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- The term insurance options in Canada can vary based on your age, gender, health status, coverage type, and length.
- Some best term life insurance companies offering low-cost term insurance plans for seniors, children, smokers, people with health issues, and high-risk workers are Manulife, Canada Life, Assumption Life, Wawanesa, and Industrial Alliance
- You can find a budget-friendly term insurance plan as per your financial needs by applying early, maintaining a healthy lifestyle, choosing an appropriate length, and comparing quotes from over 30 insurers on PolicyAdvisor
- What is term life insurance?
- What factors influence the cost of term life insurance in Canada?
- Which companies offer the cheapest term life insurance in Canada?
- How can I lower my term life insurance premium?
- Will I get any money back if I cancel my term life insurance?
- Is term life insurance worth it in 2025?
- How to get the best term life insurance quotes in Canada?
- Frequently asked questions
Did you know that high costs prevent almost 53% of Canadian adults from getting life insurance? This cost barrier makes finding affordable life insurance a top priority for families.. Factors like your age, health, occupation, and how much coverage you want all change the price of term life insurance in Canada. With so many choices and factors that affect the cost, it’s hard for many Canadians to find the cheapest term life insurance.
In this article, we will explore the most affordable term life insurance companies based on different categories like smokers, seniors, children, etc, and share tips to help you get the best coverage for your budget.
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What is term life insurance?
Term life insurance is a type of life insurance policy that offers coverage for a specific term or period. This term can be for 10, 20, or 30 years. Your beneficiaries receive the full death benefit if you die during the coverage term. However, if you outlive the term, there is no payout. However, you can also renew your term life insurance policy if your term is about to expire.
The death benefit from term life insurance can pay your mortgage payments, outstanding loans, children’s education costs, credit card debt, cost of living expenses for dependents, and funeral expenses.
What factors influence the cost of term life insurance in Canada?
Various factors that affect the rates of term insurance include age, gender, health status, smoking habit, coverage amount, length of policy, and occupation.
- Age: As you age, the likelihood of death increases, and so does the cost of term life insurance. To get affordable term insurance, you can opt for a policy at a younger age
- Gender: According to Statistics Canada’s 2018 data, women live approximately 4-5 years longer than men (about 84 years versus 79.9 years). Thus, due to a higher life expectancy, the term insurance premium is lower for women than for men
- Health status: Your health history, overall health condition, or any pre-existing condition also impacts the term premium. Individuals with a healthy history get better rates, while those with a chronic illness or health condition pay higher premiums
- Smoking status: If you are a smoker, you may have to pay a higher premium due to increased health risks
- Coverage amount: The higher the coverage amount you choose, the higher your premium will be. For example, a coverage of $500,000 may cost more than $100,000
- Length of Policy: Longer-term policies, such as 20 or 30 years, cost more than shorter term as 10 years
- Occupation: Your occupation also affects your term insurance costs. If you are in a dangerous or high-risk job, your premium can increase
Which companies offer the cheapest term life insurance in Canada?
Several insurance companies like Manulife, Canada Life, Assumption Life, Industrial Alliance, and Wawanesa offer low-cost term life insurance in Canada.
Here is a list of the most affordable life insurance companies that offer plans for different health conditions, ages and smokers, and people with high-risk jobs.
- Wawanesa: Cheapest term life insurance for seniors
- Manulife: Cheapest term life insurance for children
- Assumption Life: Cheapest term life insurance for people with health conditions
- Industrial Alliance: Cheapest term life insurance for smokers
- Canada Life: Cheapest term life insurance for people in high-risk jobs
Cheapest term life insurance for seniors: Wawanesa
Wawanes offers the lowest premiums for term life insurance for seniors. They offer term policies from 10-30 years or up to age 80, with renewal options up to age 100. So, if you are a senior citizen below 80, you can get an affordable term insurance policy from them.
For a typical $500,000 coverage for a 20-year term from Wawanesa ranges from $30.15 to $430, depending on the applicant’s age. Term life insurance from Wawanesa is one of the most affordable in Canada.
