Do you need life insurance under 35?

With files from Samantha Kohn

This article was originally published on June 1, 2023 and was updated on November 7, 2025.

Life is full of uncertainties, but there’s one thing we know for sure: no one lives forever. That’s where life insurance comes in. 

A life insurance policy provides financial protection to your loved ones in the event of your death. It can also offer you living benefits if you develop an illness or suffer an injury and can no longer work. Some life insurance plans also build cash value over time that you can access during your lifetime. 

While life insurance has traditionally been seen as something for older people, there are many reasons to consider purchasing a policy at a young age. As the cost of living increases in Canada and more people take on debt early in life, it pays to have a financial backup plan in case the unexpected happens. 

Let’s explore why getting a life insurance policy under the age of 35 is a smart move.

Life insurance and younger Canadians 

A recent BlueCross report found that 89% of Canadians recognize the value of purchasing life insurance in their twenties. Having peace of mind as they age and planning for life milestones like marriage and homeownership are cited as clear benefits of securing coverage early. 

This makes sense, especially given how expensive it can be to start a family in Canada. The findings show that financial pressures from inflation and housing costs weigh heavily on younger generations, with 79% of millennials reporting financial stress in the past 12 months. 

Yet just 61% of Canadians have some form of life insurance, despite the majority recognizing the risks of not having it. When asked why they are not insured, respondents cited cost, lack of understanding, and the absence of financial dependents. 

What many Canadians miss is that even without dependents, getting coverage while you’re young can still be worthwhile. Purchasing coverage early will help you lock in affordable rates and flexible features, such as living benefits that provide financial support if you’re seriously injured or ill. In other words, getting life insurance under 35 will help create a safety net for your future at a lower cost. 

Also read: Why aren’t more Millennials and Gen Z buying life insurance?

What are the main types of life insurance in Canada?

There are many types of life insurance products in Canada, but most fall into one of two categories: term life or permanent life insurance. 

Term life insurance policies offer coverage for a set period of time (or term) and pay out a predetermined death benefit if the insured passes away during the defined term (e.g. 15 years). With a term policy, the policyholder may be able to renew at the end of the term or convert the policy to a permanent plan.

Permanent life insurance policies (including whole life and universal life) offer coverage for the policyholder's entire lifetime and pay out a predetermined death benefit when the insured party passes away. Whole life policies typically have fixed premiums, while universal life can be flexible. These policies also come with other benefits, such as building a cash value reserve that the policyholder can access during their lifetime. The policy’s cash value grows tax-deferred and can be used as a tax-saving investment vehicle similar to an RRSP, meaning you will only pay taxes at the time of withdrawal. You can even take out tax-free loans against your cash value. 

Also read: Term vs. whole life insurance: Which one is right for you?

What are the key benefits of buying life insurance before 35?

It’s common for people in their twenties and thirties to feel invincible and not think about death, but the reality is that accidents can happen at any age. Here’s why purchasing life insurance is a valuable investment, even when death seems far away: 

Cost savings

Purchasing life insurance while you’re young and healthy means you’ll pay lower premiums, and these savings can add up over time. Life insurance premiums increase by 8% each year you get older, meaning the longer you wait to buy coverage, the more you’ll pay.

Future insurability flexibility

Having coverage early in life can help protect your insurability in the future and ensure you’re covered if you develop health conditions. Essentially, securing coverage while you are young and healthy gives you greater coverage flexibility down the line. For example, if you have a convertible term life insurance plan and decide to convert it into a permanent plan later in life, you typically have the option to forego a medical exam, which can be beneficial as you get older. Similarly, if your policy is renewable, you will not be required to re-qualify to extend your coverage.

Debt repayment

Many young people accumulate debt as they get established in life. Whether you have student loans, a mortgage, or credit card debt, if that debt is unsettled when you pass away, it could be transferred to your family. Purchasing life insurance can help ensure those debts are paid off with the death benefit, easing the strain on your loved ones. 

Income replacement

Beyond covering any debts you may leave behind, a life insurance payout can help your financial dependents replace your lost income and keep up with daily expenses. These expenses can include childcare, funeral costs, mortgage payments, and even a family vacation.

Build cash value

Permanent life insurance policies build cash value over time, which can be used as an emergency fund, for investment opportunities, or as a source of retirement income down the road. You can also borrow against the cash value (tax-free) to access extra funds during your lifetime. If you start contributing to the cash value reserve early in life, you’ll build up significant savings. 

Living benefits

An often-forgotten advantage of life insurance is the living benefits protection that is available. This includes coverage options such as critical illness insurance, disability insurance and long-term care insurance. Should you develop a serious illness, get injured and can no longer work, or need full-time care, these benefits are there to financially support you. According to a 2025 RBC report, only 24% of Canadians know that a critical illness claim can be made while you’re still working, and just 26% know the benefit can be used for anything. Accidents can happen at any time, which is why having living benefits coverage matters even while you’re young.

How much does life insurance cost under 35?

The cost of life insurance varies based on individual factors, including your sex, age, health condition, smoking status, policy type, and coverage amount you're looking for. However, a general rule of thumb is that the younger you are, the cheaper your premiums will be. This is because you pose a lesser risk to insurance companies. Note that men typically pay higher premiums than women, and term policies are typically less expensive compared to whole life or universal life insurance. 

The table below presents sample quotes by sex, age, policy type and coverage amount for a non-smoker in Toronto, Ontario. 

Adding benefits to your policy, such as critical illness insurance, can increase your premium. To determine how much life insurance you need, consider the sum of your debts, income, mortgage payments and education expenses and make sure your insurance payout covers it all or more. To learn what you’d pay in premiums, compare life insurance quotes with Ratehub.ca.

How much can you save by buying life insurance under 35?

Buying coverage when you're young will result in significant cost savings over time. Keep in mind that the longer the term or the more expensive the coverage, the more savings you will see. 

We compared the premiums for a Toronto-based male purchasing a 20-year term policy at age 30 vs. age 40. In this example, he could save 40%+ in premiums. 

 

The bottom line

There are many benefits to purchasing life insurance while you’re young. For one, premiums will be lower, saving you money, especially if you plan to purchase coverage at some point in the future. Life insurance also offers living benefits that will cover you if you get ill or injured, and some plans offer cash value advantages. Lastly and most importantly, life insurance offers peace of mind knowing your family will be financially taken care of if you pass away unexpectedly. 

Canadians under 35 have tons of life insurance options to choose from. Speak with a broker to determine the best policy for your unique situation. Or, to learn how affordable coverage can be, compare life insurance quotes from Canada’s top providers with Ratehub.ca. 

Also read:

• Life insurance vs. health insurance in Canada
• The top benefits of life insurance for Canadians
• Is whole life insurance a good investment?