Use our free quotation tool below to instantly get your life insurance quote
Got your life insurance needs figured out, but unsure of the cost? Skip the guesswork! Compare quotes from top Canadian companies in seconds with our free tool. Find your perfect fit and protect what matters most!
Feeling unsure about life insurance? Stop guessing! Use our free tool below to discover exactly how much coverage you need and compare prices from top Canadian companies in seconds. Get peace of mind and protect your loved ones in under two minutes!
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If you don’t know where to look, getting life insurance quotes online can cause headaches. While lots of websites will have a quoting tool, they’re often not user-friendly. Sometimes, you need you to give them your personal information like your name, phone number, and email address just to get a quote. Then, they’ll have an agent call you and try to sell you over the phone.
We like to do things differently here. We want to empower you with the tools and the knowledge so that you’re confident in the life insurance quote you get with 100% satisfaction guaranteed. Oh, and our quoting tool searches all the insurance companies in Canada so you know you’re getting the best life insurance rates available.
So if you already know how much death benefit you need and for how long, go ahead and use the tool above. It will give you an instant online life insurance quote. Otherwise, keep reading for general advice on how to determine the right amount for you.
What is life insurance?
A life insurance policy is a contract between the owner of the policy and the insurance company. When you buy life insurance, the insurance company will pay out a death benefit to the beneficiaries if the life insured passes away.
The owner is the person who buys and pays for life insurance. The life insured is the person that the insurance is based on. Most of the time, the life insured is the same as the owner, but it doesn’t have to be. For example, if a parent is buying life insurance on a child, the owner and life insured will be different.
The death benefit is the amount of money that is paid out when the life insured passes away. And finally, the beneficiary is the person who will get this money.
Who needs life insurance?
When you’re single and don’t have dependents, life insurance isn’t a necessity. But once you form a family, have more financial responsibility and people who depend on your income. That’s when your insurance need is highest.
You have to ask yourself: if you’re not there to provide for your family, how will it fare financially?
- Will it be able to put food on the table?
- Will it be able to make rent or mortgage payments?
- Will its standard of living remain the same?
If you answered ‘no’ to any of these questions, then you have a need for life insurance.
How much life insurance should you get?
The answers to the previous questions should give you an indication of how much life insurance you should get. You want your family’s lifestyle to be as uninterrupted as possible even in your absence. You want it to be able to make rent or mortgage payments, pay bills, buy groceries, save for retirement and college, continue dance or hockey lessons, and more. That essentially means you want enough death benefit to replace your income.
How much death benefit that requires is a hard question to answer. But you can use 10x your annual income as a starting point and adjust it from there.
We have a handy life insurance calculator to help you find out exactly how much you need.
You also want to consider insuring these additional things:
- Mortgage debt. The average mortgage loan is nearly $300,000 so insuring this amount will remove a huge burden from your loved ones. In fact, many people only want to insure their mortgage and nothing else!
- Education costs. The average cost of post-secondary education is nearly $20,000 per year. That means an undergraduate degree costs $80,000.
- Emergency funds. Experts suggest you should have three to six months’ salary set aside for an emergency fund.
- Funeral expenses. The average burial costs between $5,000 to $10,000 while the average cremation costs between $2,000 to $5,000.
How long do you need it for?
If you’re using life insurance to replace your income, you want to have it for as long as you work. For most people, the typical retirement age is 65. So use 65 minus your current age to get a rough idea of how many years you need coverage for.
You can also use other timelines like when your youngest child turns 25 and is financially independent.
What are the different types of life insurance?
There are 2 main types of life insurance: term and permanent.
Term life insurance
Term insurance provides coverage for a set number of years with guaranteed premiums. For example, a term-20 policy will have guaranteed level premiums for 20 years. After the term is up, you can renew it at a higher cost – often much higher.
Term life insurance is the most affordable option for younger people who want to create a financial safety net for their families.
It’s frequently used for insuring a large debt like a mortgage. You can make the length of the term to the number of years left in your mortgage amortization. Term insurance is a far better choice over mortgage life insurance you get from your lender.
Permanent life insurance
Permanent insurance is the other major type. It provides coverage for your entire lifetime. You can use it to cover final expenses, taxes, leaving a legacy, or for other estate planning purposes.
The other popular use of permanent life insurance is as a tax-shelter for passive investments. By putting your savings inside a permanent life insurance policy, you build a tax-free retirement fund. This can supplement your RRSP, TFSA, and pensions during retirement.
Common types of permanent life insurance are whole life, term-to-100, and universal life.
Pros and cons of term life insurance
- It has the lowest initial cost
- It's the easiest type of insurance to understand
- If your life insurance need changes to permanent in the future, you can convert it to permanent insurance without evidence of insurability
- The premium increases a lot after the initial term, making it the most expensive option long term
- It may never pay out a death benefit since term policies expire at a certain age
- It's not suitable for long-term needs like paying final expenses, taxes, charitable giving, estate planning, and more
Pros and cons of permanent life insurance
- It has the lowest long-term cost
- You can use it to shelter your investments from tax and use the cash value as a tax-free retirement fund
- You're guaranteed a payout no matter how long you live
- It has the highest initial cost
- It's not suitable for short-term needs like replacing income and paying off debt
- Because some policies have cash value, dividends, and more, it can be complicated to understand
Which type should you get?
