Life Insurance
The 5 Biggest Life Insurance Mistakes Parents are Making in 2021
August 9, 2021
•
8 minutes
Get My Quote
By: Laura McKay, PolicyMe Co-Founder and COO, Life Insurance Industry Professional of 10+ Years
Looking for the best life insurance in Canada? You've come to the right place to make the right choice for you and your family.
We've put together the go-to resource with reviews on the top life insurance providers, helping you find the best life insurance in Canada for your specific needs. You can shop with confidence and know you made the best choice to fit your needs.
Looking for pricing highlights from the top life insurance companies in Canada? Here's a quick summary of the average price you can expect, depending on your needs and the type of coverage you are interested in.
-min.jpg)
All prices in this article are based on a healthy individual purchasing a 20-year term life insurance plan with $500,000 in coverage, unless otherwise stated.
You can check out the table below to see a sample of monthly premiums and how they vary based on your insurer.
Prices based on 20-year term coverage of $250,000 for a 30-year old man, non smoker.
* Policies sold by PolicyMe are underwritten by Canadian Premier Life Insurance Company and other life insurance carriers
Now that you’ve seen how much life insurance can cost in Canada, let’s dive into reviews of individual life insurance companies in Canada. We’ll look at ease of application, trustworthiness and everything else you need to know about r the top life insurance providers in Canada so you can make an informed decision.
When you're signing an agreement that can last decades, it's important to take the time to weigh your options.
But what factors should you be considering? Some of the factors you'll want to consider include:
With all of this in mind, let’s look at some of the best and most well-known life insurance companies in Canada and whether they’re right for your specific needs.
Here are some recommendations to help you avoid getting caught in the weeds trying to choose an individual life insurance provider. Note that there's no third party site that reviews every life insurance company in Canada, so we've included ratings where available.
All companies are scored by customers on a scale of 0 to 5!
Reviews.io score: 4.83
Key takeaway: PolicyMe's data-driven underwriting process means that you're getting the best price without unnecessary medical exams, medical interviews or tedious paperwork.
PolicyMe started out as a life insurance broker, seeing firsthand how inefficient the current life insurance process was. This inefficiency caused increased prices and application times for traditional insurers.
With this knowledge, PolicyMe launched Canada's first fully digital life insurance product.
This eliminated unnecessary administrative and distribution costs, passing the savings down to policyholders — people applying for a new policy can expect 10 to 20% cheaper premiums with PolicyMe compared to the rest of the industry.
Most of PolicyMe's policies are issued by Canadian Premier Life Insurance Company, a federally-regulated life insurance company that's been operating in Canada for over 60 years, with over $300M in assets and $40M in claims paid (across all product lines) in 2020.
Price: For a 35-year old woman, PolicyMe life insurance costs $23.44/month. For a 35-year old man, it costs $31.29/month.
Pros: With PolicyMe, you're getting the same quality of coverage for a cheaper price, and a significantly shorter and less tedious application process. For individual applicants, it's a no-brainer.
Cons: A disadvantage with PolicyMe is the lack of a discount for joint policies. However, combining the lower individual prices usually still comes out cheaper than most other insurers with joint discounts. PolicyMe is also currently not licensed in Quebec.
InsurEye score: 3.3
Key takeaway: If you have pre-existing health conditions, you may not want to buy a Wawanesa policy.
Founded in 1896, Wawanesa is one of the oldest insurers in Canada. Its headquarters sits in Manitoba, but they are licensed in all provinces across the country.
Price: You're looking at $36.66/month or $439.9/year for coverage as a man, and $28.80/month or $320.00/year for a woman.
Pros: Wawanesa is known for their lower prices. They have a large range of term lengths available and healthy lifestyle rewards (i.e.: lower premiums for healthy lifestyle choices.)
Cons: On the flip side, it may be challenging for many individuals with pre-existing health conditions to actually get approved at these prices. In our experience, while premiums aren't as high, neither are approval rates.
InsurEye score: 2.6
Key takeaway: With their full range of different term life products, you’re likely to find something that fits your needs. However, their customer service is lacking.
Pros: If you're struggling to figure out what fits your individual needs the best, Sun Life Financial has options — they offer four different term life insurance plans. The main difference between each of their policies is the coverage.
Their simplest plan has fixed coverage rates, taking the guesswork out of amounts needed. If you want a specific amount, you can look at one of their more complicated plans.
Cons: Based on customer reviews, their customer experience is lacking. If you have questions about your coverage or wish to make a claim, you might run into difficulties.
Price: For a woman, the Sun Life term life insurance cost would fall in the $23 to $33 per month range. The same plan would cost $29 to $41 monthly for a man.
InsurEye score: 1.8
Key takeaway: RBC’s rates can be categorized as average across the board.
