Key takeaway: A life insurance premium of $35 every three months (C$140 per year) is unusually low but legitimate. This likely represents a small term life insurance policy with modest coverage, possibly C$10,000 to C$25,000. While foster parents in Canada have no legal authority to require a foster child to carry life insurance, the arrangement may have been positioned as beneficial for final expenses or to establish an early insurance habit. Whether it is worth keeping depends on the coverage amount, the beneficiary listed, and whether your partner still needs that level of protection.

What $35 quarterly typically buys

At C$140 per year, this premium falls well below the Canadian average for term life insurance, which typically starts around C$250 to C$400 annually for a healthy young adult purchasing C$100,000 to C$250,000 in coverage. According to the Canadian Life and Health Insurance Association, most entry-level individual term policies for adults in their twenties carry premiums of at least C$20 to C$30 per month for meaningful coverage (C$240 to C$360 per year). A C$35 quarterly payment suggests one of three scenarios: a very small face-value policy (C$10,000 to C$25,000), a group or association plan with discounted rates, or a policy taken out when your partner was a minor and has not yet been reassessed for adult rates.

Small policies in this range are often marketed as final expense or burial insurance, designed to cover funeral costs (which in Canada average C$8,000 to C$12,000 as of October 2026) without leaving a large death benefit. Foundational texts such as Principles of Finance explain that life insurance premium calculations reflect the insured’s age, health, and the coverage amount, so a low premium almost always signals low coverage or a very young issue age.

Foster care and insurance requirements

Foster parents in Canada do not have the legal authority to require a foster child to purchase life insurance on themselves. Provincial child welfare agencies (overseen by provincial ministries, with financial consumer protections guided by the Financial Consumer Agency of Canada) may require foster parents to carry life insurance on foster children in care to cover potential final expenses, but the reverse (a foster child being told to buy coverage) is not a standard practice. If the policy was set up while your partner was a minor, the foster mother may have been the applicant or premium payer initially, with the responsibility later transferred when your partner aged out of care.

It is also possible the policy was framed as a financial literacy tool or a way to lock in low rates at a young age. Some foster families encourage youth to start small insurance policies to build credit or demonstrate financial responsibility. However, if your partner is now the policyholder and premium payer, she has full control over whether to keep, change, or cancel the policy.

Read also: How Much Life Insurance Coverage Do You Actually Need in Canada

How to check if it is worth keeping

Your partner should request the current policy documents and declarations page from the insurer to confirm three critical details: the face value (death benefit), the beneficiary, and the term length or renewal conditions. If the beneficiary is still listed as the foster mother or someone other than your partner’s chosen person, the policy may not serve her current needs. If the coverage amount is under C$15,000, it may not be sufficient for final expenses or income replacement, depending on her current financial situation and dependents.

Compare the annual cost (C$140) against the coverage provided. A C$10,000 policy at C$140 per year represents a 1.4 percent annual cost, which is reasonable for a young adult but not exceptional. If your partner has no dependents, no debts, and her final expenses would be covered by family or savings, she may not need any life insurance at this stage. Conversely, if she has dependents or wants to ensure final expenses are covered without burdening others, a policy with a higher face value (C$50,000 to C$100,000) may be more appropriate, and the cost difference would be modest given her age.

Next steps

Contact the insurance company directly (the insurer’s name and policy number should appear on any payment receipts or statements) and ask for a full policy summary, including the coverage amount, beneficiary, and any conversion or renewal options. If the policy no longer fits her needs, she can cancel it without penalty. If she wants to keep life insurance but increase the coverage, she can request quotes for a new term policy and compare rates across insurers, as a healthy young adult typically qualifies for favourable premiums. A licensed life insurance broker in her province can provide multiple quotes at no cost and explain the trade-offs between term lengths and coverage amounts.

Disclaimer: This article provides general information about life insurance in Canada and is not personalized financial or insurance advice. Life insurance products, coverage limits, premiums, and suitability vary by province, insurer, and individual circumstances. Confirm all details with a licensed life insurance broker or agent in your province and review the actual policy documents before making any decisions about keeping, changing, or cancelling coverage.