When most Canadians think of life insurance, they ask 2 questions:
- How much do I need?
- What will it cost?
Chances are you’ve got the same questions.
The truth is, there isn’t always an easy answer to either question.
That’s because there are several types of life insurance products available, and every person has unique life insurance needs.
On top of that, there are other factors which play a role in the cost of life insurance.
- Your age
- Your overall health
- Lifestyle risk
- If you smoke
We wrote this post to help you get an idea of what term life insurance costs in Canada, as well as what kind of coverage might be right for you, and the best way to get it.
Speak with a life insurance broker
Before we look at the cost of term life insurance in Canada, I encourage you to speak with a life insurance broker for more information.
When you seek advice from an insurance professional, they can help you decide how much coverage you need based on information such as your health, lifestyle habits, occupation, and income.
An insurance professional will also go over the two main types of life insurance (term life insurance and permanent) with you in detail.
What is term life insurance?
Term insurance is for a set period of time and a set amount of coverage (you can use our Instant Life Quotes tool today to get a quote.)
It could look something like this:
$400,000 in life insurance coverage for 10 years: After the 10 years runs out, your coverage ends, unless you have a convertible policy.
If you want to find out more about converting a term policy to a permanent policy, visit this post.
What is permanent life insurance?
Permanent insurance, on the other hand, does not expire, and these policies combine a death benefit with a savings portion.
This means permanent life insurance policies are usually more expensive than term, but they are more beneficial than term for certain individuals and situations.
For the purpose of today’s article, we’ll be focusing on term life insurance policies. But if you’d like to learn more about permanent insurance, click here.
Now, let’s get to what a term life insurance policy could cost you in Canada.
The average cost of term life insurance in Canada
Here are the average premiums for a term life insurance policy based on a 10-year term policy with $500,000 coverage for non-smokers.
- Male 30 – $25/mth
- Female 30 – $18/mth
- Male 40 – $31/mth
- Female 40 – $22/mth
- Male 50 – $73/mth
- Female 50 – $50/mth
- Male 60 – $221/mth
- Female 60 – $156/mth
Remember, these premiums vary depending on several factors.
If you’d like to see brokered term life rates by age, you can use this form.
Can I afford life insurance?
As you can see, term life insurance can be very affordable, but it will cost more if you smoke.
To help you determine if you can afford life insurance, let’s put the cost of a policy in perspective.
If you’re between 25 and 50 and don’t smoke, the monthly cost for life insurance protection is just over half the price of getting a Starbucks coffee each workday!
Even if you are 50+ years old, life insurance is still cheaper than a daily coffee run.
If you eat out regularly at fast-food restaurants, you’re probably paying more than what you would pay for life insurance coverage (not to mention upping your coverage costs because too much fast-food can play a role in health problems).
The team at Shelter Bay Financial Corp., is made up of experienced insurance professionals who can help you calculate how much insurance you need, as well as which policy best suits you and your budget best.
Give us a call today at 1.888.498.5288 or contact us here for more information.
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This article was originally published on June 1, 2017, and has been updated.