PolicyMe vs. traditional insurers: What makes us different
PolicyMe is a Canadian digital insurance provider offering flexible life, health, and critical illness coverage for families nationwide. We partner with Securian Canada to design, price, distribute, and manage policies through a convenient online platform, with support from human advisors available at every step in the process.
PolicyMe is different from traditional insurance companies in a few key ways:
Together, these three differences make life insurance from PolicyMe simpler, quicker, and more cost-effective than insurance from traditional carriers—without losing the financial stability, efficiency, and human customer support our clients need.
Securian Canada, a subsidiary of Securian Financial Group, is a trusted Canadian insurance carrier with over 65 years of experience in the industry. Securian’s insurance products include, life, health, and critical illness insurance.
PolicyMe’s partnership with Securian Canada brings one huge benefit to our customers: financial backing for each policy from an established insurance giant with an A+ (Superior) financial strength rating from A.M. Best. Securian guarantees payouts for each PolicyMe insurance policy and collaborates with our team to design products and pricing. On our side, PolicyMe is responsible for marketing and distribution, as well as policy management through our team of licensed insurance advisors.
The partnership makes sense because PolicyMe’s accelerated underwriting technology and direct-to-consumer sales platform reduce operational costs for Securian, while Securian provides financial backing that would otherwise be difficult for a new entrant to the insurance market to access.
How traditional life insurance companies operate
If you’ve never shopped for life insurance before, understanding the way it’s traditionally sold may help you decide whether PolicyMe’s approach is right for you.
Historically, the life insurance shopping process looks a little like this:
- You decide you want life insurance, and you reach out to an advisor or broker in your area. A broker will help you compare quotes from multiple insurers, while an agent may only be able to show you quotes from the company that employs them. You might schedule a phone appointment with your advisor or visit them at their office.
- You compare policy options: Traditional life insurance companies may have upwards of five distinct life insurance products with different features, such as cash value growth components, variable premiums, participating dividends, and lifelong coverage. You’ll need to decide which one is the best fit for your needs—and, if the policy offers any optional riders, you’ll have to weigh the value of each rider against the cost to add it to your policy.
- You fill out an application form. Many life insurers offer online applications, but some stick to old-fashioned paper and ink, which you may give directly to your advisor or mail to a given address. You might also complete your application over the phone with your advisor.
- You wait for approval: The insurance company has now collected all of your preliminary information via the application, which means that underwriting can begin. Underwriting is the process whereby an insurance company evaluates all the information at their disposal to estimate an applicant’s overall health and risk of claims to determine what type of policy and rate to approve.
- You may need a medical exam: Traditional underwriting relies heavily on medical information that can only be obtained through a medical exam, blood draws, etc. Typically, you’ll be asked to schedule a nurse’s visit to your home or an exam at a clinic, but the insurance company usually foots the bill for these tests.
- You might wait a little longer: Full traditional underwriting takes time—sometimes weeks, especially if you’re not in perfect health. You may be asked to provide letters from physicians, motor vehicle records, and other documentation to support underwriting.
- You receive a decision: When underwriting is complete, you’ll learn whether your application was denied or approved—and if approved, on what terms. You’ll then have the decision to purchase the policy or turn it down for a different offer.
The entire process can take multiple weeks, depending on the company and advisor you work with, your knowledge of life insurance and confidence in your priorities, and the exact details of your underwriting process.
Once you’ve bought the policy, you’ll be able to reach out to advisors at the insurance company if you have questions, want to make any changes to your coverage, or need to update your information (such as policy beneficiaries). If you die within the policy period, your beneficiaries can contact the insurer to file a claim, which typically takes around two weeks unless there are special circumstances.
Many traditional life insurance companies offer instant approval for certain policies, but coverage is often capped at $500,000 or less and the policy may be subject to simplified underwriting, which results in less competitive pricing than a full underwriting process.
How PolicyMe operates
While PolicyMe does many of the same things a traditional life insurance company does, we’ve streamlined the process so that you have fewer tasks, more human support, and less waiting time:
- You compare life insurance policy options: You can review your options on our website or speak with a human advisor by phone or email. No matter where you turn, PolicyMe will tell you the same thing: term life insurance is the best option for most Canadians, but you might need a permanent policy if you have lifelong dependents or a high net worth.
- You pick your term length and coverage amount: PolicyMe’s free online life insurance calculator is a quick and easy way to find the policy configurations that map best onto your actual finances.
