How Much Does Term Life Insurance Cost in Canada?

Term life insurance is often seen as the most affordable way to protect your loved ones. But if you have ever tried to estimate your cost without actually applying, you may have found the numbers surprisingly vague. That is because the price of term insurance is highly personalized based on your age, health, lifestyle, and the specific coverage details you choose.

In Canada, a healthy applicant in their 30s may pay less per month than a weekly coffee habit. But that same policy could cost two to three times more if purchased later in life, or if health conditions are present. Knowing what affects the cost can help you plan ahead and avoid overpaying or being underinsured.

What Factors Determine the Cost of Term Life Insurance?

The cost of term life insurance is calculated by underwriting risk. In simple terms, the insurer assesses how likely it is that they will have to pay the death benefit during the policy term. The more risk they see, the higher the premium.

Here are the most common pricing factors:

Pricing Factor	Why It Matters
Age	Older applicants are closer to life expectancy, so premiums are higher
Health history	Medical conditions can increase risk of early death
Smoking status	Smokers pay significantly more than non-smokers
Gender	Statistically, women live longer and often pay less than men
Coverage amount	Larger death benefits increase premiums proportionally
Term length	Longer coverage periods usually cost more per month
Occupation and hobbies	Risky jobs or activities can raise premiums

Tip: Your pricing is locked in at the time you purchase the policy. This is why buying younger, while in good health, can save you hundreds or even thousands over the life of the term.

Typical Monthly Costs in Canada

Here is a general snapshot of what a 20-year term policy might cost for a healthy non-smoker in Canada, based on publicly available averages:

Age	$250,000 Coverage	$500,000 Coverage	$1,000,000 Coverage
30	$17 to $23	$24 to $35	$42 to $65
40	$23 to $35	$35 to $55	$65 to $110
50	$45 to $70	$75 to $120	$140 to $230

Prices reflect estimated monthly premiums in Canadian dollars for healthy, non-smoking individuals. Rates may vary by province, insurer, and underwriting assessment.

Note: These are starting points, not guarantees. Your own quote may differ based on individual risk factors and the insurer’s specific underwriting criteria.

How to Lower Your Premiums

There are a few ways to keep your term life premiums as low as possible while still getting the coverage you need:

Apply early, while you are younger and healthier
Choose a shorter term if your need is temporary
Consider laddering smaller policies for flexibility
Maintain a healthy lifestyle to qualify for better rates

If cost is a concern, you do not have to choose between full protection and affordability. A well-structured policy can offer meaningful coverage that fits your budget.

What About Group or Mortgage Life Insurance?

Some people consider workplace group insurance or bank-offered mortgage protection as an alternative. These options can be simpler to access but are often more expensive per dollar of coverage and offer less flexibility.

Group policies often end when you leave your job
Mortgage insurance pays the lender, not your chosen beneficiary
Personal term policies are portable, customizable, and usually better value

Affordability Without Compromise

Term life insurance in Canada is accessible, flexible, and surprisingly affordable when purchased early and structured well. The key is understanding what drives cost and how to make informed choices that reflect your life stage and long-term responsibilities.

The right policy does not have to be expensive. It just has to be well-matched to the people and promises you want to protect.