Compare Life Insurance Quotes for Free in Canada - Ratehub.ca (2024)

1. Tell us a bit about yourself

   Life insurance is specific to you, so we'll need a few details to customize your policy.

2. Speak with an insurance broker

   We'll show you quotes from multiple providers, so a broker will be in touch to help you choose.

3. Finalize your policy selection

   You may need a medical exam to finalize your policy, but you'll be guided through the process.

1. Age

   The older you are, the more expensive your life insurance policy will be. And some insurers won't offer you coverage after passing a certain age.

2. Gender

   Males generally pay more for life insurance than females – statistically speaking, men are at higher risk of passing away earlier.

3. Health & lifestyle

   A pre-existing condition, family history of illness, or participating in activities like heavy drinking and smoking, can come with higher premiums.

1. Policy type

   Term life insurance is generally much more affordable than permanent life insurance, simply because the death benefit could potentially expire.

2. Term length

   A 5-year term policy will cost less than a 30-year policy because you're far less likely to pass away during a short period of time.

3. Coverage amount

   It's no surprise that the larger the benefit you choose, the more you'll be paying in premiums during your lifetime – added protection comes at a cost.

Neither term life insurance nor whole life insurance is the superior option – they are different products for different jobs. And sometimes, you'll want to have both.

Term life insurance is a policy that covers the insured for a specific period of time. Whether you select coverage for ten, twenty, or thirty years, the monthly or annual payment amount will remain the same – premiums are fixed regardless of any changes in your health. This makes term life insurance a cost-effective solution for individuals looking for coverage. Another advantage of term life insurance is that many policies can often be converted to permanent insurance, regardless of any changes to your health, job, or lifestyle.

So what’s the advantage of this? For one, getting coverage when you’re young and healthy makes it easier to continue being insured as your life goes on. If you get sick and then want to apply for coverage, it’s going to be a lot more difficult to get. Likewise, if you want to graduate to a whole life or participating life policy, it’s generally pretty easy to switch a term life plan over, rather than start fresh. So if you’re young, healthy, and are looking for simple coverage to protect your family, this type of policy may be just the way to go.

Permanent life insurance, on the other hand, is coverage that lasts for an entire lifetime. The cost of permanent life insurance is generally significantly higher than a term policy, given that the payout is guaranteed – while the life insurance company might not know when they’ll have to pay out, they do know that they will eventually. Common types of permanent life insurance in Canada include whole life insurance, universal life insurance, and term to 100 life insurance.

Before you jump into signing up for a permanent life policy, be warned that these can get expensive. Because the annual cost of permanent insurance is so much greater than term life, it's often not possible for younger individuals to pay into the high premiums. Instead, it can be a good idea to buy term life insurance and invest the difference in an RRSP, TFSA, or mutual fund. If you’ve managed to save up a good nest egg later in life, and you're maxing out your annual investment contributions, it might be a good time to look into a participating life insurance policy then. Of course, if you have a term life plan already, you want to make sure that you’re able to transfer it to a participating policy.

For more information, be sure to check out our blog: Term life vs. whole life insurance – which one is right for you?

While term and whole life are amongst the most popular policies, here is a brief overview of some specialized types of life insurance plans in Canada.

• No medical life insurance is exactly what it sounds like – a kind of life policy you can buy without having to undergo a medical examination. Many people prefer this kind of insurance because it's easier and less time-consuming to get and because it's a viable option for those with pre-existing conditions. No medical life insurance is often more expensive than a standard policy as insurance providers have less information to evaluate your health. People in good health tend to opt for standard policies, instead.
• Guaranteed life insurance falls under the category of no medical life insurance – the coverage is available without having to complete a medical questionnaire or undergo a physical exam. This type of insurance generally costs more than term coverage, and the payout is usually maxed out at a much lower rate (typically between $25,000 and $50,000). Because there is a lower payout, guaranteed life insurance is generally for people who have not been able to obtain alternate insurance. It’s ideal for those who are seeking coverage to cover potential funeral costs, and it is generally sought by elderly individuals.
• Mortgage life insurance is effectively a form of guaranteed life insurance. This type of coverage uses your life insurance policy to pay off your remaining mortgage upon your death. This can be a great option if you want to ensure that your dependents are able to remain in your house upon your demise – especially if they are unable to make the payments independently. With a mortgage life policy, your premiums will often be used against your mortgage as well, but when and if your mortgage is paid off, your premium will remain the same. It's important to note that your mortgage lender will be listed as the beneficiary in a mortgage life policy. So even if you pay off your mortgage in advance of your death, your dependents will not be entitled to your death benefit. For this reason, mortgage insurance is more restrictive than traditional life insurance – it's not advisable to purchase mortgage life insurance before other forms of life insurance.
• Joint first-to-die term life insurance is a policy that covers two individuals under one plan. As the name suggests, the policy pays out when one of the two named individuals dies. This term policy is generally cheaper than two individual life insurance plans, but it's also terminated after the first individual passes away. In this event, if the surviving party named in the insurance policy wants to continue to have coverage, they will have to re-apply individually.

The beneficiary is the person who will receive the payment of your insurance policy. You can name anyone you want – your partner, a family member, a dependent, or even a charity. And if you want, you can even name more than one beneficiary, as well as instruct the insurance company on how to allocate the premiums.

Your beneficiary can be either revocable or irrevocable – if your beneficiary is irrevocable, you need their signed agreement to change who is named. With life insurance in Quebec, if you name your spouse as a beneficiary, they automatically become irrevocable unless you explicitly designate otherwise.

There isn't a designated age at which you should purchase your life insurance policy – it all depends on your own needs (and the needs of those that depend on you financially). The general rule of thumb is that life insurance will be cheaper the younger you are, so purchasing coverage early can help lock in cheaper premiums.

However, you might not need life insurance in your 20s if you don't have a mortgage or children. Once you do start accumulating debt and providing for other people, you may want to consider life insurance – you wouldn't want to leave your loved ones in financial trouble in the event of your passing.

While life insurance covers most causes of death, here are a few situations in which a payout could be denied:

• Risky activities – Deaths due to high-risk jobs and activities, such as scuba diving, may not be covered, depending on the circ*mstances. If you engage in these, be sure to inform your insurer ahead of time.
• Suicide – While life insurance does generally cover suicide, there is usually a set period of time in which the death won't be covered – typically within the first two years of an active policy.
• Murder – If your beneficiary commits your murder (or is closely tied to it), they won't be receiving your death benefit. Instead, the money goes to either your contingent beneficiary or your estate.
• False information – Lying to your insurance company during the application process can be grounds for denying a payout when your beneficiaries need it the most. So it's best to stay truthful, even if you'll face higher rates.

Ratehub.ca works with partners to help you compare life insurance quotes from over 20 of Canada's top providers in one go. You won't need to visit multiple brokerages or insurers in order to find the cheapest option for your needs – we shorten the process for you.

Each life insurance quote is calculated using the insurance company's own underwriting process, so you can receive an accurate estimation based on your individualized profile.