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- Sun Life is a leading term life insurance company in Canada that offers Evolve term insurance, available in 5-40 years term length
- ivari Life term life insurance policies are available in Term 10, Term 20, and Term 30 with SelectOptions
- Both Sun Life and ivari Life have the option to customize the term life policy with multiple riders, like accidental death benefit rider, child term rider, disability waiver rider, guaranteed insurability benefit rider, etc
- Sun Life has an edge over ivari Life term life insurance policies. It is mainly because Sun Life offers greater flexibility
As a young adult in your 20s and 30s, life insurance may not be the first financial product you think about. However, major obligations like buying a home, getting married, starting a family, or taking on shared debt can quickly create a need for coverage to protect your beneficiaries in case you pass away unexpectedly.
For many young adults in Canada, term life insurance can be a practical starting point since it covers you for a set period and generally costs less than permanent life insurance. However, the right plan depends on your financial priorities, debts, and your budget.
Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.
Top 5 best life insurance companies for young adults in Canada
Competitive pricing, five term lengths, strong exchange options, and carry-over term flexibility
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Excellent term customization and high coverage limits, but slightly higher premiums
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Competitive pricing, broad term and whole life options, plus critical illness integration
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Outstanding 5–50-year term flexibility, but comparatively higher whole life pricing
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Strong pricing and whole life options, though with fewer term-length choices
READ REVIEWWhile many insurers offer great benefits, companies such as Empire Life, Canada Life, and RBC Insurance offer greater flexibility, built-in benefits, and features that make them particularly suitable for individuals in their 20s and 30s embarking on their financial planning.
Here’s an overview of the five best life insurance companies for young adults in Canada:
1. Canada life
Canada Life is an ideal choice for young adults in Canada seeking coverage which evolves with their financial responsibilities. MyTerm offers customizable terms from 5 to 50 years, allowing applicants to align protection with outstanding debts or mortgages.
For young adults in Canada seeking lifelong coverage and cash value growth, the Wealth Achiever provides early cash values, while Estate Achiever and Balanced Achiever can aid in long-term estate planning. The cost of term life insurance from Canada Life ranges from $8.55 to $10.80 per month, while whole life insurance costs $378.90 to $487.89 per month.
- Best for: Young adults looking for flexible term lengths and future permanent coverage options
- Plans: My Term, Wealth Achiever, Estate Achiever, Balanced Achiever
- Policy types: Term life and participating whole life
- Term lengths: 5 to 50 years through My Term
- Standout feature: My Term allows applicants to select highly customizable coverage periods instead of being limited to standard 10-, 20-, or 30-year terms
Unique selling point (USP): Wide range of non-medical policies designed for those looking to qualify without medical underwriting
2. RBC
RBC Insurance works well for young adults in their 20s and 30s who want a large amount of term coverage with enough options for customization. The YourTerm plan allows applicants to choose coverage for up to $25 million between 10 and 40 years with one-year increments, making it easier to match coverage if you decide to buy your first car or purchase a house after your marriage.
Eligible plans also include options to exchange or convert term coverage for added flexibility. If you are looking for lifelong protection for you and your loved ones, the RBC Growth Insurance plan is aimed at earlier cash value growth, while the Growth Insurance Plus is designed for long-term cash accumulation. The cost of term life insurance from RBC Insurance ranges from $8.91 to $11.25 per month, while whole life insurance costs $184.04 to $236.41 per month.
