Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner-up for no medical
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for universal life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for decreasing term coverage
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best life insurance for the self-employed
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Blue Cross is a great option if you want both life and disability insurance under one policy: their tangible hybrid plan. Health insurance is their specialty, though; not life insurance.
Pros and Cons
Pros
Get up to $1M in coverage, plus the plan converts to a permanent one at age 56.
Option to add riders like health, dental and disability to your life insurance policy.
Cons
The only term lengths available are 10, 20 or 25 years.
Whole life insurance coverage only available up to $500,000 for ages 18 to 70.
No standalone critical illness insurance, it must be added as a rider to your life insurance policy.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for cancer survivors
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for credit union members
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
With preferred rates for eligible Canadians, CUMIS life insurance could be a good choice if you're a credit union member, but there are better options otherwise.
Pros and Cons
Pros
Variety of add-ons and riders available (for an extra fee).
Large variety of policy types from term, to whole, to universal, and children's coverage.
Cons
Only available through credit unions and cooperatives.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for participating life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for seniors and no medical life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Top pick for seniors, especially for those with health issues that would get them declined or charged sky-high rates elsewhere. Most plans let you skip medical exam.
Pros and Cons
Pros
No health exam for simplified issue & guaranteed acceptance plans.
Known for fast processing times, some get approved within 24 hours.
Established player in the no medical life insurance space.
Cons
More expensive than traditional term life insurance.
Some plans are deferred by 2 years, meaning no death benefit if you pass before then.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for short-term life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for whole life insurance for children
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Desjardins offers one of the most affordable whole life policies for kids. Unique offering of 5 Pay which is the ability to pay the policy in full within 5 years.
Pros and Cons
Pros
Number of riders like children’s accidental fracture and guaranteed insurability.
Strong brick-and-mortar presence in Ontario and Quebec.
Cash value options available, with a dividend scale of 6.2%.
Cons
Presence outside of Ontario and Quebec is limited.
Children’s Life Protection policy can be converted to permanent, but coverage only goes to $20K.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best life insurance for smokers
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for wealth transfer to children
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner up for life insurance for children
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best life/disability insurance for the hard-to-insure
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Humania's Insurance Without Medical Exam asks only 6 questions and is issued immediately. Get disability & critical illness insurance with no extra questions.
Pros and Cons
Pros
Insurance Without Medical exam includes life, critical illness, and disability insurance.
Get $5K-$300K in coverage.
Cons
Will not pay out death benefit for a pre-existing condition for 1-2 years (depends on the policy)
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for business owners life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for permanent life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for parents & homeowners
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner-up for best term life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for existing customers
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for whole life insurance with cash value
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Policies are pricier, but Sun Life has the highest dividend scale for whole life insurance in Canada. Good option for high-net-worth individuals and has perks like succession planning.
Pros and Cons
Pros
Very experienced advisors, some with 30+ years of experience.
Range of options for cash value life insurance.
Single & joint policies available.
Cons
Premiums are higher than competitors
Funds are expensive and investment options limited to their available funds.
Check their MERs (management fees) against other companies.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for simplified & guaranteed issue life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Known for its variety of no medical, simplified issue and guaranteed accepted life insurance products. But make sure to compare premiums with other no medical providers.
Pros and Cons
Pros
Multi-contract discount, refunds up to $100 if a referral buys UV within 1 year.
No health exam needed for up to $500,000 in term & $150,000 in permanent coverage.
Cons
Only available in Quebec, Ontario and New Brunswick
Prices for their simplified whole life policies look higher than CPP and Beneva.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Second runner-up for best term life
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner-up for smokers life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Laura McKay is the co-founder and COO of PolicyMe, Canada's fastest-growing digital life insurance company. In 2021, she was named one of the Women of the Year by Bay Street Bull. Laura has a Bachelor of Mathematics from the University of Waterloo. Her degree focused on Actuarial Science, which included learning about mortality risk, the basis of life insurance pricing and valuation. After her degree, she was employed by Manulife and Munich Re in Actuarial Science. Laura then worked at famed management consulting company Oliver Wyman in New York from 2013-2018. In this position, she worked with many Fortune 500 life insurance companies and helped them develop growth strategies and solve operational problems and regulatory issues.
