Best Family Life Insurance in Canada in 2024
- Fixed premiums for the term duration
- Option to renew the contract from the 5th year
- Fixed or decreasing insured capital
Term Life Insurance by Beneva offers tailored flexibility to adapt to various coverage needs over 10, 15, 20, 25, 30, or 40 years, making it ideal for those looking to cover specific financial responsibilities such as personal loans or educational expenses for dependents. This policy is particularly advantageous for first-time buyers or those on a strict budget due to its affordable nature compared to permanent policies. It includes options to extend or modify the term, switch to permanent coverage without further health checks, and choose between decreasing or fixed capital to match changing financial obligations or provide a consistent benefit.
- Over 75 years of combined insurance expertise
- Affordable and flexible with multiple term options
- Premiums are constant during the initial term, aiding in financial planning.
- Ability to choose between decreasing or fixed insured capital.
- Can switch to a longer term within five years without a medical exam.
- Add-ons like critical illness coverage, disability waiver, children’s insurance, and more
- Premiums may rise upon renewal, although increases are known in advance.
- Decreasing Benefit Option is economical but reduces coverage over time, which may not suit everyone's long-term needs.
- Website doesn’t provide enough information about coverage
- Fixed or decreasing insurance amount
- Fixed premiums and guarantees
- Option to convert to permanent life insurance without medical evidence
Pick-A-Term by iA is a term life insurance solution designed with affordability and flexibility in mind, suitable for various stages of life including young families and pre-retirees. It offers terms from 10 to 40 years, which can align with significant financial commitments like mortgages or educational expenses. The fixed and guaranteed premium structure simplifies budgeting, while options to renew annually or convert to permanent insurance provide adaptability as needs evolve. This product is ideal for those seeking financial security without the long-term commitment of permanent life insurance, accommodating both personal and business insurance needs.
- Versatile term options from 10 to 40 years, matching key financial periods.
- Premium rates are guaranteed and known upfront, aiding in financial planning.
- Allows conversion to permanent coverage at any time without health checks.
- Can be renewed annually to adapt to changing insurance needs.
- Available with additional benefits such as critical illness and disability insurance.
- At renewal, premiums may increase based on the new term.
- Decreasing Benefits Option is not suitable for those needing consistent coverage amounts throughout the term.
- Numerous coverage and benefit options could complicate decision-making.
- Lifetime protection
- Tax-advantaged savings growth options
- Range of options for death benefit, insurance cost, and investments
SunUniversalLife II by SunLife provides exceptional flexibility. An extensive range of coverage types and benefit options gives you the ability to customize your policy when you first purchase it and adjust it as your needs change over time. With SunUniversalLife II, clients can protect their families, supplement their retirement income, maximize their estate for beneficiaries, and address business planning needs.
- Flexibility and tax-free gains
- Tax advantages on capital gains
- No social security impact
- Death benefit
- Caps on returns
- No guarantees as to the premium amounts
- Flexible offer
- Policy convertible to permanent insurance
- Several optional guarantees available
RBC YourTerm® Life Insurance offers a range of flexible and affordable term life options to fit different life stages and financial needs, making it an attractive choice for individuals aged 18 to 70. With coverage terms from 10 to 40 years and amounts ranging from $50,000 to $25 million, this policy is versatile enough to protect everything from personal debts to family businesses. It features fixed premiums for the chosen term length, ensuring cost predictability and ease in budgeting. Additionally, the policy can be converted to a permanent policy without further health assessments, providing long-term security. It's particularly suited for young professionals starting their careers, families planning for the future, or anyone needing solid, temporary financial protection with the option for longer coverage.
- Premiums remain constant throughout the term, enhancing budget management.
- Offers substantial coverage up to $25 million, accommodating large financial needs.
- Ranges from 10 to 40 years, allowing tailored protection based on personal needs.
- Policies can be converted to permanent coverage without additional medical information.
- Additional benefits include accidental death benefits and a 10-day review period with a full refund option.
- Coverage limits decrease for individuals over 55.
- If not converted, premiums can increase significantly after the initial term.
- Multiple term lengths and coverage options may require careful consideration to select the appropriate plan.
- Cash advance if you are diagnosed with a terminal illness
- Access to Manulife Vitality benefits at no cost
- Cover your family’s bereavement counseling costs
Manulife Family Term life insurance offers an affordable and flexible way to secure financial protection for both families and businesses. This policy helps maintain lifestyles, cover debts, and fund future needs like education and retirement, with the option to enhance the plan through Manulife Vitality, a program that rewards healthy living. Coverage ranges from $100,000 to $20 million, with level premiums for set periods, and includes unique features like bereavement counseling and a terminal illness advance. It is well-suited for individuals or families seeking comprehensive coverage that adapts to changing life circumstances and those interested in linking their health with insurance benefits.