- You apply via our online portal: Unless you want to speak to a human, you don’t need to schedule a call, visit an office, or fill out a paper form to apply for insurance through PolicyMe. The entire life insurance application is online and typically takes 20 minutes or less.
- You may need a medical exam: Over 60% of PolicyMe customers aged 50 and under are approved instantly for up to $2M in coverage. But if you’re over 50, your online application flags certain health concerns, or you’re applying for a higher amount of coverage than is eligible for instant approval, we may ask you to schedule a medical exam (on our dime!) to get a more accurate read of your risk level.
- You receive a decision: About 60–70% of PolicyMe life insurance customers receive instant approval, with coverage starting as soon as the next day after you complete the application and make a payment. If you need further underwriting, approval could take a few more days.
PolicyMe vs. traditional insurers: An overview
* Sample premiums reflect the approximate cost of a 10–30 year term life insurance policy with $500,000 in coverage for a non-smoking female aged 30–44 years.
Is PolicyMe the cheapest life insurance?
For adults aged 25–45, PolicyMe’s accelerated underwriting results in competitive premiums for term life insurance, with average rates close to or below the industry average.
* Average monthly rates for a healthy, non-smoking applicant with $500,000 in coverage with PolicyMe.
** Average monthly rates for a healthy, non-smoking applicant with $500,000 in coverage across five companies: BMO Insurance, Canada Life, Manulife, RBC, and Sun Life.
Why PolicyMe’s premiums are cheaper: PolicyMe’s accelerated underwriting, digital platform, and partnership with Securian reduce overhead costs like underwriting expenses, office space, and advisor hours, allowing us to price our policies more competitively than many leading names in the industry.
Who PolicyMe is best for
PolicyMe targets the needs of Canada’s biggest group of life insurance customers: adults between the ages of 25 and 45 with major financial responsibilities like parenthood, homeownership, or debt that necessitate life insurance.
If you’re in that group and in search of convenient and affordable coverage, PolicyMe is likely among the best life insurance companies for you. PolicyMe is an especially good fit for parents, with unique built-in benefits you won’t find from traditional insurers.
- Adults under age 50: Term life insurance—our bread and butter—is the ideal product for adults in their 20s, 30s, and 40s who are hitting the life stage that comes with major financial obligations, debts, and dependents. The younger you are when you buy life insurance, the less you’ll pay over the entire life of your policy—and PolicyMe’s rates are highly competitive in this age group.
- Parents: For applicants with children, PolicyMe’s $10K of free child coverage is a major built-in benefit that’s not available from most insurers. Traditional life insurance companies typically charge extra for this coverage.
- Couples: Couples who apply for life insurance together are eligible for a 10% discount on each policy in the first year.
- Canadians in overall good health: If you’re 50 years old or younger, are in good health, and don’t smoke, PolicyMe’s accelerated underwriting offers instant approval for up to $2 million of life insurance coverage.
PolicyMe’s digital-first approach to life insurance doesn’t make it a bad fit for those who prefer working with a human advisor. Our team of licensed insurance advisors is available M–F 9AM–5PM ET by phone or email to help you navigate life insurance shopping, underwriting, and policy management. If you prefer to talk to a human, you can do so at any point in the process.
…and who we may not be best for
No single insurance provider has the best policy offerings for every customer. While PolicyMe serves the needs of a wide range of Canadians, including seniors, smokers, those with pre-existing conditions, and more, some clients may want to compare our offerings with those of other providers to see if there’s a better match:
- Adults over 50: PolicyMe offers the same robust product to applicants over 50, and many applicants in this age group are eligible for instant approval with no medical exam for anywhere from $100K to $750K in coverage. But our pricing may be less competitive for these age groups, so you may want to compare quotes with other providers.
- Those with significant health concerns: PolicyMe insures Canadians with a wide range of health conditions, and many qualify for low rates and quick approval times. But PolicyMe’s products aren’t geared toward providing life insurance solutions for those with serious health issues, so you may want to compare rates if you’re struggling to find life insurance due to medical concerns.
- Those seeking life insurance with investment components: PolicyMe doesn’t offer whole or universal life insurance policies because we don’t believe they’re a good investment for the vast majority of Canadians. If you have a high net worth and have exhausted all other retirement savings mechanisms, a policy like this may hold value for you—but PolicyMe is focused on life insurance, not niche savings strategies.
How to choose the right insurance company for you
The best insurance company is different for every Canadian. To determine whether you’d find a better fit with PolicyMe or a more traditional insurer, consider the following questions:
FAQ: Policyme vs. traditional insurers
