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- A $50,000 life insurance policy in Canada can cost between $8.32 and $112.45 for term, and $26.60 and $273.20 for whole life
- A $50,000 policy may suit final expenses, smaller debts, or supplemental coverage
- The cost of $50,000 of life insurance depends on factors such as age, health, sex, smoking status, policy type and underwriting
- Some $50,000 simplified-issue policies may be available without a medical exam, although health questions may still apply
The cost of a $50,000 life insurance policy in Canada ranges between $8.32 and $165.04 for term life and $26.60 and $273.20 for whole life insurance. Your premiums depend on factors such as your age, health, sex, smoking status, coverage type, and the insurer’s underwriting assessment. Read on to learn the difference in cost and the factors affecting your premiums.
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$50,000 term life insurance vs. $50,000 whole life insurance
Here is a quick overview of monthly term and whole life insurance premium costs for $50,000 in Life insurance:
| Applicant example | $50,000 term life | $50,000 whole life |
| Age 20, non-smoker | $9.45 | $28.94 |
| Age 30, non-smoker | $9.68 | $34.70 |
| Age 40, non-smoker | $10.13 | $51.26 |
| Age 50, non-smoker | $15.39 | $77.85 |
| Age 60, non-smoker | $33.97 | $133.02 |
How much does $50,000 term life insurance cost?
A term life insurance policy for $50,000 in Canada ranges between $8.32 and $165.04, depending on various factors such as age, sex, term duration, and health. This policy provides coverage that lasts for a specific period of time known as a term. Your term life insurance can last either a fixed number of years (like 10, 20, 30 or even 40 years) or until you reach a certain age (like age 65).
The insurance premiums are guaranteed for the initial term of the policy and are paid directly to the insurance provider. Upon the end of the term, the coverage may automatically renew, or expire depending on the plan type.
If you die while the policy is in force, your beneficiaries will receive the death benefit as a tax-free lump sum of cash. If you choose to renew the policy at the end of the term, the premiums will increase based on the renewal schedule provided at the time of the initial contract. If you do not want to continue your coverage with the renewal premiums, you can cancel the policy.
The cost of term life insurance is primarily based on the length of term, the insured person’s age, gender, health, smoking status, and the amount of the death benefit they choose.
Term life insurance costs for $50,000
Based on standard health, male, $/month
| Age | Non-Smoker | Smoker |
|---|---|---|
| 20 | $9.45 | $11.70 |
| 25 | $9.45 | $11.70 |
| 30 | $9.68 | $12.74 |
| 35 | $9.90 | $13.77 |
| 40 | $10.13 | $16.56 |
| 45 | $11.57 | $23.72 |
| 50 | $15.39 | $36.13 |
| 55 | $23.03 | $50.12 |
| 60 | $33.97 | $65.32 |
| 65 | $51.74 | $101.86 |
Term life insurance costs for $50,000
Based on standard health, female, $/month
| Age | Non-Smoker | Smoker |
|---|---|---|
| 20 | $8.32 | $9.00 |
| 25 | $8.32 | $9.14 |
| 30 | $8.55 | $9.81 |
| 35 | $8.78 | $11.66 |
| 40 | $9.00 | $15.07 |
| 45 | $10.04 | $19.43 |
| 50 | $13.64 | $25.79 |
| 55 | $18.67 | $35.46 |
| 60 | $25.69 | $49.95 |
| 65 | $39.95 | $57.09 |
How much does $50,000 whole life insurance cost?
A whole life insurance policy for $50,000 in Canada ranges between $26.60 and $273.20, depending on various factors such as age, sex, payment term, and health. Premiums generally increase with age and can be higher for smokers and applicants with certain health risks. Whole life policies generally cost more than term insurance because they provide permanent coverage and typically include a cash value component. It is a type of permanent life insurance policy available in Canada.
As long as you continue paying the required premiums, your policy continues to be in effect till you stop paying or pass away. So, it comes as no surprise that many Canadians choose it for lifelong protection and tax-advantaged cash growth.
Furthermore, whole life insurance combines this financial protection with some access to liquidity. Unlike term life policies, whole life insurance also includes a guaranteed cash value component that accumulates over time. Depending on the policy you select, the plan may also earn annual dividends that can further supplement your death benefit and cash value.
The cash value of a whole life insurance policy is accessible while the policyholder is still living. They can either borrow against or withdraw from the cash value.
