A well-chosen term life insurance plan provides critical protection for your loved ones if you pass away unexpectedly. The death benefit can help cover debts, fund post-secondary education through an RESP, pay off a mortgage, and provide financial stability during a difficult time. It’s not just a policy; it’s an act of love to ensure your family can continue to thrive, even in your absence.
However, the Canadian term life insurance market is complex, with dozens of providers, various features, rates, and benefits, making it challenging to identify the top insurance company for your specific situation. This guide is designed to be your trusted partner in that decision.
How Life Buzz Ranks the Best Term Life Insurance Companies in Canada
Finding the right insurer goes far beyond just finding the cheapest monthly premium. Our research team uses a comprehensive scoring system to evaluate and rank each term life insurance provider.
Financial Strength and Reputation (30%): This is a must-have. The insurer you choose must be financially stable and capable of paying claims in the distant future. Look for companies with an ‘A-‘ or higher rating from independent agencies like A.M. Best. This rating is your assurance that their promise is backed by financial stability.
Term Life Policy Features and Flexibility (30%): We recognize that every Canadian’s needs are different. Therefore, we score insurers based on the breadth and flexibility of their policy offerings. This includes:
- Term Length Options (10%): Your life isn’t a standard 10 or 20-year block. Providers offering a wide range of standard terms (10, 20, 30 years) plus customizable or longer terms (e.g., up to 50 years) score higher.
- Coverage Amounts (10%): We evaluate the range of death benefits available, rewarding companies that cater to both modest needs (e.g., $50,000) and high-net-worth clients (e.g., $10 million+).
- Conversion and Renewal Options (10%): The ability to convert a term policy to permanent insurance without a new medical exam is a valuable feature. We assess the quality and accessibility of these conversion privileges, as well as the terms for policy renewal.
Pricing and Value (20%): While affordability is crucial, we evaluate pricing in the context of overall value. Our analysis involves comparing sample monthly premiums across various demographics (age, gender, non-smoker status) for standardized coverage amounts. We also reward companies for transparency: how easily and accurately a consumer can obtain quotes. Insurers that offer guaranteed, level premiums for the duration of the term score higher than those with less predictable pricing structures.
Customer Satisfaction (20%): A company’s service quality directly impacts policyholder satisfaction. We score this category by examining:
- Application Ease (10%): We assess the different paths to application, from fully digital, no-medical-exam processes to traditional, advisor-led methods. Companies offering streamlined, convenient, and quick application experiences receive higher marks.
- Customer Experience (5%): We collect real customer feedback from sources such as the Better Business Bureau (BBB), online review platforms, and industry satisfaction studies to provide a transparent view of claims processing, policy servicing, and overall responsiveness.
- Accessibility (5%): We evaluate how easy it is for consumers to get information and support, whether through online portals, phone support, or a network of advisors.
By scoring and weighting these key factors, our team creates an unbiased picture of each provider. This allows us to confidently identify and recommend the best term life insurance companies that excel in different areas, whether it’s budget-friendliness, product flexibility, or customer service.
The Best Term Life Insurance Companies in Canada
After a thorough analysis based on the criteria above, the advisors at Lifebuzz have identified the standout 5 providers of term life insurance in the Canadian market.
Sun Life – Ideal for Established Strength
- Established/Headquarters: 1865, Ontario
- Total Assets: ~$370B
- Financial Strength: A+
- Lifebuzz Rating for Sunlife Term Insurance Products: 5 Stars
Founded in 1865, Sun Life Financial is one of the most established and prominent insurers in Canada. They are a leading provider of term life insurance products to Canadians.
