PolicyMe vs. Traditional Insurers: Comparison Guide

Quick facts: PolicyMe vs. traditional insurers

PolicyMe is a well-reviewed Canadian digital insurance provider with several advantages over traditional insurers like Sun Life and Desjardins.

For the majority of Canadians looking for life insurance:

• PolicyMe: Generally faster, more affordable
• Traditional insurers: Better for permanent policies, complex estate planning

The ideal insurance provider for your specific financial needs will depend on your health, age, and coverage goals.

PolicyMe vs. traditional insurance providers in Canada

PolicyMe is a Canadian digital insurance provider offering flexible life, health, and critical illness coverage for Canadian families. PolicyMe partners 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. This approach does not sacrifice the financial stability, efficiency, or human customer support that clients need.

PolicyMe and Securian partnership

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 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 the team to design products and pricing. PolicyMe is responsible for marketing and distribution, as well as policy management through a 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. 

The traditional life insurance process has many steps. It can be time-intensive and overwhelming to find a policy. With traditional life insurance companies, here’s what the shopping process looks like: 

1. Broker: 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. 
2. Compare: You review policy options. Traditional life insurance companies may offer 5+ distinct life insurance products with features like cash value growth components, variable premiums, participating dividends, and lifelong coverage. You’ll also need to decide if you want any optional riders, weighing the costs against the benefits. 
3. Apply: You fill out an application form. Many insurers offer online applications, but some require paper which you can give directly to your advisor or mail in. You might complete the application over the phone with your advisor. 
4. Wait: You wait for approval. It may take days or weeks for the insurance company to finish underwriting, or evaluating all your information to estimate your risk of claims and set a rate. 
5. Medical: You may need a medical exam. Traditional underwriting relies heavily on medical information that can only be obtained through a medical exam, like blood draws. You may be asked to schedule a nurse’s visit to your home or go to a clinic, but the insurance company often pays for these tests. 
6. Wait More: You might wait a little longer. Full traditional underwriting sometimes takes weeks, especially if you’re not in perfect health. You may need to provide additional letters from physicians, motor vehicle records, and other documentation. 
7. Decide: You receive a decision. When underwriting is complete, you’ll be denied or approved. If approved, you’ll be offered terms. Then you have to decide whether to purchase the policy or turn it down for a different offer. 

Lengthy application: The entire process of traditional life insurance shopping can take multiple weeks. It depends 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. 

Helpful advisors: 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). 

Payout structure: If you die within the policy period, your beneficiaries can contact the insurer to file a claim, which typically takes around two to six weeks. 

You may be eligible for instant approval

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, the process is streamlined.

PolicyMe’s life insurance process involves fewer steps. Expect less waiting and more human support, if you need it. With PolicyMe, here’s what the life insurance shopping process looks like:

1. Compare: Easily look at all your choices online. You can review all your life insurance policy options online or speak with a human advisor by phone or email. PolicyMe states that 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. 
2. Decide: 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 best fit your actual finances. 
3. Apply: You apply via the 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. 
4. Health questions: You may not need a medical exam. Many PolicyMe customers aged 50 and under are approved instantly for up to $2M in coverage. Older people, people with certain health conditions, or people wanting high coverage amounts may be asked to schedule a medical exam (paid for by PolicyMe). 
5. Decide: 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. 

Straightforward application: It can take minutes to get approved for life insurance with PolicyMe. Healthy applicants with average coverage levels can purchase a policy almost immediately.

Digital-first: You can research and apply 100% online with PolicyMe, but real humans are available to help with any questions about the application or your coverage options.

Payout structure: If you die within the policy period, your beneficiaries can contact PolicyMe to file a claim, which typically takes around two weeks unless there are special circumstances.

PolicyMe vs. traditional insurers: An overview

PolicyMe is a digital-first insurance solution designed to be seamless online, from quote to purchase to claim. Unlike traditional insurers, PolicyMe’s model allows for real cost savings and speedy application processing. 

PolicyMe was founded in 2018 and has built a legitimate track record:

• A+ rating from A.M. Best
• Backed by Securian Canada (Canadian Premier Life Insurance Company)
• 4.9 star rating on Google
• 50,000+ customers across Canada

Policies from PolicyMe and traditional insurers are similar, with offerings like health, life, home and auto insurance. PolicyMe and bigger providers are backed by Assuris, a federally regulated consumer protection institution that guarantees policies against potential bankruptcy.

“Many Canadians still find traditional insurance difficult to navigate. At PolicyMe, we’re focused on removing those barriers with affordable, accessible coverage that families can actually understand and feel confident in.” —Andrew Ostro, CEO & Co-founder of PolicyMe

^{* 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? 

PolicyMe is among some of the most affordable term life insurance on the market in Canada, with starting rates close to or below industry average.

 ^{* Average monthly rates for a healthy, non-smoking applicant with $500,000 in coverage with over a 20 year term. Rates listed are based on publicly available figures.}

Why PolicyMe’s premiums are cheaper: PolicyMe’s accelerated underwriting, digital platform, and partnership with Securian reduce overhead costs, allowing more competitive prices compared to many mainstream providers.

Is PolicyMe the right choice? Pros & cons

Compared to traditional insurers, PolicyMe stands out positively for lower prices, simpler processing, and straightforward advice.

It’s worth getting a quote from PolicyMe, if you’re looking for affordable insurance and you’re comfortable applying for a policy online. The simplified application process and competitive pricing outweigh any cons for the average Canadian.

Who PolicyMe term life insurance is ideal for

PolicyMe’s term coverage is ideal for Canadian adults with major financial responsibilities like parenthood, homeownership, or debt that might necessitate life insurance. 

• Working adults: Term life insurance is ideal for adults in their 20s, 30s, and 40s who have major financial obligations, debts, and dependents. 
• Parents: Children are covered with $10K of free, built-in child coverage from PolicyMe. 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.  

There’s a term coverage option with PolicyMe for nearly every Canadian:

• Issue ages 18-75
• Term lengths 10/15/20//25/30 years
• Coverage $50,000–$5,000,000
• Convertible and renewable
• $10k free child coverage

PolicyMe premiums are below industry average, in most cases. If your life insurance needs are straightforward, then PolicyMe is likely among the best life insurance companies for you.

What if you prefer working with an advisor?

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 PolicyMe may not be ideal for

Seniors, smokers, people with pre-existing conditions, and people who need permanent coverage may not find the right coverage from PolicyMe.

PolicyMe serves the needs of a wide range of Canadians, but some people may want to compare offerings with other providers to see if there’s a better match:

• Those seeking life insurance with investment components: PolicyMe doesn’t offer whole or universal life insurance policies because these are not 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.

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