What makes term life insurance affordable?
Term life insurance is affordable because it provides pure protection during the period of your life you need it most. It’s also one of the straightforward and common types of life insurance in Canada because it has no savings or investment component.
With term life insurance, you get the flexibility to choose how much coverage you need and for how long, so you can choose a policy that works for your financial situation.
Blue Cross Life offers affordable term life insurance through a simple, fully online experience that helps keep costs lower than many traditional insurers.
|
10-Year Term
|
15-Year Term
|
20-Year Term
|
|---|---|---|---|
 |
$14.22
|
$18.18
|
$20.39
|
RBC |
$15.89 |
$19.85 |
$21.06 |
BMO |
$15.75 |
$20.25 |
$21.60 |
Manulife |
$16.35 |
Term length not offered |
$21.52 |
Sun Life |
$16.65 |
$21.15 |
$23.85 |
TD Insurance |
$20.70 |
Term length not offered |
$27.00 |
|
10-Year Term
|
15-Year Term
|
20-Year Term
|
|---|---|---|---|
|
$21.69
|
$25.34
|
$29.21
|
RBC |
$23.36 |
$27.27 |
$29.59 |
BMO |
$25.20 |
$27.45 |
$31.50 |
Manulife |
$24.18 |
Term length not offered |
$30.93 |
Sun Life |
$25.20 |
$29.25 |
$34.20 |
TD Insurance |
$28.80 |
Term length not offered |
$35.10 |
Tips for getting lower term life insurance premiums
Finding affordable term life insurance is often easier than you think. But there are a few tips that can help you maximize your coverage and cost savings.
- Start out with a shorter term: If you’re getting a policy when you’re young and you’re concerned about your growing financial responsibilities impacting your budget, a shorter term is a great way to secure some coverage at an early age. You may be able to ladder additional coverage as your needs change and renew at the end of your term.
- Avoid getting overinsured: Larger coverage amounts often come with higher premiums. You want enough coverage to cover all your financial obligations but not more than you need. Too much coverage can make rates less affordable without added benefit.
- Apply sooner than later: The younger and healthier you are, the more affordable your rates usually are. So, securing a policy earlier on can help you save on overall life insurance costs down the road.
- If possible, apply with your partner: When you sign up with a spouse for a Blue Cross term life insurance policy, you enjoy 10% off the cost of your first-year premiums.
- Bridge the gap to retirement: If you’re considering retiring soon, shorter-term life insurance policies can cover any outstanding debts and financial obligations while keeping rates affordable, especially for those who may lose access to employer-provided group benefits at retirement.
- Smoking status affects your premium: Smokers often pay 2–3 times more than non-smokers for comparable coverage. If you've been tobacco-free for more than 12 months, you may be eligible for non-smoker rates.
What affects your term life insurance premium?
Term life insurance rates are affected by a range of factors. Every insurance provider calculates premiums a bit differently, but here are some of the biggest considerations.
- Age: Typically, the younger you are, the healthier you are. So the earlier you apply, the lower your premiums typically are. It also locks your rate in for the full term.
- Sex at birth: Actuarial data show different baseline rates for men and women, which is why you’ll see different rates depending on your sex at birth.
- Coverage amount: Higher coverage amounts usually come with higher rates.
- Term length: Longer terms typically cost more per month because the insurer carries the risk for longer.
- Health history: Pre-existing conditions can affect both eligibility and premiums.
- Lifestyle factors: High-risk hobbies and certain occupations can also raise premiums.
- Smoking status: Smokers typically pay 2 to 3 times more than non-smokers for the same coverage.
While you’re unable to influence some of the contributing factors, such as health history or age, certain changes—such as quitting smoking, finding new hobbies, or choosing a different coverage amount—can help lower your premiums.
Balancing cost and coverage in term life insurance
Choosing term life insurance often means balancing the coverage you need with a premium that fits your current financial situation. You want to make sure there’s enough to cover any debts or financial obligations while avoiding more premiums than necessary.
As a general rule, most financial experts recommend coverage of 7 to 10 times your annual income as a starting point. For example, a Canadian earning $80,000 a year with a mortgage and two children might choose $500,000 to $750,000 of coverage on a 20-year term.
Each person's situation is unique, so spend some time thinking about what you really need from your term life insurance policy. Here are some questions to consider:
- How long do I need protection?
- How much coverage would I need for my loved ones to continue living at their current quality of life?
- How much outstanding debt do I have? (i.e. mortgages, credit cards, etc.)
