How Much Is Life Insurance in Canada? (Average Rates by Age, Sex, Type)

How much does life insurance cost in Canada in 2026?

The cost of life insurance in Canada can range from $8 — $500+ per month depending on a range of factors, including your age, sex at birth, and lifestyle, and the type of policy you choose.

For example, for a healthy 30-year-old non-smoker, a 20-year term life insurance policy with $500,000 in coverage costs an average of $20 per month for women and $28 per month for men.

Of course, your choice of life insurance company also matters. The table below shows the approximate rates a 35-year-old might be quoted for a 20-year term policy with $500,000 in coverage:

^{* Table displays the approximate monthly cost of a 20-year fully underwritten term life insurance policy for a non-smoker of average health for $500,000 in coverage in May 2026.}

“The average cost of life insurance in Canada can range widely depending on your health, policy type, and premium amount.” —Erik Heidebrecht, Life Insurance Advisor

How are life insurance premiums calculated?

The cost of life insurance in Canada depends both on factors you can’t change — like your age and sex at birth — and ones you can, such as your choice of product or insurer. Here’s what a life insurance provider may use to calculate your rates:

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How do age, sex at birth, and smoking affect life insurance premiums?

In Canada, women outlive men by an average of 4.4 years, according to the World Health Organization. Thanks to statistics like these, insurers consider women to have a lower mortality risk, and so they generally pay less for life insurance than men. Similarly, non-smokers pay less than smokers, and younger applicants pay less than seniors.

The table below shows the average rates for a fully-underwritten, 20-year term life insurance policy with $500,000 in coverage, breaking down life insurance rates by age, sex at birth, and smoking status:

^{* Table displays the approximate monthly cost of a 20-year fully underwritten term life insurance policy with $500,000 in coverage in May 2026.}

Honesty is the best (insurance) policy

Lying about your nicotine use on a life insurance application is insurance fraud and could lead to your policy being canceled, or your beneficiaries’ claim being denied.

No longer a smoker? You'll need to be nicotine-free for at least one year to qualify as a non-smoker and secure more affordable Canadian life insurance rates.

How does health affect life insurance premiums?

The healthier you are, the lower your life insurance prices will be. The list of pre-existing conditions that could impact life insurance costs (or eligibility) includes:

• Cancer
• Diabetes or pre-diabetes
• Heart disease or other heart conditions
• High blood pressure
• High cholesterol
• HIV or AIDS
• Obesity

Rates vary depending on the severity of your health condition and how long you’ve been living with it. For example, an applicant under 40 with type 2 diabetes would likely be declined for coverage, whereas someone over 40 may be approved and charged 150% of the base price, depending on their treatment plan.

If you’re worried about being denied or undergoing a life insurance medical exam, you can always ap ply for no-medical life insurance. Just be warned, these policies generally cost much more than life insurance with a medical exam, as the table below shows:

^{* Table displays the approximate monthly cost of a 20-year term life insurance policy with $500,000 in coverage in May 2026.}

Most applicants qualify for standard rates

According to the Canadian Life and Health Insurance Association, around 96% of life insurance applicants receive the coverage they apply for and qualify for standard rates.

PolicyMe always recommends applying for life insurance with a medical exam (also known as fully-underwritten life insurance) as a first step. You could save a lot of money, and if you’re declined, it won’t affect your eligibility for a no medical product later.

How does lifestyle affect life insurance premiums?

Because it increases overall mortality risk, applicants who participate in high-risk activities such as skydiving, SCUBA diving, or rock climbing inevitably end up paying more for life insurance. You might also fall into the high-risk life insurance category if you have certain medical conditions, a criminal history, or a driving record full of violations. 

Insurers sort applicants into risk categories using standard industry ratings that range from A to J (or 1 to 10), with A / 1 representing the lowest risk and J / 10 the highest. High-risk ratings receive higher premiums using the formula:

Final premium = Base insurance rate x (1 + Rating)

For example, assuming the base rate was $100 CAD per month, an applicant in the C / 3 category would pay about 75% more for life insurance, or $100 x (1 + 0.75) = $175 CAD per month, as shown in the table below:

^{* Rating percent increases and final premiums are shown for illustrative purposes only. Your insurance quote will vary depending on your profile and choice of product and insurer.}

How does type, term length, and coverage affect life insurance premiums?

The amount of life insurance coverage represents the lump sum death benefit that your beneficiaries can claim if you pass while your policy is active. Selecting a higher amount of insurance coverage, a longer term length, or both will raise your rates because it puts your insurance company on the hook for more money and a longer period of financial protection. 

