Compare the best life insurance quotes in Montreal for free. It’s that easy.

Insurance companies require applicants to take inventory of their finances. Obviously, where you live has a major impact on your finances. This section covers what’s involved in the financial needs analysis that your insurance broker or agent will ask you to complete.

Your income: The death benefit should be large enough to replace your income. Average incomes in Montreal sit at $47,487, according to the 2016 census.

The size of your mortgage: Your death benefit should be large enough to help your beneficiaries make mortgage payments if you have one. In Montreal, the average price of a home in Jan. 2019 was $394,896, according to the Canadian Real Estate Association, and the average household devotes 44.3% of their income to cover ownership costs, according to a 2019 report from RBC Economics.

Your household debt: Montreal residents are generally less indebted than those of Toronto or Vancouver, though they also tend to have less median wealth. Montreal families carry approximately 154% of non-mortgage debt relative to income levels.

Your monthly living expenses: Your death benefit should ideally be large enough to cover your beneficiary's daily expenses. Luckily, the cost of living in Montreal has remained quite low in comparison to other major Canadian cities of comparable size, like Toronto or Vancouver. A LowestRates.ca report found that monthly living costs for a single person in Montreal in 2019 came in at $2370.63 per month, including rent. For a family of four, monthly costs are around $5079.11 to $5831.81, depending on how close they live to the city centre.

There are two main varieties of life insurance policies, and your monthly premiums will depend largely on which one you choose. Living in the city of Montreal as opposed to another city shouldn’t impact what kind of life insurance policy you buy.

Term life insurance provides coverage for a specific number of years. The following terms are available:

• Term 10
• Term 15
• Term 20
• Term 30
• Term to 65
• Term to 70
• Term to 75

Once your term expires, you’ll need to renew your policy if you want your coverage to continue. Since you’re at least a decade older than when you first bought the policy, your premiums will increase at renewal. However, the amount you’ll pay is still less than what you’d pay on a new policy.

Permanent life insurance

Permanent life insurance, on the other hand, is purchased once and never needs to be renewed.

While permanent insurance is generally more expensive than term insurance, your rates will never increase, no matter what.

There are also three sub-types of permanent insurance:

Whole life:

Whole life insurance offers steady premiums and a cash value. That means a portion of your premiums goes into a separate savings account, which is then invested by your insurance company. A very modest rate of return is guaranteed. You are required to pay premiums for as long as you live or up until age 100.

Universal life:

Universal life insurance tends to be the most flexible permanent insurance option. With this kind of policy, you can actually negotiate the cost of your premiums. You also have the option to temporarily lower your premiums if you choose. It’s important to note though that the insurer will shrink your death benefit to make up the difference.

Universal life insurance also has an investment component and you have the option to manage your portfolio yourself. In terms of life insurance products, universal life is higher-risk — but also potentially higher-reward than whole life.

Term 100:

While its name might lead you to believe otherwise, term 100 insurance is actually a type of permanent insurance policy. When you purchase term 100 life insurance, your coverage is permanent, and you must pay premiums until you turn 100.

Term 100 is usually less expensive than universal or whole life insurance but is more expensive than term insurance. This policy type doesn't have a cash value. 

• Weight: Insurers often consider those who are overweight or obese more likely to develop chronic diseases.
• Gender: Women have a longer life expectancy than men and therefore typically pay cheaper life insurance premiums.
• Smoking: Applicants who smoke are often considered more likely to develop lung cancer or other respiratory ailments.
• Family history: You may pay more for life insurance if your family has a history of chronic illness and if it’s assumed you may develop the disease as well.
• Pre-existing conditions: If you have a pre-existing condition, including mental health diagnoses such as depression or anxiety, you will be charged more for life insurance.
• Age: The older you are, the more likely you are to develop health issues, which may increase your premium.
• Alcohol: Insurers penalize heavy drinkers with higher premiums as it increases your likelihood of developing a number of illnesses — or even dying prematurely.

Here’s an estimation of how much life insurance could cost in Montreal. Apply for a personalized quote to get a better idea of how much you’d pay.