Which Companies Offer Affordable Term Life Insurance Plans in Canada?
Term life insurance is already the most affordable type of life insurance — but the company you buy from makes a huge difference. For identical $500,000 coverage, the cheapest and most expensive Canadian insurer can differ by 30–50%. This guide ranks the most affordable term life insurance companies in Canada and shows you how to lock in the lowest rate.
Updated February 27, 2026
Last reviewed by the licensed advisor team at LowestRates.io
The most affordable term life insurance companies in Canada
Direct answer: The lowest-cost term life insurer depends on your age and health profile, but Desjardins, Empire Life, Manulife, and Sun Life are frequently among the most competitive in Canada. Always compare multiple quotes before buying.
Based on 2026 rate data for a healthy non-smoker purchasing $500,000 in 20-year term life insurance, these companies consistently deliver the lowest premiums:
1. Desjardins Insurance
Why it's affordable: Desjardins is Canada's largest cooperative financial group and frequently offers the lowest base term life rates in the market. Their streamlined underwriting keeps costs down.
Approximate rate (age 30, $500K, 20yr): $20–$28/month
Available in: All provinces | Terms: 10, 20, 30 years
Desjardins Life Insurance
2. Empire Life
Why it's affordable: Empire Life, headquartered in Kingston, Ontario, is a mid-size insurer known for aggressive pricing on term and universal life. Their rates are consistently among the lowest for healthy applicants.
Approximate rate (age 30, $500K, 20yr): $21–$30/month
Available in: All provinces | Terms: 10, 20, 30 years
3. Manulife Financial
Why it's affordable: Canada's largest insurer offers competitive base rates, plus the Manulife Vitality wellness program — which can reduce premiums by up to 15% for active policyholders.
Approximate rate (age 30, $500K, 20yr): $22–$34/month (before Vitality discounts)
Available in: All provinces | Terms: 10, 20, 30 years
Manulife Life Insurance
4. Sun Life Financial
Why it's affordable: Sun Life offers competitive rates for healthy applicants and their Sun Life Go digital platform allows online-only applications with fast approval — often at preferred pricing.
Approximate rate (age 30, $500K, 20yr): $22–$35/month
Available in: All provinces | Terms: 10, 20, 30 years
Sun Life Insurance
5. Canada Life (Great-West Lifeco)
Why it's affordable: Canada Life offers competitive term rates with excellent conversion privileges and the strongest estate planning products in the market.
Approximate rate (age 30, $500K, 20yr): $22–$36/month
Available in: All provinces | Terms: 10, 20, 30 years
6. RBC Insurance & BMO Insurance
Bank-affiliated insurers offer convenience for existing banking clients. Their rates are typically 10–20% higher than the cheapest independent insurers but still competitive. RBC Insurance is headquartered in Mississauga; BMO Insurance in Toronto.
Affordable term life insurance rates comparison (2026)
| Age | Cheapest rate | Average rate | Most expensive |
|---|---|---|---|
| 25 | $16–$20/mo | $22–$28/mo | $30–$40/mo |
| 30 | $20–$25/mo | $28–$35/mo | $38–$50/mo |
| 35 | $25–$32/mo | $35–$45/mo | $48–$65/mo |
| 40 | $33–$42/mo | $45–$60/mo | $65–$88/mo |
| 45 | $48–$62/mo | $68–$90/mo | $95–$130/mo |
| 50 | $75–$95/mo | $100–$130/mo | $145–$195/mo |
Rates shown for healthy non-smoker, $500K, 20-year term. The cheapest provider varies by individual profile.
6 tips to get the most affordable term life rate
- Compare 50+ providers at once. LowestRates.io shows you every option in about three minutes.
- Buy young. Every year of delay costs 8–12% more. A 25-year-old pays roughly half what a 35-year-old pays.
- Don't smoke. Non-smoker rates are 2–3× cheaper. Even quitting for 12 months qualifies you for non-smoker pricing.
- Right-size your coverage. Use the free calculator — don't pay for more than you need.
- Consider laddering. Two smaller policies with different terms can be cheaper than one large policy.
- Pay annually. Many insurers offer a 5–8% discount for annual vs monthly payment.
Frequently asked questions
Which company has the cheapest term life insurance in Canada?
Desjardins and Empire Life frequently offer the lowest base rates. Manulife can be cheapest with Vitality discounts. The cheapest varies by your profile — comparing 50+ providers is the only way to find your lowest rate.
How much does affordable term life insurance cost?
A healthy 30-year-old non-smoker can get $500,000 in 20-year coverage for as little as $20–$30/month from the most competitive insurers. At 40, expect $35–$50/month from the cheapest providers.
Is bank term life insurance affordable?
Bank life insurance is convenient but typically 15–30% more expensive than the cheapest independent insurer. Always compare before buying through your bank.
Find the most affordable term life insurance for you
Get your free quote now — compare Desjardins, Empire Life, Manulife, Sun Life, Canada Life, and 50+ providers in about three minutes.
Related reading: Term Life Insurance Canada · Compare Cheap Quotes · Top Companies in Canada · Manulife Review · Sun Life Review
Also compare 30 year term life insurance in Canada if you need longer protection, and see where to get life insurance in Canada if you are searching for life insurance near me.