How Much Does $1,000,000 Life Insurance Cost in Canada?

A million dollars of life insurance sounds like a policy for the wealthy. In practice, it is one of the most common amounts we place for ordinary Ontario families, and for a healthy non-smoker in their 30s it often costs less than a streaming subscription bundle.

The short version: $1,000,000 of 20-year term life insurance typically runs $35–$50 a month at age 30, $50–$75 at age 40, and $125–$205 at age 50 for a healthy non-smoker, with women paying roughly 15–25% less than men. These are indicative ranges, not quotes. Your premium depends on your exact age, health, smoking status, the term you choose and which insurer you apply to.

This guide is for anyone who has run the numbers on income replacement, a mortgage and kids and landed somewhere near seven figures. We’ll cover what it costs, why the price scales the way it does, and how to decide whether $1M is actually the right amount.

$1 million life insurance cost in Canada by age (indicative)

The table below shows illustrative monthly premiums for $1,000,000 of 20-year term life insurance for a healthy non-smoker in a standard health class. Actual quotes vary by insurer and will differ from these figures.

Age at purchase	Female (monthly, indicative)	Male (monthly, indicative)
25	~$32–$40	~$38–$47
30	~$34–$43	~$41–$52
35	~$38–$49	~$46–$58
40	~$50–$64	~$60–$76
45	~$74–$97	~$92–$120
50	~$125–$160	~$160–$205
55	~$205–$265	~$265–$345
60	~$355–$460	~$460–$600

Illustrative ranges for a healthy non-smoker, 20-year level term, standard rates. Smokers can expect to pay roughly double. Preferred health classes may come in below these ranges. Rates change and depend on the applicant and insurer.

Two patterns jump out. First, the price barely moves between 25 and 35. Second, it roughly doubles every decade after 40. That is why timing matters so much at this coverage level, which we’ll come back to.

Why $1M doesn’t cost twice as much as $500K

A question we hear constantly: “If $500K is $30 a month, is $1M $60?” Usually not. In our experience, $1M typically costs about 1.7–1.9 times the $500K premium, not double.

Every Canadian term policy has two pricing components:

• A fixed policy fee, a flat annual amount that is the same whether you buy $250,000 or $2,000,000.
• A rate per $1,000 of coverage, which is where age, gender, health and smoking status show up.

Because the policy fee doesn’t scale, the per-dollar cost of coverage falls as the face amount rises. Many insurers also price coverage in “bands,” with a lower rate per thousand once you cross $500,000 or $1,000,000. If you’re weighing $750,000 against $1,000,000, ask your broker for both quotes. The jump is often smaller than you’d guess.

For a full comparison of how $250K, $500K and $1M stack up at different ages, see our guide to life insurance cost in Ontario, or the dedicated breakdown of $500,000 life insurance cost.

Term vs. whole life at $1 million

The premiums above are for term life, which covers you for a set period (10, 15, 20, 25 or 30 years) and then either renews at a much higher rate or expires. Term is the right tool for almost every $1M need because that need is temporary: a mortgage gets paid off, children become independent, retirement savings grow.

Whole life at $1,000,000 is a different animal. It never expires, builds guaranteed cash value, and is priced accordingly. For a healthy 40-year-old, indicative whole life premiums at this amount are often well over $1,000 a month. That can make sense for estate planning, business succession or funding a tax bill on death, but it is not how most families should buy income protection.

A common middle path is a large term policy paired with a small permanent one. If you’re unsure which applies to you, our term vs. whole life comparison walks through the trade-offs, and the whole life insurance page explains how the cash value side works.

What moves your $1M premium up or down

Beyond age and gender, these are the factors underwriters weigh most heavily:

• Smoking status. Any tobacco or nicotine use in the past 12 months (including vaping, and cannabis at many insurers) moves you to smoker rates, which are commonly around double. The savings from quitting are enormous at $1M.
• Health class. Insurers sort applicants into preferred, standard and rated classes. Build, blood pressure, cholesterol and family history all factor in. A preferred class at one insurer can be 10–20% cheaper than standard at another.
• Term length. A 10-year term is cheapest up front, a 30-year term costs the most, and 20 years is the most common choice. Longer terms lock the rate for longer, which matters if you’ll still need coverage in your 50s.
• Riders. Adding a critical illness rider, child rider or waiver of premium increases the cost. Sometimes worth it, sometimes cheaper as standalone coverage.
• Payment frequency. Paying annually rather than monthly usually saves a few percent because insurers add a modal loading to monthly billing.

Is $1 million the right amount for you?

Coverage should be driven by need, not by a round number. A quick way to sanity-check $1M is to add up:

1. Income replacement: annual after-tax income × the number of years your family would need it (often until the youngest child is independent).
2. Debts: mortgage balance, car loans, lines of credit.
3. Future costs: post-secondary education, a spouse’s retirement shortfall.
4. Final expenses: funeral, probate and any tax owing on registered accounts.

Then subtract existing coverage and liquid savings. For a 38-year-old earning $85,000 with a $450,000 mortgage and two young kids, this math lands comfortably at or above $1 million. For a single 30-year-old renter with no dependants, it lands far lower.

Our how much life insurance do I need article has a worked example and a simple calculator method you can do in five minutes.

Remember that group life through an employer is often only 1–2× salary and ends when you leave the job. It’s a nice supplement, not a substitute for a policy you own.

Underwriting at $1 million: what to expect

Higher coverage means more scrutiny, but it’s rarely as painful as people fear.

• Paramedical exam. At $1M most insurers send a nurse to your home or office for height, weight, blood pressure, and blood and urine samples. It takes about 30 minutes.
• Prescription and medical history checks. Insurers routinely check pharmacy records and may request an attending physician statement if you’ve had a notable condition.
• Accelerated underwriting. Several Canadian insurers now approve healthy applicants under a certain age at $1M without a paramedical, based on questionnaires and data checks. Eligibility varies, and a broker who works with 30+ insurers can tell you which ones are likely to waive the exam for your profile.
• Financial justification. Above roughly $1–2 million, insurers want to see that the coverage is reasonable relative to your income and net worth. At exactly $1M this is rarely an issue for a working professional.

Be completely honest on the application. Canadian policies carry a two-year contestability period during which a misrepresentation can void the contract, and honesty at the outset is what makes a $1M claim pay smoothly later.

Ways to lower the cost of a $1M policy

• Apply before your next birthday. Insurers price on age, and some use “age nearest birthday,” meaning your rate can go up six months before you actually turn 40.
• Ladder two policies. Instead of one $1M 30-year term, consider $500K for 30 years plus $500K for 15 years. Coverage drops as your mortgage and kids’ needs shrink, and the blended premium is lower. We explain this in cheapest life insurance in Canada.
• Compare carriers. For the same healthy 40-year-old, quotes for $1M of 20-year term can differ by 30% or more between insurers. That’s the single biggest lever.
• Skip bank mortgage insurance. Lender coverage is typically post-claim underwritten, shrinks with your balance and pays the bank. A term policy you own pays your family a level amount and is usually cheaper per dollar of protection.
• Reconsider term length. If you only need 15 years, don’t pay for 25.

How Hayes can help

Hayes Family Insurance is an independent, family-run brokerage in Ottawa, serving Ontario since 1996. Because we work with 30+ Canadian insurers rather than one, we can show you which carriers price your age and health class most competitively for $1,000,000 of coverage, and which ones are likely to approve you without a medical exam. Our advice costs you nothing; the insurer pays us.

Compare $1M term life insurance quotes from 30+ Canadian insurers in about two minutes. Get your free quote, or contact us if you’d rather talk it through with a licensed advisor first.