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- Permanent residents can buy life insurance in Canada and access the same coverage as Canadian citizens
- Most Canadian insurers, including Assumption Life, Beneva, Canada Life, iA, RBC Insurance, Sun Life, and others, offer life insurance coverage to eligible permanent residents
- The cost of life insurance for PRs depends on factors such as age, health, income, smoking status, policy type, and more
- There will be no change to your life insurance coverage after you become a Canadian citizen
Permanent residents (PRs) in Canada can buy life insurance and qualify for the same coverage amounts and policy types as Canadian citizens. Applying for life insurance soon after receiving permanent resident status can help protect your family’s financial future, cover outstanding debts such as a mortgage, replace lost income, and provide financial security for your spouse or children. Permanent residents can choose from term life insurance, permanent life insurance, or a combination of both, depending on their financial goals and budget.
Can permanent residents get life insurance in Canada?
Yes, permanent residents can apply for life insurance as soon as they obtain permanent resident status in Canada. Most Canadian insurance companies, like Beneva, Assumption Life, Manulife, Sun Life, and others, offer coverage to eligible PRs.
Eligibility, underwriting requirements, and maximum coverage amounts may, however, vary based on factors such as age, health, income, length of residency, country of origin, occupation, and travel history. Permanent residents who meet an insurer’s underwriting and financial requirements can generally qualify for the same maximum coverage amounts available to Canadian citizens.
Why should permanent residents buy life insurance soon after getting PR?
Permanent residents should consider applying for life insurance as soon as they acquire PR status, especially if they plan to build their lives in Canada. Applying earlier may help lock in lower premiums while you are young and healthy. Other benefits include:
- Lock in lower premiums: Life insurance rates are based on age, health, smoking status, and a few other factors. Applying early may help you secure lower premiums that remain fixed for the duration of your policy
- Protect your growing financial responsibilities: Many new permanent residents take on major financial commitments such as a mortgage, car loan, or other debts. Life insurance helps ensure these financial obligations do not become a burden on your family if you pass away unexpectedly
- Income replacement: If your spouse, children, or other family members rely on your income, life insurance can help maintain their financial stability if something happens to you
- Improve your insurability: As you age, you are more likely to develop medical conditions that can affect your eligibility or premiums. Applying earlier may improve your chances of qualifying for the coverage you need at standard rates
What are the eligibility requirements for permanent residents to get life insurance in Canada?
To qualify for life insurance as a permanent resident, you must meet certain underwriting and residency requirements. Common requirements include:
- Residency status: You must hold valid permanent resident status. Most insurers will require proof of residency, such as a PR card or Confirmation of Permanent Residence (COPR), and expect applicants to be residing in Canada
- Document requirements: A government-issued ID (like a PR card), a Canadian residential address, and a bank account in the country are some of the documents required to issue life insurance for PRs. Additional documents may be requested depending on the insurer and the coverage amount
- Medical underwriting: You will be required to disclose your medical history. This may involve completing a health questionnaire, blood tests, or a paramedical exam
- Financial suitability: The amount of coverage requested should align with your income, assets, debts, and financial responsibilities. Insurers use this information to determine whether the coverage amount is justified
Do new permanent residents qualify for life insurance immediately after landing?
Yes, many insurers allow new permanent residents to apply for life insurance immediately after arriving in Canada, provided they can prove their PR status and meet the insurer’s eligibility requirements. Many insurers also evaluate you based on your intention to stay in Canada. Those who have just landed in Canada may be asked to provide additional documentation, disclose future travel plans, or complete more extensive medical underwriting.
Can permanent residents get the same life insurance coverage as Canadian citizens?
Yes, permanent residents can generally access the same life insurance products and coverage amounts as Canadian citizens. While some insurers may request additional documentation from newer permanent residents, eligible applicants can often access the same policy options, coverage amounts, and benefits available to Canadian citizens, subject to the insurer’s underwriting requirements
How much life insurance can permanent residents get in Canada?
The amount of life insurance a permanent resident can qualify for depends on their income, debts, family responsibilities, assets, and overall financial profile. The amount needed varies by life stage. Single permanent residents typically need enough coverage to pay off personal debts and final expenses, while those with a spouse, children, or a mortgage often require higher coverage to protect their family’s financial future.
Here is a table illustrating the recommended coverage amount for different profiles:
| Applicant profile | Recommended coverage amount | Why coverage needs differ |
| Single PR | $100,000-$500,000 | Usually intended to cover personal debts, final expenses, and any financial obligations left to family members |
| PR with spouse | $500,000-$1 million+ | Designed to replace income and help a surviving spouse manage ongoing living expenses and debts |
| PR with children | $1 million-$2 million+ | Helps cover income replacement, childcare costs, daily living expenses, and future education needs |
| Mortgage holder | $1 million+ | Provides funds to pay off the mortgage while also supporting the family’s ongoing financial needs |
Disclaimer: The recommended coverage amounts are for illustrative purposes only and may vary based on your income, financial needs, and affordability.
Which life insurance companies offer coverage to permanent residents?
Some of the best life insurance companies including Assumption Life, Beneva, BMO Insurance, Canada Life, Desjardins Insurance, Empire Life, Equitable Life, iA Financial Group, and other leading providers, offer life insurance coverage to eligible permanent residents. Permanent residents are assessed using the same underwriting criteria as Canadian citizens.
