$250,000 Life Insurance — Affordable Coverage for Canadians

Monthly cost of $250K life insurance by age

Premiums for $250,000 of 20-year term life insurance are among the most affordable policies available. A healthy 25-year-old non-smoker pays as little as $12–$18/month, while a 35-year-old pays $15–$25/month. Even at age 50, coverage costs approximately $50–$80/month.

When $250K is enough — and when it is not

$250,000 provides roughly 3 to 5 years of income replacement for a Canadian earning $50,000 to $80,000. Combined with savings, CPP Survivor's Benefit, and employer death benefits, this can bridge the gap for a surviving partner with no mortgage or a small remaining balance.

If you have a mortgage exceeding $200,000, dependents who need more than 5 years of support, or high household expenses, $250K will likely fall short. Use the 10–12x income formula as a benchmark: if your income is above $25,000, you probably need more than $250K.

How to get the lowest rate on $250K coverage

Compare quotes from 50+ providers. At this coverage level, the spread between cheapest and most expensive insurer is typically 40–60%, which can mean a difference of $5–$15/month.

Consider no-medical-exam options. Several Canadian insurers offer simplified issue coverage up to $250,000 with just a health questionnaire. Premiums are slightly higher but approval takes 24–48 hours instead of 4–6 weeks.

Lock in coverage early. The cost difference between buying at 25 vs 35 is significant — approximately $3–$7/month less for the same coverage. Over a 20-year term, that savings totals $720–$1,680.