Best Life Insurance in Canada 2023: You can compare and shop for the best life insurance coverage in Canada with the help of our reviews. Our criteria emphasize variables such as choice of terms, benefit amounts, options with no medical coverage, internet access, options for couples and parents, smokers, and more. While we cannot recommend a single provider as the best life insurance company for everyone, we give you the data and reviews to make an informed decision.
Read More: Best life insurance Companies in UK 2023
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Are you looking for the finest Canadian life insurance? What type of coverage do you and your spouse require? Or deciding which firm would provide you with life insurance coverage the quickest? You’re in luck. PolicyAdvisor is uniquely prepared to evaluate life insurance firms in Canada.
Manulife, Sun Life, Canada Life, Desjardins, and iA (Industrial Alliance) offer the best life insurance in Canada based solely on the number of insurance premiums they collect.
Nevertheless, size is only one issue. When Canadians search for the finest term life insurance, they need a comprehensive checklist of things to look for when selecting the policy and coverage that meets their needs.
How does life insurance work?
Life insurance is a contract between you and a life insurance company that stipulates that if you die, the firm will pay a death benefit: a flat sum of tax-free money to the beneficiary of your choice. In exchange, you agree to pay them a little sum of money over time as an insurance premium.
You and your partner determine the quantities and timing of cash inflows and outflows, but in a simple form, that’s it.
What type of life insurance do I need?
In Canada, there are numerous types of life insurance from which to pick. Permanent life insurance (sometimes known as whole life insurance; these policies often have cash value) and term life insurance are the two primary types of life insurance.
Term life insurance best serves the needs of many Canadians. This is a temporary sort of life insurance for which you apply for a specific number of years, typically 10, 20, or 30 years.
The following evaluations are based on the respective life insurance firms’ term insurance offerings. Term insurance is a particular type of plain life insurance. It still pays your beneficiary in the terrible event of your death, but only if it occurs within a defined period of time, or ‘term’.
While this sort of life insurance is commonly purchased in ten-year increments, you can also choose shorter and more flexible term lengths. You can configure your life insurance coverage to expire when you reach certain age milestones, such as senior citizen status at 65.
Why should I get life insurance?
As we discussed in our Honest Guide to Life Insurance, the better question to ask yourself is whether or not the people in your life require you to carry life insurance.
The goal of life insurance is to pay off (personal or business-related) debts and provide a source of income replacement for people who depend on you in the tragic event of your death.
How much life insurance do I need?
The amount of life insurance coverage you need depends on a number of factors. You would have to analyze your present assets after considering your current debt (including your mortgage), your family’s living expenses (if applicable), your children’s education fees, and other potential events and opportunities. The rule of thumb is to have six to ten times your annual income in life insurance, although coverage is not standardized.
That is a lot to remember. If you need assistance figuring out how much life insurance you require, our online calculator can assist you in minutes.
If you have time for reading and studying, our page on the required amount of life insurance is an excellent place to begin.
How much does life insurance cost?
Costs for life insurance vary greatly depending on variables such as age, health, gender, and lifestyle. The good news is that if you are in your twenties, especially your early twenties, your age will not affect the cost of your life insurance premiums.
Additional factors, such as whether you smoke, have a preexisting health condition, or participate in extreme activities, can impact the cost of life insurance.
Last but not least, the type of life insurance you select will also impact the cost, with whole life insurance often having higher rates than term life insurance.
Which insurance company should I choose?
When it comes to life insurance, Canadians have certain requirements, and there is no shortage of insurance companies in the country that offer specialized policies for those who are difficult to insure owing to their health, travel, lifestyle history, or extreme hobbies.
We cannot recommend catch-all providers as the best life insurance companies for those seeking the stability and protection that term insurance offers. We conducted research and produced reviews of Canadian life insurance companies for this article.
While selecting an insurance company and searching for life insurance quotes, some individuals consider the company’s size, financial strength ratings, whether or not it offers insurance for visitors to Canada, and technology offerings.
Reviews of Canadian Life Insurance Companies
PolicyAdvisor.com has meticulously studied the best Canadian life insurance companies. Years of profiling and evaluating the industry’s top offers give us the unique ability to assess the best insurance companies in Canada and provide you with a list of the top providers so you can compare term life plans and offerings.
The following reviews are required reading for anyone wishing to compare this sort of life insurance in Canada; nevertheless, click here to compare quotes immediately.
The best life insurance in Canada in 2023
- Best insurance for simplified issue: Assumption Life
- Best insurance for affordability: BMO Insurance
- Best insurance for full suite of products: Beneva (formerly La Capitale)
- Best insurance for financial strength: Canada Life
- Best insurance for non-medical policies: Canada Protection Plan
- Best insurance for stability: Desjardins
- Best insurance for personalization: Empire Life
- Best insurance for families: Equitable Life
Best Insurance for Simplified Issue: Assumption Life
Assumption Life offers four distinct products to clients seeking non-medical life insurance.
