Life Insurance for Newlyweds in Canada
Picture this: A romantic proposal. A sparkling ring. A big teary-eyed YES! Your happily ever after is about to come true… so why not be each other's knight in shining armour with life insurance for newlyweds?
KEY TAKEAWAYS
- Newlyweds can buy individual life insurance policies or a joint policy. Either way, it’s an affordable way to replace income.
- To determine the right amount of life insurance coverage, couples need to calculate their needs based on household income and expenses, not just the highest earner.
- Even though newlyweds have a lot of new expenses, life insurance will never cost less if you apply while you are young and healthy. It should be considered an essential foundation of a family’s financial plan.
- Employer-provided insurance is often not enough on its own for long-term protection.
Why life insurance matters after getting married
You made a lot of promises when you got married. If you die prematurely, life insurance is one of the only guaranteed ways you can honour your commitment to keeping your partner safe and looked after when you can’t be there.
It may sound dark or pessimistic to have a chat about buying life insurance so early in the beginning of a long life together but there will never be a less expensive time to lock in coverage and protect each other in two important ways:
1. Freedom from debtYou’re about to take on a lot of financial responsibility as a couple. Maybe you’ll get a mortgage to buy your first home or borrow money to get the things you need. Whatever shape your collective debt takes, a life insurance policy will help your partner pay it off. |
2. Income to carry onAs newlyweds, you’re making plans based on the assumption that you have a lifetime of income-earning potential ahead of you. Life insurance can easily replace the money you would have earned and contributed to your marriage over the decades. |
From making sure your home is paid for in the event of your death, to protecting your family with life insurance, purchasing the right life insurance as newlyweds could mean lifelong protection in the event you were to lose your spouse too soon.
We get it – the last thing you want to think about is your fiancé(e) dying. But let’s think for a moment. If you knew you could protect your partner’s financial future in the event of your death, would you even hesitate?
There are many types of life insurance options available for you as newly married individuals. Here are the most common ways you can help protect yourself and your partner as you start to build a life together.
How much life insurance do newlyweds need?
Life insurance is an affordable way to replace your income so that your partner won’t be saddled with unmanageable debt when you die. When you’re young, that money might be needed to pay for things like:
- Student debt
- Personal or auto loans
- Credit card balances
- Outstanding balances on lines of credit
As you get older and start a family, the death benefit from a life insurance policy could help your family pay off all or some of your mortgage and use the proceeds to invest in your child’s education.
To estimate how much life insurance coverage you need as a couple, multiply the amount of after-tax money the highest income-earner makes today. This should be the minimum amount of coverage you apply for because even stay-at-home partners need coverage. Learn how to make a more detailed estimate of your needs.
Term vs. whole life insurance in Canada
Many young couples are drawn to term life insurance because of the relatively low cost and the simple application process. Others want to start laying the foundation of an intergenerational wealth-building strategy, so they spend more to purchase whole life insurance that never expires.
Who buys term life insurance?
Anyone with dependents who wants to replace their income when they die should consider matching the length of coverage to the number of years they intend to keep working. Ten years should be considered the minimum.
Who buys whole life insurance?
Paying a little extra for permanent coverage that never expires appeals to:
- Long-term planners looking for a guaranteed, tax-free payout to future generations
- Parents and grandparents of young children, because it will be most affordable when the kids are young, not to mention, the investment component has the most time to grow
- Business owners who want to take advantage of the “infinite banking” concept
To understand how whole life insurance works to protect multiple generations, check out our Guide to Whole Life Insurance.
Comparing the cost of term life insurance and whole life insurance in Canada
Term life insurance will always be less expensive than whole life insurance because it expires at the end of the insurance policy term. We’ll explain in more detail below. Whole life insurance costs more but it never expires and offers a wide range of wealth-building advantages. Here’s a quick comparison of term life insurance versus whole life insurance. For a more detailed quote, talk to a Serenia Life advisor.
Term life insurance rates (cost) by age: Non-smokers
Chart Last Updated: May 2026
| Age | Sex | Term 10 $250,000 |
Term 20 $250,000 |
Term 30 $250,000 |
|---|---|---|---|---|
| 20–35 | Female | $10.35 to $10.80 | $13.28 to $15.08 | $15.75 to $24.53 |
| Male | $13.95 to $14.18 | $17.55 to $19.13 | $20.93 to $32.40 |
Whole life insurance rates (cost) by age: Non-smokers
Chart Last Updated: January 2026
| Age | Sex | Whole Life $50,000 |
20-Pay Whole Life $50,000 |
|---|---|---|---|
| 20–29 | Female | $48.60 to $64.35 | $84.60 to $104.85 |
| Male | $53.10 to $69.30 | $88.65 to $108.90 |
Term Life Insurance
When you’re first starting out in life, you may find that you have more debt than assets. This is easily managed when two partners are working, but what if one of you were to pass away unexpectedly? It would make debt repayment difficult. This is where term life insurance comes in handy.