Similar to term life insurance above, the cost of whole life insurance premiums is based on age, health, gender, smoking status, the size of the death benefit, and the added expense of insuring someone’s life for an extended period (their entire life).
As an individual gets older, the health risks increase. This has a direct impact on the cost of your policy. Since the coverage lasts one’s entire life and the policyholder retains the value put into the policy, whole life insurance has higher premiums.
Whole life insurance costs for $50,000 (Non-participating)
Based on standard health, cash value coverage, $/month
What does $50,000 life insurance cover?
Your financial needs change and evolve, and there are many reasons someone may need a relatively smaller life insurance policy. A $50,000 life insurance death benefit can help beneficiaries cover expenses such as funeral costs, outstanding debts, and ongoing financial support.
Here are some reasons to consider $50,000 of life insurance:
- Pay outstanding debts: Life insurance proceeds can help beneficiaries manage debts and other financial obligations
- Help cover funeral and final expenses: A life insurance death benefit can be used toward funeral costs and other expenses after death
- Provide additional financial support: The death benefit can provide beneficiaries or dependants with additional funds after you pass away
- Leave a legacy: The death benefit can be used to make a charitable donation or leave a gift to children or grandchildren
- Laddering: The smaller amount can contribute to a life insurance ladder strategy where you layer different amounts of life insurance. You can pair $50,000 in whole life while purchasing a higher amount of term life coverage
Is $50,000 of life insurance enough in Canada?
A $50,000 life insurance policy may be enough if your goal is primarily to cover final expenses, smaller debts, or provide a modest additional benefit to your beneficiaries. However, it may not provide enough protection if your family would need substantial income replacement or help covering larger long-term financial obligations.
As a general rule of thumb, Canadians should aim to secure a life insurance policy worth 7 to 10 times their gross annual income to sufficiently manage their expenses at different stages of their lives.
Still confused about whether $50,000 is enough for you? Contact our licensed advisors and find a plan that suits your financial needs.
Who might need $50,000 life insurance?
A $50,000 policy may suit a Canadian individual or family whose life insurance needs are relatively limited. It may be well suited for individuals looking to leave money for funeral expenses, repay smaller debts, or pay off the remaining mortgage amount without bearing the cost of higher premiums.
Still confused if $ 50,000 life insurance is the right amount for you? Check out our life insurance calculator.
What affects the cost of a $50,000 life insurance policy?
The cost of a $50,000 life insurance policy in Canada may be attributed to several additional factors, including an individual’s health, age, gender, job profile, and whether they have additional riders. Find out more:
Health
Health is one of the primary factors that determine your life insurance premiums because it directly affects your life expectancy and the financial risk undertaken by the insurer. When you apply, underwriters evaluate metrics like your BMI, blood pressure, cholesterol, and pre-existing chronic conditions, alongside your family medical history and smoking status. While good health unlocks lower premiums, poor medical conditions may increase premiums significantly.
Age
Age is the single biggest factor influencing the cost and availability of life insurance, since mortality increases as you get older. Younger Canadians typically receive lower rates or more favourable underwriting, compared to older applicants.
Gender
Gender is a key factor in determining the cost of a life insurance policy in Canada. Statistically, women tend to live longer than men, which can result in lower premiums for women.
Insurers calculate premiums based on life expectancy, so men may face higher premiums for the same coverage amount, such as a $50,000 policy, compared to women.
Job profile
Your occupation can also influence the cost of your life insurance policy. Jobs that are considered high-risk, such as those in construction, aviation, or mining, often lead to higher premiums because they increase the likelihood of injury or death. Conversely, low-risk occupations, such as office work, may result in lower premiums.
Additional policy riders
Policy riders and options are additional features you can add to your life insurance policy, which can increase the overall cost. Common riders include critical illness coverage, accidental death benefits, and waiver of premium.
While these riders provide extra protection and benefits, they come at an additional cost, raising the premiums of your $50000 life insurance policy. The more riders you add, the higher the premium will be.
Can you get $50,000 life insurance without a medical exam?
Yes, you can purchase a simplified issue or guaranteed issue life insurance policy without a medical exam. A simplified issue term life insurance policy can range between $8.33 and $68.49. Additionally, some insurers may request that applicants fill out a health questionnaire as part of the process.