- Best for: Young professionals seeking high coverage limits and customizable term lengths
- Plans: YourTerm, RBC Growth Insurance, RBC Growth Insurance Plus
- Policy types: Term life and participating whole life
- Maximum coverage: Up to $25 million through eligible term coverage
- Term lengths: 10 to 40 years in one-year increments
- Standout feature: YourTerm combines high coverage limits with highly customizable term lengths, term exchange options, and permanent conversion flexibility
Unique selling point (USP): Wide range of non-medical policies designed for those looking to qualify without medical underwriting
| Insurer | Pricing competitiveness | Term flexibility | Future flexibility | Permanent options | Life-stage fit | Standout features | Overall rating |
| Empire Life | 5/5 | 4.5/5 | 5/5 | 4.5/5 | 5/5 | 5/5 | 5/5 |
| RBC Insurance | 4.5/5 | 5/5 | 5/5 | 4.5/5 | 4.5/5 | 4.5/5 | 5/5 |
| Desjardins | 5/5 | 4.5/5 | 4.5/5 | 4.5/5 | 4.5/5 | 5/5 | 4.5/5 |
| Canada Life | 4/5 | 5/5 | 4.5/5 | 4.5/5 | 4.5/5 | 4/5 | 4.5/5 |
| Equitable Life | 5/5 | 4/5 | 4.5/5 | 5/5 | 4.5/5 | 4.5/5 | 4.5/5 |
How we chose the best life insurance companies for young adults in Canada
To determine the best life insurance companies for young adults in Canada, PolicyAdvisor assessed each insurer based on policy features that are particularly useful during your 20s and 30s, since it is a time when financial responsibilities can change rapidly. We placed particular emphasis on pricing, term flexibility and future policy flexibility, including the ability to exchange, renew, or convert coverage as needs evolved.
Additionally, we also factored in the insurer’s permanent life insurance options and how well each policy can accommodate the different life stages from your 20s to 30s in terms of flexibility and additional benefits.
Each insurer was scored out of 5 using the weighted methodology below:
After selecting the five insurers, we scored each company using the same weighted factors. A 5/5 insurer performs especially well across both pricing and policy flexibility, while a 4.5/5 insurer remains a strong option but may have higher sample premiums, fewer term choices, or fewer standout features.
Why do young adults need life insurance in Canada?
Young adults in Canada may need life insurance if they have significant financial obligations or if they want to protect their beneficiaries from outstanding debts like mortgages or car loans. Major life events like marriage, buying a home, having children, or starting a business can prompt you to purchase coverage in your 20s or 30s.
Here are situations where life insurance may make sense for a young adult:
- Your spouse or partner relies on your income
- You have children or are starting a family
- You have a mortgage with a spouse or partner
- You financially support parents or other family members
- You own a business
- You want protection for a financial commitment that will last several years
- You want to secure coverage earlier while your age and health are more favourable
Types of life insurance available for young adults in Canada
Young adults in Canada can choose between temporary and permanent life insurance. For many young adults in their 20s and 30s in Canada, term life insurance is usually the best type of life insurance. It provides coverage against financial obligations for a defined period and generally costs much less than a permanent policy. This can make it more financially manageable for individuals starting their careers. The lower premiums can also allow younger applicants to purchase higher coverage while keeping premiums manageable.
For example, a 26-year-old homeowner may need substantial coverage while paying a mortgage and raising a family. However, those financial obligations tend to decline by their late 50s. A 25- or 30-year term could align with that temporary need.
Here’s an overview of the types of life insurance available for young adults in Canada:
Term life insurance
Term life insurance provides coverage for a specific period, typically 10, 20, 25, or 30 years. You pay premiums during this period to keep the policy in force, and the insurer pays a death benefit if you pass away during that time.
Whole life insurance
Whole life insurance is a form of permanent insurance designed to remain in force throughout your lifetime as long as premiums are paid and policy requirements are met. These policies include a cash value component, which grows over the years. It can be withdrawn, used to pay future premiums, or used as collateral. Participating whole life policies may pay non-guaranteed dividends, which can increase cash value or death benefit over time. This may appeal to Canadians seeking cash value growth within their policy.
Life Insurance Tip
Should young adults in Canada choose term or whole life insurance?
For many young adults in Canada, term life insurance is the more practical starting point when the primary goal is to protect temporary financial responsibilities, such as a mortgage, income replacement, or other debts. Whole Life insurance may make sense only if you have specific lifelong needs, such as providing for your partner or estate planning and tax-advantaged wealth transfer.
When is term life insurance better for young adults?
Term life insurance usually makes the most sense when your insurance needs are expected to decline or disappear after a specific number of years. It is aimed at covering temporary obligations, instead of lifelong coverage.