Pros: The policies feature level premiums, guaranteed renewability, and are convertible to permanent life insurance at your request, without an additional medical required.
Cons: Customer complaints range from poor customer service, tricky cancellation processes, to difficulty claiming policies. You can read them here.
Price: Premiums start at an average of $24.26 per month for a woman, or $32.63 per month for a man.
Read full RBC Life Insurance review here.
InsurEye score: 2.4
Key takeaway: BMO prices are typically 2% more affordable than other competitor premiums which makes them a viable option for Canadians looking to buy term life insurance.
Pros: The monthly premiums tend to trend just slightly lower than other life insurance companies. However, there are no other clear differentiators provided.
Cons: BMO has more medical requirements for those looking to buy without a meeting, non-face-to-face. There are also fewer options available in general, from coverage amount to term lengths.
Price: Premiums start at an average of $26.10 monthly premiums for a woman, or $33.30 monthly premiums for a man.
Read full BMO Life Insurance review here.
InsurEye score: 1.8
Key takeaway: TD term life insurance is more expensive than the rest of the life insurance market. At an average of 18% more expensive with differentiators or benefits, we can’t recommend purchasing from this provider.
Pros: Your premiums will be level, which is when the premium stays at the same price throughout the policy’s term.
Their plans are also convertible, from term to a permanent life insurance policy without undergoing a medical review.
Cons: The price point is not competitive with the rest of the industry. No additional benefits provided on top of a regular policy.
Price: At the lowest range, the rates start at approximately $28 per month for a woman, or starting at $37 per month for a man.
Read full TD Life Insurance Review here.
Life insurance for couples may not seem like the most romantic purchase you can make with your partner, but it's definitely one of the most important ones.
There are also some major benefits of buying life insurance as a couple, including:
It's important to note, while these are great perks, they don't apply to every life insurance provider. Not every company provides discounts for applying as a couple, and you also both have to be approved for coverage.
If one partner applying is declined, it impacts both applicants.
On top of this, you must make sure that both parties in the couple are sharing one death benefit. In the scenario that you share this benefit, the payout will be lower than if you had two separate policies.
Here are our reviews for life insurance for couples.
Reviews.io score: 4.83
Key takeaway: Clients can typically expect to pay 5-10% less in premiums compared to the rest of the industry.
Pros: As an insurtech company, PolicyMe was established with the goal of making life insurance simpler and more affordable for all Canadians. The online application process takes just minutes to complete, and offers several term life insurance options.
PolicyMe agents are not incentivized to sell something you don’t need, so there’s less pressure. And the options they offer are consistently the most simple and affordable, so you won’t be throwing money away. With the lower prices, two individual rates are actually more affordable than most joint policies on the market.
Cons: It should also be noted that PolicyMe does not offer joint policies, which may be viewed as a disadvantage. However, insurees typically end up giving up some benefits by combining a policy.
Quick note: You may be giving up on certain benefits to your coverage by going with a joint policy. Make sure to check the fine print of your policy to ensure that the payout isn’t compromised.
Price: For a 35-year old woman, PolicyMe life insurance costs $23.44/month. For a 35- year old man, it costs $31.29/month.
InsurEye score: 2.4
Key takeaway: Manulife offers one of the most affordable options for couples applying together. However, customers complain of difficulty with cancellation and long processing times.
Pros: Founded in 1887, Manulife is one of the biggest insurers in Canada, with over 30 million customers worldwide. Manulife offers a wide range of life and health insurance products as well as group life insurance plans. Many customers may recognize the brand if they have some health coverage through work.
Manulife's Combined Family Term life insurance policy acts like a family policy that covers both you and your partner. It operates like having two separate policies (2 separate death benefits will be paid) but there is a discount on the policy for combining them into one. Manulife adds an additional 3% savings when you select the same coverage amount and policy length for you and your spouse.
They also offer one of the most affordable options for couples applying together.
Cons: Based on customer reviews, the main areas of complaint are around processing time for claims and the cancellation experience.
Price: Assuming a man and woman couple, your life insurance would cost $60.55/month to cover both of you. If you and your partner are both men, you're looking at $69.68/ month. If you and your partner are both women, your monthly rate would sit at around $51.10/month.
Read full Manulife Life Insurance review here.
BBB score: 4
Key takeaway: They offer very flexible coverage types. But your life insurance policy will only be provided in paper form.
Pros: Assumption Life has four different plans available for adults, with two that are worth investigating more as a joint life insurance policy.
Their FlexTerm and FlexOption plans are cheaper than their other options that don't require any type of medical screening. Assumption Life also makes it easy for you to get plans that cover you and your partner at the same time.
Cons: You can access your account online, but your policy will be issued by print only.
