Here is a number worth sitting with. Of the roughly $2.3 billion in new annualized premium that Canadians committed to individual life insurance in 2025, about 70% went to whole life and only 18% to term, according to LIMRA's year-end sales figures. Yet if you ask most personal-finance writers what a 35-year-old with a mortgage and two kids should buy, you will hear the opposite answer.

Both things can be true, and the gap between them is the interesting part of this decision.

Premium dollars are not the same as people

Whole life premiums are far higher than term premiums for the same death benefit, so a modest number of whole life policies produces a lot of premium. The 70% is a share of money, not a share of households. Still, the direction is notable: participating whole life made up most of the growth in 2025, and a separate industry study reported by Insurance Business found that term policy sales fell from about 397,000 in 2019 to about 340,000 in 2024. Canadians are not abandoning term, but fewer of them are starting it.

What term actually is

You pick an amount and a length, commonly 10, 20 or 30 years. Die inside that window and your beneficiaries receive the death benefit tax-free. Outlive it and the policy ends with nothing paid out. That sounds like a bad deal until you remember what you are buying: income protection for the specific years when other people depend on your pay cheque. Your mortgage has an end date. So do your kids' school years.

Two details trip people up. First, check whether the term is renewable and what the premium does at renewal, because it usually jumps sharply since you are older. Second, ask about conversion, the right to switch to a permanent policy later without a new medical review. If your health changes during the term, that option can be worth more than anything else in the contract.

What whole life actually is

Whole life lasts as long as you do, as long as the premiums are paid. A portion of what you pay builds cash value inside the policy. With a participating policy, the insurer may also pay dividends, which are not guaranteed. The price of all this is simple: the premium is often several times what a term policy of the same size would cost.

Whole life has real uses. If you want to leave an estate to someone no matter when you die, if you own a business and need to fund a succession plan, or if you have a family member who will need support for life, permanent coverage solves a problem that term cannot. The argument against it for a young family is usually about opportunity cost: the money going to the higher premium is money that is not going to your RRSP, TFSA or RESP.

A way to decide without a sales pitch

• Ask yourself what the insurance is for. If the answer has an end date (a mortgage, a child reaching adulthood), term fits the shape of the problem.
• If the answer is "whenever I die, I want something left," look at permanent coverage, and ask to see the guaranteed values separately from the projected ones.
• If you are tempted by whole life mostly because the premium never expires, remember that the premium also never gets cheaper. Ask what you would do with the difference if you bought term instead.
• Whichever you pick, you generally have a short review window after delivery of the policy. In Quebec, most insurers offer a 10-day period to return it for a refund.

The honest summary: term is the right tool for the most common need, and whole life is the right tool for a narrower set of needs. A good advisor will tell you which one you are, even when the commission on the other is larger.

Sources

• LIMRA, 2025 Canadian life insurance new premium
• Insurance Business, One in three Canadians underinsured (June 2026)
• Quebec life insurance FAQ, review period

General information only, not personal advice. Covaria is a comparison and referral platform, not an insurance broker. Talk to a licensed advisor before you buy.

The rule of thumb you have probably heard is "ten times your income." It is easy to remember and it is wrong for a lot of people, in both directions. A better approach takes about fifteen minutes and a pen.

Why this matters right now

Statistics Canada reported in September that Canadian households owed about $1.76 in credit market debt for every dollar of disposable income in the second quarter of 2026. That ratio actually eased from the first quarter, but it is still the backdrop for every family decision: if one income disappears, the debts do not.

An industry-linked study published this June, using Statistics Canada, CMHC and CLHIA data, estimated that the average household needs about $595,000 of coverage and holds about $509,000, a shortfall of roughly 14.5%. Treat that as indicative rather than gospel, since it comes from a company that sells insurance products, but the pattern it describes matches what advisors report: people have something, and it is usually less than they would need.

The four buckets

1. Debts. Mortgage, car loans, lines of credit, credit cards. Add them up. This is the number you would want gone on day one.

2. Income replacement. Take the after-tax income your family would lose and multiply it by the number of years it would take to get the kids to independence or your partner to a stable footing. Many people use 10 to 15 years. You are not trying to replace the income forever, just long enough to give people room.