Sun Life Term Life Insurance Products
Sun Life offers 3 main term life insurance products to choose from:
Sun Life Go Simplified Term Life Insurance
- Coverage amounts of $50,000, $75,000 or $100,000
- 10-year term length
- No medical exam required
- Only need to answer 3 health questions to qualify
- Available for ages 18-69
- Offers instant temporary coverage when applying online
- Ideal for quick, budget-friendly life insurance
Sun Life Evolve Term Life Insurance
- Minimum coverage of $50,000, up to $25 million maximum
- Flexible term lengths from 5 to 40 years
- Can increase coverage at certain life events
- Option to convert to permanent life insurance
- Available for issue ages 18-75
- Need to go through an advisor to get a quote
- Provides the most flexibility of Sun Life’s term products
Sun Life Go Term Life Insurance
- Coverage from $100,000 up to $1 million
- 10 or 20-year term lengths
- Can renew policy without new medical underwriting
- Option to convert to permanent coverage
- Can apply online up to age 69
- Offers instant temporary coverage when applying
- Streamlined application process
- Ideal for higher coverage amounts bought online
Sun Life Term Life Insurance Rates
To understand potential monthly premium costs, here are sample Sun Life quotes by age and gender:
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $18.9 | $18 |
| 45 | $32.1 | $24.7 |
| 55 | $62.5 | $51 |
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $25.4 | $23.1 |
| 45 | $46.3 | $36 |
| 55 | $128.9 | $95.3 |
Pros and cons of Sun Life Term Life Insurance in Canada
| Pros | Cons |
|---|---|
| – Multiple term length options from 10-40 years – Policies available online up to $1 million coverage – “Go Simplified” plan offers no-medical-exam coverage. – Strong conversion options to permanent insurance – Evolve allows customized term length – Coverage up to $25 million available | – The most flexible plans require working with an advisor – “Go Simplified” plan has limited coverage ($100,000) and term options – Premiums may be higher than some budget-focused competitors – Riders and benefits cost extra fees |
What Makes Sun Life Term Life Offerings Stand Out:
One standout benefit is SunLife’s ability to get up to 40 years of term coverage. This allows you to match a longer-term need like mortgages, loans, or child-rearing costs. Sun Life’s term insurance also offers strong conversion options, allowing you to switch your term policy to permanent insurance in the future without another medical exam.
By offering both simplified-issue options and longer-term, medically underwritten policies, Sun Life provides a range of term life insurance solutions tailored to different needs and budgets. Their products allow customers to purchase temporary coverage completely online or work with an advisor for more customized options.
Our Verdict: Sun Life is a formidable and reliable choice, offering a trusted path to life insurance, whether you want a quick digital solution or a high-touch, personalized plan. However, some downsides exist regarding access, customization, and costs. For those seeking a trusted brand that can secure higher coverage amounts and longer terms, Sun Life is a leading choice.
>> Read our full review of Sun Life Insurance Canada
RBC Insurance – Major Bank-Backed Option
- Established/Headquarters: 1864, Ontario
- Total Assets: ~$30B
- Financial Strength: A
- Lifebuzz Rating for RBC Term Insurance Products: 5 Stars
RBC Life Insurance Company offers a quality term life insurance product backed by Royal Bank of Canada, one of Canada’s “Big Five” major banks.
RBC Term Life Insurance Products
Established in 1864, RBC offers renewable term lengths from 10 to 40 years. RBC offers two main term life insurance options:
RBC Simplified Term Life Insurance
- Coverage from $50,000 to $1,000,000 for ages 18-55
- Coverage from $50,000 to $499,999 for ages 56+
- 10, 15, 20 or 40-year renewable term lengths
- No medical exam required for instant approvals
- 30-day free look period to review policy
- $10,000 accidental death benefit included
- Can apply completely online
RBC YourTerm Life Insurance
- Coverage from $1,000,001 to $25,000,000 for ages 18-55
- Coverage from $500,000 to $25,000,000 for ages 56+
- Customizable terms from 10 to 40 years
- Full medical underwriting required
- 10-day free look period to review policy
- Option to exchange term lengths up to age 70
- Must apply through an RBC advisor
RBC Term Life Insurance Rates
Here are sample RBC term life premiums by age:
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $24.8 | $20.7 |
| 45 | $47.1 | $34.3 |
| 55 | $148.3 | $100.4 |
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $43.6 | $33.3 |
| 45 | $102.9 | $71.9 |
| 55 | n/a | n/a |
Pros and Cons of RBC Term Life Insurance
| Pros | Cons |
|---|---|
| – Offered by one of Canada’s largest and most trusted banks. – Offers both a quick online no-medical option and a high-coverage advisor option. – Individual coverage available up to $25 million. – Rates are guaranteed to remain level for the entire term. | – The simplified issue plan has a lower maximum coverage limit. – Full coverage requires a medical exam and working with an advisor. – Policy conversion is only allowed until age 71. |
What Makes RBC Term Life Offerings Stand Out:
RBC offers both simplified-issue term life and higher-coverage, traditionally underwritten policies. This caters to Canadians seeking either quick protection or more substantial coverage for longer durations.
