Thinking of buying life insurance? You’ve got options, including bank owned life insurance!
While some opt to find a policy through a dedicated insurance company, others choose to look at bank owned life insurance to partner with their current banking habits. There are a ton of options through your bank, including BMO Insurance, RBC Insurance, or TD Insurance.
A major pull for bank owned life insurance? You have all of your financial products under one roof. You can access your chequing and savings accounts, credit cards, mortgage, and life insurance through the same online portal. And if you’ve had a good experience with your bank in the past, you might be more inclined to trust them with your money and insurance coverage.
Even if you know that you want to buy your life insurance policy from a bank, you still have to decide which bank to choose. And even if you currently bank with just one financial institution, you might still be curious about whether another bank can offer you a better deal on your coverage.
That’s why in this article, we tell you how to find the best life insurance through a bank and share some tips for finding the best life insurance in Canada (so be sure to read to the end!).
Life insurance is one of the most important purchases you can make. Why?
Life insurance protects the people who are financially dependent on you. It ensures that they’ll have enough money to pay for their expenses if you die unexpectedly and your income disappears. It won’t help with the emotional pain of losing a loved one, but it does cushion the financial loss.
When you buy an insurance policy, you agree to pay monthly premiums to cover the cost of your coverage. If you die while holding your policy, your insurer will have to cough up money to pay out a death benefit to your beneficiary (or beneficiaries). A death benefit is a tax-free lump sum payment that your beneficiary can use in any way they want (like to pay off a mortgage or cover the cost of competitive gymnastics lessons).
In Canada, there are 3 ways to buy an insurance policy from a bank:
If you work directly with the insurance division of a bank, you’ll receive options and quotes for coverage from that bank only. After all, banks want to sell you their coverage, not someone else’s.
In comparison, if you work with an independent insurance broker, you’ll receive options and quotes from multiple insurance providers. This will let you see how the rates for a particular bank compare to rates from other banks and even rates from a dedicated insurance company.
To give you some ballpark estimates, here are sample rates for life insurance coverage from major Canadian banks:
Prices based on rates on September 1, 2020. It is a 20 year term plan for a 35-year old male, non-smoker valued at $500,000.
Want to make sure you’re getting the best life insurance through a bank? Here’s what to consider when sizing up different financial institutions in Canada:
You can get solid life insurance coverage from any major Canadian bank that sells policies. But when it comes to identifying the best life insurance through a bank, BMO tops our list.
If you decide to start looking at their options, you can browse through BMO Insurance, which is part of BMO Financial Group. BMO has a Financial Strength Insurer A rating, which makes it a very safe bet as an insurance provider.
What places BMO ahead of the other major Canadian banks?
Two main factors – Flexibility and affordability.
It offers a range of policy options to suit a variety of insurance needs. And it has some of the most competitive rates in the industry.
Just be prepared for a bit of a wait: Because of its medical underwriting requirements and paper document delivery, it takes about 4-6 weeks to get approval on a policy.
Bank owned life insurance can be a great product, especially when you have had a positive experience with other financial products under their brand already.
When you’re informed of all the options available to you, you can rest easy knowing that you found the best life insurance in Canada for your needs, bank owned or not.