3. Future costs you already know about. Post-secondary education, childcare, a funeral. These are specific and you can put a figure on them.

4. What you already have. Subtract savings, investments, and any coverage you already own. Include group insurance from work, but see the warning below.

A worked example (invented numbers)

Say a parent earns $80,000 and takes home about $62,000. Mortgage balance: $380,000. Other debts: $25,000. Income replacement for 12 years: $744,000. Education and final costs: $60,000. Total: about $1.2 million. Subtract $150,000 in savings and $100,000 of employer coverage. The gap is roughly $950,000. That is a very different answer from "ten times income," which would have said $800,000, and a different answer again for a single person with no dependants.

Don't count on the government to fill the gap

In Quebec, the Quebec Pension Plan does pay survivor benefits, but the amounts are modest relative to a lost salary. For 2026, Retraite Québec lists a lump-sum death benefit of up to $2,500 and an orphan's pension of $307.81 per month. Useful, but it will not cover a mortgage payment. The Canada Pension Plan has similar structure outside Quebec.

The employer coverage trap

About 59% of Canadians reported having life insurance through a group plan in 2025, according to the same industry study. Group coverage is convenient and cheap, but it is usually tied to the job. Change employers, get laid off, or go freelance, and the coverage can disappear exactly when your health may have changed. Many people keep a personal policy as a base and treat the group plan as a bonus.

Gig and self-employed workers are a growing version of this problem. That study put the share of Canadians doing gig work at around 28%, and said over one in five of them have neither health nor life insurance through any plan.

Revisit it

Redo the exercise when something big changes: a new child, a new mortgage, a divorce, a business launch. Coverage that was right in 2019 may be thin in 2026.

Sources

• Statistics Canada via BNN Bloomberg, household debt-to-income Q2 2026
• Insurance Business, underinsurance report (June 2026)
• Retraite Québec, 2026 benefit amounts

General information only, not personal advice. Covaria is a comparison and referral platform, not an insurance broker. Talk to a licensed advisor before you buy.

Move from Ontario to Quebec and your life insurance does not change much on paper. A death benefit is still a death benefit. But the rules around it, the regulator behind it and the public programs that sit next to it are different enough that a few things are worth knowing before you sign.

The regulator is the AMF

The Autorité des marchés financiers oversees insurers, brokers and agents who operate in Quebec. If someone sells you a policy in Quebec, they should be registered with the AMF, and you can check that on the regulator's public register at lautorite.qc.ca. It takes two minutes and it is the single most useful habit in the whole process.

You are in the Civil Code, not just a contract

Quebec insurance is governed by the Civil Code of Québec. One consequence that surprises people: article 2441 allows an insurer to refuse a claim if death by suicide occurs within two years of the policy being signed. That is not unique to Quebec in practice, but it is written into the code here, and it is one reason to read the exclusions section of any policy rather than skimming it.

The review period is another. Most insurers give you around 10 days after you receive the contract to change your mind and get your premium back. The AMF's consumer FAQ points out that this comes from the contract itself rather than from the law, so look for it in your paperwork rather than assuming it is there.

The QPP, not the CPP

Quebec runs its own pension plan, administered by Retraite Québec. Survivors can qualify for a death benefit (up to $2,500 in 2026), a surviving spouse's pension, and an orphan's pension for children (listed at $307.81 per month for 2026). These help, but they are designed as a floor. They will not replace a household income, which is why private coverage still matters for anyone with a mortgage or dependants.

Why this matters more than it sounds

Quebec has a large population of renters, a strong tradition of group benefits through employers and unions, and a family culture where multi-generational support is common. Each of those changes the question "how much do I need?" in different ways. If you rent and have a partner with a stable job, your answer may look nothing like a single-income family with a mortgage in Laval.

If your insurer fails

Life and health policyholders are backed by Assuris, an industry-funded protection plan, in the event that an insurer becomes insolvent. It is a safety net you will probably never need, but it is part of why the AMF register and an insurer's solvency matter.

Where Covaria fits

Covaria is a comparison and referral platform, not a broker, and we do not sell or advise on insurance. We help you see your options and send you to licensed providers. For anything binding, check the AMF register for the person or firm you deal with, and ask for documents in the language you are comfortable reading.