Monthly term life insurance quotes in Canada by Wawanesa
| Age | Male | Female |
| 20 | $30.15 | $20.70 |
| 25 | $30.60 | $22.05 |
| 30 | $30.60 | $22.95 |
| 35 | $36.00 | $28.80 |
| 40 | $50.85 | $38.25 |
| 45 | $79.20 | $58.50 |
| 50 | $133.20 | $94.50 |
| 55 | $238.05 | $166.05 |
| 60 | $429.75 | $299.25 |
*Representative values, based on term life insurance for non-smokers in good health. $500,000 coverage, 20-year term
Cheapest term life insurance for family: Manulife
One of the top insurers, Manulife, offers affordable term life insurance plans for families. The insurer gives the lowest rates for most age groups. You can also get additional discounts when you add dependents or bundle your coverage.
Moreover, for young parents, Manulife also offers additional child riders at affordable costs that you can include as per your family’s needs.
For a typical $500,000 coverage, a 20-year term from Manulife ranges from $32 to $433 depending on the age.
Monthly term life insurance quotes in Canada by Manulife
| Age | Male | Female |
| 20 | $32.74 | $23.49 |
| 25 | $33.35 | $24.59 |
| 30 | $33.83 | $24.85 |
| 35 | $35.45 | $26.75 |
| 40 | $50.07 | $37.77 |
| 45 | $79.82 | $57.86 |
| 50 | $134.20 | $93.01 |
| 55 | $244.97 | $106.80 |
| 60 | $433.61 | $312.06 |
*Representative values, based on non-smokers in good health. $500,000 coverage, 20-year term
Cheapest term life insurance for people with health conditions: Assumption Life
Assumption Life term life insurance policy is a great option for people who have health issues. Their policies don’t require you to take a medical exam. Instead, they ask a few medical questions at the time of application.
Moreover, you can get coverage for higher amounts if you undergo medical and financial underwriting.
For a typical $500,000 coverage, a 20-year term from Assumption Life ranges from $32 to $718, depending on the age of the applicant.
Monthly term life insurance quotes in Canada by Assumption Life
| Age | Male | Female |
| 20 | $31.95 | $22.50 |
| 25 | $32.40 | $22.95 |
| 30 | $32.40 | $23.40 |
| 35 | $34.65 | $26.10 |
| 40 | $49.05 | $36.90 |
| 45 | $77.40 | $55.80 |
| 50 | $131.40 | $91.80 |
| 55 | $242.10 | $166.95 |
| 60 | $433.35 | $308.70 |
| 65 | $718.20 | $498.60 |
*Representative values, based on non-smokers in good health. $500,000 coverage, 20-year term
Cheapest term life insurance for smokers: Industrial Alliance
If you are a smoker, you can get a cheap term life insurance plan from Industrial Alliance. The insurers offer low rates for smokers in Canada across all age groups. They offer a unique Pick-A-Term product that lets you customize the length of your term life insurance.
For a typical $500,000 coverage, a 20-year term for a male smoker of 30 years old from Industrial Alliance may cost up to $60 per month.
Monthly term life insurance quotes in Canada by Industrial Alliance
| Age | Male | Female |
| 20 | $33.30 | $22.95 |
| 25 | $33.30 | $23.40 |
| 30 | $33.75 | $23.85 |
| 35 | $35.55 | $26.55 |
| 40 | $52.20 | $37.80 |
| 45 | $81.90 | $57.60 |
| 50 | $136.35 | $92.70 |
| 55 | $242.55 | $171.45 |
| 60 | $437.40 | $314.55 |
| 65 | $718.65 | $489.60 |
*Representative values, based on non-smokers in good health. $500,000 coverage, 20-year term
Cheapest term life insurance for people in high-risk jobs: Canada Life
Canada Life term insurance policy is ideal for those who work in risky jobs. The insurer offers flexible term lengths and customization for specific risk periods.
You can also choose from a variety of additional benefits and riders, such as accidental death benefit, child’s term life insurance rider, guaranteed insurability rider, etc.
For a typical $500,000 coverage, a 20-year term from Canada Life ranges from $30 to $403, depending on your age.