Life insurance is worth itif loved ones rely on you financially or have debt that could be a burden if you pass.
A term life insurance policy is generally worth it for the average Canadian with dependents.
Permanent life insurance may be worth it for high-net-worth people with maxed-out investment accounts.
Life insurance might not be worth it if you have no dependents or debt.
Is life insurance worth it in Canada?
Life insurance is worth it in Canada for anyone that:
has large debts, like a mortgage
has loved ones that depend on their income
wants the peace of mind of knowing their dependents are financially covered
As a rule of thumb, term life insurance is generally worthwhile for the average Canadian's financial needs. To start, here's how much more affordable term would be versus whole life insurance.
If you're not sure you need life insurance, think about this: can your loved ones take care of themselves if you're gone? To help you out, start with the image below:
Life insurance might be worth it for you if you answered "yes" to most questions. But if you want to talk this through with a real human, we've got you covered.
PolicyMe advisors are non-commissioned, so they're not incentivized to oversell you on coverage. Get genuine advice, the kind of advice we'd actually give our closest friends below:
Who needs life insurance?
It’s a good idea to get life insurance if someone relies on you financially. More specifically, here's a look at who should consider coverage:
Your dependents could be left struggling financially if you pass, but life insurance coverage can help ease that.
For example, this is a breakdown of the economic situation that your loved ones would need to navigate if they lost your income:
Funeral costs in Canada average around $5,000 to $10,000, as of 2023.
Non-mortgage debt hit $21,183 per household in Q3 2022, with the highest debt loads among individuals between 46 and 55 years old.
These are example questions you should ask yourself when considering life insurance:
Who doesn't need life insurance?
You probably don’t need life insurance if there is no one that will shoulder your financial responsibilities if you pass away.
But consider this: you may have enough to cover immediate obligations, but what about things like your spouse's retirement or the kids' education?
If your income was lost, could your family maintain the existing savings schedule? If you don't think they'll be able to cover all future expenses, then life insurance would be worth it.
What age is best to get life insurance?
The best age to get life insurance is when you first have a dependent. "New" dependents are usually the catalyst behind most life insurance purchases.
That can be a spouse, kids or any other family member that relies on you. And the age at which you buy your policy can also have significant benefits. The younger and healthier you are, the cheaper your life insurance will be.
Just how much more worthwhile is it to lock in your rate sooner? Here's a comparison of the cost of life insurance by age:
The age at which you don't need life insurance depends on your financial situation and the needs of your loved ones. Remember: the point of life insurance is to protect your dependents from financial burden if you were to pass prematurely.
You may no longer need coverage if you've reached an age where:
Nobody relies on your income
You’ve paid off your debts
You have enough savings to support dependents
You have a sizeable emergency fund
For most, this happens sometime around the time that we retire. The average age of retirement was 64 years old in 2022, says Statistics Canada.
This is a good milestone to help you plan for the end of your life insurance needs.
Not sure if life insurance is actually worth it for your specific financial situation? Chat with a non-commissioned PolicyMe advisor for genuine, impartial advice. We'll even tell you if you don't need life insurance right now.
What type of life insurance policy is worth it?
Life insurance is generally worth it for many Canadians, but specific types of policies are more suitable than others, depending on your situation. We'll be looking at:
Term life insurance policies
Permanent life insurance policies
Group life insurance policies (employee life insurance through work)
Is term life insurance worth it?
Term life insurance is worth it for most average Canadian families that need life insurance to cover financial obligations and dependents.
“[It] provides cost-effective, temporary coverage over an insured's younger years," explains the CLHIA.
The term refers to the duration of coverage, usually 10, 20 or 30 years. Choose a term based on when you expect to have no dependents or pay off debts
If you pass away during the term, your family receives the payout you chose
Term is cheaper than permanent policies, providing coverage for the years you need it most
This makes term policies a worthwhile investment for the average Canadian's needs
Is permanent life insurance worth it?
Permanent life insurance can be a worthwhile option for Canadians with extremely high income. But it's likely not worth it for the average family. Here's what you need to know if you're asking yourself if a permanent life insurance policy is worth it for you:
Whole life insurance (a type of permanent life insurance policy) lasts your entire life but is seven and a half times more costly than term
Some permanent policies have cash value but are funded by high premiums and are less flexible
Death benefit can be used to pass wealth onto your family with tax benefits
Can build generational wealth, but it's only worth it if other investments are maxed (i.e. RRSP and TFSA)
An affordable term policy combined with self-investing provides more control and flexibility for managing funds
Is group life insurance worth it?