You can see the difference in the table below, which represents the average cost of a term life insurance policy for a 35-year-old non-smoking woman:

^{* Table displays the approximate average monthly cost of a fully underwritten term life insurance policy for a 35-year-old non-smoking woman in May 2026.}

Term life insurance is some of the most affordable life insurance in Canada, making it a great choice for Canadian families with temporary financial responsibilities, like a mortgage. The other advantages of term include simplicity and customization — it only lasts as long as you need it.

By contrast, because permanent life insurance is designed to last your entire life (meaning a payout is guaranteed), it tends to be more expensive. On average, term 100, universal, and whole life insurance costs 5-15x more than term life insurance, as the table below demonstrates for a 30-year-old non-smoking woman:

^{* Table displays the approximate average monthly cost of a life insurance policy for a 30-year-old non-smoking woman in May 2026.}

Term versus permanent life insurance

The trick to deciding between term versus permanent life insurance is considering the lifespan of your financial obligations. Because it’s affordable, term is often the best life insurance for paying off a mortgage, raising a young family, sending kids to school, and resolving outstanding debt.

How does joint life insurance affect life insurance premiums?

Joint life insurance is a single policy covering two people under one monthly premium. These policies are often cheaper than buying two separate life insurance policies, but they only result in one payout.

Depending on the situation, the best life insurance option for couples can be to purchase two individual policies with different term lengths and coverage amounts. While this can sometimes be pricier than buying one joint life insurance policy, it's much more flexible and may be a better match for your actual financial needs—especially if you are parents.

PolicyMe offers the best of both worlds: Couples can buy their own policies and get a discount in their first year when they apply together, saving 10% off their rates:

^{* Approximate industry average for monthly cost of a 20-year fully underwritten term life insurance policy with $500,000 in coverage for a non-smoking man and woman in May 2026.} 

^{** Approximate PolicyMe rates for monthly cost of a 20-year fully underwritten term life insurance policy with $500,000 in coverage for a non-smoking man and woman with the 10% couples discount within the first year  in May 2026.}

How much life insurance can I get for $50 per month in Canada in 2026?

It’s always smart to shop with a budget, so we’ve pulled a selection of the most affordable PolicyMe life insurance options at every age. Just remember, your actual quote will depend on your personal profile and choice of coverage amount.

The table below shows the range of coverage available for $50 CAD per month or less on a 10 or 30-year term policy, with the maximum possible coverage on a 20-year plan falling roughly in between:

^{* Table displays the approximate monthly cost of various PolicyMe life insurance products for a non-smoking applicant in May 2026.}

Is life insurance worth the cost?

Life insurance is worth it for most Canadians with ongoing financial obligations such as outstanding debt or dependents. Regardless of your age, if you have a mortgage, large debts, young children, or aging parents who require your support, term life insurance can give you peace of mind at an affordable rate during the years when these responsibilities are highest.

8 ways to save money on your life insurance premiums

Generally speaking, term life insurance is very affordable, because you’re only getting coverage for the number of years you need it the most. If you want to get the most coverage for your family’s financial future, here are some tips:

1. Buy early: It's best to purchase life insurance when you're younger to lock in a lower price, since your rates will increase each year.
2. Shop around: Get quotes from various life insurance companies to compare and find the best deal.
3. Consider a term life insurance policy: One of the easiest ways to save money is to buy a term policy. Permanent insurance policies last your entire life but are much more costly, while term insurance premiums are generally the most affordable.
4. Bundle your policy: Some insurers offer a discount when you bundle your life insurance policy with other types of insurance, like critical illness or disability insurance.
5. Look for discounts: Some companies offer discounts if you apply as a couple. PolicyMe offers 10% off the monthly cost of life insurance in the first year when you apply together.
6. Maintain a healthy lifestyle: Stay in good health by managing your weight, not smoking, and avoiding high-risk activities.
7. Don't skip the medical exam: If you don't have pre-existing medical conditions, stay away from pricey no-medical policies.
8. Choose your coverage amount carefully: You don’t need to buy more coverage than necessary for financial security—and you can always adjust the death benefit or length of your policy if your situation changes, and make sure you’re aware of any policy exclusions.

Video summary: How much does life insurance cost in Canada?

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FAQ: Life insurance cost Canada

The prices listed in this article have been researched and fact-checked with both internal and external sources. Prices are based on publicly available rates as of April 2026.

^{*Starting prices based on $500,000 coverage for a 40-year-old.}

^{**Average prices based on a 20-year term policy for $250,000 coverage.}

^{***Starting prices based on a 20-year term policy for $250,000 coverage for a 65-year-old.}

Additional sources:

1. WinQuote Canadian Products. WinQuote by Equisoft. https://www.winquote.net/

2. Hobbs, S., Director of Policy at Canadian Life and health insurance Association. Interview conducted by Hanna Horvath.