Monthly term life insurance quotes in Canada by Canada Life
| Age | Male | Female |
| 20 | $29 | $20 |
| 30 | $30 | $22 |
| 40 | $45 | $34 |
| 50 | $124 | $83 |
| 60 | $403 | $281 |
*Representative values, based on non-smokers in good health. $500,000 coverage, 20-year term
Will I get any money back if I cancel my term life insurance?
Yes, you can get a full refund of your premium if you cancel your term policy within the free-look period. Most insurance providers typically offer a 10-30 day free-look period after you purchase a policy.
If you cancel the policy after the free-look period, you may get a small, pro-rated refund if you have paid premiums in advance.
Can I convert my term life policy into whole life in Canada?
Yes, you can convert many term life insurance policies into whole life insurance in Canada, often without needing a medical exam. The term conversion option allows you to switch to permanent coverage based on your original health status, even if your health has changed since you first bought the policy.
Most insurers offer the term conversion feature up to a certain age, usually between 65 and 70. The new whole life premiums are calculated based on your age at the time of conversion, not your age when you purchased the term policy.
Some insurers also allow partial conversions, meaning you can convert only a portion of your existing term life insurance coverage into a whole life insurance policy.
Is term life insurance worth it in 2025?
Yes, term life insurance is still worth it in 2025, especially for Canadians seeking affordable, high-coverage protection for a specific period.
Term policies offer low premiums and predictable coverage, making them ideal for families, new homeowners, or anyone with temporary financial obligations like mortgages or child-rearing expenses. In 2025, many insurers offer customizable term lengths (10, 20, or 30 years), convertible options, and digital tools to compare quotes and apply online.
Term life is especially useful if you only need insurance during your peak earning years. Although it doesn’t build cash value like permanent insurance, it provides significant financial protection at a fraction of the cost. With rising living expenses, term life insurance remains a practical, budget-friendly choice.
How to get the best term life insurance quotes in Canada?
To get the best term life insurance quotes in Canada, you need to compare policies from multiple insurers while factoring in your age, health, coverage amount, and policy length. At PolicyAdvisor, we make this process simple and transparent. Our licensed advisors work with over 30 of Canada’s top life insurance companies to help you find the most competitive quotes that match your unique needs.
You can use our free term life insurance calculator to instantly explore coverage options and premiums, or speak with our experts for personalized guidance. We review your goals, suggest the right term length, explain optional riders, and ensure you don’t overpay for coverage. Schedule a call with us today to get term life insurance quotes for your financial protection.
Frequently Asked Questions
How much does term life insurance cost in Canada?
The cost of term insurance in Canada varies based on individual factors like age, gender, coverage amount, policy term, occupation, and health. Typically, for a $500,000 coverage amount, the cost of term life insurance can vary between $14 to $380 per month, depending on the age of the applicant.
What happens if I outlive the policy term?
If you outlive your policy term, your coverage ends, and no benefit is paid out by the insurer. However, you can renew your term policy or may also convert it to a permanent life insurance policy, depending on your policy terms and conditions.
Is medical underwriting required for term life insurance?
Whether to have medical underwriting or not depends on your insurance provider. Most insurers these days may just ask a few medical questions at the time of application.
So, if you are in good health and getting under $500K in coverage, you will probably not be asked to undergo medical underwriting.
Can I get term insurance even if I have health issues?
Yes, you can get term life insurance even if you have a pre-existing condition. However, depending on the severity of your health condition, you may have to pay a higher premium or get fewer coverage options.
Looking for affordable term life insurance in Canada? This blog helps you find cost-effective term insurance quotes with comprehensive coverage. Explore the best term life insurance companies providing cheap term insurance in Canada. Whether you are looking for term insurance for 10 years or more, find coverage options that suit your budget.
LIMRA. “Nearly One Third of Canadian Adults Report Living With a Life Insurance Coverage Gap.” Life Insurance and Market Research Association, 2024.
Claudia Sanmartin and Michelle Rotermann, The Health of Girls and Women in Canada: A Sex-Gender-Based Look at Health Outcomes, Statistics Canada, December 19, 2018
