What Is Life Insurance?
Life insurance is a policy that you can take out with an insurance company. The policy will give out a lump sum of money to your beneficiary after your death.
How much this lump sum is, depends on the type of policy you take out.
Your life insurance policy can be either for a:
10-20 year period; or
Until you reach a certain age, for example 65 years old
How much can your life insurance fees cost you in Canada?
Depending on the type of life insurance policy you take out in Canada, your premiums may vary.
On average Canadians spend around C$58 a month on life insurance. This translates to around C$700 a year.
If you renew your old life insurance, your monthly fees may increase as well. If you do not make your monthly payment then your life insurance policy may also be cancelled by the insurance company.
Always check what benefits you can get from different life insurance companies in Canada, before you choose a life insurance company.
Does the Canadian Public Healthcare Program Offer Life Insurance
No, the pubic healthcare system of Canada does not offer life insurance. There are other companies you can hire for Life Insurance policies.
What Sort of Life Insurance Policies can you get in Canada?
A lady with ruffled hair smiling
There are several different types of life insurance policies in Canada. Here is a general list of policies you can apply for:
Term life insurance:
Joint first to die insurance; or
Single terms insurance
Permanent life insurance:
Whole life insurance; or
Universal life insurance
What is a Beneficiary?
A beneficiary is the person who will receive a payment after the death of the life insurance holder. The beneficiary could be a:
partner;
family member;
friend; or
a charity
Reviews: Best Life Insurance Canada 2021
The best life insurance in Canada comes from Manulife, Sun Life, Canada Life, Desjardins, and iA (Industrial Alliance) based on size.
But size is just one factor. When Canadians search for the best term life insurance they need an informed checklist of what to look for when choosing the right policy and coverage for their needs.
Our life insurance reviews let you stringently compare and shop for the best insurance quotes available in Canada. Read further to find out:
- The best life insurance for couples and families
- The best insurance company for no medical coverage
- Your best options for layering or laddering your life insurance coverage
- The best-priced life insurance policy in Canada
- The quickest issue life insurance coverage
- The different types of life insurance available
And much more
Reviews of Canadian Life Insurance Companies
PolicyAdvisor.com has painstakingly researched the best life insurance companies in Canada. Years of profiling and analyzing the industry’s top offerings gives us the unique opportunity to review the best insurance companies in Canada and present you with a list of the top providers to compare term life offerings and policies available in the category.
The following reviews are a must-read for anyone compare this type of life insurance in Canada, though head here if you want to compare quotes right now.
Assumption Whole Life
Best Insurance for Simplified Issue: Assumption Life
Assumption Life offers five separate products for customers looking for non-medical life insurance policies.
A life insurance policy offered by Assumption Life also offers flexibility to seek coverage for higher amounts after medical and financial underwriting.
Pros:
Multiple term coverage options
Simplified, non-medical issue options
Quick, easy electronic process
Decreasing option available for mortgage coverage
Online access to account
Exchange and conversion options let policyholders convert to longer term or permanent coverage
Cons:
Only issues paper policies, no digital option
Breadth of options can be confusing
High policy fees and rider fees on non-medical policies
A.M. Best Rating: A-
PolicyAdvisor.com Rating: 4.5/5 Stars
Click here to read our full Assumption Life review.
BMO Whole Life Insurance
Best Insurance for Affordability: BMO Insurance
BMO Insurance’s term life insurance is a great option for individuals, couples, or business owners. It can cover mortgage payments and other debts, final expenses, funeral expenses, and provide for dependents and also be used to protect businesses and their key employees.
Pros:
Value for money pricing
Multiple term life insurance coverage options available
Ability to exchange 10-year policy into longer term (15, 20, 25, and 30 year coverage options)
Compassionate benefit program allowing advance of term life insurance coverage amount for policy holders needing financial support while dealing with a terminal illness
Options to convert into a permanent life insurance policy
Electronic contract delivery
Multi-policy discount available
Top 10 largest insurance company based on annual premium
Cons:
No online account
Only issues paper policies, no digital option
Longer-term life insurance policy (Term 25 and Term 30) not renewable
A.M. Best Rating: A
PolicyAdvisor.com Rating: 4.5/5 Stars
Canada Life
Best Insurance for Financial Strength: Canada Life
Canada Life, one of the country’s largest life insurers, is a member of the Power Financial Corporation group of companies which also includes the Great-West Life Assurance Company. With $396 billion in assets and a financial strength rating of A+ from A.M. Best, Canada Life is one of the most stable life insurers in the country.
