Finding the best term life insurance companies to protect your loved ones can be daunting, given the number of providers available in Canada. This extensive guide will help you make the optimal choice by exploring the top term life insurance companies based on a rigorous analysis of over 15 leading insurers.
A Brief Introduction to Term Life Insurance
Before diving into the top providers, let’s briefly overview what term life insurance is and why it’s essential for many Canadians.
Term life insurance provides a set death benefit to your beneficiaries if you pass away during a specified term length, usually 10 to 30 years. It gives financial protection to your loved ones for a set period where your income is needed to cover expenses, debts, education costs, and more.
Premiums are guaranteed not to increase during the term. Term life insurance is generally the most affordable type of life insurance compared to permanent options like whole life. It’s a simple, straightforward way to gain vital coverage.
How We Selected the Best Term Life Insurance Companies
Choosing the best term life insurance companies requires rigorous analysis across many factors. Our team spent over 80 hours evaluating providers based on the following:
Cost – We obtained sample quotes for 30- and 40-year-old healthy males and females across various term lengths (10 year term life insurance, 20 year term life insurance, 30 year term life insurance) and coverage amounts ($250k, $500k, $1M, $2M).
Financial Strength – We verified A.M. Best’s and other agencies’ ratings to confirm long-term financial stability.
Features – We compared available term lengths, coverage amounts, riders, special options like no medical exam policies, and ability to convert to permanent insurance.
Customer Service – We evaluated ratings for overall customer satisfaction, complaints, ease of getting a quote and purchasing insurance online.
Company Reputation – We assessed each insurer’s history, management team strengths, and overall reputation based on third-party reviews and ratings.
Reviews of the Top 6 Term Life Insurance Companies
Before diving in, here is a quick overview comparing the key features and benefits of the top 6 providers:
| Company | AM Best Rating | Policy Term Life Insurance Lengths | Coverage Amounts | Conversion to Permanent |
| BMO Insurance | A+ Superior | 10-30 years | Up to $5M | Before age 75 |
| Canada Life | A+ Superior | 5-50 years | Up to $25M | Yes |
| Sun Life | A+ Superior | As low as one year | Up to $25M | Before age 75 |
| Wawanesa Life | A- Excellent | To age 80+ | Up to $5M | Before age 70 |
| Manulife | A+ Superior | Up to $10M | 10+ years | Yes |
| RBC Insurance | AA Stable | 10-30 years | Up to $10M | Yes |
After extensive research, the following providers emerged as the top term life insurance companies in Canada for 2024 based on the criteria above.
BMO Insurance
As Canada’s oldest bank, formed in 1817, BMO Insurance offers trusted term life insurance backed by solid financials (AM Best: A+ Superior).
Critical advantages of BMO Insurance term life include:
- Renowned Provider – You get the backing of a major national brand that’s been in business for over 200 years.
- Flexible Term Lengths – You can select a term length that fits your needs, from 10 to 30 years.
- Conversion Options – BMO term policies allow you to convert to permanent life insurance any time before age 75 without requiring further medical underwriting.
- Digital Quotes – It’s quick and easy to get a term life insurance quote right on BMO’s website.
Canada Life
Canada Life is a leading insurance provider in Canada and delivers highly flexible term life insurance options. The company has over $220 billion in assets and an excellent AM. It has a Best rating of A+ Superior.
Reasons we highly recommend Canada Life term insurance:
- Customizable Terms – You can select any term length between 5 and 50 years to match your needs.
- Policy Conversion – Canada Life term policies can be converted to a Canada Life permanent life insurance policy.
- Broad Riders – There are extensive optional riders to enhance your coverage, like disability waiver of premium and child life insurance.
- Financial Strength—Canada Life’s strong balance sheet and assets provide confidence that it can pay out claims for decades to come.
Sun Life
Backed by over 150 years of experience, Sun Life offers trusted term life insurance products and stellar financials (AM Best: A+ Superior).
Sun Life is a top pick for:
- Quick Coverage – You get free 90-day temporary coverage when applying for coverage.
- Digital Applications – You can apply online for Sun Life’s Go Term and Go Simplified policies.
- Policy Selection – Sun Life gives you access to four different term insurance options to suit different needs.
- Customer Service – Sun Life scores well for customer satisfaction, complaints, and service quality.
Wawanesa Life
Wawanesa Life offers excellent flexibility with its term life insurance product and has a solid A- rating for financial strength from A.M. Best.
Reasons we recommend Wawanesa Life term insurance include:
- Long Terms – You can get term coverage in increments up to age 80, then renew annually to age 100 if needed ( Read more: Term to 100 Life Insurance )
- Rider Selection – Wawanesa offers valuable optional riders like disability waivers of premiums and accidental death.
- Healthy Rewards – You can get discounts on premiums by living a healthy lifestyle.
- Competitive Value – Wawanesa is known for competitive pricing, especially for applicants in excellent health.
Manulife
Manulife, formed in 1887, is one of Canada’s largest and oldest insurers. The company offers flexible term life insurance backed by its strong A+ rating from A.M. Best.
Benefits of Manulife term life:
- No Medical Exam – Manulife provides fully underwritten term policies and requires no medical exam.
- Digital Applications – You can apply directly online through Manulife’s website.
- Reputable Brand – Manulife has a longstanding history and reputation across Canada.
- Customer Loyalty – Manulife scores very well regarding overall customer satisfaction and service.
Read full review: Manulife Canada
RBC Insurance
As one of Canada’s “Big Six” banks, RBC provides trusted term life insurance products backed by excellent financials (DBRS Rating: AA).