Here are the options available if you wish to obtain $50,000 without a medical exam:
Simplified issue life insurance policy
Simplified issue is a type of life insurance underwriting for term or permanent policies that requires applicants to answer a limited number of health questions without completing a medical exam. While approval is faster, premiums are much higher than those of traditionally underwritten policies.
Guaranteed issue life insurance policy
Guaranteed issue life insurance offers coverage without any medical questions or examinations. Acceptance is generally guaranteed as long as the applicant meets the insurer’s age requirements.
This policy type is essentially a last-resort option for Canadians with serious medical conditions or those who have difficulty qualifying for life insurance coverage. Guaranteed issue features the highest premiums and lower coverage limits, owing to the higher risk assumed by the insurer.
How do I get the best quotes for $50,000 life insurance coverage?
At PolicyAdvisor, we help Canadians compare quotes from leading life insurance companies and find the right fit for their coverage needs. Book some time with our licensed advisors and find out how easy it is to get the right amount of coverage from the comfort of your own home.
Frequently Asked Questions
How much is a $50,000 whole-life policy?
The cost of a $50,000 whole-life policy for a non-smoker can range from $26.60 to $197.55 per month. For the same coverage amount, a smoker may have to pay between $28.94 and $273.20 per month.
Healthier applicants typically pay less, while individuals with health issues may face higher premiums. Additional policy riders and options can also increase the cost.
Is $50,000 of life insurance enough coverage?
Whether a $ 50,000 life insurance policy is enough coverage depends on an individual’s financial situation and goals. This amount may be sufficient to cover final expenses, such as funeral costs and outstanding debts, or to provide a modest financial cushion for loved ones.
However, if an individual has dependents, a mortgage, or significant financial obligations, they might need a higher coverage amount to adequately protect their family’s financial future.
How does an individual’s age affect the cost of their $50,000 life insurance policy?
An individual’s age significantly affects the cost of a $50000 life insurance policy. Generally, the younger you are when you purchase the policy, the lower your premiums will be. This is because younger individuals are typically at lower risk of health issues and death.
As individuals age, premiums increase due to the higher risk of health problems, making it more expensive to obtain the same coverage.
Is $50,000 term life insurance cheaper than permanent life insurance?
Yes, term life insurance is generally less expensive than permanent life insurance, owing to its limited coverage and lack of cash value accumulation. Permanent policies like whole life insurance provide lifelong coverage alongside cash value growth and non-guaranteed dividends in participating policies.
Can seniors get $50,000 of life insurance?
Yes, seniors in Canada may qualify for $50,000 of life insurance. However, eligibility depends on their age, health, and the insurer’s policy terms. Some insurance companies may limit the amount and types of coverage available based on age.
Can I get $50,000 of life insurance with no medical exam?
Yes, some insurers offer $50,000 of life insurance without a medical exam through simplified issue and guaranteed issue policies. Insurers like RBC, Humania, and Manulife offer various no-medical plans that offer coverage to Canadians without a medical exam. However, policyholders may be required to complete a health questionnaire.
Can I convert $50,000 term insurance to permanent insurance?
Yes, if your term life policy offers a conversion privilege, you may be able to convert some or all of your $50,000 term coverage to permanent life insurance before the policy’s conversion deadline. Depending on the contract, conversion may also be available without providing new medical evidence of insurability.
Is $50,000 of whole life insurance a good investment?
Yes, a whole life insurance policy for $50,000 is a good investment if you need lifelong coverage for that amount, alongside cash value growth and non-guaranteed dividends. It can be used to leave behind a legacy or help cover final expenses.
Does smoking affect the cost of $50,000 of life insurance?
Yes, smokers generally pay more for the same amount of life insurance than non-smokers. A smoker may pay 50% to 100% more than a non-smoker for the same amount of coverage, owing to the increased mortality risks associated with smoking.
Can I use $50,000 of life insurance to cover funeral expenses?
Yes, a beneficiary can use proceeds from a $50,000 life insurance death benefit to help pay funeral and other final expenses. The policyholder can leave behind the death benefit for dependants or specific beneficiaries, allowing them to use it to pay funeral costs and other associated expenses.
A $50,000 life insurance policy in Canada can cost between $8.32 and $112.45 for term life and $26.60 and $273.20 for whole life. It can provide affordable coverage for smaller financial needs such as debts, final expenses, or supplemental family protection. Comparing quotes from multiple insurers can help you find the right $50,000 policy for your budget and coverage needs.