After undergoing medical and financial underwriting, Assumption Life’s life insurance policies have the option to obtain coverage for higher sums.
Pros
- Several possibilities for term coverage.
- Simplified options for non-medical concerns.
- Quick and simple electronic procedure.
- Option available for decreasing mortgage coverage.
- Online account access.
- Digital e-policy.
- Exchange and conversion options let policyholders convert to permanent or longer-term coverage.
Cons
- The variety of alternatives can be perplexing.
- Non-medical plans with exorbitant policy and rider fees.
Best Insurance for Affordability: BMO Insurance
The term life insurance offered by BMO Insurance is an excellent choice for individuals, couples, and business owners. It can be used to cover mortgage payments and other debts, final expenses and burial costs, care for dependents, and protect businesses and their key personnel.
Pros
- Cost-effective pricing.
- Numerous term life insurance coverage options are available.
- Possibility to convert a 10-year policy to one with a longer-term (15, 20, 25, and 30-year coverage options).
- A compassionate benefit scheme allows term life insurance to be purchased in advance. Amount of coverage for policyholders who require financial assistance because of a terminal disease.
- Alternatives for conversion to a permanent policy.
- Electronic delivery of contracts.
- Multi-policy discount offered.
- The top ten largest insurance companies by annual premium.
Cons
- No online account
- Only issues paper policies, no digital option
- Longer-term life insurance policy (Term 25 and Term 30) not renewable
Best Life Insurance for Full Suite of Products: Beneva (formerly La Capitale)
Beneva Life Insurance is the result of the merger between Quebec-based life insurance titans SSQ Insurance and La Capitale.
Beneva is a viable alternative for those searching for a one-stop shop for insurance coverage. Its Term Plus product is customizable and contains unique, integrated features, such as its Severe Disability Benefit, which gives additional coverage. Moreover, Beneva offers a variety of life insurance rider choices.
Beneva’s Term Plus policies are renewable and convertible, and they can be paired with all of Beneva’s insurance products, including critical illness insurance, disability insurance, and other savings and investment products.
Pros
- An integrated Extreme Disability Benefit is unprecedented in the business.
- Options to include coverage for critical sickness and monthly disability indemnity create a full financial protection solution.
- Among the optional riders are accidental death and dismemberment and term coverage for children.
- Available at preferential prices beginning at $250,000
- Online account access.
- Digital e-policy.
Cons
Increased duration for policy approval
Best Insurance for Financial Strength: Canada Life
Canada Life, one of the largest life insurers in the country, is a part of the Power Financial Corporation group of enterprises, which also includes Great-West Life Insurance Company. With $396 billion in assets and an A+ rating from A.M. Best for financial stability, Canada Life is one of the most secure life insurers in the country.
Canada Life was the first domestic life insurance company in Canada, having been founded in 1847. The company’s robust capitalization and broad insurance offerings make it the source of choice for millions of Canadian consumers and businesses seeking life insurance.
The company’s insurance products include a selection of term life insurance policies that can be tailored to the specific demands and financial circumstances of each individual. Canada Life provides term life insurance with a variety of alternatives, such as level premium convertible term policies, fixed-term non-renewable policies, and optional supplemental life insurance riders to add a different type of life insurance as needed.
Pros
- Choose a customer term duration between 5 and 50 years.
- Several rider choices are available for both single and combined insurance.
- May be converted into a permanent policy from Canada Life.
- Digital e-policy.
Cons
- Minimum $100,000 coverage or $500 annual premium required.
- Access to online account features is restricted.
Best Insurance for Non-Medical Policies: Canada Protection Plan
Canada Protection Plan is without a doubt the top provider of non-medical life insurance and simplified issue life insurance in Canada.
Canada Protection Plan is one of your best options for a simplified issue life insurance policy if you’re having difficulty finding insurance, have been rejected for life insurance in the past, or simply want to apply and get approved for life insurance quickly (such as to settle the terms of a divorce settlement).
Keep in mind that if you are in good health and don’t mind the few weeks of the waiting period that commonly accompanies medical underwriting, you may be eligible for a cheaper life insurance policy.
Pros
- Numerous items provide streamlined, no-medical coverage for all health categories of applicants.
- The majority of items are accessible through a quick, easy, online application that does not require medical exams.
- Available terms include 10, 20, 25, and 30 years of coverage.
- Inexpensive coverage costs, particularly when contrasted to price multipliers (also known as ratings) imposed by typical insurance firms on applicants with pre-existing conditions.
- Open to temporary residents such as those on a student or work visa; Canadian citizenship or a work permit are not prerequisites.
- The majority of policies provide life insurance coverage as soon as the policy is purchased.
