With nearly 22 million Canadians having opted into some form of life insurance and the numbers steadily rising year after year, it’s not hard to see why getting a good policy on your own life may have crossed your mind.
Thankfully, in Canada, life insurance is very affordable and you’ve got lots of providers to choose from as well.
However, with more than 160 life insurance providers all across Canada – picking out the good from the bad may prove to be a challenge.
And that’s exactly why we’ve done our own research to find and pick out the best life insurance providers in Canada.
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Keep reading to get the low-down on our top picks and find answers to some of our burning questions on the topic of life insurance in Canada.
Our Picks For The Best Life Insurance Providers & Services
- Policyme.com – The Best Overall Option
If you’ve ever been to an in-person meeting at an insurance brokerage or a direct insurer’s office, you probably know that it’s a pretty stressful ordeal.
Starting with the fact that you likely won’t get the best possible deal, to the fact that it’s not uncommon to feel pressured into signing up for a policy right then and there – the whole experience can feel dehumanizing and lacks the right degree of guidance and support that would help you find the best possible policy or solution for your circumstances.
And that’s exactly where PolicyMe comes in to save the day!
This handy web-tool is a fantastic way to get quote comparisons, advice and guidance, all alongside the fact that they can help you save up to 50% on policies from the most-trustworthy insurers in Canada.
In addition to this, you can get your policy set up entirely online. From consultation to the entirety of your application, PolicyMe takes care of all the legwork in getting you the policy you need, at unbeatable prices.
And here’s the best part – it all comes at no charge what so ever to you.
- Assumption Life – Best For Simplicity
Assumption life, otherwise known as Assumption Mutual Life is one of the leading insurers in Canada. They provide both life and term insurance options, with a range of five product offerings for Canadians that are looking to get non-medical policies set up.
Pros:
- They have a wealth of options available, giving you a good deal of flexibility in finding and putting together the policy that’s right for you
- The application process is relatively straightforward and can be done electronically
- They allow you to roll over short-term policies into a longer-term variant down the line
- You can also roll over your term insurance policy into a permanent policy
- You can manage your policy through a convenient online account
Cons:
- All of your policies will be on-paper, meaning you’ll need to keep the paper copies around as there isn’t a digital option available
- BMO Life Insurance – Best Affordable Option
Whether you’re a business owner, have a spouse and kids that you’d like to provide for, or simply want to make sure that you don’t inconvenience anyone in the event of the unfortunate – BMO offers quite a few fairly-priced life insurance products to suit your needs.
Pros:
- Good value for the money you’ll be paying, compared to other direct insurers and even some brokers
- A good deal of options available for you to choose from in order to get the perfect policy for your circumstances
- Available options to get advance of term coverage if you should deal with a terminal illness during the term of the policy
- They allow you to roll over short-term policies into a longer-term variant down the line
- You can also roll over your term insurance policy into a permanent policy
Cons:
- No option to manage your policy online or in any other digital manner
- There is quite a bit of paperwork involved, and there is no option to apply for a policy electronically
- The long-term policies they offer aren’t renewable
- Despite being the most affordable direct insurer option, you can still save more money with an insurer matching service like PolicyMe
- Canada Life – The Best For Financial Strength Of Insurer
When it comes to picking out the best policy possible, one often overlooked part is whether or not the insurer is actually strong enough financially to be able to pay out the death benefit if the need should arise.
And when it comes to looking at the financial strength of Canadian insurers, it’s hard to beat Canada Life. With over $219 billion dollars in assets, Canada Life is undeniably one of the longest standing and most stable insurers on our side of the border. They currently offer product options for both consumers and businesses alike.
Pros:
- Canada Life offers four different term lengths on its products to help you put together the best-fitting policy possible
- They offer multiple additional options through riders for both the single and join policies that they offer
- They allow you to roll over a term policy towards a permanent policy
Cons:
- You don’t have the flexibility of picking your own term, rather you’ll have to choose from the options they provide
- The minimum coverage they provide is $100,000 which leads to fairly costly premiums compared to other direct insurers
- There is no option to manage your policy or apply for one digitally and there is a fair bit of paperwork involved in the process
- Empire Life – Best For Customization
When it comes to putting together the perfect policy for you, your circumstances and needs – Empire Life offers a diverse range of products, term options and coverage options for you to choose from and customize to put together the right degree of comprehensive coverage that. you need.
