Ben Nguyen 
Selecting the best term life insurance policy is one of the most important financial decisions a Canadian can make. A proper term life insurance plan provides critical protection for your loved ones in the event of your unexpected death. The payout can help cover debts, fund college savings, pay the mortgage, and more during difficult times.
However, the Canadian term life insurance market is complex, with dozens of providers touting various features, rates and benefits. Identifying the top insurance companies for your particular situation can be a challenging endeavor.
This guide will examine Canada’s term life insurance marketplace in detail to help you make an informed decision. We’ll cover:
- Key factors to consider when choosing a provider
- Overviews of the top 5 term life insurers in Canada
- Sample term life policy rates by age and gender
- Charts comparing term lengths and coverage amounts
- Pros, cons and customer satisfaction insights
- Expert advice on getting quotes and applying for coverage
- Additional resources to further your research
More: Life Insurance Rates By Age Chart in Canada
By understanding Canada’s best term life insurance companies, you’ll be equipped to secure the ideal policy for your budget and insurance needs. Let’s dive in to find the best term life insurance provider for you.
How to find the best Term Life Insurance Company in Canada
Selecting the optimal term life insurance policy goes far beyond just finding the cheapest monthly premium. Here are the most important factors savvy consumers evaluate:
Reputation and Financial Strength
The insurer you choose needs to be financially stable and able to pay out claims for decades to come. Focus on established providers with strong financial strength ratings from agencies like AM Best. Look for ratings of at least A- or higher from independent credit rating agencies.
Customer Satisfaction
Understanding customer experiences can give insight into a provider’s claims handling, underwriting process and overall service quality. Check online reviews and complaints to get a transparent view of their operations.
Term Length Flexibility
Choose a provider offering your preferred term length, typically 10, 20 or 30 years. Some insurers also offer short 5 year terms or longer terms up to age 100. Having flexibility is key.
Coverage Amount Availability
Ensure the insurer offers the level of coverage you require, from as low as $50,000 up to $25 million for your individual needs. Don’t settle for limited options.
Clear Sample Rates
You should be able to get transparent term life quotes by age online or through an advisor to accurately estimate your monthly costs. Avoid providers without easy rate access.
Policy Conversion Options
Many term life policies allow you to convert to permanent life insurance later on without new underwriting. Look for this option for added flexibility.
Premium Lock Benefit
The best term life policies will lock in your initial monthly premium, so it never increases during the term period. Make sure to understand rate changes at renewal.
Ease of Application Process
Applying online can make getting coverage simpler and faster. Understand if you need to go through an agent or advisor to buy a policy.
Quality of Customer Experience
From the application to onboarding to servicing – ensure the insurer provides an outstanding experience and is accessible when you need support.
By evaluating these key criteria, you’ll be equipped to move beyond just a premium price comparison and truly identify the best term life insurance companies in Canada for protecting your loved ones.
Now, let’s examine the leading providers in detail.
The best term life insurance companies in Canada
Sun Life Term Life Insurance – Ideal for Established Strength
Founded all the way back 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
One standout benefit is SunSpectrum’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 as well as longer term medical 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.
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 of Sun Life Term Life Insurance
- Multiple term length options from 10-40 years
- Policies available online up to $1 million coverage
- Instant temporary coverage when applying
- Can convert many policies to permanent insurance
- Renewable terms without new underwriting
- Go Simplified plan has no medical exam
- Evolve allows customized term length
- Coverage up to $25 million available
Cons of Sun Life Term Life Insurance
- Limited term lengths with Go Simplified plan
- Evolve and some other plans must go through advisors
- Lengthy application process for some policies
- Riders and benefits cost extra fees
- Certain plans may require medical exam
- Go Simplified only offers up to $100k coverage
- Maximum age of 75 for policy conversion
- Prices may be higher than some competitors
The range of term products from Sun Life provides flexibility; however, some downsides exist regarding access, customization, and costs. The simplified issue plan also has limits on coverage and term length. Overall, Sun Life offers strong options but shoppers should compare against competitors.
For those seeking a trusted brand with the ability to secure higher coverage amounts and longer terms, Sun Life is a leading choice to consider.
Read the full review: Sun Life Insurance Canada
BMO Term Life Insurance – Competitive Bank-Owned Option
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.
BMO Term Life Insurance Products
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 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 available for added fees
- 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 |
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.
Pros and Cons BMO Term Life Insurance
Pros of BMO Term Life Insurance
- Offered by one of Canada’s oldest and largest banks
- 10-30 year renewable term lengths
- Coverage up to $5 million available
- Rates lock in for the entire term duration
- Can convert to permanent life insurance later
- Option for coverage increase at life events
- Terminal illness benefit included
Cons of BMO Term Life Insurance
- Limited flexibility in term length and coverage options
- Must go through a BMO advisor, no direct purchase
- Maximum age of 85 for coverage
- Additional riders and benefits cost extra
- Lengthy underwriting and application process
- Mixed customer service reviews
- Maximum coverage lower than some competitors
- Cannot renew 25 or 30 year terms
The BMO term life product provides a basic renewable term life policy from a trusted financial institution. However, the offering is not as flexible or customizable as some competitors. Shoppers will need to go through a BMO advisor and should be aware of gaps like the inability to renew longer 25-30 year terms.
For those seeking an established bank-backed name in insurance, BMO Life offers a quality product at a competitive price point. While service challenges exist, it remains a solid choice.
Read the full review: BMO Life Insurance In Canada
Canada Life Term Life Insurance – Unparalleled Flexibility
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 closely matching 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 |
Pricing is relatively comparable within the Canadian marketplace.
