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- Whole life insurance is a common option for children in Canada, offering lifelong coverage and the potential to build cash value
- Equitable Life, Manulife, Empire Life, iA Financial Group, Desjardins, and RBC Insurance offer children's life insurance options with different features and benefits
- Child-specific riders and guaranteed insurability options can provide additional protection or opportunities to increase coverage as the child grows
- Parents should prioritize their own life insurance needs before purchasing a policy for their child and consider the family's budget and long-term financial goals
The best life insurance companies for children or kids include Equitable Life, Manulife, Empire Life, iA, Desjardins, and RBC. A life insurance policy for children provides permanent coverage, helps children secure additional coverage as adults, and is usually purchased by parents, grandparents, or legal guardians. When choosing a plan, they should consider premium costs, dividend potential, child-specific riders, and options to increase coverage later.
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What is the best type of life insurance for children?
The best type of life insurance for children is whole life insurance. Compared with term life insurance, whole life insurance provides lifelong coverage and can build cash value over time. Parents can purchase a policy early to lock in coverage while their child is young and healthy. The accumulated cash value may also help fund future financial needs. You can also add children through child riders, though they may not provide sufficient coverage.
Best life insurance companies for kids in Canada
Some of the best life insurance companies offering whole life insurance coverage for children in Canada include Equitable Life, Manulife, Empire Life, iA, Desjardins, and RBC Insurance.
Equitable Life
Equitable Life offers participating whole life insurance through its Equimax Estate Builder and Wealth Accumulator plans, giving parents an opportunity to build long-term cash value for their children through a competitive dividend scale and additional benefits like a payor waiver benefit.
- Payor waiver of premium: Parents can add a waiver of premium benefit to help keep the child’s policy in force if the premium payer becomes disabled and meets the rider’s conditions. This can protect the child’s coverage if the family loses its ability to pay premiums
- High dividend scale potential: Equitable’s dividend scale interest rate (DSIR) is 6.40% for 2026, the highest in Canada. This can help increase the child’s cash value and coverage over time when used to purchase paid-up additions
- Dividend options: Equitable Life offers five dividend options: cash payment, premium reduction, enhanced coverage, paid-up additions, and on deposit
- Flexible payment options: Parents can choose 10-pay, 20-pay, or pay-to-age-100 options, depending on the plan, to align premium payments with their financial goals
- Ownership transfer: Parents or grandparents can transfer policy ownership to the child when they reach the age of majority, helping establish a financial asset for future needs
- Guaranteed insurability option: This is a rider that helps parents purchase additional life insurance coverage
- Best for: Parents seeking children’s participating whole life insurance with strong dividend potential and payor waiver benefits
The cost of Equitable Life whole life insurance for $100,000 in coverage, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl child is $108.03 and $103.78 per month.
Empire Life
Empire Life offers children’s whole life insurance through its EstateMax and Optimax Wealth plans, providing parents and grandparents with an affordable way to secure lifelong coverage and build cash value for a child’s future financial needs.
- Kid start strategy: A whole life insurance strategy that can be used to transfer wealth efficiently to your kids. When the child reaches the age of majority, the ownership is transferred tax-free
- Parental control: Parents can be named irrevocable beneficiaries, helping them retain a degree of control over the policy’s beneficiary arrangements as the child grows up
- Limited-pay options: Parents can choose 8-, 10-, 20-year, or life pay payment periods, allowing premiums to be paid off while the child is still young. The 8-pay option is only available with Optimax Wealth
- Cash value growth: While the kid is young and the cash value is building, it can later be accessed through policy loans or surrender
- Affordable plans: Empire Life offers the most affordable whole life insurance plans for children out of the 6 insurers listed. Its cost for a 20-pay par plan for a 5-year-old boy is $97.65 for a $100,000 coverage, while for other insurers it starts at $108.03
- Dividend options: The policy comes with five different dividend options: enhanced coverage, paid-up additions, cash payment, annual premium reduction, and cash accumulation. These potential dividends provide the child with a financial asset they may use later
- Best for: Budget-conscious parents seeking affordable children’s whole life insurance
The cost of Empire Life whole life insurance for $100,000 in coverage, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl child is $97.65 and $84.33 per month.
Desjardins
Desjardins offers participating whole life insurance that can help parents provide lifelong coverage for their children while building cash value for future financial needs. Parents can also explore child-specific benefits to help protect their children’s future insurability and long-term financial security.