This means insurers evaluate factors such as age, health, income, occupation, lifestyle, smoking status, and financial need when determining eligibility and coverage amounts. The exact amount of coverage available will depend on each insurer’s underwriting requirements and the applicant’s individual risk profile. As a result, permanent residents who meet an insurer’s financial and medical underwriting can generally qualify for the same coverage amounts, policy types, and premium rates as Canadian citizens.
How much does life insurance cost for permanent residents?
For permanent residents, the cost of life insurance in Canada is around $22-$35 per month. Here’s a table illustrating the cost of life insurance for male/female non-smokers aged 35 years, $500k coverage for the popular insurance companies:
| Insurer name | Average cost for a male | Average cost for a female |
| Assumption Life | $32.40 | $23.85 |
| Beneva | $30.15 | $22.05 |
| Canada Life | $31.79 | $25.17 |
| Desjardins | $30.15 | $22.50 |
| Empire Life | $30.60 | $22.50 |
| Equitable Life | $30.34 | $22.49 |
| iA Financial Group | $31.95 | $23.85 |
| Manulife | $32.52 | $25.24 |
| RBC Insurance | $30.42 | $22.05 |
| Sun Life | $35.55 | $26.10 |
Disclaimer: These are representative value and the actual premiums may vary
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Factors affecting the cost of life insurance for permanent residents in Canada
The cost of life insurance for permanent residents in Canada depends on factors like age, lifestyle, and the applicant’s health. The following are the main factors affecting the premium costs:
- Age: Younger applicants qualify for lower premiums because they are considered lower risk. For example, the cost of a term life insurance policy for a 45-year-old male is around $66.60 per month, while for a 55-year-old male, on the other hand, is around $198.90 per month
- Health status: Your medical history, current health conditions, family medical history, and overall health can significantly impact your premiums. Healthy applicants generally qualify for lower premiums
- Smoking status: Smokers and tobacco users pay higher premiums than non-smokers
- Coverage amount: Higher coverage amounts result in higher premiums because the insurer is taking on greater risk.
- Policy type: Permanent life insurance policies generally cost more than term life insurance because they provide lifelong coverage and may include a cash value component
- Policy term: For term life insurance, longer coverage periods come with higher premiums
- Occupation: Certain high-risk occupations may increase premiums or require additional underwriting
Do permanent residents pay higher life insurance premiums than Canadian citizens?
No, permanent residents do not pay higher premiums to get life insurance in Canada. The premiums are determined using the same underwriting factors for both Canadian citizens and permanent residents, including the applicant’s age, health status, lifestyle, occupation, and the selected coverage amount. This means permanent residents with similar risk profiles often pay the same premiums as Canadian citizens.
What happens to your life insurance when you become a Canadian citizen?
When you become a Canadian citizen, there will be no change in your life insurance policy. This means that the life insurance policy will remain in force with the same coverage amount, premium structure, and terms and conditions. While there will be no changes, it is still important to inform your insurer and update them accordingly. You must ensure that the insurer has updated your Canadian address and contact details in your life insurance policy.
How to choose the best life insurance policy as a permanent resident with PolicyAdvisor?
At PolicyAdvisor, our licensed advisors will help you select a suitable life insurance policy by comparing quotes from 30+ Canadian insurers. Here are the steps you need to follow:
- Analyse your coverage: Connect with one of our licensed advisors to assess how much life insurance you need based on your income, financial commitments, and other goals
- Compare plans: We will help you compare coverage options and quotes from 30+ Canadian life insurance companies
- Understand your eligibility: Our advisors will help you understand the coverage limits and any underwriting criteria that may affect your application
- Submit your application: Complete your application and provide the required documents, such as proof of permanent resident status, government-issued identification, and any medical or financial information requested by the insurer
- Review and activate your policy: Once approved, carefully review your coverage amount, beneficiaries, policy terms, and exclusions before making your first premium payment
Schedule a free consultation today and compare life insurance quotes from Canada’s top insurers.
Frequently Asked Questions
Can permanent residents get term life and permanent life insurance?
Yes, permanent residents have access to the same policy types as Canadian citizens, including term life insurance and permanent life insurance. The right option depends on your budget, coverage needs, and long-term financial goals.
What documents do permanent residents need to apply for life insurance?
Most insurers require proof of permanent resident status, government-issued identification, a Canadian residential address, and banking information. Depending on the insurer and coverage amount, you may also need to provide income verification, travel history, and medical information.
Is life insurance mandatory for permanent residents in Canada?
No, life insurance is not mandatory for permanent residents. However, it can provide valuable financial protection for your family, help cover debts such as a mortgage, and replace lost income if you pass away unexpectedly.
Can permanent residents switch life insurance companies later?
Yes, permanent residents can replace an existing life insurance policy with a new one if they find better coverage or pricing. However, it is important to ensure the new policy is approved and active before cancelling the existing one to avoid any gap in coverage.
Can permanent residents increase their life insurance coverage later?
Yes, permanent residents can apply to increase their coverage if their financial needs change due to events such as marriage, the birth of a child, purchasing a home, or an increase in income. Additional underwriting may be required depending on the policy and insurer.
Permanent residents in Canada can buy life insurance and qualify for the same coverage amounts as Canadian citizens. The exact eligibility depends on insurer underwriting requirements, including health, income, residency status, and financial profile.
