How to Save Money on Insurance in 2026

The biggest savings on insurance in 2026 come from a handful of decisions: compare multiple insurers through an independent broker, buy the right amount and term length instead of the biggest, apply while you’re young and healthy, earn non-smoker rates, pay annually, take a longer waiting period on disability coverage, replace bank mortgage insurance with term life, and re-shop anything you bought years ago. Most cost nothing. None of them touch the coverage that actually protects your family.

This guide is for Ontario families who want to pay less for life, critical illness, disability, health and dental, and travel insurance without leaving themselves exposed. The tactics that move the price most come first.

1. Compare insurers (this is the big one)

Canadian life and health insurers price the same applicant differently. One company is sharp on 20-year term for non-smokers in their 30s; another is more forgiving of well-controlled blood pressure; a third has the lowest rates on smaller face amounts. The only way to find the lowest is to quote several.

Premiums are set by the insurer, not the seller, so buying through a broker doesn’t add to the price. Our article on insurance broker vs. direct explains how compensation works. The cheapest life insurance in Canada guide goes into how the rankings shift by age and profile.

2. Buy the right amount, not the round number

Over-insuring is the quietest form of overpaying. Work out what your family would actually need: replace income for the years they’d depend on it, clear the mortgage and debts, fund education, cover final costs, then subtract savings and existing coverage. The how much life insurance do I need guide walks through it in ten minutes.

Two counter-intuitive points:

• Coverage bands. Insurers price in bands, typically with breakpoints at $250,000, $500,000 and $1,000,000, and the rate per thousand usually drops at each breakpoint. It’s not unusual for $500,000 to cost about the same as, or less than, $450,000. Ask your broker to quote the next band up before settling.
• Don’t under-insure to save $10. The difference between $500,000 and $750,000 of 20-year term for a healthy 35-year-old is often less than a takeout meal per month, and the difference to a family is enormous.

3. Match the term length to the need

Term insurance is cheapest when it ends around the time the need does. If your youngest child is 5 and the mortgage has 22 years left, a 25-year term fits. A 30-year term would cost more every month for years of coverage you may not need; a 10-year term would be cheaper now but force an expensive renewal or a new application at 45. Our comparison of 10 vs 20 vs 30-year term shows the math.

A layered approach often costs less than one big policy: a larger 20-year term for the child-raising years stacked with a smaller 30-year term or permanent policy for the needs that last.

4. Apply younger (and don’t wait for a better time)

Age is the largest single price driver, and each year you wait raises the premium for the entire term. As an illustration only, for a healthy non-smoker buying $500,000 of 20-year term, indicative monthly premiums are roughly:

Age at application	Indicative monthly range (male)	Indicative monthly range (female)
30	$20–30	$17–25
35	$25–38	$21–32
40	$32–48	$27–40
45	$48–70	$40–58
50	$70–110	$58–90

These are illustrative ranges, not quotes; your rate depends on age, health, smoking status, coverage amount and insurer. The point is the shape: waiting from 35 to 40 can add roughly a third to the premium, and from 40 to 50 can double it, plus the risk that a health change in between makes coverage costlier or unavailable. Our life insurance rates at age 35 and age 40 articles go deeper on what changes at each stage.

5. Qualify for non-smoker rates

Smokers pay roughly 1.7 to 2.5 times non-smoker rates for life insurance, and more for critical illness. Most insurers require 12 months tobacco-free for non-smoker rates, and many count vaping and some count cannabis. If you’ve quit, or are about to, tell your broker: once you pass the 12-month mark you can apply to have an existing policy re-rated, usually with a nicotine test. Our guide to life insurance for smokers covers how each insurer treats cigars, vaping and cannabis differently.

6. Pay annually

Most Canadian insurers add a modal charge for monthly premiums, often a few percent over the year. It’s a small saving, but it’s guaranteed and it applies to every policy you own. If cash flow allows, switch to annual at the next policy anniversary.

7. Take the medical exam

No-medical (simplified or guaranteed issue) policies are convenient, but insurers charge more for the uncertainty. If you’re in reasonable health, a traditionally underwritten policy with a paramedical exam is almost always cheaper for the same coverage, and the exam is free and done at your home. See what the life insurance medical exam involves. No-medical coverage is the right choice when health makes traditional underwriting difficult, not as a shortcut.