- Flexible payment options: Parents can choose to pay premiums over 5, 10, or 20 years, age 65, or until age 100, depending on their financial goals and the selected policy
- Children’s life protection: Desjardins offers a children’s life protection benefit that can provide additional coverage for insured children. There is also additional coverage for children’s accidental fracture
- Critical illness top-up: Parents can explore adding critical illness coverage to help provide financial support if their child is diagnosed with a covered serious illness
- Guaranteed insurability: An optional benefit can help eligible children obtain additional life insurance at specified times without new medical evidence
- Dividend options: Desjardins also offers multiple dividend options, which include purchasing paid-up additions, receiving cash payments, reducing premiums, accumulating funds with interest, or increasing the coverage
- Best for: Parents looking for options to extend protection to their children beyond life insurance coverage
The cost of Desjardins whole life insurance for $100,000 in coverage, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl child is $126.81 and $118.53 per month.
Manulife
Manulife offers participating whole life insurance through its Manulife Par and Manulife Par with Vitality Plus plans, giving parents access to competitive dividend growth and flexible additional deposits (ADO).
- Child protection rider: Parents can add $10,000 in life insurance coverage for an eligible child. When the child turns 25, they can apply for up to $250,000 in life insurance and up to $100,000 in critical illness coverage without additional medical underwriting
- Maximum ADO flexibility: Manulife allows policyholders to make additional deposit option (ADO) payments to increase paid-up insurance and cash value. This can help parents direct extra funds toward their kid’s long-term financial growth
- Flexible premium payment options: Parents can choose 10-pay, 20-pay, pay-to-age-90, or pay-to-age-100 options, depending on eligibility and the selected plan
- Dividend options: Manulife has only two dividend options: cash or paid-up insurance (PUI)
- Guaranteed future insurability: The guaranteed insurability option can help eligible policyholders purchase additional coverage at specified dates or qualifying life events without new medical evidence
- Best for: Parents seeking children’s whole life insurance with flexible additional deposits (ADO)
The cost of Manulife whole life insurance for $100,000 in coverage, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl child is $196.51 and $180.18 per month.
iA Financial Group
iA Financial Group offers children’s whole life insurance with customizable coverage and a range of optional accidental death and disability riders, allowing parents to add extra financial protection beyond the basic life insurance benefit.
- Child-specific protection: Its Child Module and Child Module PLUS riders offer additional protection for children, including death and critical illness benefits. Child Module PLUS also includes an accidental fracture benefit
- Guaranteed future insurability: The guaranteed insurability benefit can allow children to purchase additional coverage at specified life events without new medical evidence
- Flexible dividend options: Policyholders can use dividends to purchase paid-up additions, reduce premiums, receive cash payments, or accumulate funds with interest, depending on what best benefits the insured child
- Child life & health duo: iA’s child life & health duo combines lifelong life insurance coverage for the kid with critical illness protection and financial support for parents if their child becomes critically ill. It is a permanent insurance coverage that provides death benefits of up to $500,000
- Best for: Parents looking for children’s whole life insurance with a wide range of accidental death and disability riders
The cost of iA whole life insurance for $100,000 in coverage, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl child is $127.17 and $113.13 per month.
RBC
RBC Insurance offers participating whole life insurance through its Growth Insurance and Growth Insurance Plus plans, giving parents the backing of a well-established insurance brand
- Juvenile guaranteed insurability: Growth Insurance includes this benefit at no additional cost for eligible children under 18, helping them obtain additional life insurance in the future without new medical evidence. It is not available with Growth Insurance Plus
- Children’s term rider: Parents can add term coverage for children to an existing RBC life insurance policy. Coverage generally lasts until the child’s 25th birthday and includes an option to convert to permanent insurance without medical evidence
- Flexible dividend options: Both whole life plans offer five dividend options, including paid-up additions, which can increase the child’s insurance coverage and cash value over time
- Access to cash value: Once the kid grows, they can access the cash value either through loans or withdrawals
- Best for: Parents who prefer a well-established insurer with a recognizable brand name
The cost of RBC whole life insurance for $100,000 in coverage, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl child is $158.84 and $146.99 per month.