Here’s when term life insurance may make more sense for young adults in Canada:
- You recently bought your first home: A 20-,25-, or 30-year term can be structured to align with your mortgage duration, offering protection in case you pass away unexpectedly
- You are starting or growing a family: Term coverage can provide a larger death benefit during the years when children depend financially on you, protecting them during your key earning years
- You are early in your career: Term insurance generally provides more coverage than comparable whole life policies, making it ideal if your income and budget are still growing
- Your need is temporary: You may not require the same amount of coverage after your mortgage is repaid or your children become financially independent
- You expect your needs to change: Conversion or term-exchange options can be valuable if you decide to purchase a bigger home, have children, or develop a permanent need for insurance
When can whole life insurance make sense for young adults?
Whole life insurance can make sense when the financial need is expected to last for life rather than for a limited period of time. It is meant for Canadians seeking coverage throughout their lives or for individuals who wish to use it as part of a tax-advantaged estate or wealth-transfer strategy.
As a young adult in Canada, you should consider whole life insurance if:
- You have a lifelong dependant: A child or other dependant may require financial support regardless of your age when you die
- You are a young business owner: Permanent coverage may become relevant for long-term business succession and estate transfer if you pass away unexpectedly
- You have long-term legacy goals: If you have accrued substantial assets or a clear goal of leaving a permanent inheritance, you may prefer coverage that does not expire
- You specifically need cash-value features: If you are a young business owner or incorporated Canadian, you can use the cash value as collateral for loans or use it as part of an investment strategy
How much life insurance coverage do young adults need?
For many Canadians, a general rule of thumb is to purchase life insurance that is equal to about five to 10 times your annual income. However, this is just a baseline and should be adjusted based on your financial situation, debts, and other factors.
Here are certain things to keep in mind before you decide how much life insurance coverage you need:
- Mortgage balance
- Other debts
- Income replacement
- Child-care requirements
- Existing savings and investments
- Existing workplace or personal life insurance
Still confused? Use our life insurance calculator to estimate how much coverage you need.
Do I need life insurance as a young adult in Canada if I already have coverage through work?
Yes, you may need life insurance even if you have coverage through an employer-sponsored group plan. These policies typically provide limited coverage and end if you change employers, leaving you without coverage if you change jobs. An individual insurance policy is tied to you, allowing you to customize benefits and riders to fit your financial needs.
Do young adults need life insurance for student loans?
Whether student debt requires protection depends on the type of loan and how it was taken. If a student takes out a federal student loan, it may be forgiven if the borrower passes away. Beneficiaries can contact the National Student Loans Service Centre and apply for Canada Student Loan Forgiveness to request loan discharge under the applicable student loan program.
However, this is different for private student lines of credit, where the policyholder may require a parent or another person to co-sign the policy. In this case, a young adult student or researcher may consider a life insurance policy to help cover the financial burden if they pass away unexpectedly.
Coverage to consider
A smaller term policy can cover temporary debts or other financial obligations. Permanent coverage is generally less relevant unless there is a specific lifelong need
Coverage to consider
Coverage priorities may include mortgage payments, financial support for parents, and business obligations. Term life insurance can be structured around the duration of major debts, while permanent insurance may be considered for lifelong estate or business-planning needs.
Life insurance for young adults in Canada by life stage
Life insurance needs can change significantly throughout your 20s and 30s as your financial responsibilities grow, and you take on new responsibilities like starting a family or buying your first car. A recent graduate with no dependants will have significantly different needs than a new homeowner with a mortgage.
Here’s how life insurance priorities for young adults change by life stage in Canada:
| Life stage | Potential life insurance priority | Coverage to consider |
| Student or recent graduate |
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| Single professional |
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| Newly married or common-law |
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| First-time homeowner |
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Term life insurance matched to the mortgage timeline |
| New parent |
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| Self-employed professional |
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| Business owner |
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Cost of life Insurance for couples
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How much does life insurance cost for young adults in Canada?