Key features across both RBC term products include locked-in guaranteed premiums, renewal options, and the ability to convert to permanent life insurance later on. RBC provides term life insurance options tailored for basic temporary needs or more customized protection.
As a large financial institution, RBC Insurance offers competitive rates combined with a reputable standing. RBC has an AM Best financial strength rating of A+ (Superior).
Our Verdict: RBC provides a solid term life insurance offering backed by a reputable financial institution. Its dual-product approach makes it a great fit for those seeking either the convenience of an online application or the comprehensive support of an advisor for larger policies. However, the simplified issue plan caps coverage and some downsides exist around flexibility and service.
>Read our full review of RBC Life Insurance
BMO Insurance – Competitive Bank-Owned Option
- Established/Headquarters: 1817, Ontario
- Total Assets: ~$20B
- Financial Strength: A
- Lifebuzz Rating for BMO Term Insurance Products: 4.5 Stars
BMO Life Assurance Company provides a competitive term solution backed by one of Canada’s largest banks. The Bank of Montreal has been in business since 1817 and offers straightforward term life insurance options.
Key features of BMO Term Life Insurance plans
- Term lengths of 10, 15, 20, 25 and 30 years
- Individual coverage from $100,000 up to $5 million
- Renewable at the end of the term without medical underwriting
- Option to convert to permanent life insurance later on
- Coverage can last until age 85
- Included terminal illness living benefit
- Additional riders are available for an added fee
- Must go through a BMO advisor to get a quote and apply
Overall, BMO provides straightforward term life insurance options for Canadians seeking temporary coverage through a major financial institution. While not the most flexible or customizable offerings, their term life plans serve basic income protection needs.
BMO Term Life Insurance Rates
Here are sample monthly premiums by age and gender for BMO term life insurance:
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $24.4 | $15.8 |
| 45 | $28.4 | $23.4 |
| 55 | $60.6 | $47.1 |
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $33.30 | $20.3 |
| 45 | $48.9 | $37.6 |
| 55 | $140.9 | $101.1 |
Pros and Cons of BMO Term Life Insurance
| Pros | Cons |
|---|---|
| – Backed by one of Canada’s largest and oldest banks. – Competitive rates and a good range of standard term lengths. – Guaranteed level premiums and convertible to permanent coverage. – Option for coverage increase at life events | – No online application; no direct purchase; must work with an advisor – The application process can sometimes be slower than digital-first competitors – $5 million coverage maximum may be insufficient for high-net-worth needs – Mixed customer service reviews |
What Makes BMO Term Life Offerings Stand Out:
BMO offers average rates that are cost-competitive within the Canadian marketplace. As a subsidiary of the Bank of Montreal, BMO Insurance has strong financial backing and stability. They hold an AM Best rating of A (Excellent), demonstrating long-term viability.
Our Verdict: BMO offers a solid, dependable product for existing BMO clients and risk-averse consumers who value the stability of a major Canadian bank and prefer a traditional, advisor-guided experience. However, the offering is not as flexible or customizable as some competitors.
>> Read our full review of BMO Life Insurance
Canada Life – Unparalleled Flexibility
- Established/Headquarters: 1846, Ontario
- Total Assets: ~$470B
- Financial Strength: A+
- Lifebuzz Rating for Canada Life Term Insurance Products: 4 Stars
Canada Life stands out by offering the most flexible term life insurance product in Canada. Founded in 1847, they have over 175 years of experience and an AM Best rating of A+.