Group life insurance is usually a good supplement to a term policy, but it's often not enough to cover all of a family's financial needs. Here's a breakdown of group policies:
Group life insurance policies may be worth it, especially if provided for free by an employer
Generally, group coverage amounts to one to two times your annual salary
Group life insurance alone may not provide enough security to support your family if you pass
Coverage will also end if you leave the company
4 examples: who is life insurance worth it for?
Here are some examples of real-life Canadians wondering, "is life insurance worth it?". Life insurance advisor Stephanie Roux shares her recommendations:
1. Elena, 31 and Feng, 33, in Burnaby, BC
Elena and Feng have been married for 2 years, with a $500,000 mortgage on their home
Elena works as a financial controller, while Feng is a coordinator at a non-profit
Is life insurance worth it for Elena and Feng?
"Elena and Feng need life insurance. If one of them were to pass, the surviving spouse would have to cover the mortgage. And without their partner's income, the other might need help with daily expenses.That's why death benefits from a life insurance policy are so critical."
2. Asma, 33, in Calgary, AB
Asma, a business analyst, owns a condo with a mortgage balance of $250,000
Although she makes all the payments herself, her mother co-signed her mortgage
Is life insurance worth it for Asma?
"Asma needs life insurance. She has a mortgage that needs to be paid if she passes. And because her mother has co-signed, she'd be responsible for the payments.Any other outstanding debts she has could also become her mother's responsibility. She doesn't want to burden her with these costs. That's why life insurance is important."
3. Laila, 24, in Regina, SK
Laila is a few months away from completing her studies
To stay debt-free, she chose an affordable program, lives at home and commutes to school
Her parents are still working and can comfortably provide for their own needs
Is life insurance worth it for Laila?
"Laila probably doesn’t need life insurance. She has no debts or dependents."
Jordan Rodrigues, Insurance Specialist & Product Expert from Policyplan.ca adds this: "An exception: to give back in a big way, you can set up a life insurance payout (death benefit) to benefit a charity – for a cause that's close to your heart.
You'd then get a charitable receipt for paying life insurance premiums and claim that on your taxes, year over year."
4. Barb, 58 and John, 62, in Barrie, ON
Barb and John's kids are grown up and have moved out to start their own families
Both are still working, but they're hoping to pay off the mortgage before retiring for good
Is life insurance worth it for Barb and John?
"Barb and John need life insurance. They still have an outstanding balance on their mortgage. Financially, their children are just starting out and may not have the money to support the surviving parent."
Is life insurance a smart investment?
Life insurance is a smart investment for Canadians with people that rely on them financially in the sense that it's a wise purchase. It's usually not a good idea to use life insurance as an investment vehicle for cash value, as it isn't the most efficient way to invest (versus things like the stock market or an RRSP).
Here's a look at whole life insurance as an investment account compared to other types of investments:
But there are scenarios where a whole life insurance policy might be a worthwhile investment vehicle, but for the average Canadian family, this isn't the case.
The main reason you would use life insurance as an investment tool would be for tax benefits. But if your TFSA and RRSP accounts aren't maxed out, you're better off putting your money there.
Alternatives to life insurance
Life insurance helps to financially protect your family when you pass, and it's a good idea for many people.
But there are other ways to support your family. Let's take a look at some options:
Next steps: is life insurance is worth it in Canada?
Take stock of your obligations, dependents, debts and emergency funds.
Project how long your dependents will rely on you and how long it will take to pay down your debts.
Choose a life insurance policy that covers you for the duration your family needs, this will help narrow down your life insurance options.
Decide on a coverage amount and ensure that the payout is enough to take care of your family and cover funeral expenses.
Make a shortlist of the best life insurance options and reach out to them to get quotes. Compare their offers, weighing coverage, flexibility, and cost of life insurance.
What is the main reason for having life insurance?
The main reason for having life insurance is to protect your loved ones from financial issues if you were to pass away. Buying a life insurance policy makes sure that the people that rely on you for financial support don't have to face monetary losses if you pass away. A death benefit would give them the gift of financial security in a difficult time.