- What is the cost of living in my province?
- What kinds of support might my children/partner/aging parents require in the future (i.e. weddings, funerals, etc.)
- What income would my partner need to live comfortably without me?
Blue Cross Life’s team of expert insurance advisors can provide insights based on your specific needs and situation. You can get an affordable term life insurance quote in seconds to start reviewing your options right away.
What to look for in an affordable term life insurance company
Finding the right term life insurance policy starts with finding the right insurer. While affordability is often a key consideration when shopping for life insurance, the cheapest quote may not always be the best value if it doesn’t provide the coverage you need.
Some factors you should consider when evaluating a term life insurance company include:
- Does the coverage range meet my needs?
- What are the term lengths offered?
- Is there a no-medical option?
- Is a child coverage available? (For example, Blue Cross Life offers $10,000 in free life insurance for each dependent child.)
- Are there cost savings for couples?
- What is the application process and timeline like?
- How simple is the claims process?
Considering the flexibility, personalization, and cost-effectiveness of each policy as a whole can help you find the best coverage while keeping costs low.
How term life insurance compares to whole life on cost
One of the biggest pros of term life insurance over whole life insurance is cost. Term life insurance provides coverage for a set period when your financial obligations are highest, usually 10 to 30 years. On the other hand, whole life insurance provides lifetime coverage and can include a savings component. These additional features can make whole life insurance several times more expensive than comparable term life insurance.
For example, published rates show that a healthy 35-year-old non-smoker might pay around $25 per month for a 20-year term policy with $500,000 of coverage, while a comparable whole life policy could cost $300 or more per month.
Most Canadian families find that term life insurance is a better choice for temporary coverage of financial obligations, such as a mortgage, raising children, or replacing lost income. Whole life insurance is usually a better choice for lifelong needs, like estate planning or providing for dependents who need financial support for life.
Learn more about the differences between term, whole, and universal life insurance.
Comparing affordable term life insurance options with Blue Cross Life
Blue Cross Life offers some of the most affordable term life insurance options in Canada. With customizable policies and competitive rates, getting coverage has never been simpler.
- Flexible terms: Term lengths from 10 to 30 years.
- Customizable coverage: Coverage amounts ranging from $100,000 to $5 million.
- Free life insurance for children: $10,000 in free coverage for each dependent child included with every policy.
- Couples' savings: Get 10% off first-year premiums when you apply for coverage together.
- Simple application process: Most eligible applicants can complete the application in less than 20 minutes with no medical follow-up needed.
If you have any questions along the way, our licensed insurance advisors are ready to help. Get started with a free, no-obligation quote and see your personalized rate in seconds.
FAQs: Affordable Term Life Insurance in Canada
Term life insurance in Canada can cost as little as $15 per month. Your premium will depend on factors such as your age, health, smoking status, coverage amount and term length. Getting a personalized quote is the best way to find out how much term life insurance will cost for you.
Yes, term life insurance is generally less expensive than whole life insurance. Term life insurance provides coverage for a set period and does not include the savings component that whole life insurance can offer. These additional features can make whole life insurance several times more expensive than comparable term coverage.
Learn more about the differences between term, whole, and universal life insurance.
Not always. Most eligible applicants with Blue Cross Life do not need a medical exam, although this can depend on factors such as age, health and coverage amount.
If additional information is needed, medical follow-up may be requested during the application process. Our advisors will guide you through each step, and you won’t need to find your own doctor or clinic.
Learn more about how no-medical exam life insurance works.
How much life insurance coverage you need depends on your individual financial situation. A common starting point is coverage equal to 7 to 10 times your annual income, but the right amount for you may depend on factors like:
- Number of dependents
- Daily living expenses
- Your mortgage or rent payments
- Future costs, like education or final expenses
- Existing savings or coverage
For a more personalized estimate, explore the Financial Consumer Agency of Canada’s guide to life insurance needs.
Life insurance rates generally rise with age, in part because the risk of health-related issues also increases. But term life insurance can be more affordable than you think, even as you get older.
Your actual premium will depend on your individual circumstances. Get a free, no-obligation life insurance quote from Blue Cross Life to see your personalized rate.
Yes, you may qualify for lower life insurance rates after you quit smoking. With Blue Cross Life, applicants who have been tobacco-free for more than 12 months may be eligible for non-smoker rates.
If you already have a policy, contact your insurer to find out whether you can request a rate change or need to apply for new coverage.