.
Shop around for the best rate. Then check whether these policies have the term lengths, coverage amounts and optional features you want.
You can get quotes online, or find a licensed broker. Caveat: brokers are commissioned.
Apply and get a decision. If you're denied, you may want to look at no medical options.
Read your policy closely before signing.
Sign your policy and add your payment information.

Not sure what a rider is? CLHIA defines it as something you add to your insurance policy that changes your policy’s coverage or benefits.

When we asked about riders, our former certified life insurance advisor, Tobin Tuff said:

“The bang is typically not worth the buck. For example, a disability rider makes your policy free while disabled. However, to be considered disabled means you can’t do any job on earth. There’s also a very low chance you’ll ever claim it. So why pay extra every single month for it?”