Is life insurance a good idea?
Life insurance is a good idea if someone financially depends on you, like your spouse/partner, kids or aging parents. Only some Canadians need life insurance. If you're single, financially independent and don't have large debts like a mortgage, you can probably skip a life insurance policy.
But if your financial situation has changed recently, it may be time to reevaluate your need for a policy. If you're unsure how much CI coverage you need, visit PolicyMe to determine how much critical illness insurance do I need.
How long do I need coverage for?
You need life insurance for as long as you have someone financially dependent on you. That length of time is different for everyone, but your answer likely won't stay the same forever. That's why we tend not to recommend permanent life insurance.
Term life insurance lets you choose the term length that suits you and your family the best. So you can save money by only getting the amount of life insurance you need.
How much is my life insurance policy worth?
Your life insurance policy's worth will depend on the type of life insurance you have. Permanent and universal life insurance tends to have a cash value component, which will change over time.
If this question is in the context of selling your life insurance policy to someone else, take note that you are only able to sell your policy in Quebec and Saskatchewan.
Is life insurance a scam?
No, life insurance is not a scam. It’s a valuable service that fills a real need in Canadian society by offering peace of mind and financial security for those left behind when a loved one dies. But not all life insurance policies will be worth it for everyone, and making payments toward a policy doesn’t always have an upside.
In the event that you do need life insurance, your loved ones will be thankful you made the investment. The key to maximizing the benefit of life insurance is to find the policy, rate, and coverage that makes the most sense for you and your family, and doing your due diligence to ensure that you work with a reputable life insurance company.
What is the importance of life insurance?
Life insurance is important because it looks after your family's financial future in the event that you're not around. Imagine if you were gone and couldn't provide for them anymore – life insurance steps in to help. When you purchase life insurance, it makes sure your loved ones can still afford things they need, like housing, final expenses, time off work and childcare, even if you're not there to support them.
Having life insurance gives you peace of mind, knowing that your family has financial protection to take care of themselves if something happens to you. It's like having a safety net for your loved ones so they don't have to worry about money during tough times.
Should I buy life insurance coverage?
Life insurance is a good idea for some, but not everyone needs it. You should think about purchasing life insurance if you have a family that depends on your income, like kids or a spouse. If something happened to you, life insurance would help make sure they can still pay for important things.
But if no one relies on you for financial support, paying premiums toward a life insurance policy might not be necessary. Remember, the goal is to protect those who depend on you, so if that doesn't apply, you might not need it.
If you are interested, get an insurance quote through PolicyMe for some of the best rates in Canada.
Sources:
Canadian Life and Health Insurance Association. Canadian Life and Health Insurance Association - Canadian Life and Health Insurance Facts, 2022 Edition. https://www.clhia.ca/facts
Canadian Life and Health Insurance Association Inc. https://www.clhia.ca/
Government of Canada, Statistics Canada. Retirement age by class of worker, annual. https://www150.statcan.gc.ca/t1/tbl1/en
/tv.action?pid=1410006001
Payment Delinquencies Increase, Credit Card Demand and Balances are Rising. Equifax.com. Retrieved March 14, 2023, from https://assets.equifax.com/assets
/canada/english/consumer-trends-q3-report-en.pdf
Statista. Average value of new mortgage loans Canada Q3 2021-Q3 2022, by metropolitan area. https://www.statista.com/statistics/1202954
Walker, A. Funeral Costs in Canada: Questions and Answers. https://eirene.ca/blog/funeral-costs-questions-and-answers
Laura McKay
COO & Co-Founder
About the Author
Laura McKay is the co-founder and COO of PolicyMe, Canada's fastest-growing digital life insurance company. In 2021, she was named one of the Women of the Year by Bay Street Bull. Laura has a Bachelor of Mathematics from the University of Waterloo. Her degree focused on Actuarial Science, which included learning about mortality risk, the basis of life insurance pricing and valuation. After her degree, she was employed by Manulife and Munich Re in Actuarial Science. Laura then worked at famed management consulting company Oliver Wyman in New York from 2013-2018. In this position, she worked with many Fortune 500 life insurance companies and helped them develop growth strategies and solve operational problems and regulatory issues.
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