Canada Life Term Life Insurance Products
A key differentiator is the ability to customize your exact term length between 5 and 50 years. This allows you to closely match your insurance protection to future financial liabilities.
| Term Lengths | 5 – 50 years |
|---|---|
| Coverage Amount | $100k – $10 million |
You can also add optional riders for chronic illness, disability, children’s insurance and more. Available individual coverage goes up to $10 million.
Canada Life Term Life Insurance Rates
Sample Canada Life term premiums by age:
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $36.45 | $24.2 |
| 45 | $49.5 | $38.5 |
| 55 | $113 | $102.7 |
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $36.3 | $29.2 |
| 45 | $80 | $59 |
| 55 | $198.2 | $137.7 |
Pros and Cons of Canada Life Term Life Insurance
| Pros | Cons |
|---|---|
| – Unmatched flexibility in term lengths (5 to 50 years) – High coverage amounts available for extensive needs (up to $10 million) – A+ financial strength rating from A.M. Best | – Must work with an advisor; no direct-to-consumer option – This level of customization can sometimes come with a slightly higher premium – Lengthy application and approval process |
What Makes Canada Life Term Life Offerings Stand Out:
Canada Life stands out for its customizable term life insurance that can match the specific coverage periods needed. Pricing is relatively comparable within the Canadian marketplace.
Our Verdict: For those who want their insurance to align perfectly with their financial plan, Canada Life’s My Term product is in a class of its own. However, drawbacks like limited advisor access, price, and service issues exist. Consumers should compare Canada Life’s unique flexibility against other insurers.
>> Read our full review of Canada Life Insurance
Wawanesa Life – Excellent Budget-Friendly Choice
- Established/Headquarters: 1896, Manitoba
- Total Assets: ~$11B
- Financial Strength: A
- Lifebuzz Rating for Wawanesa Term Insurance Products: 4 Stars
Founded in 1896, Wawanesa Life is a relatively new player in the Canadian life insurance space that offers some of the most affordable rates available.
Wawanesa Term Life Insurance Products
They provide an array of term lengths at a lower price point than competitors.
| Term Lengths | 10 – 30 years, Term to 80 |
|---|---|
| Coverage Amount | $50k – $5 million |
Notable options include term insurance to age 100 and converting your policy to permanent life insurance before age 70.
Wawanesa Term Life Insurance Rates
Here are sample monthly Wawanesa Life term premiums by age:
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $19.2 | $17.8 |
| 45 | $28.8 | $23.9 |
| 55 | $57 | $48.6 |
| Age | Male Monthly | Female Monthly |
|---|---|---|
| 35 | $143.2 | $127.9 |
| 45 | $217.4 | $185.4 |
| 55 | $327.6 | $278.2 |
Pros and Cons of Wawanesa Term Life Insurance in Canada
| Pros | Cons |
|---|---|
| – Among the most affordable term life insurance rates in Canada. – Wide range of renewable term lengths, including a Term-to-100 option. – Strong financial rating ensures reliability. – Child term rider is a valuable option for families. | – No online application process; must work through a broker. – Underwriting can be strict, especially for those with pre-existing health conditions. – The maximum death benefit of $5 million is lower than that of some competitors. – Limited availability through independent brokers. |
What Makes Wawanesa Life Term Life Offerings Stand Out:
Wawanesa provides very competitively priced term life insurance policies. However, limited access through brokers, strict underwriting, and service complaints are potential drawbacks for consumers to consider.
Our Verdict: For cost-conscious Canadians with straightforward health profiles, Wawanesa Life is an excellent budget-friendly choice that delivers substantial value without compromising on financial stability.
>> Read our full review of Wawanesa Life Insurance
Expert Tips For Finding The Best Term Life Insurance Companies
Now that we’ve compared the top providers in Canada’s term life insurance market, here are some pro tips for securing optimal coverage:
- Compare quotes – Always shop rates from at least 3 insurers to find cost savings
- Check ratings – Verify an A- rating or better for financial stability
- Review policy details – Read the fine print before signing anything
- Answer health questions honestly – Don’t jeopardize your future claim payout
- Consider a broker – For specialized advice on the ideal policy for you
- Examine riders cautiously – Extra benefits may not be worth the added premium
- Discuss tax considerations – Premiums are not usually tax-deductible
Working with a knowledgeable independent broker can provide guidance in navigating the complex details of term life insurance policies. They have access to products from multiple providers in order to find optimal coverage.