The right type of insurance depends on your need. Why are you buying insurance? If it’s to replace your income and cover your debts, you want to get term life insurance.
But if you’re older and starting to think about estate planning, then you want to get permanent life insurance.
If you still need help deciding, check out this post comparing term and permanent life insurance.
Does the reputation or financial strength of the insurance company matter?
Not too much, but if it gives you peace of mind, there are plenty of financially stable insurance companies rated A+ by AM Best in Canada.
Keep in mind that all insurance companies are members of Assuris, a non-profit that guarantees your death benefit up to a certain amount. So even in the unlikely scenario that an insurance company goes belly-up, you’re still covered for the majority of your death benefit.
Why get a life insurance quote online?
Why not use a local broker or agent instead? These are the five main benefits of getting a life insurance quote online:
- Save time. You don’t have to wait for the agent to respond. That not only includes the first time you request a quote but anytime you want to make a change. Think of all the time you’ll save going back and forth with the agent!
- Convenience. You can get a quote whenever you want. Yes, even if you’re up at 2 am because you’re thinking about life insurance (trust me, you’re not alone).
- Save money. You know you’re getting the best price. The companies are sorted by cost on the results page so you can compare quotes instantly.
- Choices. All the insurance companies are at your fingertips. Some agents only deal with one or two companies that they’re familiar with. Chances are they’re not the best option for you based on price and benefits.
- Less pressure. You can work at your own pace. There’s no pressure by an agent for you to make a decision right away. So feel free to take your time until you’re ready to proceed.
How much does life insurance cost?
Term life insurance has the lowest initial cost. The premium increases with the length of the term. For example, a term-20 policy will be more expensive than a term-10 policy, and a term-30 policy will be more expensive than a term-20.
You can get a life insurance quote by providing your age, smoking status, and gender. But this rate is not set in stone. It’s simply the standard rate to give you an idea of how much it will cost.
You have to go through a process called underwriting to get your final premium. During underwriting, the insurance company gathers information about you. These are the factors that play a part in determining your life insurance rates:
- Your health (eg. weight and height, smoking status, blood pressure)
- Your medical history (eg. history of major illnesses like cancer, heart disease)
- Your lifestyle (eg. driving infractions, hazardous avocations, drug use)
This gives the underwriter a picture of your risk level. If your risk is higher than average, your premium will be higher, and vice versa.
Sample life insurance quotes
Here are a few sample life insurance quotes to give you an idea of its cost. These are the monthly premiums for $500,000 of death benefit.
| Term | Male, 40-year-old, non-smoker | Male, 40-year-old, smoker | Female, 40-year-old, non-smoker | Female, 40-year-old, smoker |
|---|---|---|---|---|
| Term-10 | $28 | $66 | $21 | $52 |
| Term-20 | $48 | $127 | $35 | $89 |
| Term-30 | $90 | $216 | $67 | $152 |
| Term to age 100 | $368 | $551 | $316 | $442 |
Notice how the premiums are higher for men than women and much higher for smokers than non-smokers.
Unlike many other quoting tools found online, ours doesn’t ask for your name, phone number, or email address to get a life insurance quote. You won’t have to provide those until you’re ready for the application. That should give you the reassurance that your information is safe and private. We will not sell it to a third party. We take privacy very seriously here. Our privacy policy shows that.
That means you can get as many quotes as you want, whenever you want, no strings attached.
Not only will you save money, you also get to handpick the policy that’s right for you, all in one convenient place.
The life insurance quotes are displayed on a table so you can tell instantly which one gives you the lowest rates.
This is what it looks like:
What kind of life insurance quotes can I get from the tool?
The handy tool above gets you most of the life insurance quotes that you are looking for including:
- Term-10, term-20, term-30, term-40, and any year in between
- Whole life payable for life, 10, 15, 20, or 25 years or payable until age 65
- Level cost of insurance (LCOI) universal life, payable for life, 10, 15, 20 years or payable until age 65
The tool is quick to use and easy to understand. It also lets you compare life insurance quotes for different types of insurance from different insurance companies.
Speaking of companies, you’ll get quotes from over a dozen top insurance companies in Canada, including some of the most recognizable names in insurance.
Here’s a list of some of the most trusted insurance companies in Canada:
- Allianz Global Assistance
- Assumption Life
- Beneva
- BMO Insurance
- Canada Life
- Canada Protection Plan
- Desjardins
- Edge Benefits
- Empire Life
- Equitable Life
- Foresters
- Humania
- iA Financial Group
- ivari
- La Capitale
- Manulife
- RBC Insurance
- Specialty Life Insurance
- Sun Life Financial
- UV Insurance
- VUMI
Here are the types of quotes you can’t get from the tool:
- Joint first-to-die life insurance
- Joint last-to-die life insurance
- Participating whole life insurance (more on that below)
- YRT universal life insurance
- Disability insurance
- Critical illness insurance
- Long-term care insurance
If you want a quote for any of the above, please contact us with your name, gender, date of birth, and smoking status. Within 24 hours, we will reply with a detailed quote and an illustration from the insurance company.