Comparing the best life insurance companies for children in Canada
| Features | Equitable Life | Empire Life | Desjardins | Manulife | iA Financial Group | RBC |
| PolicyAdvisor Ratings | 5/5 | 5/5 | 4.5/5 | 4/5 | 4/5 | 4/5 |
| Cost for a 5-year-old boy($100,000 in coverage for 20-year term) | $108.03/month | $97.65/month | $126.81/month | $196.51/month | $127.17/month | $158.84/month |
| Child-specific riders | Payor waiver of premium rider | Children’s life rider and
Children’s Critical Illness Rider |
Child life protection rider | Child protection rider | Child Module and Child Module PLUS riders | Children’s term rider |
| Payment options |
|
|
|
|
|
|
| Guaranteed insurability option | Yes | Yes | Yes | Yes | Yes | Yes |
| Dividend options | 5 dividend options | 5 dividend options | 5 dividend options | 2 options: Cash or paid-up insurance (PUI) | 5 dividend options | 5 dividend options |
| Dividend scale interest rate (DSIR) | 6.40% | 6.25% | 6.30% | 6.35% | 6.25% | 6.30% |
Sample premiums reflect illustrative 2026 monthly quotes for a 5-year-old boy and girl non-smoker seeking $100,000 in whole life coverage for a 20-pay. Actual premiums vary by age, sex, smoking status, health, coverage amount, product, and underwriting. Minimum coverage and available benefits vary by product and eligibility.
Our methodology for ranking the best life insurance for children
Our methodology for ranking the best life insurance for children evaluates six key factors that affect the value, flexibility, and long-term benefits of a child’s whole life insurance policy. We assess each insurer based on pricing, child-specific riders, payment options, guaranteed insurability, dividend options, and dividend scale interest rates (DSIR).
1. Pricing (30%)
We compared monthly premiums for a $100,000, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl. We considered whole life insurance cost for both genders across all six insurers, with lower premiums receiving higher scores based on affordability and value for the coverage offered.
| Insurer name | 5-year old male boy | 5-year old female |
| Equitable Life | $108.03/month | $103.78/month |
| Manulife | $196.51/month | $180.18/month |
| Empire Life | $97.65/month | $84.33/month |
| iA | $127.17/month | $113.13/month |
| Desjardins | $126.81/month | $118.53/month |
| RBC | $158.84/month | $146.99/month |
*Illustrative cost for a $100,000 in coverage, 20-pay participating whole life insurance policy issued to a healthy 5-year-old boy and girl child. Actual premiums vary by age, sex, health, smoking status, product, coverage amount, and underwriting.
2. Product features and flexibility (70%)
We assessed each insurer on the following criteria and assigned the listed weight to each feature:
| Evaluation criteria | What we assessed | Weightage |
| Child-specific riders | Availability of additional protection for children, including critical illness coverage, accidental death benefits, and payor waiver benefits | 15% |
| Payment options | Premium payment flexibility, limited-pay options, and additional deposit options to help build policy cash value | 15% |
| Guaranteed insurability option | Options to increase coverage as the child grows without additional medical underwriting | 15% |
| Dividend options | Flexibility in how policyholders can use dividends, including paid-up additions, cash payments, and premium reductions | 15% |
| DSIR | Dividend scale interest rates as an indicator of the relative competitiveness of an insurer’s participating whole life portfolio | 10% |
How we further assessed the ratings:
We assigned each insurer a score out of five for every evaluation criterion based on its available products, features, pricing, and policy flexibility. We then applied the respective weightings to calculate the overall rating. The final PolicyAdvisor ratings reflect the combined weighted scores across all six criteria.
Equitable Life and Empire Life received the highest ratings of 5/5 for their competitive children’s whole life offerings, strong rider options, flexible payment structures, and dividend features. Desjardins received 4.5/5 for its child-specific critical illness protection and flexible policy features. Manulife, iA Financial Group, and RBC each received 4/5, reflecting their range of child-focused benefits, guaranteed insurability options, and participating whole life features.