Pros:
- They offer a good variety of term options and coverage options to help you personalize your policy to be the best possible fit
- They offer several term and permanent insurance product options and allow you to roll shorter policies into long-term variants
- You can apply for a policy online, and it’s entirely possible to receive an instant approval on your application as well
- Your policy can be managed through a convenient online account
Cons:
- You can only access preferred rates if you go with a coverage option of over $750,000 making this one of the most expensive options on our list
- Given the multitude of options, it can be hard to pick out the right policy for you in comparison to the guidance you get through a matching service like PolicyMe
- Equitable Life – The Best Insurer For Families
If you’re thinking of getting a life insurance policy set up in your name to help safeguard your family’s financial security in the event of the unfortunate – Equitable Life offers the perfect range of products.
From a variety of term and permanent options to options that provide multi-life insurance coverage, Equitable Life offers an affordable range of products and helps families save on the premiums they’d otherwise have to pay under separate policies.
Pros:
- They offer very affordable policies, especially on a family-plan model
- You’re able to tack on critical illness coverage and other riders to really customize your policy to suit your needs
- Your policy can be managed digitally thanks to their convenient online account
Cons:
- They don’t offer an electronic policy, so you will have to retain lots of paper copies of your policy to make sure you and your loved ones are covered
- They only offer limited term options on their products
Life Insurance FAQs
Is life insurance worth it?
Whether getting a life insurance policy is worth it or not depends entirely on your personal circumstances.
For example, if you have kids, or if your family is largely financially relying on you, getting a life insurance policy set up in your name would be logical.
However, what most people don’t consider is the fact that life insurance is only really meant to replace the income of the deceased person. This means that their partners won’t be left stranded in the worst-case scenario.
On the other hand, in situations where replacing your income isn’t paramount, it may be better to invest that money instead. For example, you could set up a college fund for your kids, or a joint retirement fund for you and your spouse.
How does life insurance work in Canada?
Even though it may seem like a pretty confusing concept at first, life insurance is actually pretty simple.
In short, you pay a recurring sum to the insurer, which is called the premium. And if an unfortunate event leads to your death during the term of the policy you signed up for – the insurer will pay a sum to your beneficiaries. This sum would also be tax-free.
When it comes to the terms – there are two categories of life insurance that you’ll encounter most of the time.
Firstly, there’s the permanent insurance, otherwise seen in Canada under the “Term to 100” label. This category stays in effect over the course of your entire life and allows you to gradually accumulate a cash value death-benefit. In some sense, this category of policies acts as a long-term investment vehicle.
On the other hand, the more commonly seen category is term life insurance. This category generally spans between 10 and 30 years. You pay the same amount of money each year, and if you should die during the term of your policy, your beneficiaries receive a predetermined sum. However, if you outlive your policy’s term – the insurer gets to walk away with the money you’ve paid them.
How much life insurance do I need in Canada?
When you sign up for a life insurance policy in Canada, you’re basically putting money towards a “death-benefit” cashout.
In short, if you want to make sure that your beneficiaries get a larger death-benefit, you should expect to pay a higher premium for the duration of your policy’s term.
As such, it’s always a good idea to have a good handle on the expenses you plan for your death-benefit to cover before you sign up for a policy.
Here are a few of the typical expenses that death-benefits may cover:
- Helping your spouse stay financially afloat
- Getting your children through school
- Keeping a business that you leave behind running
- Making a sizable contribution to a charity
At the end of the day, the policy and term you choose, as well as the subsequent death benefit that your beneficiaries will receive depends entirely on your personal circumstances and the goals/reasons for which you’re thinking about getting a policy in the first place.
How much does life insurance cost in Canada?
While it’s hard to give an exact estimate as to how much you’d pay for your policy offhand – the sum you should expect to shell out will depend on the coverage you select, the term of your policy and the estimated risk of your death during the term.
Closing Thoughts – Choosing The Right Life Insurance Provider For Yourself
Let’s face it – no one really likes to think about death, or the prospect thereof. However, undeniably, if your family and loved ones rely on you financially, getting a life insurance policy set up in your name might just be a smart move.
In today’s article, we’ve covered the best life insurance providers that you’ll find in Canada. And if you’ve kept up with us until now, we’ve also answered some of the burning questions that we get from readers that are searching for the best policy that fits their personal circumstances.
We hope that we were able to help you shop more confidently, and if you need a definitive recommendation – PolicyMe is definitely a tool that you should give a shot. Whether or not you apply for a policy through their tool, or go through a broker or direct insurer, their tool will cost you nothing, all while being able to save you hundreds of dollars on the policy that’s right for you.
With that, we wish you luck in your search. If you have any questions that we didn’t cover, feel free to let us know in a comment down below!
