1. Check their financial “health”
Let’s start by talking about the financial health of an insurance company. First and foremost, you want to be sure that you can rely on the company you choose. Life insurance is a long-term relationship (one that outlasts many marriages). Whether your policy covers you for 10, 20, or 30+ years, you want to make sure the company will still be around if you need to make a claim down the road.
Fortunately, you don’t have to worry too much here. Life insurance companies are highly regulated and supervised by government at all levels. As a result, they’re generally in excellent financial health.
And that’s not all. You can also rely on Assuris. Assuris is a not-for-profit organization that protects Canadian policyholders if their life insurance company fails. Their job is to protect you by making sure that your policies are quickly transferred to a solvent (“healthy”) company where your benefits will continue. In the very, very, very … very …. unlikely scenario that your life insurance company does fail, Assuris guarantees that you will keep at least 85% of the promised insurance benefits.
So in sum, you can snuggle comfortably in bed at night knowing you have the protection in place no matter how you choose a life insurance company.