8. Replace bank mortgage insurance with term life

Mortgage insurance from a lender is typically post-claim underwritten, pays the bank rather than your family, declines as the balance falls while the premium doesn’t, and ends when you switch lenders. A term life policy sized to the mortgage is usually cheaper per dollar of coverage, pays a level amount to the person you choose, and stays with you through refinancing. Our comparison of mortgage insurance vs. life insurance lays it out.

9. Get your health in the best position before applying

Underwriters look at blood pressure, cholesterol, weight, and recent lab results. You can’t rewrite your history, but you can control the snapshot: apply when a condition is well managed and documented, avoid heavy exercise, caffeine and alcohol the day before an exam, and make sure your doctor’s file is current. If you’re already rated, a broker can request reconsideration after a period of improvement. Articles on high blood pressure and BMI explain what underwriters look for.

10. Choose a longer waiting period on disability insurance

For disability insurance, the elimination period (the time between becoming disabled and benefits starting) is one of the largest price levers. Moving from a 30-day to a 90-day waiting period typically reduces premiums noticeably, and if you have an emergency fund or employer sick pay to cover three months, you give up very little. Similarly, a benefit period to age 65 costs more than a five-year benefit, but the long-term protection is usually worth keeping; trim the waiting period first. Our elimination period guide explains the trade-offs.

11. Coordinate group and individual coverage

Group benefits through work are inexpensive, but they end when the job does and are often limited (life coverage of 1–2× salary, disability capped at a monthly maximum). Rather than paying for large individual policies on top, use group coverage for what it does well and buy individual coverage for the gap and for portability. For health and dental, avoid duplicating a spouse’s plan; coordinate benefits instead. See group vs. individual life insurance.

12. Buy critical illness insurance for the right amount and term

Critical illness insurance is priced steeply by age and by whether the policy includes a return-of-premium rider. A modest lump sum (one to two years of expenses) on a 20-year term is usually the most cost-effective structure for a working-age family. Return of premium sounds attractive but can raise the cost significantly; run both versions before deciding. Our guide on how much critical illness insurance you need helps size it.

13. Pick the right travel insurance format

If you take more than two or three trips a year, an annual multi-trip plan is usually cheaper than single-trip policies. Check what your credit card already covers and its trip-length limits, especially after 65, and buy only the top-up you need. For travel insurance with health conditions, honesty about stability is the biggest money-saver, because a denied claim is the most expensive outcome of all.

14. Business owners: use the structures available

If you’re incorporated, a health spending account or Private Health Services Plan can turn medical and dental expenses into a deductible business expense instead of an after-tax personal one. Corporately owned life insurance may be paid with lower-taxed corporate dollars. Both need an accountant’s input, but for many Ontario business owners the saving is substantial.

15. Re-shop old policies

Term rates for healthy applicants have generally trended down over the past couple of decades, and insurers’ competitive positioning changes constantly. If you bought a policy more than five years ago, are still healthy, and have not smoked in the last 12 months, it’s worth a fresh comparison. Two rules: never cancel the old policy until the new one is issued and in force, and compare the total cost over the remaining need, not just the monthly premium.

Where the savings usually come from

Tactic	Typical effect on cost	Reduces protection?
Comparing 30+ insurers	Often the largest single saving	No
Right-sizing the amount and term	Removes payment for unneeded years or dollars	No, if done properly
Applying earlier	Locks a lower rate for the whole term	No
Non-smoker rates after 12 months	Large; often close to halving the premium	No
Annual payment	Small, guaranteed	No
Medical exam vs. no-medical	Moderate for healthy applicants	No
Replacing bank mortgage insurance	Moderate; better coverage too	No, usually improves it
90-day disability waiting period	Moderate	Slightly, if no emergency fund
Annual travel plan for frequent travellers	Moderate for 3+ trips per year	No
Re-shopping old policies	Varies; can be significant	No, if new policy in force first

What not to cut

A few “savings” cost more than they save:

• Cancelling coverage with no replacement. Re-applying later means paying for your new age and health.
• Choosing the shortest term because it’s cheapest today. The renewal or replacement at the end is where the real cost lands.
• Under-declaring health or smoking on an application. A claim in the first two years can be contested and voided. See the contestability period.
• Dropping disability insurance first. For most working people it protects the largest asset they have, their income.

How Hayes can help

Comparing insurers is our job. We quote 30+ Canadian companies for every client, structure coverage so you pay for what you need, and review existing policies to see whether they still make sense. Our advice is free, because insurers pay us, and the premium is the same as buying direct.

To see what you could be paying, compare quotes from 30+ Canadian insurers in about two minutes, free and with no obligation. If you’d like us to look at what you already have, get in touch and bring your policies.