The cost of a life insurance policy from Empire Life for young adults in their 20s and 30s ranges from $7.73 to $487.89. Premiums depend on the plans chosen and the coverage, as well as personal factors such as age, smoking status, and health
Term Life cost comparison ($100K for a ten-year term)
- Term Life cost
- Term Life cost
Whole Life cost comparison ($100k in coverage for 20-pay)
- Whole Life cost (in $CAD)
- Whole Life cost (in $CAD)
What mistakes should young adults avoid when buying life insurance?
As a young adult in Canada, you can often unlock affordable life insurance thanks to your age and health. However, choosing a policy based on premiums or purchasing too little coverage can result in insufficient protection for your beneficiaries if you pass away unexpectedly.
Here are some common mistakes to avoid when buying life insurance as a young adult in Canada:
- Purchasing based on the lowest premium: The cheapest term 10 policy may not be the best choice if you need protection for longer periods or if you are missing out on important benefits or riders
- Buying too little coverage: A low premium is not useful if the death benefit would leave your family unable to manage outstanding financial obligations. It is better to purchase necessary coverage as term instead of lesser coverage as a whole life policy
- Choosing the wrong term: You should match your term to the duration of the financial obligation you are protecting to ensure that there is no financial burden on your beneficiaries
- Waiting too long: Applying earlier can help because age and current health are major underwriting factors. If your health changes later, the same coverage may cost more or require exclusions
- Ignoring conversion and renewability options: Conversion can become valuable if you wish to change all or part of your coverage for lifetime protection. Guaranteed renewability can be equally helpful if you develop health conditions in the future
- Relying entirely on workplace coverage: Employer-sponsored group coverage may end when you leave your job and may not sufficiently cover your actual financial needs
- Purchasing permanent coverage without a clear purpose: Lifetime coverage should have a clear financial purpose. If your needs are temporary, it is better to use that premium to purchase a larger term policy
- Not reviewing the policy after life changes: It is recommended to review your policy or purchase additional coverage after major life events like marriage, children, or purchasing a new home.
How can young adults in Canada future-proof their life insurance?
Young adults in Canada often buy life insurance before their financial situation is fully established. Once you grow older, your needs, financial responsibilities, and even your budget are subject to change. As a result, it is important to ensure your policy has features that accommodate this growth and future-proof your coverage.
When choosing a life insurance policy as a young adult in Canada, here are certain things to look for:
These benefits can let you shift from a shorter term to a longer term in case your needs change, without going through full medical underwriting again
A convertible term policy can allow you to convert some or all of your coverage to permanent insurance later if your needs become lifelong
This is one of the strongest benefits that can ensure you can purchase additional coverage without new medical evidence, making it ideal if you develop health conditions as you grow older
Choosing a term that closely matches a debt or income replacement period can reduce the risk of coverage expiring too early
Certain riders and optional benefits like a child term rider, waiver of premium, and critical illness options can help provide long-term benefits
Term exchange options
These benefits can let you shift from a shorter term to a longer term in case your needs change, without going through full medical underwriting again
Conversion privileges
A convertible term policy can allow you to convert some or all of your coverage to permanent insurance later if your needs become lifelong
Guaranteed insurability options
This is one of the strongest benefits that can ensure you can purchase additional coverage without new medical evidence, making it ideal if you develop health conditions as you grow older
Flexible term lengths
Choosing a term that closely matches a debt or income replacement period can reduce the risk of coverage expiring too early
Riders that can become useful later
Certain riders and optional benefits like a child term rider, waiver of premium, and critical illness options can help provide long-term benefits
Our advisor’s take on the best life insurance for young adults in Canada
At PolicyAdvisor, we recently helped a 28-year-old employed individual who recently purchased a home with his partner and wanted enough coverage to protect the mortgage and replace income if they passed away. He wanted $1 million of coverage to help protect the mortgage and replace income, but he also expected his needs to change as he started a family. Since he expected to start a family in the next few years, he was also looking for a policy that could provide long-term protection without having to commit to the higher premiums of a whole life policy.
We compared insurers based on premium, term length, conversion options, and the ability to extend coverage later. Empire Life’s Solution Series stood out since it offered him several term choices today while retaining the ability to restructure his coverage as his mortgage and family responsibilities changed.