Term life insurance is meant to cover debt or income loss. Purchasing term life insurance can mean you or your spouse will receive a lump sum (i.e., a single payment that amounts to the current value of the policy) if one of you were to pass within the term of your policy. Term policies typically range from 10, 20, or 30 years
This lump sum of money is something that you can use to pay off your mortgage or other outstanding debt, save for retirement, or cover funeral expenses¹. Your surviving spouse could also choose to use the money received as income replacement – to maintain their current standard of living at the time of your death – which is especially important if you’re planning on having children. Child care is costly and with the lump sum your partner receives, they wouldn’t have to worry about having enough money to remain in the family home and provide the kids the quality of life you both dreamed of.
If you’d like to learn more about term life insurance, give our Guide to Term Life Insurance a read!
Whole Life Insurance
If the two of you are lucky enough to have some expendable income to invest, you may want to consider whole life insurance instead of the temporary option. While it is a more expensive option than term life insurance, it comes with two big benefits term is lacking:
- A guaranteed payout – You don’t have to worry that your coverage will expire once your term is up. This means your partner (and potential future children) will receive financial protection for both the short- and long-term.
- Growth potential – A whole life policy comes with an investment component, called a cash value1. This can be a nice way to complement your RRSP, GIC, or even a child’s RESP. That’s because you have the freedom to access your cash value when you need it most – for a costly renovation, a family trip, or a new car – this type of investment isn’t limited to your retirement years or when your child goes off to post-secondary, for example. Speak with an advisor to learn how you can grow your money even faster, thanks to the compound effect.
If you’d like to learn more about whole life insurance, give our Guide to Whole Life Insurance a read!
Whatever you decide, the reality is this: Life insurance for newlyweds is really about living your brand new life together to the fullest – without wasting a single moment worrying about your family’s financial future.
Comparison Table: Term versus Whole Life Insurance
When comparing term life versus whole life insurance, it’s essential to consider your short- and long-term needs, as well as your financial situation. Here are some key factors to think about:
| Term Life | Whole LIfe | |
|---|---|---|
| Cost | Lower | Higher |
| Coverage | Short-term | Permanent |
| Growth | None | Cash value growth |
| Flexibility | None | Flexible |
Key factors when comparing the cost of life insurance and type of coverage
Cost
Term life insurance is generally more affordable than whole life insurance, making it seem like a more budget-friendly option. However, the higher cost of whole life insurance includes its guaranteed cash value, the potential to earn dividends2, and guaranteed coverage for life. As a newly married couple, the investment portion of your policy has a long time to grow and it may mean you need to save less money in other parts of your family’s financial plan.
Coverage
Term life insurance covers you for a specific period, allowing you to match the amount of coverage to your current financial obligations. For example, you may need less coverage when you are older and mortgage-free. Or, you may want guaranteed coverage that will ensure your loved ones receive a large, tax-free payout in the future.
Growth
In addition to the death benefit, whole life insurance offers some benefits that can act similar to an investment. The insurance company will set aside a portion of each payment and invest it very cautiously. That money can be accessed through a tax-free policy loan3 and used however you wish. Term life insurance policies do not come with an investment component.
Flexibility
As newlyweds, you can expect a lot of things to change on your journey together. You might start a family, switch careers, take on a mortgage, and earn more money than you ever thought you would. No matter what happens, you should be able to adjust your financial plan, including how you’ll replace your income, as often as you need to. Ask your advisor about if and when you can increase, extend, or convert your coverage to keep up with your ever-changing world.
What does life insurance cost for couples in Canada?
Couples’ life insurance is not a type of coverage. You and your partner have the option of purchasing joint life insurance or buying separate policies. Either way, the cost will be based on your age, health, smoking status, and the amount of life insurance you need.
Here are the common factors that affect the cost of life insurance in Canada.
| Factor | How this factor affects the cost of whole life insurance |
|---|---|
| Age | Life insurance is more affordable when you’re young and in good health. |
| Health | Healthy individuals pay less than applicants with pre-existing medical conditions or unhealthy lifestyle practices, like smoking. |
| Risk factors | People who work in high-risk occupations or have dangerous hobbies often pay more. Even volunteering in high-risk countries could affect the amount you pay. |
| Sex at birth | Females typically live longer than males so their coverage costs less. |
| Coverage amount | The cost is relative to the amount of coverage you need. The more coverage you need, the more you’re going to pay. |
| Policy type and features | Policies that offer guaranteed payouts, as well as the option of accumulating cash and receiving dividends will always cost more than term life insurance that provides the same amount of coverage. |
| Extra features | Insurance providers typically offer a variety of optional riders (i.e., coverage that gets added on to an insurance policy to provide additional payouts under specific circumstances) to help you customize your coverage at an additional cost. |
You can estimate the cost of coverage using our up-to-date rate chart or by contacting a Serenia Life advisor.
Key questions newlyweds should ask before buying life insurance
Before you meet with a Serenia Life advisor, take some time to make sure that you and your new partner are on the same page when it comes to life insurance. The decisions you make together can bring you a lifetime of financial stability and freedom. It’s important to know what you’re buying, how it works, and how it protects all the people you care for.
- How much life insurance would my partner really need if I weren’t here?
- Would this policy pay enough to cover our shared debts, like a mortgage, student loans, or credit cards?
- Do we both need separate policies, or should we consider purchasing joint life insurance as an option?