- Annual premiums can be paid by credit card.
- All plans are convertible to permanent coverage until age 70.
- Option for decreasing term available (ideal for covering mortgage debt).
- Digital e-policy.
Cons
- Plans from other insurers can be more expensive for individuals in good health. In exchange for the ease of coverage with no medical underwriting, you pay a higher premium.
- Coverage amounts are limited to $1 million maximum. If you desire greater coverage, you will need to choose a different insurance company.
- The coverage expires at age 80, compared to 85 for the majority of other Canadian providers.
CIBC Insurance: Not Recommended
CIBC features a straightforward term life insurance plan with two standard coverage options. While its simplicity makes it easy to comprehend, CIBC’s insurance product suite lacks the customization offered by the majority of large Canadian insurance carriers, and identical coverage is typically less priced by more established suppliers.
In addition, CIBC Insurance provides limited choices for insurance conversion once the term has expired.
Pros
- CIBC Life Insurance is supported by the CIBC brand while being a minor player in the Canadian life insurance market.
- Under a conversion option, CIBC provides pure terms (including guaranteed acceptance terms) and permanent life insurance (Term-to-100).
Cons
- There are just two potential coverage terms: 10 and 20 years. If your coverage requirements differ from these two options, you will have more possibilities with other Canadian insurers.
- There are no choices for joint/family/child coverage.
- Options for conversion are limited to permanent term-100 life insurance coverage. There are no universal life or full life conversion choices.
- There are few riders or add-ons available to enhance coverage, such as kid term riders, guaranteed insurability riders, critical illness riders, and exchangeability riders.
- CIBC Insurance premiums are typically higher than those of major Canadian insurers.
- The maximum age to acquire coverage is 64, lower than the range of 70 to 75 years offered by other providers.
- Term coverage expires at 75.
Best Insurance for Stability: Desjardins Insurance
Desjardins is one of the largest financial organizations in Canada and is usually named among the 50 safest banks and financial institutions in the world.
Desjardins provides term life insurance alternatives for fixed-term needs such as lifestyle protection, mortgage protection, and funding your children’s education. The product provides a variety of expected benefits and features based on industry norms.
Pros
- Provides a variety of riders and benefits, providing the ability to supplement basic life coverage.
- You can acquire comprehensive protection from a single provider who offers a comprehensive suite of critical sickness, disability, and permanent life insurance plans.
- Several applicants are permitted on a single policy; single insurance might cover the needs of an entire family.
- Capability to transform items with shorter terms into those with longer terms.
- Provides multi-policy discounts, which can result in substantial savings over the duration of coverage.
- Digital e-policy.
Cons
- There are just four specified options available to pick from.
- The competition offers cheaper options for a straight-term lease.
Best Insurance for Personalization: Empire Life
Empire Life Insurance offers the Solution series of term life insurance products, which provide coverage for 10, 20, or 30-year periods, as well as a permanent product up to age 100. The Solution series provides flexible and economical coverage up to age 100, with coverage accessible upon renewal.
In addition to multi-year terms, Empire Life also offers annual renewable terms (ART), where your life insurance policy renews annually.
Empire Life Insurance’s term life products can be tailored to meet the specific requirements of an individual by offering a variety of products and term options to pick from.
Pros
- Offers some of the most flexible coverage options available in Canada.
- Capability to trade shorter-term Empire Life policies (annually renewable and 10 years) for longer-term policies (20-year and 30-year coverage options)
- Quick approval is possible.
- Competitively priced premiums
- Extensive selection of insurance riders
- Solution 100’s cash values are positive (unique for term policies).
- Online account access.
- Digital e-policy.
Cons
- Limited term options
- Annual renewable term coverage tops out at $499,999
Best Insurance for Families: Equitable Life
Equitable Life of Canada is one of the largest mutual firms in the country. The organization offers a variety of affordable life insurance alternatives for both the term and permanent markets. These solutions are designed to meet a range of requirements, from fundamental protection for the financial security of families to commercial insurance for entrepreneurs and business owners. The company offers 10-, 20- to 30-year, and age-65 term insurance policies.
In addition, they offer both single-life and multi-life coverage inside the same policy, offering coverage for family members under the same contract and reducing policy fees.
Equitable’s different term offers to provide the ability to combine them into a single life plan for ‘laddering’ of coverage, so allowing you to pay only for the coverage you truly require.
Pros
- Optional riders for critical illness and other term life coverage.
- Equitable offers a complete range of permanent plans that can be converted from term policies, regardless of the policyholder’s health.
- Recommended customers qualify immediately for EquiLiving critical illness insurance.
- May build a family plan by including a child rider.
- Online account access.
- Digital e-policy.
Cons
- There are only limited terms available.
- Moderate interest rates.
- Limited-time offers.
