Compare current $1 million life insurance rates
2026 sample cost of $1 million Term 40 coverage
| Age | Male | Lowest visible carrier | Female | Lowest visible carrier | Approx. initial-term horizon |
|---|---|---|---|---|---|
| 25 | $93.60/mo | Beneva | $66.60/mo | Beneva | About age 65 |
| 30 | $135.90/mo | Beneva | $84.60/mo | Beneva | About age 70 |
Why would a younger Canadian consider $1 million of life insurance?
The number can sound large until it is compared with the size of the obligation. A household with a substantial mortgage, young children and decades of income ahead may have an income-replacement need that reaches seven figures.
Income replacement
A surviving family may need several years of after-tax income replaced, not just the mortgage paid off.
Mortgage + debts
Housing debt, lines of credit, business guarantees and other liabilities can materially increase the need.
Children & education
Childcare, education and household support can continue for many years after the insured’s death.
Why younger buyers may focus on long terms
A 25- or 30-year-old may still have 30 to 40 years of major family and income obligations ahead. A Term 40 policy can align the initial coverage period with that horizon. The starting premium is higher than a shorter term, but it can reduce the chance that a new policy must be purchased later simply because the original term ended.
$1 million: Term 30 vs Term 40
| Age | Sex | Term 30 sample | Term 40 sample | Difference | What changes |
|---|---|---|---|---|---|
| 25 | Male | $61.20 | $93.60 | $32.40/mo | Approx. age 55 → 65 |
| 25 | Female | $41.40 | $66.60 | $25.20/mo | Approx. age 55 → 65 |
| 30 | Male | $72.90 | $135.90 | $63.00/mo | Approx. age 60 → 70 |
| 30 | Female | $54.00 | $84.60 | $30.60/mo | Approx. age 60 → 70 |
These are market-low samples and may involve different insurers across the two term lengths.
How do you know whether you really need $1 million?
Start with the financial gap rather than the round number. Add the obligations that would remain after death, then subtract assets and existing insurance that are genuinely available to the family.
| Need to consider | Examples |
|---|---|
| Debt | Mortgage, HELOC, personal loans, business guarantees |
| Income replacement | Years of household income required by survivors |
| Children | Childcare, education, extracurricular costs |
| Final expenses | Funeral, legal and estate costs |
| Existing resources | Savings, investments and existing life insurance |
Use the life insurance needs guide and calculator.
Is $1 million Term 40 always the right answer?
No. Some buyers need less than $1 million. Others may need more. Some clients may be better served by layering different terms — for example, a larger amount during the mortgage and child-raising years and a smaller amount for a longer period.
The important point is that large coverage can be affordable when purchased younger, but affordability does not replace a needs analysis.
Term 40 vs permanent insurance for a $1 million need
Term 40 and permanent insurance solve different problems. Term 40 is designed for a long but temporary need and usually starts at a lower cost than comparable permanent coverage. Whole life or other permanent insurance is designed for lifelong needs and may include cash value, depending on the product.
Compare term vs whole life insurance in Canada.
$1 million Term 40 FAQs
Can someone in their 20s qualify for $1 million of life insurance?
Potentially yes. Approval depends on income, financial justification, health, occupation, lifestyle, insurer underwriting and other factors.
Is $1 million of Term 40 expensive?
It can be relatively affordable at younger ages compared with applying later, but the correct comparison is not only price. The amount and term should match the actual need.
Why are female sample premiums lower in these examples?
Insurer pricing reflects actuarial assumptions and underwriting classifications. Actual pricing depends on the applicant and insurer.
Does $1 million Term 40 have cash value?
Generally no. It is still term insurance.
Should I buy Term 30 or Term 40 for $1 million?
Choose based on how long the need is expected to last. Term 30 may be sufficient for many mortgage and family-protection needs, while Term 40 may be valuable for a longer protection horizon.
Compare $1 million coverage before you apply
Compare insurers, term lengths and underwriting requirements rather than assuming the lowest premium is automatically the best contract.