Key takeaway
The cheapest term life insurance in Canada for 2026 comes from Desjardins and Empire Life for healthy non-smokers under 45. A healthy 30-year-old can get $500K of 20-year term for as little as $20–$25/month. For ages 45–60, iA Financial and Sun Life (fully underwritten) often deliver the lowest rates. Compare 50+ providers at LowestRates.io.
Cheapest term life insurance by age ($500K, 20-year, non-smoker)
Age 25: $14–$20/month — Cheapest: Desjardins, Empire Life. Age 30: $20–$25/month — Cheapest: Desjardins, Empire Life. Age 35: $25–$35/month — Cheapest: Desjardins, iA Financial. Age 40: $36–$50/month — Cheapest: Manulife (Vitality), Empire Life. Age 45: $52–$75/month — Cheapest: iA Financial, Empire Life. Age 50: $82–$118/month — Cheapest: Sun Life (fully underwritten), Empire Life.
Age 55: $120–$175/month — Cheapest: Sun Life, Canada Life. Age 60: $185–$290/month — Cheapest: Sun Life, Canada Life. These are 2026 rates for the cheapest available carriers for healthy, preferred-class non-smokers. Your rate may differ based on health classification.
Why Desjardins and Empire Life are often cheapest
Desjardins and Empire Life consistently deliver the lowest term premiums for healthy applicants under 45 because they aggressively price their standard term products to capture market share. Both offer fully underwritten coverage with competitive conversion privileges.
The trade-off: these carriers may have less underwriting flexibility for complex health cases. If you have pre-existing conditions, a larger carrier like Sun Life or Manulife may actually offer a lower rate because their underwriting team can evaluate nuance rather than applying strict guidelines.
How to guarantee the cheapest rate
1. Compare 50+ providers on LowestRates.io — the single most impactful action. 2. Apply while you're young — premiums increase 8–12% per year after 30. 3. Choose fully underwritten over simplified-issue (saves 15–25%). 4. Optimize your health before applying: quit smoking 12+ months before, manage blood pressure, achieve healthy BMI. 5. Choose the shortest adequate term (10-year is 40–50% cheaper than 20-year).
6. Pay annually instead of monthly (saves 3–5%). 7. Consider policy laddering — stack a 10-year and 20-year policy to match declining obligations. 8. Ask about preferred health classifications — many carriers have 3–4 tiers, and qualifying for the top tier saves 20–30%.
Cheap term life insurance in Ontario specifically
Ontario residents pay the same life insurance rates as all other Canadians for the same carrier and product. There is no 'Ontario premium' or 'Toronto surcharge' — rates are based purely on age, health, and coverage amount. This means Ontario residents have access to the same cheapest carriers as everyone else in Canada.
However, Ontario families typically need more coverage due to higher home prices ($1.1M average in Toronto), which makes finding the cheapest rate even more important. A $15/month difference on a $1M policy adds up to $3,600 over 20 years.
Frequently asked questions
What is the cheapest term life insurance in Canada?
Desjardins and Empire Life offer the cheapest term rates for healthy non-smokers under 45. A 30-year-old can get $500K of 20-year term for $20–$25/month. Compare at LowestRates.io to find your specific lowest rate.
Can I get term life insurance for under $20/month in Canada?
Yes. Healthy non-smokers aged 25–30 can get $500K of 20-year term for $14–$20/month from Desjardins or Empire Life. For $250K coverage, rates under $15/month are common for young, healthy applicants.
Is cheap term life insurance reliable?
Yes. All Canadian life insurers are regulated by OSFI and backed by Assuris. A cheap policy from Desjardins or Empire Life carries the same regulatory protection as an expensive policy from a bank insurer.
What's the cheapest term length to buy?
10-year term is 40–50% cheaper than 20-year term. A 35-year-old can get $500K 10-year term for $15–$22/month versus $25–$35/month for 20-year. Choose the shortest term that covers your longest obligation.