Founded in 1847, Canada Life was the first domestic life insurance company in Canada. The company’s strong capitalization and diverse insurance offerings make it a provider of choice to millions of Canadian life insurance consumers and businesses alike.
The company’s insurance products includes a variety of term life insurance policies that are customizable to individuals’ unique needs and financial situation. Canada Life offers term life insurance with several options including level premium convertible term policies, fixed-term non-renewable policies, and optional additional policy riders to add a different type of life insurance if required.
Pros
Choose a customer term length from 5 to 50 years
Multiple rider options for single and joint policies
Can convert into Canada Life permanent life insurance policy
Cons
Minimum $100,000 coverage or $500 annual premium required
Limited digital policy or access to online account features
A.M. Best Rating: A+
PolicyAdvisor.com Rating: 4/5 Stars
Canada Protection Plan
Best Insurance for Non-Medical Policies: Canada Protection Plan
Canada Protection Plan is unquestionably the leading provider of non-medical life insurance and simplified issue life insurance products in Canada.
If you’re having difficulty finding insurance, have been rejected for life insurance in the past, or simply want to apply and get approved for life insurance quickly, Canada Protection Plan is one of your best options for a simplified issue life insurance policy.
Though keep in mind: if you are in good health and don’t mind the few weeks of waiting period which often accompanies medical underwriting, a lower-priced life insurance policy may be available to you.
Pros:
Multiple products offering simplified, no-medical coverage for applicants across all health categories
Most products are available through a quick, simple, online application without any medical tests
Several terms are available including 10, 20, 25, and 30-year coverage
Affordable coverage pricing, especially when compared to pricing multipliers (aka ratings) imposed by traditional insurance companies on applicants with prior health issues
Available to temporary residents such as those on a student or work visa– you don’t have to be a Canadian citizen or work permit holder
Most plans offer life protection from the time the policy is put in place
Customers can pay annual premiums by credit card
All plans convertible to permanent coverage until age 70
Decreasing term option available (ideal for covering mortgage debt)
Cons:
Can be more expensive than plans from other insurers for those in good health. You pay a higher premium in exchange for the convenience of coverage with no-medical underwriting.
Coverage amounts are limited to a maximum of $1-million. If you require higher coverage, you will need to look for another insurance provider
Coverage ends at age 80 versus age 85 for most other Canadian providers
A.M. Best Rating: N/A
PolicyAdvisor.com Rating: 4.5/5 Stars
CIBC Insurance Term Life Insurance Review
CIBC Insurance: Not Recommended
CIBC has a simplistic term life offering two standard products for coverage. While its simplicity makes it easy to understand, CIBC’s insurance product suite doesn’t offer as much customization as most bigger Canadian insurance companies, and similar coverage from more established providers is usually less expensive.
As well, CIBC Insurance offers limited options for converting the policy once the term has ended.
Pros:
CIBC Life Insurance is backed by the CIBC brand name, albeit a very small player in the Canadian life insurance industry
CIBC offers pure term (including guaranteed acceptance term) and permanent life insurance (Term-to-100) through a conversion option
Cons:
Only 2 coverage terms available: 10 and 20 years. If your coverage needs differ from these two terms, you will have better options with other Canadian insurance providers
No options for joint/child/family coverage
Conversion options are limited to term-100 permanent life insurance coverage. No whole life or universal life conversion options
There are limited riders or optional add-ons to augment coverage such as child term riders, guaranteed insurability, critical illness riders, and exchangeability
CIBC Insurance premiums are typically more expensive than larger Canadian insurance companies
Maximum age to obtain coverage is 64 years old, less than the 70-75 years range offered by other providers
Term coverage ends at 75
A.M. Best Rating: N/A
PolicyAdvisor.com Rating: 1/5 Stars
Click here to read the full CIBC review.
