Canada Term Life Insurance Calculator

Use the Human Life Value method: present value of net income to replace (10-25 years) + outstanding mortgage + non-mortgage debts + $80k per child for post-secondary + ~$15k final expenses. Subtract employer group life (typically 1-2× salary) and meaningful savings. A 38-year-old earning $95k with two kids and a $475k mortgage typically lands at $900k-$1.3M of cover — far above most employer plans alone.

T10 is the cheapest entry price but re-prices every 10 years at then-higher rates. T20 is the Canadian default — locks the rate for 20 years, matches typical mortgage-plus-kids-to-adulthood window. T30 covers to near retirement at ~45% higher cost. T100 is permanent whole-of-life insurance (roughly 3× T20 premium) used mainly for estate equalization, funding deemed-disposition tax on cottages/businesses, or final-expense needs.

Corporate ownership (CCPC pays premium) suits incorporated professionals and business owners with retained earnings: premiums come from lower-taxed corporate dollars, and on death the insurance proceeds credit the Capital Dividend Account — allowing a tax-free capital dividend to be paid to the shareholder's estate. Personal ownership is simpler, pays directly to beneficiaries tax-free, and bypasses probate. Most employees should own personally; business owners should consult an accountant.

JLTD pays only when the SECOND spouse dies, which matches the tax-planning need of the Canadian estate: when a property (cottage, rental, business) rolls to adult children on the second death, a deemed-disposition capital gains tax can create a huge liability. JLTD provides the lump sum exactly when needed — at roughly 30% less premium than two single-life policies of equivalent face value, because the payout waits for two deaths.

$500k T20, non-smoker male: age 30 ~$22/month, age 40 ~$35/month, age 50 ~$95/month, age 60 ~$245/month. Female lives ~18% cheaper due to longer mortality expectancy. Smoker loading: +100-110% (steeper than AU/UK). Quotes from Manulife, Sun Life, Canada Life, RBC Insurance, BMO Insurance, iA Financial, Empire Life — always compare at least 4 carriers as rates differ sharply by age band.

Yes — the death benefit from a Canadian life insurance policy paid to a named beneficiary is entirely tax-free and bypasses probate. The policy itself sits outside the estate if beneficiaries are named. Premiums are NOT tax-deductible (with narrow business exceptions). There is no inheritance tax in Canada, but "deemed disposition" at death triggers capital gains on appreciated non-registered assets — which life insurance is often used to pre-fund.

For 95% of Canadians, term. Term provides the highest sum insured per premium dollar during the years your family most needs protection (child-raising, mortgage-carrying). Whole life / universal life combine insurance with a savings/investment component that is generally poor value versus buying cheaper term + investing the difference in a TFSA or RRSP. Whole life makes sense only for estate planning, disabled-dependant lifelong care, or corporate-owned CCPC strategies — speak to a fee-only advisor, not a commissioned insurance agent.