Price: If you choose Assumption Life, you would be looking at $73.80 per month for a joint life insurance policy to cover you and your partner.
InsurEye score: 1.5
Key takeaway: With all of this flexibility available as part of their joint policies, it's no wonder they're worth investigating if you're looking for life insurance as a couple.
Pros: Canada Life is one of the country's largest and most stable insurers in Canada. They offer a large range of term life plans at different lengths, and they have multiple rider options for both single and joint policies.
Cons: If you want under $100,000 in coverage, you can't get a plan with Canada Life - that is their minimum plan.
Price: Priced out separately, a Canada Life insurance plan would cost $27.45/month or $305.00/year for a man and $26.55/month or $295.00 year for a woman.
Read full review of Canada Life insurance here.
If you’ve already had a health crisis, you know how important it is to protect and provide for your loved ones. But a pre-existing condition or a family history of serious medical issues may also make it harder to secure coverage at all.
However, there are still options out there! You can find some great providers who don't require any type of medical tests beforehand.
Here is our top recommendation.
InsurEye score: 1.5
Key takeaway: Canada Protection Plan is a great option if you want to avoid going through medicals knowing that you already have a health condition that makes coverage expensive - you may as well avoid the headache!
However, this isn't a good option if you're just avoiding a nurse visit. You'll end up paying a lot more, because their coverage is for people who are typically seen as 'high risk'.
Pros: Canada Protection Plan is a leading provider of No Medical & Simplified Issue Life Insurance in Canada. That means that they do not require the extensive medical telephone exams needed with the other insurers in Canada. Compare Canada Protection Plan life insurance quotes today.
Shopping for a life insurance policy can be especially intimidating for anyone recently diagnosed with a severe health condition such as a heart attack, cancer, or a stroke - you may need high-risk life insurance, from the perspective of your provider. Simplified issue or guaranteed issue products are life insurance products that do not require medical exams (or sometimes even medical questions) to qualify.
Cons: The trade-off is that the policies for those with health risks are much more expensive than traditional term life insurance.
There is usually a cap on the amount of coverage you can get. But if you are unable to purchase regular term insurance, a simplified issue or guaranteed issue life insurance policy could be an excellent way to get some life insurance coverage and a small death benefit for your family.
Price: For a man, coverage would cost you $85.95/month, and coverage for a woman would cost you $60.30/month.
Read full Canada Protection Plan Insurance review here.
It's no surprise that tobacco products put people at higher risks for health issues. Because of this, life insurance for smokers tends to be priced at higher rates.
And keep in mind that it's not just a cigarette that makes you a smoker in the eyes of certain life insurance providers. If you have had a cigarette, cigar, e-cigarette product (including vapes and juuls), or any other tobacco product within the last 12 months, you can expect to pay the smokers rate.
If you're a smoker, it's especially important to find the best price available, given you're already at a higher price range — up to 200% higher than the average life insurance price. Here are our top recommendations:
InsurEye score: 2.6
Key takeaway: As far as plans for smokers, their prices are pretty reasonable. However, there are only paper policies available (versus receiving your policy online). It means more paper to keep track of.
Pros: Founded in 1892, iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States.
If you are trying to find life insurance for smokers, Industrial Alliance may be the right company for you. On average, they priced more competitively for smokers than other life insurance companies that we compared.
Due to the health risks associated with any tobacco use, smoking puts you into a higher risk category in the eyes of your life insurer. Smoker/ tobacco rates can be up to 2x to 3x more than non-smoker/non-tobacco rates. The good news is that iA tends to have the best rates for smokers in the industry.
Cons: There isn’t an online option for receiving your policy online. That means more admin and more paperwork for you.
Price: As a smoker, a man would be looking at $89.10/month or $990.00/year. For a woman with the same coverage, you would be looking at $67.05/month or $745.00/year.
InsurEye score: 2.1
Key takeaway: ivari has a wide variety of coverage options and terms available to their customers. That said, their prices trend towards the higher end of the scale.
Pros: ivari offers a range of life insurance products, both based on coverage and terms available. They offer plans with 10, 20, or 30 year terms as well as a handful of extra coverage options (these come at an additional cost). With so many options, it's easy to customize your plan and meet your needs, even if you are a smoker.
Cons: Compared to other insurers, the price tends to be a little higher. There is also a lack of flexibility with ivari, as you do not get to choose your term. For some, this may be a pro, since it will take some of the guesswork out of choosing!
Price: For the same term, ivari would cost $72.00/month or $800/year for a woman and $96.75/month or $1,075.00/year for a man smoker.
InsurEye score: 3
Key takeaway: Foresters have a decent amount of restrictions for their online presence. There are no digital or e-policy upon approvals, only paper policies available. There is also no online access to policy details, so you would have to call to get any details.