Sources

• Retraite Québec, 2026 benefit amounts
• AMF, life insurance FAQ

General information only, not personal advice. Covaria is a comparison and referral platform, not an insurance broker. Talk to a licensed advisor before you buy.

Having a child changes everything — including your financial priorities. If something happened to you tomorrow, would your family be taken care of? Life insurance is how you make sure the answer is yes.

Why new parents need life insurance

When you become a parent, someone depends on your income. Life insurance replaces that income if you're no longer around to provide it. It can cover your mortgage payments, childcare costs, education savings, and everyday living expenses for years.

The younger you are, the cheaper it is

Life insurance premiums are based largely on your age and health at the time of application. The younger and healthier you are when you apply, the lower your premiums will be — for the entire life of the policy. Waiting even a few years can meaningfully increase your cost.

How much do you need?

A simple starting point: multiply your annual income by 10–15. Then add your mortgage balance and estimated childcare costs. Covaria's coverage estimator on the home page can help you calculate a more personalized number in under a minute.

Life insurance doesn't have to be expensive. Here are five practical ways Canadians can reduce what they pay without sacrificing the coverage they need.

1. Apply when you're young and healthy

Premiums are lowest when you're young with no pre-existing conditions. Every year you wait costs more. If you've been thinking about it, the best time to apply is now.

2. Choose term over whole life

Term life insurance is dramatically cheaper than whole life for the same coverage amount. For most Canadians, a 20-year term policy provides excellent protection at a fraction of the cost.

3. Compare multiple providers

Premiums for the same coverage can vary significantly between insurers. Using a comparison platform like Covaria lets you see options side by side without having to call multiple brokers.

4. Quit smoking

Smokers pay significantly higher premiums than non-smokers — sometimes double. If you've quit for 12 months, most insurers will reclassify you as a non-smoker, which can dramatically lower your rate.

5. Pay annually instead of monthly

Most insurers charge a small fee for monthly payment processing. Paying your premium annually can save you 3–5% per year — a small but consistent saving over time.

Welcome to Canada! Navigating a new country's financial system can feel overwhelming. Here's a straightforward guide to how life insurance works in Canada and how Covaria can help you find the right coverage.

Is life insurance mandatory in Canada?

No — life insurance is not mandatory. However, it is strongly recommended if you have dependents, a mortgage, or financial obligations that others rely on.

Can newcomers get life insurance?

Yes. Most Canadian insurers offer life insurance to permanent residents and many offer it to those on certain work visas. You will typically need a Canadian address and may need to provide immigration documentation.

What types are available?

• Term life — covers you for a set number of years, most affordable
• Whole life — covers you permanently and builds cash value
• No-medical life — no health exam required, approved faster, ideal for newcomers still establishing Canadian health records

How does Covaria help newcomers?

Covaria is available in English, French, and Spanish, making it easier to navigate Canadian insurance in your language. We highlight no-medical options that are especially accessible for newcomers, and we never require you to speak to a broker before comparing options.

Cancer survival in Canada has been improving for decades. Quebec's cancer registry shows five-year survival for all cancers combined rising from 53% in the early 1990s to about 67% for people diagnosed around 2016. Good news. It also creates a question that life insurance does not answer: what if you live?

The idea in one sentence

Critical illness insurance pays you a lump sum, tax-free in most cases, if you are diagnosed with a condition named in the policy, and you survive for a short waiting period. You can spend it on anything: mortgage payments, a leave from work, treatment not covered by the public system, a flight to see a specialist.

Why people buy it

The Canadian Cancer Society estimates 254,100 new cancer diagnoses and 87,900 cancer deaths in Canada in 2026. Statistics Canada says cancer was the leading cause of death in 2024 at 26.2% of all deaths, with heart disease second at 17.7%. In Quebec alone, nearly 70,000 people were diagnosed in 2025.

The numbers behind those headlines matter in two ways. Many of those people will survive, particularly when cancer is caught early. For stage 1 breast, prostate, colon and rectal cancers, the Society reports survival above 90%. And surviving is expensive in its own way: time off, reduced hours, travel to treatment, drugs, home help.