Can you get a whole life insurance quote online?
Yes, you can get them alongside the term life insurance quotes. However, if you’re looking for whole life insurance quotes with non-guaranteed cash values, you won’t find them through the tool. That type of whole life insurance is called participating whole life insurance.
As the name suggests, you participate in the profits of the insurance company. The policy pays out a dividend that you can use to grow your death benefit and cash value tax-sheltered.
You can use it to execute wealth planning strategies like the insured annuity, insured retirement program, estate bond, and more.
This is not the type of insurance you just get a quote for and buy without any second thought. You’ll need to do your research and get the advice of a qualified insurance advisor to see if it’s a right fit for you.
Which insurance company has the best rates?
There is no single company that provides the lowest life insurance rates for every category. Some are lower for younger people, while others are lower for older people. Some give better rates than others for smokers. Some have more competitive whole life products than term, and vice versa.
And this is before any underwriting is done. Company A might consider you a high risk while Company B might consider you a standard risk. So while the life insurance quote might give you a lower price for Company A, in the end you will get a better rate with Company B.
As you can see, this is not an easy question to answer. Your best bet is to try the life insurance quote tool and contact us to see if you can qualify for the rate. We have the experience and expertise to help you find the best rates.
What's next?
After you have a life insurance quote that you’re satisfied with, click on the ‘Request Application’ button on the right. It will take you to a page where you can fill in your name, phone number, email address, and a message. If you prefer not to get a call, feel free to put your preference in the message box.
We will be in touch with you to complete the preliminary assessment and application. The assessment lets us confirm that the amount and type of insurance is suitable for you. We’ll also gauge the likelihood you’ll get the quoted premium based on your health, medical history, and lifestyle.
The application usually takes between 30-45 minutes and can be done via Zoom, Google Meet, or any other video conferencing program.
During the application, you may need to disclose information about your health, medication, medical history, lifestyle, and finances, so it’s a good idea to have the information handy.
We’re currently licensed in BC, Alberta and Ontario. If you reside in another province, we can connect you with another professional life insurance agent in our network.
Do you need to get a medical exam?
It depends on a few factors: your age, the amount of insurance you applied for, and the insurance company.
If you’re older and/or buying a large amount, you likely have to get the medical exam done. A basic medical exam involves getting a blood test, blood pressure readings, urine sample, and weight and height measurements. The whole process only takes about 30 minutes. It gives the insurance company a snapshot of your current health.
Because of advances in underwriting technology including artificial intelligence, you can now buy more death benefit than ever without getting a medical exam. Some companies even let you buy up to $2,000,000 of death benefit up to age 50 without going through a mandatory exam! So if you want to skip the exam, talk to us and we’ll guide you to the right insurance company.
Can't you buy directly from the insurance company?
Yes, some insurance companies allow you to buy directly from them. It’s actually a quick and easy process and you can get covered right away. The reason it’s so quick is that little to no underwriting is done.
That means the insurance company doesn’t know much about you. And what happens when the insurance company doesn’t know much about you? That’s right, it will charge you a higher premium to account for the perceived higher risk. It will also only let you buy a very small death benefit.
So while you can buy directly from the insurance company, it’s often not the best choice for you.
Are there any exclusions?
There are a few exclusions in which the insurance company won’t pay out a claim. The first is for suicide within the first two years of the policy. This is to prevent a payout when someone who is contemplating suicide buys it and follows through right after.
Another exclusion is for material misrepresentation within the first two years of the policy. A material misrepresentation is a false statement of a material fact that impacts the insurance company’s decision to offer you life insurance. To deny a claim after two years, the insurance company has to prove that the misrepresentation was fraudulent.
What if you're high risk?
If you have a major medical condition, a complex medical history, or a high-risk lifestyle, you probably won’t qualify for the rate that the life insurance quote gives you.
What can you do instead?
It’s not that you can’t get life insurance, but rates will be higher. How much higher will depend on how high of a risk you’re deemed to be. In this case, you’re better off getting a no medical life insurance policy. Besides skipping the medical exam, the application also asks a lot fewer questions.
No medical life insurance is commonly split into two types: simplified issue and guaranteed issue.
Simplified issue life insurance asks a few questions about your health and lifestyle. If you answer ‘no’ to the questions, you qualify and get no more underwriting is required.
Guaranteed issue life insurance doesn’t ask any questions. You qualify for coverage regardless of your health. This is also the most expensive type of insurance.
Looking for health insurance quotes instead?
If you’re looking for health insurance quotes instead, the links below lets you quickly get a quote and buy directly from the insurance companies!
Buy Sun Life Personal Health Insurance online!
Buy Sun Life Health Coverage Choice online!
Buy Pacific Blue Cross Blue Choice online!
Buy Pacific Blue Cross Personal Health Insurance Retirement Plan online!
