Best Life Insurance in Canada Ratings & Methodology
How we found the best life insurance in Canada
As part of our commitment to simplicity, PolicyMe has streamlined the research process by ranking the best life insurance products in Canada. Our rankings are based first on star rating (from highest to lowest) and then on price (from lowest to highest).
Below, we explain the thinking behind every star and our data sources.
About star ratings
Every life insurance product in our study receives a one- to five-star rating based on:
- Affordability
- Financial stability
- Customer satisfaction
- Convenience
Star ratings are rounded to the nearest half-decimal and can vary depending on the category. For example, some life insurance products offer more competitive rates to seniors, while others target smokers. Thus, a product’s star rating may be slightly different in the “best for seniors” category versus the “best for smokers” category.
To ensure the quality of our recommendations, PolicyMe’s rankings exclude one- and two-star life insurance products. Here’s the recipe for PolicyMe’s star ratings, from most to least important.
Financial stability
Financial stability reflects a company’s ability to fulfill its financial obligations and survive economic downturns. It assures that your provider will be there for your loved ones after a lifetime of paying premiums, and we consider it a must-have for life insurance.
We use two criteria to measure financial stability:
- An “A-” credit rating or higher from a respected agency such as A.M. Best, Morningstar, DBRS, or S&P Global
- Membership in Assuris
Affordability
Affordability is essential because if you can’t afford your life insurance premiums, you can’t maintain your coverage. We award one star to every product priced at least 5% below the industry average.
To ensure fairness and accuracy, we always compare life insurance rates to the industry average for policies:
- Of the same type (term or permanent)
- Of the same length (10-30 years)
- With the same amount of coverage (in CAD)
- With the same underwriting method (full, simplified, no medical, or guaranteed)
- And for the same age group, sex at birth, and smoking status.
For example, we compare the cost of a fully underwritten, 10-year term life insurance policy with $400,000 in coverage for a 44-year-old, non-smoking woman, to the industry average for all fully underwritten, 10-year plans with the same coverage and priced for the same customer.
Affordability is specific to products, not providers, and can vary depending on the audience. For example, a product might receive one star for affordability in the “best life insurance for women” category, but not the “best life insurance for men.”
Customer satisfaction
Encompassing customer service, ease of purchase, communication, and more, a high customer satisfaction score isn’t absolutely necessary, but it’s still nice to have. Life insurance providers with a Google Reviews score of 4.0 or more earn a half-star for all their products.
We recorded the Google Reviews score of each life insurance provider’s Canadian headquarters to ensure fairness between traditional, brick-and-mortar chains and digital-only providers. Head offices also tend to gather a higher number of reviews.
Convenience
Again, it’s not necessary to get a quote or buy a policy online, but having the option can make your life easier. Online quotes and purchases empower customers to do their own research and compare prices without making multiple phone calls or relying on a broker.
Life insurance providers with online quote and purchasing options earn a half-star for all their products.
About the data
PolicyMe’s rankings pair over 450,000 quotes with hours of meticulous research on providers, perks, and customer ratings. Here’s what we found and where we found it, from most to least used:
PolicyMe’s findings use unaltered data and are free from paid placements or sponsored influence. While we strive to keep our information up-to-date, we cannot guarantee the validity of third-party data. These results are intended as a helpful reference and not as a substitute for personalized financial advice.
FAQ: Best life insurance methodology
Jasmine specializes in converting complex insurance data into actionable guidance. Her background includes auto, life, and health insurance and financial planning. Lately, she’s leveraging AI to extract insights from the numbers and help Canadians make better decisions.
Jasmine specializes in converting complex insurance data into actionable guidance. Her background includes auto, life, and health insurance and financial planning. Lately, she’s leveraging AI to extract insights from the numbers and help Canadians make better decisions.