The versatility to select any term length between 5 and 50 years offers Canadians unique flexibility to align temporary coverage with their specific budget and insurance needs.
Pros and Cons of Canada Life Term Life Insurance
Pros of Canada Life Term Life Insurance
- Ability to customize term length from 5-50 years
- Coverage amounts from $100k up to $10 million
- Option to renew term policies
- Can convert term policies to permanent insurance
- Multiple optional riders available
- Policies guaranteed renewable
- Strong financial strength as a leading insurer
Cons of Canada Life Term Life Insurance
- Renewal premiums increase gradually each year
- All policies must be purchased through an advisor
- Lengthy application and approval process
- Customer complaints about poor service
- Lower maximum age for coverage renewal
- Expensive premium costs compared to some competitors
- Pre-existing conditions can be denied
Canada Life stands out for its customizable term life insurance that can match specific periods of coverage needed. However, drawbacks like limited advisor access, price, and service issues exist. Consumers should compare Canada Life’s unique flexibility against other insurers.
Read the full review: Canada Life Insurance
Wawanesa Term Life Insurance – Excellent Budget-Friendly Choice
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 |
Their budget-friendly rates make Wawanesa an appealing choice for cost-conscious Canadians seeking temporary life insurance coverage.
Wawanesa Life holds an AM Best rating of A (Excellent), demonstrating strong long-term financial standing.
Pros and Cons of Wawanesa Term Life Insurance in Canada
Pros of Wawanesa Term Life Insurance
- Among the most affordable rates in Canada
- Terms up to expiry age 100 available
- Conversion option before age 70
- Range of renewable term lengths
- No rate increases during term period
- Optional riders offered for added fees
- Child term insurance rider option
Cons of Wawanesa Term Life Insurance
- Underwriting difficulty for some health conditions
- No online application process
- Limited availability through independent brokers
- Maximum death benefit payout of $5 million
- Customer service complaints for claims
- Strict application requirements
- Renewal rates increase annually
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.
For those seeking the most affordable term life insurance from a reputable provider, Wawanesa Life is an excellent budget-friendly choice.
Read the full review: Wawanesa Life Insurance in Canada
RBC Term Life Insurance – Major Bank-Backed Option
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 provides renewable term lengths between 10 and 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 offers both simplified issue term life as well as 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.
A benefit of RBC is the ability to renew coverage at the end of your term up until age 75. You can also convert to a permanent policy until age 65.
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 |
As a large financial institution, RBC Insurance offers competitive rates combined with reputable standing. RBC has an AM Best financial strength rating of A+ (Superior).
Pros and Cons of RBC Term Life Insurance
Pros of RBC Term Life Insurance
- Offered by one of Canada’s largest banks
- 10-40 year renewable term lengths
- Individual coverage up to $25 million
- Rates lock in for the entire term period
- Convert to permanent life insurance later
- Instant online approvals available
- Accidental death benefit included
Cons of RBC Term Life Insurance
- Simplified issue max coverage limited
- Medical exam required for full coverage
- Must purchase through RBC advisors
- Additional riders and benefits cost extra fees
- Policy conversion is allowed only until age 71
- Mixed customer service reviews
- Maximum renewal age of 100
RBC provides a solid term life insurance offering backed by a reputable financial institution. However, the simplified issue plan caps coverage and some downsides exist around flexibility and service. Consumers should compare RBC’s options to other top insurers.
RBC Life gives Canadians a quality option backed by one of the nation’s largest financial institutions. Those already banking with RBC may find it convenient to work directly with their advisors.
Read the full reivew: RBC 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.
Get a fast, free quote and apply in minutes at lifebuzz.ca to find the most affordable term life insurance that meets your specific needs. Our online platform makes it simple to compare top insurers and get covered today so you can protect your loved ones. Visit lifebuzz.ca now to take the first step toward securing your family’s financial future.
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 critical illness insurance companies in Canada
- Best whole life insurance companies in Canada
- Best universal life insurance companies in Canada
- Best disability insurance companies in Canada
- Best no-medical life insurance companies in Canada
- Best family life insurance companies in Canada
- Best mortgage 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.
Source:
- Best Term Life Insurance in Canada: Top Companies and Policies – policyme.com
- Term Life Insurance in Canada – rbcinsurance.com
- Wawanesa Insurance Life Insurance Review – policyadvisor.com
Our Methodology for Rating Term Life Insurance Companies
Our research team thoroughly evaluates and ranks term life insurance providers in Canada using a comprehensive scoring system. We analyze several key factors that are most important to consumers when choosing coverage.
Here are the criteria we consider when rating term life insurers:
Financial Strength (40%): We assess ratings from independent agencies like AM Best to gauge long-term financial stability. Higher scores indicate a better ability to pay out claims.
Policy Flexibility (30%): Insurers offering more term lengths, coverage amounts, and conversion options provide greater customization. More choices earn higher scores.
Customer Experience (15%): By evaluating online reviews and complaints, we measure how responsive insurers are by providing quotes, servicing policies, and paying claims. Superior service earns more points.
Available Riders (10%): Companies with a wider selection of optional riders to enhance policies provide greater adaptation to unique needs. More riders mean higher scores.
Accessibility (5%): We assess how easily consumers can get information, quotes, apply, and manage policies through channels like online, phone, in-person, etc. More options earns more points.
Our rigorous evaluation provides consumers with transparent insights into carriers offering the optimal blend of financial strength, flexibility, service, and value.
GIPHY App Key not set. Please check settings