Key features that make RBC Insurance a top contender:
- Digital Quotes – You can get an instant term life quote estimate online by answering quick questions.
- Safe Insurer – RBC has over $1.3 trillion in assets backing the policies it issues.
- Industry Experience – RBC has operated in Canada since 1864.
- Satisfied Customers – RBC consistently earns very high scores for customer satisfaction.
Key Term Life Insurance Statistics in Canada
Understanding how Canadians use term life insurance can further help guide your coverage decisions:
- Canadians held over $8.1 trillion in total life insurance coverage in 2021, according to CLHIA.
- Over 31 million Canadians have some form of life insurance coverage.
- 70% of life insurance purchases in Canada are term policies.
| 2021 | 2020 | |
| Total coverage ($T) | $8.13 | $7.78 |
| Individual coverage ($T) | $4.37 | $4.19 |
| Group Coverage ($T) | $3.76 | $3.59 |
| # of Policies (M) | 54.0 | 53.8 |
- The #1 reason Canadians buy life insurance is to replace income for dependents.
- The average face value of individual life insurance policies was $175,529 in 2021.
- Research shows that over 75% of millennials still lack life insurance coverage.
How to Choose the Best Term Life Insurance Company for You
While life insurance companies offer excellent term life insurance options, picking the right one still depends on your specific situation, needs, budget, and preferences.
We recommend:
- Comparing quotes from at least 3 of the top insurers highlighted earlier.
- Evaluating costs for your age, gender, health status, lifestyle, and desired amount of coverage.
- Assessing which available term lengths, policy benefits, and features suit you best.
- Check the financial strength and customer satisfaction ratings for any provider you’re considering.
- Paying attention to the ease, speed, and convenience of getting a quote and buying a policy online.
- Ask providers about any discounts, deals, or ways to lower your rates based on your situation.
Getting the proper term life insurance coverage can provide tremendous peace of mind, knowing your loved ones will be taken care of financially if you pass away unexpectedly.
What To Look For When Evaluating Term Life Insurance
The best way to choose term life insurance is to understand the key factors that impact policy quality, fit, and pricing. Be sure to consider:
Match the Death Benefit To Your Needs
Take the time to calculate the financial protection your beneficiaries need through a term life policy. Standard rules of thumb are to cover 10-15 times your annual income or enough to pay off debts like a mortgage.
Compare Quotes From Multiple Insurers
Shopping with various highly-rated insurers can help uncover the most competitive pricing. Insurers weigh applicant factors differently, so quotes vary significantly between providers.
Verify the Insurer’s Financial Strength
Opt for an established insurer with a top financial strength rating from agencies like A.M. Best. This helps ensure they can pay out claims even decades down the road.
Review Length of Term
Evaluate term lengths that closely align with the time period loved ones will need your income or support. Terms of 10, 20, or 30 years are the most common.
Assess All Available Policy Features
Understand the riders and benefits available to enhance your coverage for accidental death, terminal illness, disability, or critical illness. These can provide added protection.
Consider No Medical Exam Options
Considering underwriting process, consider simplified issue-term life policies with fewer health questions and no complete medical exam required. This can streamline getting coverage.
Check Conversion Options
Many term life policies allow you to convert to permanent insurance later without further medical underwriting, providing flexibility as your needs evolve.
Weigh the Customer Service Reputation
Research customer satisfaction, complaints data, and service ratings for any provider you’re considering to find one that excels at supporting and treating policyholders right.
Finding the best term life insurance company for your needs takes research. We hope this guide has armed you with extensive knowledge to make an informed decision.
FAQs about Best Term Life Insurance Companies in Canada
What is the best term life insurance company?
The best term life insurance company depends on your specific needs and situation. Based on our research, top picks are PolicyMe, BMO, Canada Life, Sun Life, Wawanesa, Manulife, and RBC Insurance.
How do I choose the right term life insurance?
Choosing the right term life insurance involves comparing costs, financial ratings, features, term lengths, reputation, and customer service between providers. Match coverage to your budget and needs.
What benefits do term life policies provide?
Term life policies solely provide a death benefit payout. Some also offer optional riders providing living benefits for terminal/critical illness or disability, or coverage for your children.
How do I get the cheapest term life insurance?
Tips for cheap term life insurance include maintaining good health, comparing quotes, looking at group rates, choosing longer terms, paying annually, and buying adequate but not excessive coverage.
Who offers the cheapest term life insurance?
The cheapest term life insurance companies in Canada based on our rate analysis are PolicyMe, BMO Insurance, Canada Life, Wawanesa, Symetra, and RBC Insurance on average.
What are term life insurance riders?
Riders provide added benefits on top of the base death benefit. Common term riders include waiver of premium, accelerated death benefits, accidental death, children's coverage, and terminal illness riders. Most cost extra.
When do term life insurance benefits get paid out?
Term life insurance pays out benefits after the insured person dies during the term, as long as the cause of death is covered under the policy terms. Payouts are made to the listed beneficiaries.
Article Sources:
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- The 7 Best Term Life Insurance Companies – https://lifeinsure.com/
- Best Term Life Insurance Companies: Expert-Rated In 2025 – https://www.forbes.com/
- 7 Best Term Life Insurance Companies for May 2024 – https://marketwatch.com/
- 7 Best Term Life Insurance Companies in May 2024 – https://www.nerdwallet.com/
- Best Term Life Insurance in Canada: Top Companies and Policies (2024) – https://policyme.com/