- How long should our coverage last — until debts are paid off, or longer?
- Can we afford this comfortably as part of our monthly budget?
- What happens if our income or life situation changes in a few years?
- Does this policy allow us to adjust coverage later (for example, if we have kids)?
- Are we relying too much on workplace life insurance, and is it enough?
- What exactly is covered — and what isn’t?
- How easy would it be for my partner to access the payout if something happened?
- Who should we name as beneficiaries (i.e., the persons you choose to receive your life insurance payment in the event of your death) and should we include backups?
- Are there any tax implications we should understand in Canada?
- How does this policy compare to other options available to us?
- What happens if we cancel or want to switch policies later?
- Are we choosing this based on price alone, or overall value and protection?
Common mistakes newly married couples make when buying life insurance
A lot of the mistakes newlyweds make are the same ones individuals need to avoid. Whether you’re close in age or not, earning similar or disparate incomes, or in similar circumstances, here’s what to watch out for:
Waiting too long
Locking in coverage while you are young and before the onset of medical conditions that could affect your eligibility or increase the cost of insurance will always result in the best value for your money.
Relying only on employer coverage
Employee group plans are great so long as you stay with the same employer. If you switch jobs later in life, you’ll be applying for new coverage at an older age and premiums will definitely be higher. Find out why group coverage is not always enough.
Underestimating future needs
As a young married couple, it’s easy to underestimate the amount of coverage you may need. Try to imagine what your finances will look like five years down the road when you earn more money or have new responsibilities, like starting a family.
How to choose the right life insurance policy in Canada
If you already have a trusted insurance advisor, that’s a great place to start shopping for your first life insurance policies as a married couple. If not, here are three ways to start exploring your options.
Compare providers
Big banks and life insurance companies are the major providers of life insurance in Canada. You can compare features and costs on your own or work with a no-cost insurance broker who will do the legwork for you.
Check the financial strength of your insurer
Choose a life insurance provider that can clearly demonstrate how its financial strength will ensure it will always be here to protect your loved ones. Take a minute to explore our track record and see what it takes to be a leader for more than a century.
Understand policy terms
Price is a good indicator of value when it comes to life insurance. The least expensive policies rarely have the kind of additional features and benefits that let you truly personalize your plan.
Next steps: Getting life insurance as a couple
The easiest way to shop for life insurance as newlyweds is to engage a qualified expert, let them guide you through a simple needs assessment, and then work together to customize a solution that can grow with you as a family.
An advisor will help you compare quotes, guide you through the application process, and meet with you, as needed, to see if you need to make any changes to your coverage.
If you’d like to get started on your own, download our easy-to-use workbook and getting-started checklist.
Why choose Serenia Life insurance for newlyweds?
As a member-based organization with roots that go back nearly 100 years, we encourage kindness by sharing a portion of our profits through community outreach, fundraising, and unique member benefits that help Canadians support their family, their community, and the causes they care about. The more we grow, the more we can give.
We provide members with access to a growing collection of member benefits that make a positive impact on their lives and the lives of others, such as:
- $2,500 post-secondary scholarships
- Up to $600 towards fundraising events, and up to $400 towards volunteer-related expenses in Canada
- Financial support when drafting or updating a will through a lawyer
- And much more!
View a full list of our member benefits.
Frequently Asked Questions
If one of us is self-employed, are there any other things that we should consider?
What happens to life insurance if we separate or divorce?
Can you assign minors/kids to be your beneficiary?
What happens when a term life insurance policy expires?
Can we add our child(ren) to our policy in the future?
When should we revisit our coverage after we purchase a plan?
Want to learn more about financial planning for newlyweds?
The Government of Canada
The CRA has great tips for newlyweds on sharing money, legal matters, and tax consequences when you get married: Managing your money as a couple
Investopedia
Find some great tips that can help you and your new partner join forces with less stress and manage your money better as a team: Marriage and Money: What Every Couple Should Know
Canadian Association of Insolvency and Restructuring Professionals
Find out what habits lead to a happier relationship with money before you make some common mistakes: Couples and Money: How to Navigate Finances Together Successfully
The University of British Columbia
Find out how money affects different people around the world: Money buys happiness in different ways depending on where you live
Disclaimers
¹Cash values are accessible via a withdrawal, policy loan, or surrender. These may be subject to taxation and a tax slip may be issued. Accessing the policy’s cash value will reduce the available cash surrender value and death benefit.
2Dividends are not guaranteed and are paid based on the overall experience of Serenia Life Financial, considering all risk factors. Dividends may be subject to taxation. Dividends will vary based on the actual investment returns in the participating account as well as mortality, expenses, taxes, lapses, withdrawals, and other experience of the participating block of policies. These factors have the potential to increase the value of your policy above the guaranteed amount, depending on the dividend option selected.
3Policy loan is an easy way to access the accumulated cash value of the policy. A variable interest is charged on the amount borrowed. This may result in taxable consequences. Loan can be repaid at any time. Upon death and the loan is unpaid, the outstanding balance including any accumulated interest will be deducted from the total death benefit, with the remainder paid tax free to the beneficiary(ies).
