Some people say $50,000 life insurance is too expensive for the benefits you get while others say its benefits outweigh its cost by a country mile.
Everyone has an opinion — but what’s the truth? We’ve put together this guide to help you base your decision on facts.
Find out the different types of $50,000 life insurance plans, their cost, and more.
What is a $50,000 Life Insurance Policy?
This is a life insurance policy with a death benefit of $50,000. If you pass away while your policy is active, the insurer will pay the policy's beneficiary $50,000.
Life insurance payout is usually not a taxable income, and the recipient is free to spend it as they deem fit. You can name anyone you like as your beneficiary and change the beneficiary designation at any time.
How much does a $50,000 term life insurance policy cost in Canada?
Term life insurance policies run for a specific period of time, referred as the ‘policy term’. Most term policies end after 10 to 30 years. However, most plans allow you to renew the coverage for a set length of time or up until a specific age, like 75 years.
Your premiums remain the same throughout the policy term. When the initial term ends, your plan may renew automatically or expire (unless you renew it) depending on the insurer.
Whether your plan renews automatically or you submit a renewal application, the renewal premium is much higher than the original premium rate. Other policy details, such as the coverage amount, riders, etc., remain the same.
Your policy pays the sum upon your death to your beneficiary, provided your policy is active at the time of your death. The death benefit is usually paid in a one-time, lump-sum amount, but some plans offer multiple options for receiving the payout. Life insurance proceeds are tax-free, as long as your beneficiary receives them in a single payment.
The cost of a $50,000 term life insurance plan in Canada depends on multiple factors, such as age, gender, health, personal medical history, lifestyle habits, and policy term.
Average cost of a $50,000 life insurance policy with a 10-year term
One of the most cost-effective ways to buy a $50,000 life insurance plan is to buy a 10-year term life plan. A 30-year-old woman can get coverage for as little as $8.55 a month while the cost of the same policy for a 30-year-old man is roughly $10.
Methodology
Average monthly premium rates are calculated for male and female non-smokers and smokers in a Standard health classification obtaining a $50,000 policies with a 10-year term.
Life insurance premium averages are calculated using real-time data from leading Canadian insurers, including Sun Life, ivari, Empire Life, Scotia Insurance underwritten by Empire Life, Foresters Financial, Serenia Life Financial, Co-operators Life, Equitable Life, Wawanesa Life, BMO, and Desjardins.
Kindly note monthly premiums vary by insurance provider, policy term, health class, and benefit amount. Rate illustration valid as of 06/12/2025.
Average cost of $50,000 a life insurance policy with a 20-year term
If you have financial obligations that will last longer than 10 years, a 20-year term plan is worth looking at. Premium rates increase with term length, though many term plans with a 20-year term are still cost-effective. A 30-year-old woman can get coverage for less than $10 a month, while a 30-year-old man can expect to pay around $10.75 a month.
Average cost of a $50,000 life insurance policy with a 30-year term
If you want a policy that lasts longer than 20 years, a 30-year term life insurance plan can be an option. Premiums are slightly more expensive than a 20-year term plan, but that’s something you expect. Longer the policy term, the higher the premium. All the same, the price hike for a 30-year-old person is less than $2 a month. 30-year term life plans are not available for people aged 60 or above.
How much does a $50,000 whole life insurance policy cost in Canada?
Whole life insurance is a type of permanent life insurance. It covers you until your death. In other words, there’s no expiry date. Provided you keep your end of promise by paying premiums on time, the coverage is meant to last your lifetime (or as long as you want). Whole life insurance provides peace of mind that your beneficiary will eventually receive the policy sum assured.
Along with permanent life insurance cover, whole life plans include an investment component, called cash value. When you pay the policy premiums, a part of it is funneled to the built-in investment account, which accrues interest at a fixed rate each year. The cash value grows tax-deferred, meaning you’ll pay tax on the investment gains only when you access this money.
You can use the cash value in case of a financial emergency, to fund a big purchase, or supplement your retirement income. There are three main ways to access it:
- Withdrawing money from the cash value portion of the policy
- Taking out a policy loan
- Surrendering the policy (This basically means canceling the policy to access all of the cash value at once)
Like in the case of term life insurance, how much you’ll pay for your whole life depends on factors such as your age, gender, health, lifestyle habits, personal medical history, and coverage details.
Average cost of a $50,000 whole life insurance policy
Whole life insurance combines lifetime cover with a savings component, but these benefits come at a price. Whole life policies are considerably more expensive than term life plans. A 30-year-old, non-smoker, female of average health can expect to pay $32.25 a month. The cost of the same coverage for a 30-year-old, non-smoker, male of average health is close to $35 a month.
Why do I need a $50,000 life insurance policy?
People buy a $50,000 life insurance plan for various reasons, including:
- To pay for their end-of-life expenses, including funeral costs
- To leave a small inheritance for their loved ones
- To help their family pay for any debt that they may leave behind
How does your health affect the cost of $50,000 life insurance?