- Coverage is affordable and can be adjusted to meet changing family and business needs.
- Manulife Vitality Program offers rewards for healthy living, potentially reducing premiums.
- High coverage options available from $100,000 up to $20 million.
- Allows conversion to permanent insurance without further medical underwriting.
- Premiums are level for terms like 10 years, 20 years, or until age 65.
- Participation in the Manulife Vitality program requires meeting specific health milestones to maintain premium discounts.
- With coverage limits up to $20 million, there’s a risk of over-insuring, which could lead to unnecessarily high premiums.
Family life insurance is coverage designed to protect your entire household. It ensures your loved ones have the financial support they need if something happens to you or another family member.
But how does family life insurance work? What does it cost? How do you choose the best life insurance for your family? Find all the answers in this guide.
You can also use our free tool at the top of this page to compare free family life insurance quotes based on your unique needs.
Family Life Insurance in Canada: Key Points
- Family life insurance ensures financial security for your spouse, and children if something happens to you.
- You can insure your whole family under one plan or customize individual policies for each member.
- Families can choose between term, whole, or universal life insurance.
- Term life insurance is a cost-effective choice for families with temporary needs like mortgages.
- Affordable add-ons provide life insurance for children, with options to convert to lifelong coverage later.
- Family life insurance in Canada typically costs $50–$100/month for a $500,000 term policy covering two parents.
- Whole life family insurance in Canada typically costs $150–$300/month for $500,000 coverage.
What is family life insurance in Canada?
Family life insurance is a type of coverage designed to protect multiple family members under one policy or through individual plans. It ensures your loved ones are financially secure by providing a tax-free payout to cover essential expenses like mortgages, debts, childcare, or education in case of an unexpected loss.
This flexible option often allows you to bundle coverage for spouses, children, or dependents into one manageable plan. With choices like term life for affordability or whole life for lifelong protection, family life insurance is tailored to meet the specific financial needs of Canadian households.
For example
Sarah and Michael, parents in Ontario, purchase a family life insurance plan. Their joint policy provides $500,000 in coverage, ensuring that if one parent passes away, the other can pay off their mortgage, manage household expenses, and save for their children’s education without financial strain.
How does family life insurance work?
Family life insurance works by providing financial coverage for multiple members of your household. You can opt for:
- Joint Life Insurance Policies: Covering spouses with a single plan, offering a payout on the first or second death, depending on the type.
- Child Riders: Affordable add-ons that provide coverage for children under your policy, often convertible to permanent life insurance later.
- Bundled Plans: Combining life, critical illness, and disability insurance into one comprehensive policy for all family members.
When a claim is made, the tax-free payout can be used to cover expenses like debts, funeral costs, or ongoing living expenses, ensuring your family’s financial stability during difficult times.
What are the benefits of family life insurance?
- Comprehensive Protection: Combine life, critical illness, and disability insurance into one plan for holistic coverage.
- Convenience: Manage a single policy with one premium instead of multiple separate policies.
- Cost Savings: Bundling coverage often reduces costs compared to buying individual policies for each family member.
- Flexibility: Customize the plan to fit your family’s specific needs, such as adding riders or adjusting coverage amounts.
- Streamlined Underwriting: Applying for one family life insurance plan is often quicker and simpler than managing separate applications.
What are the drawbacks of family life insurance?
- Coverage Limits: Policies may restrict coverage amounts, leaving some members underinsured.
- Complexity: Bundling multiple types of coverage into one plan can make the policy harder to understand.
- Not Always Cost-Effective: Individual policies might be more affordable for families with varying needs.
- Limited Customization: Bundled plans may not allow for tailoring coverage to specific family members’ needs.
- Changes in Family Structure: Events like divorce or grown children leaving the household may require adjustments to the policy.
It's crucial to carefully evaluate the specific offerings and limitations of family life insurance to determine if it aligns with your family's needs and preferences.
You can quickly use our comparator and see the different options available for family life insurance, compare coverage from various providers and get free quotes right here.
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What does family life insurance cost?
The cost of family life insurance in Canada depends on several factors, including the type of policy, the coverage amount, and the age and health of the insured family members. While term life insurance is generally more affordable, permanent policies like whole life or universal life cost more due to their cash value and lifelong coverage.
Below, we’ve outlined the key factors that influence costs and provided a table with estimated premiums for different types of family life insurance plans. Use this as a guide to help plan your family’s financial protection.
Factors that influence the cost of family life insurance plans
- Age: Older family members typically pay higher premiums as the risk of illness or death increases.
