How much does life insurance cost in Canada?
Life insurance rates vary significantly. Average monthly premiums range from as low as $17 to well over $300 per month. The reason for such a wide gap? Life insurance rates are quoted based on your coverage requirements and lifestyle, and no two individuals have exactly the same needs.
Before you get a quote online or connect with a broker, it’s a good idea to have a sense of your liabilities and assets, which indicates what you’ll leave behind for your family. You should also consider what type of life insurance you need, as well as your health, lifestyle and age. These variables can help you estimate whether you will fall on the high or low end of the cost spectrum.
To give you an idea, the table below shows the average life insurance costs for a 35-year-old in good health, seeking $500,000 in coverage. The figures are based on data from Ratehub.ca, a rate comparison website. (Note, MoneySense.ca is owned by Ratehub Inc., which also owns Ratehub.ca.)
| Policy type | Average male premium | Average female premium |
|---|---|---|
| Term life insurance (10-year term) |
$23 per month / $259 per year |
$17 per month / $193 per year |
| Term life insurance (20-year term) |
$34 per month / $375 per year |
$25 per month / $280 per year |
| Term 100 insurance | $313 per month / $3,412 per year |
$266 per month / $2,953 per year |
| Whole life insurance | $338 per month / $3,751 per year |
$287 per month / $3,194 per year |
For a more in-depth look at the factors that will affect how much you will pay for life insurance, check out: How much does life insurance cost in Canada?
While it may sound like an upsell, there is value in customizing your life insurance policy with “extras” that work for you.
If you’re looking for a family plan, it is important to know this type of policy is actually a basic form of insurance with modifications and riders (amendments), such as a child rider. Since it is composed of different insurance products already, you may as well get it exactly as you need it.
Maybe you are self-employed, or maybe your group benefits from your employer won’t cut it. Whether you pay for your policy or your company does, ensure that it includes short-term and/or long-term disability insurance. If you didn’t ask about it when signing your employment contract, it’s not too late to ask the HR department. Critical illness is another type of coverage to consider. It offers you a single payment if you are diagnosed with a condition or disease such as cancer, multiple sclerosis or paralysis.
Lisa Hannam
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