Pros: Foresters Life Insurance offers multiple coverage terms, one big benefit of them is the unique community they also offer — the premiums they provide are guaranteed once you sign and they only increase if you choose to renew your term at the end of it.
You can also convert to permanent whole life coverage if you choose, without the stress of having to provide additional evidence of insurability.
Cons: They are lagging behind in regards to innovation online. You will not be able to access policy information through an online portal.
Price: Foresters would cost $109.80/month or $1,220.00/year for a man and $80.55/month or $895.00/year for a man smoker.
Armed with these reviews and personalized quotes on the best life insurance in Canada, you'll be able to sign up with the confidence you're making the right choice for you and your loved ones.
Life insurance is for anyone who has a spouse, partner, or children who rely on them financially. You can get individual life insurance or buy plans as a couple, depending on your needs.
This means that if your monthly income helps support your family's expenses (anything from groceries to debt payments to monthly retirement savings contributions, etc.), you're probably someone who needs life insurance.
To put it simply, life insurance is an agreement with an insurance company. You pay a monthly fee and in return, your insurance company agrees to pay out a lump sum of cash to your family if you pass away during the time that your insurance policy is active.
The structure of a life insurance policy is simple — you pay premiums each month to an insurance company over an agreed period of time.
If you pass away when the policy is active (while you are still paying premiums), the insurance company promises to give your loved ones a tax-free lump sum cash payment (the "death benefit") if anything happens to you.
This death benefit will help your loved ones reach their financial goals, paying monthly bills, and maintain their lifestyle, even if your paycheck isn't coming in to help support them.
Term life insurance pays out a tax-free death benefit to your loved ones only if you die within a specified number of years (usually 10, 20, or 30 years).
Term life is the right option if you want protection for the years that matter most (when you still have a mortgage & children in the house).
For most people, the term life insurance company they choose is the one that offers them the best rate. Check out some sample life insurance quotes for a healthy-woman applying for $500,000 of 20-year term life insurance.
* Policies sold by PolicyMe are underwritten by Canadian Premier Life Insurance Company and other life insurance carriers **rate for applicants with health risks, as CPP is the top recommended choice Once you submit your application, it's sent to an underwriter whose job it is to review your information and to calculate the true cost of insuring you. They will review your health, financial wellness, and lifestyle data and set a final price for your policy.
Permanent life insurance pays out a benefit to your beneficiaries no matter when you die (hence why it is called permanent insurance). Permanent life insurance comes in a couple of different forms, including whole life, universal, or variable life insurance.
Permanent life insurance policies are much more expensive than term life insurance policies because the policy also acts as an investment account. Your premiums are designed to build cash value over your life. But don't be fooled — this is NOT a cost-free financial investment, and it turns out to be much more expensive and inflexible than other ways of investing.
Permanent life insurance policies tend to be less straightforward than term insurance. You'll want to understand all the fine print and details before buying this kind of policy.
For example, be sure to know the terms of the cash value component. Every permanent life policy has a guaranteed interest rate so you should understand how these differ by company.
There are three main ways to buy:
You'll want to look at different providers and see their prices before buying anything. Asking numerous providers will help you decide who to go with when it's time to buy.
When you’re looking for a reliable life insurance partner, trust is an imperative. Many Canadians feel more comfortable with one of the big life insurance companies, such as Manulife or Sun Life. Still others form a relationship with an agent or broker and put their trust in that person.
Another indicator of insurer trust are the customer reviews. PolicyMe is a trusted insurer by Canadians, with consistently positive customer reviews. Whatever direction you choose to go, do your homework!
There are three factors to choosing the best life insurance policy: price, time, and process.
Get several quotes for a point of comparison and analyze them for competitive pricing, how responsive the company is to policyholders and whether they support digital or electronic documents. It’s a good idea to consider the stability of the insurer as well, especially when it comes to a life insurance policy with a longer term.
Manulife, Sun Life and Canada Life may be the biggest providers of term life insurance in Canada, but size isn’t everything. When it comes to competitive pricing, streamlined application processes and reliable coverage, PolicyMe offers the best package.
Manulife may be the largest life insurance company in Canada, perhaps even in the world. Based in Toronto, Manulife operates in Asia and Europe, as well as in Canada and the United States. The company was established in 1887 and brings in more than $60 billion in revenue.
Canada Life may be the oldest life insurance company in Canada. Nearly 200 years of experience exist between the three companies that make up today’s organization: The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company.
According to the CLHIA, there are more than 150 life and health insurance providers in Canada. This offers a lot of choice to Canadians looking for coverage, with a wide range of products available. The three largest include Manulife, Sun Life and Canada Life, but Canadians can secure coverage from smaller independent and insurtech carriers as well.
%20(1).png)