PolicyAdvisor ratings for the best companies for kids:
| Features | Pricing (30%) | Child-specific riders (15%) | Payment options (15%) | Guaranteed insurability option (15%) | Dividend options (15%) | DSIR (10%) | Final ratings |
| Equitable Life | 4.5/5 | 5/5 | 4.5/5 | 5/5 | 5/5 | 5/5 | 5/5 |
| Empire Life | 5/5 | 5/5 | 5/5 | 5/5 | 5/5 | 4/5 | 5/5 |
| Desjardins | 4.5/5 | 5/5 | 5/5 | 5/5 | 5/5 | 4.5/5 | 4.5/5 |
| Manulife | 4/5 | 5/5 | 5/5 | 5/5 | 4/5 | 4.5/5 | 4/5 |
| iA | 4.5/5 | 5/5 | 4.5/5 | 5/5 | 5/5 | 4/5 | 4/5 |
| RBC | 4/5 | 5/5 | 4.5/5 | 5/5 | 5/5 | 4.5/5 | 4/5 |
How much does children life insurance cost?
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Why do children need life insurance in Canada?
The key reasons why parents buy life insurance for children are as follows:
- Secure lifelong coverage early: Buying whole life insurance while a child is young and healthy can help secure coverage before future health conditions affect their eligibility or premiums
- Build cash value for future needs: Whole life insurance accumulates cash value over time. Depending on the policy, children may access this value later to help fund education, a first home, or a business
- Protect future insurability: Many insurers like Equitable Life, Manulife, RBC, and others include guaranteed insurability benefits that allow children to purchase additional coverage as income increases
- Transfer wealth to the next generation: Parents and grandparents can use participating whole life policies as part of an estate or intergenerational wealth-transfer strategy
- Provide financial support during a serious illness: Policies with child critical illness coverage may provide a lump-sum benefit following a covered diagnosis, helping families manage expenses or time away from work
How much life insurance coverage should you buy for a child?
When parents buy life insurance coverage for their child, they should choose coverage based on the family’s budget and long-term financial goals. Since children have no income to replace, the priority should be to choose adequate coverage at affordable premiums. Our advisors recommend that parents have coverage ranging from $50,000 to $100,000. On the other hand, parents seeking long-term wealth accumulation may consider higher coverage amounts based on their financial plans and the insurer’s limits.
How is life insurance for children taxed in Canada?
Life insurance for kids in Canada can offer tax advantages with permanent policies that accumulate cash value. However, the life insurance tax treatment depends on how the policy is managed and when funds are accessed.
- Death benefit: Life insurance payouts are generally tax-free when paid to a beneficiary, including a parent or child
- Cash value growth: The cash value within a qualifying permanent life insurance policy can grow on a tax-deferred basis while it remains in the policy, within limits set by Canadian tax legislation
- Withdrawals and policy loans: Withdrawing cash value, surrendering a policy, or borrowing directly against it may trigger taxable income if the amount exceeds the policy’s adjusted cost basis (ACB)
What mistakes should parents avoid when buying life insurance for children?
If parents plan to buy life insurance for their child, here are the mistakes they should avoid:
- Prioritizing children’s coverage over their own coverage: Parents should secure adequate life insurance for themselves first, as their income supports the family
- Choosing coverage based only on price: Lower premiums may come with fewer benefits, limited cash value growth, or less flexibility. Review the policy’s guarantees, riders, and payment options before deciding
- Ignoring future coverage needs: Check whether the policy includes a guaranteed insurability benefit that allows the kid to purchase additional coverage later
- Buying more coverage than necessary: Children will have no income to replace, so consider whether the premiums fit your budget and long-term financial goals
- Overlooking child riders: Parents should compare child riders available through their own life insurance policies before purchasing a separate policy for their child. This is because there is a possibility that the child rider can offer coverage and conversion options that meet your family’s long-term goals
Can I explore other options along with children’s life insurance?
Yes, you can explore other options to children’s life insurance, including savings, investment, or other specialized child plans.
- Registered Education Savings Plan (RESP): An RESP helps parents save for their child’s post-secondary education. The contributions grow tax-deferred, and families may receive government grants
- Tax-free Savings Account (TFSA): Parents can use their own TFSA to save and invest for future expenses, such as their child’s education or first home. Children generally cannot open their own TFSA until they turn 18
- Critical illness insurance for children: If your primary concern is financial protection following a serious childhood illness, standalone child critical illness insurance may provide a lump-sum benefit after a covered diagnosis
What is the difference between children’s life insurance and a child rider?
Children’s life insurance is a separate policy that can provide lifelong coverage and build cash value if you choose whole life insurance. A child rider is an add-on to a parent’s life insurance policy that provides limited coverage for eligible children, usually until they reach a specified age. You can choose children’s whole life insurance for lifelong protection and potential cash value growth. Choose a child rider for affordable, temporary coverage under your existing policy.