- Health: Pre-existing conditions or a history of health issues can raise premiums.
- Coverage Type: Term life is more affordable than whole life or universal life due to the lack of a savings component.
- Coverage Amount: Higher coverage amounts result in higher premiums.
- Policy Features: Add-ons like child riders or critical illness coverage increase costs.
- Lifestyle and Occupation: Risky jobs or habits like smoking can lead to significantly higher premiums.
- Policy Term Length: Longer terms are more expensive but lock in rates for a longer duration.
Family life insurance quote for 2024
| Policy Type | Coverage Amount | Monthly Cost | Additional Features |
|---|---|---|---|
| Term Life (2 Parents) | $500,000 | $50–$100 | Renewable, convertible to whole life |
| Whole Life (1 Parent) | $500,000 | $150–$300 | Includes cash value growth |
| Child Rider | $10,000–$25,000 | $5–$10 per child | Convertible to permanent coverage |
| Critical Illness Add-On | $50,000 | $20–$50 | Covers serious medical conditions |
| Universal Life | $500,000 | $200–$400 | Offers flexible premiums and savings |
Family life insurance quote based on age for 2024
| Age | $500,000 Term Policy (2 Parents) | $500,000 Whole Life Policy (1 Parent) |
|---|---|---|
| 30 | $50–$75/month | $150–$200/month |
| 40 | $75–$100/month | $200–$300/month |
| 50 | $120–$200/month | $300–$500/month |
| 60 | $250–$400/month | $500–$800/month |
Notes:
- Term Policies are more affordable and provide coverage for a set number of years, ideal for temporary needs like mortgages.
- Whole Life Policies include a cash value component and lifelong coverage but are significantly more expensive.
- Costs may vary depending on health, lifestyle, and additional riders like critical illness or child coverage.
To understand the cost of a family life insurance package tailored to your family and finances, contact a broker or licensed financial advisor to discuss the best options for your budget. Or you could simply use our comparator below to compare the best family life insurance plans and get free personalized quotes right here.
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Should you choose term life insurance or whole life insurance for your family?
The choice depends on your family’s needs and budget:
- Term Life Insurance: Ideal for families seeking affordable, temporary coverage to protect against short-term obligations like mortgages or childcare costs. For example, a 20-year term policy can cover your children’s school years or the duration of a mortgage.
- Whole Life Insurance: Best for families looking for lifelong protection and a savings component. It’s more expensive but builds cash value over time, which can be used for emergencies or future expenses like education.
If affordability is key, start with term life and consider converting to whole life as your financial situation evolves.
How much life insurance do I need for my family?
The amount of life insurance your family needs depends on your financial responsibilities, dependents, and long-term goals. A common rule of thumb is to have coverage equal to 7–10 times your annual income, but personal factors should guide your decision.
Key factors to consider while buying family life insurance plans
- Outstanding Debts:
Ensure your policy covers major debts like mortgages, car loans, or credit card balances.
Example: If you have a $300,000 mortgage and $20,000 in other debts, your coverage should include at least $320,000 to pay off these liabilities. - Income Replacement:
Calculate how much income your family would need if you were no longer there to provide.
Example: If your annual income is $70,000 and you want to replace it for 10 years, you’ll need $700,000 in coverage. - Childcare and Education Costs:
Consider daycare, schooling, or university tuition for your children.
Example: University education in Canada can cost around $20,000 per year. For two children attending a 4-year program, factor in $160,000 for their education. - End-of-Life Expenses:
Funeral and other end-of-life costs can range from $5,000 to $15,000. Include this in your total coverage amount. - Savings and Investments:
Subtract any existing savings or investments from the total coverage needed to avoid over-insuring.
Example 1: A young family in Toronto
Amrita and Raj live in Toronto with their two young children. Raj earns $85,000 annually, while Amrita works part-time and earns $30,000. They recently purchased a home with a $500,000 mortgage and want to ensure their family is protected financially if either of them passes away.
Here’s what they calculate:
- Mortgage: $500,000 to pay off the home.
- Income Replacement: Raj wants to provide 10 years of his income ($850,000) to cover living expenses and childcare.
- Education Costs: They estimate $100,000 for their children’s post-secondary education.
- End-of-Life Expenses: $15,000 for funeral and related costs.
Total Coverage Needed: $1,465,000
Raj decides to take a $1,500,000 term life insurance policy for 20 years, covering his children’s school years and the mortgage term. Amrita chooses a $500,000 policy for 20 years to supplement her income contribution. Together, they ensure financial stability for their family, even in worst-case scenarios.
Can I adjust my policy if my family structure changes (e.g., divorce, adoption)?