What claims actually look like

The Canadian Institute of Actuaries published a morbidity study in 2024 covering 11 insurers and 12,820 claims. By number of lives, 67% of claims were for cancer, and cardiovascular conditions made up another 33%. The average benefit paid was about $86,518. Unexpected items also showed up: benign brain tumours, multiple sclerosis and coronary bypass surgery were among the larger claim categories.

Read the definitions, not the brochure

• The condition has to match the policy's wording. "Cancer" in everyday life and "cancer" in a contract are not always the same. Many policies exclude very early-stage or low-risk cancers.
• The waiting period. Policies typically require you to survive a set number of days after diagnosis. Check it.
• The list of covered illnesses. Some policies cover a handful, others a couple dozen.
• Return of premium. Some versions give money back if you never claim, at a higher price. Whether that is worth it depends on how you value the alternative use of that money.

How it fits with what you already have

Critical illness is not a replacement for life insurance, and it is not the same as disability coverage, which replaces income when you cannot work for any reason. Before buying, find out what your workplace plan already provides, how long you could cover your bills on savings alone, and whether you have disability coverage. If the answers are "very little," "a few weeks," and "no," that is the gap this product exists for.

Sources

• Canadian Cancer Society, statistics at a glance (2026 estimates)
• Fondation québécoise du cancer, Quebec statistics
• Statistics Canada, deaths 2024 (The Daily, Jan 2026)
• Insurance Portal, CIA critical illness morbidity study

General information only, not personal advice. Covaria is a comparison and referral platform, not an insurance broker. Talk to a licensed advisor before you buy.

Ask people why they don't have life insurance and a lot of them say "it costs too much." A 2025 PolicyMe and Angus Reid survey, cited in the industry study, found 34% of uninsured Canadians gave cost as the main barrier, rising to 42% among parents with children at home. The next most common reason is quieter: people assume it's a hassle. A nurse at your door, blood and urine samples, weeks of waiting. For a lot of buyers, the no-exam options exist to remove that last objection.

Three different things get called "no medical exam"

Simplified issue. You answer a set of health questions online or on the phone. No nurse visit. If your answers are clean, you are approved quickly, often within days.

Accelerated underwriting. Fully underwritten insurance with a shortcut. The insurer may check your application, prescription history and other databases, and only ask for an exam if something looks unusual. Younger, healthier applicants asking for moderate amounts are the typical candidates.

Guaranteed issue. No health questions at all. Anyone in the eligible age range is accepted. The tradeoffs are sharp: small coverage amounts, high premiums per dollar, and usually a graded death benefit, meaning that if you die from natural causes in the first couple of years, your beneficiaries may only get back the premiums paid, sometimes with interest.

What you give up

Insurers price risk. If they know less about you, they guard against the unknown, and that tends to show up as higher premiums or lower maximum coverage. For a healthy 32-year-old, the extra cost of skipping the exam may be small and worth the convenience. For someone with a chronic condition, it can be the only path to any coverage at all. For a family that needs $1 million of protection, the no-exam ceiling may simply be too low.

Answer honestly. Really.

Because there is no exam, your answers carry the whole weight. If an insurer later discovers that you left out something relevant, it can contest the claim or cancel the policy. That is the cruellest outcome in insurance: years of premiums paid, then a denial when your family needs it. In Quebec the Civil Code also allows a claim to be refused if death by suicide occurs in the first two years, so the early years of any policy deserve extra attention to the fine print.

Who it suits

• Healthy people who want moderate coverage quickly
• Gig workers and freelancers without employer benefits. The industry study estimates about 28% of Canadian adults do gig work, and over one in five of them have no health or life insurance
• People who have been declined elsewhere and need something rather than nothing, with the guaranteed options understood for what they are

A sensible way to compare

Ask for a fully underwritten quote and a no-exam quote for the same amount. If the difference is small, the convenience wins. If it is large, the extra hour for a nurse visit might pay for itself over the life of the policy. Either way, look for the review window that follows delivery of the contract. Most insurers give around 10 days to return it for a refund.

Sources

• Insurance Business, One in three Canadians underinsured (June 2026)
• AMF, life insurance FAQ

General information only, not personal advice. Covaria is a comparison and referral platform, not an insurance broker. Talk to a licensed advisor before you buy.