When buying life insurance, you may wonder: “How much does a $50,000 life insurance policy cost?”
There’s no fixed answer, since several metrics factor into the price of an insurance premium, one of which is insured’s health. In fact, it is the second-most important factor, after only age.
Typically, top insurance companies reserve their best rates for younger, healthier applicants. Having a pre-existing condition or being overweight can increase your cost.
Let’s say you are a 40-year-old man with uncontrolled type 2 diabetes and apply for life insurance. While you’ll likely have no difficulty getting approved for a traditional plan, your premium rate will be higher than that of a non-diabetic 40-year-old man.
If you have a severe medical condition, like primary-progressive multiple sclerosis, it’s quite possible insurers may turn down your life insurance application. But that doesn’t mean you can’t get coverage. You can apply for guaranteed issue life insurance, which doesn’t involve any underwriting.
The natural drawbacks of this are costlier premiums and smaller coverage amounts, usually not more than $25,000 or $50,000. Nonetheless, some life insurance protection is better than none.
What other factors impact the cost of a $50,000 life insurance policy?
Other key factors that affect your premium cost include:
- Age: Life insurance premiums increase with age. The difference is not so big up till age 40, but after that premium rate may jump up by 8-10% for every year you delay buying coverage.
- Policy type: Whole life insurance can be up to 5-10 pricier than term life. Within the life insurance sub-group, policies with longer terms cost more.
- Occupation: People who work in a high-risk job pay more for life insurance.
- Lifestyle habits: Poor lifestyle choices, such as smoking, will bump up your premium, sometimes significantly.
Is $50,000 of life insurance enough coverage?
Everyone’s personal circumstances are unique, so are their life insurance needs. Therefore, there’s no 1-word answer to this question. “It depends” is the most useful 2-word answer.
A $50,000 life insurance policy may be the right fit if:
- Your primary reason for buying life insurance is to help your loved ones pay for your end-of-life medical bills and funeral expenses
- You have serious health issues and don’t qualify for a fully-underwritten life insurance policy
- You’re on a tight budget
- You want to leave a small inheritance for your children or grandchildren
Can I buy $50,000 life insurance policy without a medical exam?
Yes, you can. No-medical life insurance plans come in two flavors: simplified issue and guaranteed issue.
Simplified issue policies don’t require a medical exam but will ask you a few simple health-related questions. The insurer assesses your insurability and premium rate based on your answers. Simplified issue plans are more expensive than traditional policies.
Guaranteed issue policies, in contrast, do away with both a medical exam and health questionnaire. Acceptance is almost guaranteed, provided you meet the insurer’s age requirements. Most insurers write guaranteed issue plans to applicants aged 40 and over.
Guaranteed issue plans have the most expensive premiums, purely because the insurer agrees to cover you without knowing anything about your health. Nonetheless, they can be worth the cost for someone who wants life insurance coverage but isn’t eligible for standard coverage due to poor health, a risky profession, or some other reasons.

Tips for Finding the Best Quotes on $50,000 Coverage
Buying life insurance is not complicated, and it is often more affordable than people think. If you want to pay the lowest-possible premium for a $$50,000 life insurance coverage, compare quotes of different providers. Since premium rates vary across the market, doing comprehensive market research or enlisting the services of seasoned insurance brokers, who’ll do all the leg-work for you, is the only way to secure a great deal.
Conclusion
A $50,000 life insurance is extremely affordable, especially for those under 40. Options are also available for those who don’t qualify for traditional coverage.
At Dundas Life, we do all the hard work for you, comparing deals from top-rated insurance carriers in Canada so you can secure the best price. Talk to one of our licensed advisors today.
FAQs
How Does Whole Life Insurance Work?
Whole life insurance covers the policyholder until they die, as long as premiums are paid on time. Aside from lifetime coverage, these policies accumulate cash value at a fixed rate, which you can withdraw or borrow at any time.
Your beneficiary generally receives the policy sum assured when you pass, not the leftover cash value. Depending on the insurance company, you can pay the premiums, monthly or annually until you die, for a predetermined period, or as a one-off payment.
How much will I pay for a $50,000 life insurance policy?
The cost of coverage depends on several factors. How much premium you’ll pay monthly depends on your age, gender, overall health, personal medical history, and lifestyle habits (like smoking or heavy drinking).
The cost of premium also depends on whether the policy is term or whole life. Younger, healthier applicants typically receive the best rates. In contrast, if you’ve a serious pre-existing condition or are a smoker, expect higher premiums.
Is life insurance payout taxable?
Life insurance payouts are typically not taxable in Canada. The beneficiary doesn’t pay tax as long as they receive the death benefit in a lump sum. However, if they decide to receive the payout in installments, the interest earned on the principal amount will be regarded as income. Another scenario in which the life insurance payout is taxed when the deceased’s estate is the beneficiary.