Yes, most family life insurance policies allow adjustments if your family structure changes. You can update beneficiaries, add or remove dependents, or even switch to an individual policy in cases like divorce. It’s important to review your policy regularly and discuss changes with your insurer or advisor.
Example 2: An established family in Ottawa
Catherine and Mark live in Ottawa with their teenage daughter. Catherine earns $100,000, while Mark stays home to manage the household. Their mortgage is nearly paid off, with only $100,000 remaining, but they still want to plan for future expenses.
Here’s what they calculate:
- Mortgage: $100,000 to pay off the remaining balance.
- Income Replacement: Catherine estimates $600,000 to replace her income for 6 years while Mark adjusts to managing finances.
- Education Costs: $50,000 for their daughter’s university education.
- End-of-Life Expenses: $10,000 for funeral costs.
Total Coverage Needed: $760,000
Catherine chooses an $800,000 term life policy for 15 years to cover her family until their daughter becomes financially independent. The lower coverage amount reflects their reduced mortgage and savings of $150,000 already set aside for emergencies.
These examples show how life insurance needs vary based on family size, financial obligations, and long-term goals. Customizing coverage ensures your loved ones are protected without overpaying for unnecessary insurance.
Expert advice
When calculating life insurance for family members, consider all financial obligations like mortgages, income replacement, and education costs. Start with a term policy if affordability is key, and adjust coverage as your needs evolve.
What are the best family life insurance plans in Canada?
Several Canadian insurers offer life insurance plans for families, including several of the most highly rated like Manulife Insurance, Sun Life, and more. Let's look at some of the top options.
| Insurance Provider | Features |
|---|---|
| Manulife Family Term with Vitality Plus |
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| iA Financial Group |
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| Empire Life Insurance |
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| Assomption Life Insurance |
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| Sun Life Insurance |
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You can use our comparator to compare the above plans and more. Enter a few quick inputs on what you need and viola, get free life insurance quotes for your family in no time.
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Is family life insurance worth It?
If you are the parent of young children, a life insurance policy is an essential purchase to safeguard their well-being in the event of your passing. Even if you’re not yet a parent, however, family life insurance can make good financial sense. By bundling your policy together with that of your partner, you may be able to reduce your overall insurance costs per month.
For those who are young and in good health, life insurance may feel like an unnecessary financial burden. The peace of mind that comes from knowing that your loved ones won’t face hardship in the event of your passing, however, makes the investment worthwhile for many.
Is family life insurance only for families with children?
No, family life insurance is not just for families with children. It can cover spouses, partners, or dependents of any kind, such as elderly parents or other relatives who rely on your support. The coverage is designed to protect anyone whose financial stability depends on you.
How to get affordable life insurance for your family?
If the prospect of purchasing life insurance for family members feels daunting - or expensive! - remember that there are steps you can take now to reduce your monthly premiums.
- Compare net costs. Sometimes, the policy that seems most attractive right now will cost more over time due to gradual increases in premiums. When deciding what to buy, compare the net cost index for individual policies.
- Look for premium discounts. Many insurers offer discounts on premiums when you purchase a larger policy. It may cost less to buy $400,000 than $300,000 of life insurance.
- Take care of your health. If your current lifestyle might lead to higher premiums, changing your habits now can save you money. If, for example, you smoke, now might be the time to stop.
- Shop around. Even if the process feels overwhelming, resist purchasing the first policy you find. Shop around and compare using our free tool at the top of this page.
FAQs on Family Life Insurance in Canada
Family life insurance provides coverage for multiple family members under one plan or individual policies. It ensures financial security by paying out a death benefit to help cover expenses like mortgages, debts, or childcare in case a family member passes away.
Term life insurance for families is best for affordability and covering short-term needs like mortgages. Whole life is ideal for families seeking lifelong coverage and cash value growth. The right choice depends on your family’s financial goals and budget.
Each insured family member has a specific coverage amount, and a death benefit is paid out if they pass away. Policies can be joint (covering two people, like spouses) or individual. Child riders can be added to protect children affordably.
Families can choose from term life insurance, whole life insurance, or universal life insurance. Term is affordable and temporary, while whole and universal provide lifelong coverage with savings components. Child riders can also be added to cover children.
Costs vary based on age, coverage amount, and type of policy. For example, a $500,000 term life policy for two parents may cost $50–$100/month, while whole life policies cost significantly more but include a savings component.
Family life insurance is ideal for families with dependents, such as children or a spouse, who rely on their income or support. It’s especially important for parents with mortgages, debts, or future financial goals like education funding. If securing your family’s financial stability is a priority, family life insurance is a smart choice.