Client profile
- Age: 28
- Occupation: Full-time professional
- Family: Common-law partner, planning to have children
- Primary concern: Mortgage protection and income replacement
- Coverage goal: $1 million of life insurance
- Additional priority: Flexible coverage that could adapt as their family and financial needs change
Why we recommended Empire Life’s Solution Series
- Multiple term options: The multiple term options in the policy allow him to select a coverage period that better matches the mortgage and key earning years
- Term exchange flexibility: During the first seven years, he can convert eligible terms to a longer term without a medical exam, giving him the flexibility to extend his coverage
- Permanent conversion option: If his long-term needs change or end, he can convert eligible term coverage to permanent life insurance, helping him maintain protection without having to purchase a new policy
- Carry-over term coverage: The carry-over term coverage lets him maintain the remaining portion of his term balance as a rider on the new policy without medical evidence, helping him retain temporary protection alongside permanent coverage
- Option to combine additional protection: He can also enhance term life coverage with optional critical illness coverage for himself and his partner under one plan with a single policy fee, making it easier to manage
How to purchase life insurance for young adults in Canada
PolicyAdvisor’s licensed life insurance advisors can help young adults compare quotes from leading Canadian insurers based on age, health, smoking status, coverage requirements, term length, and budget.
Whether you are buying your first home, starting a family, or reviewing existing coverage, our licensed advisors at PolicyAdvisor can help you find coverage that fits your current and future financial responsibilities.
Frequently Asked Questions
What is the best life insurance for couples in Canada?
For most Canadian couples, two separate term life insurance policies are the best option. They offer better flexibility and allow each partner to choose their own coverage, beneficiaries, and riders with ease.
Is joint life insurance cheaper than separate policies?
Joint life insurance can sometimes have lower premiums than purchasing two comparable individual policies because both partners are insured under a single contract. However, it only pays one death benefit. Once it is paid, coverage ends.
Can common-law couples purchase life insurance together?
Yes, most Canadian insurers allow common-law partners to purchase either separate or joint life insurance policies if they meet the insurer’s eligibility requirements. Coverage options are usually the same as those available to married couples.
Can couples have different coverage amounts?
Yes, if you have separate life insurance policies. Since each policy is its own contract, you can choose to customize it based on your needs. Additionally, you can choose separate beneficiaries.
Can couples buy life insurance online?
Yes, couples can buy life insurance online. Our trusted advisors at PolicyAdvisor can help you compare quotes.
Can we name a minor child as beneficiary?
In most cases, appoint a trustee for any minor’s share so funds can be managed for the child’s benefit until they reach the age of majority in your province.
What if one of the partners has a health condition?
You can consider separate policies so one partner’s health does not influence the other’s pricing or approval. Consider exploring fully underwritten, simplified issue, or guaranteed issue options, depending on your situation.
What happens to joint life insurance after divorce or separation?
This depends on the policy terms and agreement between the policyholders. Some joint life insurance policies can be split into separate policies or transferred to one partner, while others may need to be cancelled.
What happens to joint first-to-die insurance after one partner dies?
Once the first partner passes away, the policy will pay the death benefit and then end. However, some insurers like RBC include a survivor privilege with these policies. Under this, the surviving insured can apply for new coverage within 60 days without providing evidence of insurability.
What is spouse life insurance?
Spouse life insurance generally refers to life insurance that covers your husband, wife, or partner. A spouse in Canada may have their own individual life insurance policy, be covered with their partner under joint life insurance, or be a dependant on an employer group benefits plan.
Is term insurance good for a husband and wife?
Term life insurance can be suitable for married couples seeking coverage for a temporary obligation for a defined period, such as while paying a mortgage or supporting dependent children.
What types of insurance are most common for couples in Canada?
Life insurance for couples in Canada can include two individual policies, joint first-to-die insurance, joint last-to-die insurance, and certain combined or multi-life policies. The right policy depends on your financial needs, income, and flexibility.
Sun Life and ivari Life offer affordable term life policies in Canada. Sun Life is a better choice overall; it offers greater flexibility. Sun Life term life insurance offers terms of 5 to 40 years, and ivari Life offers terms of 10, 20, or 30 years.
