It is one of the most important elements we all get into planning right from a young age when it comes to financial planning.

Life insurance is one of the most vital parts of a financial plan, and it offers financial protection for your loved ones and family members when an unplanned event and they don’t need to suffer. However, you might wonder how much you need to shell to buy a life insurance policy in Canada. Ideally, you need to know that no one size fits all, especially about life insurance. Life insurance policies are small yet customized plans that take personal factors including age and health besides finances into consideration

The cost of the life insurance policy in Canada mainly depends on the specific factor of your insurance plan. When you buy a life insurance policy, you can transfer the financial risk of your death to the insurance company. For some of your insurance payments, the company promises to pay some of your beneficiaries a death benefit while you are no more. For such an arrangement to be viable financially for your insurance company, the insurance premiums would be based on the risk profile of the patrons. Therefore, anything that boosts your risk of death will also increase the cost of your life insurance.

Some of the critical factor’s insurers look at are:


Life insurance costs tend to increase as you grow old, and speaking, statistically, the older you get, the more are your chances of dying. Life insurance is one of the most cost-effective options while you are young and healthy, as the risk assumed by the insurance company is relatively low. If you go for term life insurance early in your life, then there are some chances that you would outlive your policy tenure, and the insurer wouldn’t pay your claim. When you buy a permanent policy while you are in your 20s or early 30s, there is a high chance that you will pay premiums for a long time. Hence the cost and risk can spread ideally for the insurance company. Everything being equal, the older you get, the more premiums you need to pay for your coverage than young people.


Ideally, women live longer than males. The average life expectancy for women is 84 women while it’s 80 for men in Canada. It is mainly because of the disparity women tend to pay less life insurance cover than men.


Ideally, health is one of the most vital factors for determining life insurance premiums. A healthier lifestyle is best if you want to flaunt a healthy body and is ideal for your life insurance premiums. Insurance companies tend to look for healthier individuals as they are most likely to live longer. As such, they are rewarded with minimum tips. Insurers might ask you some health-related queries to know more about your health. They might also need a medical test and access to your health information.

But some plans don’t need any medical exams. Instead, insurers consider one of the main things is body mass index or BMI, as it is a valuable indicator for your health. Diabetes, high blood pressure, and heart issues are some of the few examples of ailments linked to higher BMIs. Often people with higher BMIS pay more life insurance rates.

Insurers also check if you are taking any medicine for your health condition, which would impact your life expectancy. For example, if you have an underlying health ailment, including diabetes, then the cost of your life insurance will be more. Additionally, a history of severe illness, including cancer, can enhance your premium in no time.


Smoking is bad for your wealth and health, and it is a red flag for insurers offering life insurance. It is because smokers tend to have a short life span than non -smokers, and they are mainly developing ailments, including cancer. These facts make your insurance company risky, and to compensate, the insurance company will ask you to pay more if you smoke, and premiums for smokers can be at least ten times more than non – smokers.

But there is some good part here: if you don’t smoke for a year or so, some insurance companies will consider you a non-smoker. So even though they won’t qualify you for the non-smoker rates, your insurance rate will be much lower. Additionally, vaping affects your insurance rates without a doubt.

Lastly, your family history will also play a crucial role. Life Insurance is essential, and there should be nobody who should ignore it. The cost of life insurance in Canada depends on the kind of policy one ends up taking.

Hence these are some factors that affect your life insurance policy’s cost. If you are looking for a life insurance, get in touch with us today!