Our advisor’s take on the best life insurance for children
At PolicyAdvisor, we recently helped a family looking to purchase permanent life insurance for their young child to secure lifelong coverage, build cash value, and provide access to additional coverage later.
Client profile:
- Insured: Young child
- Applicant: Parent or legal guardian
- Primary concern: Lifelong coverage and long-term financial security
- Coverage goal: Permanent life insurance with cash value growth
- Additional priority: Protection against premium-payment disruptions and the ability to increase coverage in the future
Why we recommend Equitable Life’s Equimax:
- Strong dividend potential: Equitable Life’s 2026 dividend scale interest rate (DSIR) is 6.40%, the highest in the industry. The high DSIR indicates the potential for higher cash value growth
- Payor waiver of premium: This optional benefit can help keep their child’s policy in force if the primary payor becomes disabled
- Flexible payment options: We told our client that they can choose from 10-pay, 20-pay, or pay-to-age-100 options to align premiums with their budget and financial goals
- Future insurability: Equitable Life also has a guaranteed insurability option that can help their child obtain additional life insurance in the future
How to purchase life insurance for kids in Canada?
To get life insurance for children in Canada with PolicyAdvisor, here are the steps you need to follow:
- Assess your child’s coverage needs: Decide how much coverage you need for your child
- Speak with a licensed advisor: Our advisors can help you compare options from 30+ insurers and identify policies that align with your family’s budget and financial goals
- Compare insurance providers: Review plans from top life insurance companies to compare premiums, payment options, cash value potential, and child-specific benefits
- Complete the application: A parent or legal guardian will apply on behalf of a minor and provide the required personal and health information
- Review and finalize the policy: Check the coverage amount, premium payment period, riders, exclusions, and ownership details before accepting the policy and making payments
Schedule a call to get life insurance for kids!
Frequently asked questions
What is the best life insurance for my son and daughter in Canada?
Whole life insurance is often the best type of life insurance for parents to consider buying for their children, as it provides lifelong coverage and can build cash value over time. Equitable Life, Manulife, Empire Life, iA Financial Group, Desjardins, and RBC Insurance offer options for parents to explore.
Is life insurance for children worth it?
Yes, children’s life insurance is worth it. It becomes especially beneficial if your goal is to secure lifelong coverage early, build cash value, or provide options for additional coverage as your child grows. However, children generally do not have income to replace, so parents should usually prioritize adequate life insurance for themselves before buying a policy for a child.
Can a child’s life insurance policy build cash value?
Yes, a whole life insurance policy can build cash value over time. Depending on the policy, the owner may be able to access this value through a loan, withdrawal, or surrender. However, accessing cash value may reduce the policy’s benefits or create tax consequences.
Can I transfer ownership of my child’s life insurance policy when they become an adult?
Yes, some policies allow ownership to be transferred to the child when they reach adulthood, letting them take responsibility for premiums and future policy decisions. The transfer age and conditions depend on the insurer and policy contract, so check the ownership transfer provisions before purchasing.
Should I buy a separate life insurance policy for my child or add a child rider?
Whether you should buy a standalone life insurance policy or add a child rider depends on your financial goals. A separate whole life policy can provide lifelong coverage and may accumulate cash value. A child rider adds temporary coverage to a parent’s policy and is often a lower-cost option, but coverage may end at a specified age. So, analyze your situation and accordingly choose the better option out of the two.
Can grandparents buy life insurance for their grandchildren in Canada?
Yes, grandparents can apply for life insurance for a grandchild. However, this is subject to the insurer’s eligibility rules and any required parental or legal guardian consent. Before applying, confirm who can own the policy, who must consent, and whether ownership can be transferred to the child later.
Can I increase my child’s life insurance coverage as they grow older?
Yes, many life insurance policies offer guaranteed insurability options or riders that allow a child to apply for additional coverage at specified times without new medical evidence. These options vary by insurer, so review the available limits, eligibility conditions, and deadlines before choosing a policy.
Life insurance for children in Canada can provide lifelong coverage, build cash value, and help secure future insurability. Equitable Life, Manulife, Empire Life, iA Financial Group, Desjardins, and RBC Insurance offer options with different premiums, payment periods, dividend features, and child-specific riders to suit varying family needs and financial goals.
