Honest answers to the questions Canadians ask most about life insurance.
A healthy 35-year-old non-smoker can get $500,000 of term life insurance for roughly $30–$50/month. Premiums depend on your age, health, smoking status, coverage amount, and term length. The younger and healthier you are when you apply, the lower your rate will be — and that rate is locked in for the entire term.
A common rule of thumb is 7–10x your annual income, but that ignores your mortgage, number of kids, and existing savings. The most accurate way is to add up: income replacement (7–10 years of salary), your mortgage balance, education costs for your children, and final expenses (~$15,000). Subtract any existing coverage. Use our free calculator to get a number specific to your situation.
Probably not — life insurance is designed to replace income that others depend on. If no one relies on your income, it may not be necessary right now. However, if you plan to have a family in the next few years, locking in a policy now while you're young and healthy will save you money long-term.
Term insurance covers you for a fixed period (10, 20, or 30 years) and pays out only if you die during that term. It's straightforward and affordable. Whole life insurance covers you for your entire life and builds cash value over time, but costs 5–15x more per month. For most Canadian families, term insurance is the better value.
Yes, in most cases. Many conditions — controlled diabetes, high blood pressure, past cancer — don't automatically disqualify you. Insurers may charge a higher premium or exclude certain causes of death. A broker can shop multiple insurers to find the most favourable terms for your specific health history.
Usually not. Group insurance through an employer typically covers 1–2x your salary, which falls well short of what most families need (7–10x). It also disappears when you leave the job. If you rely solely on group coverage and change jobs or get laid off, your family could be left unprotected.
The best time is in your 20s or early 30s — when you're healthy and premiums are lowest. A 30-year-old pays roughly half what a 40-year-old pays for the same policy. Every year you wait, premiums go up and health issues become more likely. That said, it's never too late — even in your 50s, there are affordable options.
It depends on the policy. Some simplified or no-medical policies are approved within 24–48 hours. Traditional policies that require a medical exam typically take 2–6 weeks. Most healthy applicants don't need a full medical exam — a phone interview and health questionnaire is usually enough.
Most policies cover death from any cause — illness, accident, or natural causes. The main exception is suicide within the first two years of the policy (called the contestability period). Some policies exclude specific pre-existing conditions, which is why it's important to disclose everything accurately when applying.
Absolutely. Being self-employed has no impact on your ability to get life insurance. In fact, it's especially important for self-employed people because there's no employer group plan and no EI if something happens. You'll need to provide proof of income (tax returns or financial statements) for the coverage amount calculation.
Most insurers offer a 30-day grace period. If you pay within that window, your coverage continues without interruption. If you miss beyond the grace period, the policy lapses and your coverage ends. Some permanent policies can use accumulated cash value to cover missed premiums temporarily.
You can buy directly from an insurer, but you'll only see their products and rates. A broker has access to multiple insurers and can compare dozens of policies to find the best coverage at the best price for your specific situation — at no cost to you. Brokers are paid a commission by the insurer, not by you.
Talk to Godwin directly — a licensed broker who will give you a straight answer, no sales pressure.