The Bottom Line
Choosing the best term life insurance company involves far more than merely finding the lowest absolute monthly premium. By understanding key selection criteria like financial strength, service quality, and flexibility of offerings, Canadians can identify the provider best positioned to comprehensively meet their coverage needs and protect loved ones.
While term insurance rates and products vary, Sun Life, BMO, Canada Life, Wawanesa Life and RBC offer leading options among Canada’s largest life insurance companies. We recommend researching multiple insurers to find the ideal term life insurance policy for your specific situation.
The time invested upfront to secure the right customized coverage means you can rest easy knowing your family and finances are in good hands, even in your absence. Term life insurance provides essential peace of mind.
Finding the ideal life insurance provider involves careful consideration. To simplify your search, we have researched major Canadian insurers and identified the top companies across common coverage types. Check out the related articles to compare our recommended Best Life Insurance Companies in Canada for different types of life insurance solutions.
- Best whole life insurance companies in Canada
- Best universal life insurance companies in Canada
- Best family life insurance companies in Canada
- Best children’s life insurance companies in Canada
- Best life insurance companies for smokers in Canada
Frequently Asked Questions (FAQs)
Why get term instead of whole life insurance in Canada?
Term life insurance is cheaper, has fewer fees, offers higher protection amounts, and provides better temporary coverage than whole life insurance.
When should I buy life insurance in Canada?
If you have financial dependents, you should buy life insurance as soon as possible to protect your loved ones in case of your unexpected death.
Do I need life insurance if I'm single in Canada?
If you have no dependents, have limited debt, and sufficient assets, you may not need life insurance if you are single without kids in Canada.
Can seniors get term life insurance in Canada?
Yes, some insurers offer term life policies for seniors up to age 85. However, maximum coverage amounts decrease significantly after age 70.
Is a 20 or 30-year term policy better in Canada?
Choose a term length covering the period your income is needed. Twenty years covers until kids are self-sufficient, while 30 years covers mortgages.
How much does $1 million in term life insurance cost in Canada?
Expect to pay approximately $100-$150 per month for a $1 million, 20-year term policy if you are young and healthy. Get quotes for specifics.
How much term insurance do I need in Canada?
Aim for 10-20x your gross annual income. Also factor in debts, college savings, funeral costs and family expenses when deciding coverage.
What's the best term length for life insurance in Canada?
Popular term lengths are 10, 20 or 30 years. Choose the term covering the timeframe your income must be replaced until kids mature or debts are repaid.
Who has the most affordable term life insurance in Canada?
Wawanesa Life and PolicyMe consistently offer some of the most affordable term life insurance rates in Canada.
Which company is best for term life insurance in Canada?
Top providers include Sun Life, BMO, Canada Life, Wawanesa and RBC Insurance. Shop around to choose your best match.
Who offers no medical exam term life insurance in Canada?
PolicyMe and Foresters are top choices for life insurance without medical exams. Most insurers require an exam for sizable coverage.
Is term or whole life insurance cheaper in Canada?
Term life insurance premiums are substantially more affordable than whole life insurance in Canada. Term provides temporary coverage.
Can I renew my term life insurance policy in Canada?
Many top insurers like Sun Life and BMO allow term life insurance policies to be renewed at expiry without new medical underwriting.
Is term life insurance a good value in Canada?
For Canadians needing temporary coverage, term life insurance provides very good value to protect loved ones by covering debts, income and funeral costs if you pass away.
Should I use an insurance broker or buy directly in Canada?
Brokers can compare policies from many insurers but may charge fees. Direct purchase can be more convenient and economical.
What medical tests do I need for term life insurance in Canada?
Expect a paramedical exam checking your height, weight, blood pressure and family history. Urine or blood tests may be required depending on your age.
What information do insurers request when applying for term life insurance in Canada?
Insurers request detailed information on medical history, prescriptions, driving records, hazardous hobbies, tobacco and alcohol use, family health, finances and beneficiaries.