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When it comes to life insurance, many young adults throw the topic to the wind entirely, and probably with good reason. It’s meticulous, stressful, but, most of all, important.
Sure, you might already own various insurance products, like auto, renters, travelers, and credit cards, but life insurance needs to be a part of the conversation. After all, we are constantly growing, which means so are our priorities.
But you’re here! And that’s already a leap in the right direction.
In this WealthRocket guide, we’ll list the best life insurance providers in Canada and provide further information on life insurance basics, including what it is, how it works, practical terms, and how to choose a suitable policy that protects you and your loved ones.
If you’ve ever watched a hockey game, driven on a highway, or walked around in your city or town, chances are you’re already familiar with some of Canada’s most reputable life insurance providers.
Life insurance policies are generally made available through these providers and are also available through major banks, independent financial institutions, or independent insurance firms.
However, it’s important to consider that everyone’s life is unique, which makes their life insurance policy unique as well.
Below, you’ll find the best life insurance providers in Canada, listed in alphabetical order.
Canada Life is an insurance provider currently based in Winnipeg, Manitoba. They have been in business since 1847 and are Canada’s first official life insurance provider.
Canada Life offers various types of insurance, but two common types of life insurance include:
Term Life Insurance: The term life insurance package provided by Canada Life offers Canadians the option of insuring themselves for 10, 20, or 30-year terms, or until the age of 65. The package also comes with customizable packages and the ability to change your policy with certain conditions.
Permanent Life Insurance: Permanent Life Insurance with Canada Life comes with no fixed term. It allows you to withdraw cash, within limitations, and also earn interest. The premium which you pay stays the same. A Universal Life Insurance policy is also available under the Permanent package, which allows a fluctuating interest return, similar to some types of investments.
Additional insurance policies with Canada Life include health insurance, which covers critical illnesses, disability, health expenses, and dental. If you own a business with employees, Canada Life also offers group benefits options.
Canada Life also offers investing and savings solutions, retirement planning, and mortgages.
Founded by a group of Saskatchewanian farmers in 1945, the Co-operators are among the most reputable and best life insurance providers in Canada. Their headquarters is currently in Guelph, Ontario.
The Co-operators offer health insurance, car insurance, home insurance, business insurance, travel insurance, and life insurance. If you happen to be a proud farmer, they’ve got you covered with farm insurance as well.
Life insurance options are available in termed or permanent policies, with various policies within those policies.
Term life insurance comes in two packages: Term Life 1 and Versatile Term.
The Term 1 Life option comes with $50,000 to $475,000 in coverage, with a one year guaranteed renewable term.
The Versatile Term option comes with various renewable policy options that guarantee the premium for the entire term.
Permanent Life Insurance comes with many more options for those seeking lifelong insurance policies. Packages include Whole Life Suite, Universal Life Suite, Infinity Term, and the Responsibility and Responsibility PLUS® Life options.
Here’s a brief rundown of each of these policies:
If you’ve ever visited beautiful Quebec, you’re likely familiar with Dejardins. Though it made its historic debut in 1900 as Canada’s first credit union, it has since evolved into a full-fledged financial service and insurance provider.
Today, Dejardins life insurance tiers are available as termed, permanent, participating, and universal insurance. Health insurance options by Desjardins includes coverage of critical illness, disability, healthcare, and accidents. Quotes for life insurance with Dejardins vary depending on the person purchasing the insurance.
However, terms and coverage with Desjardins range from 10 years, 20 years, or 30 years, with coverage available until 65.
Permanent coverage options are also available.
Empire is a Kingston, Ontario-based insurance company. Empire has operated since 1923, first going into business in Toronto, Ontario.
Empire specializes in providing insurance, including life, and also offers a variety of additional investing options.
Out of Canada’s best life insurance providers, Empire probably leans towards the most simplified, offering life insurance term and permanent options, with 10, 20, 25, 30, and 100-year term options available.
There is also the Guaranteed Life Protect, a group insurance option that allows business owners to provide insurance for their employees.
iA Financial Group is a Toronto, Ontario-based insurance firm.
Their major focus of products includes insurance, savings and retirement solutions, and loans. Various types of insurance are offered, including home, mortgage, auto, and life insurance.
In terms of life insurance, iA Financial Group offers four types of life insurance.
Manulife is an insurance provider and independent financial service provider headquartered in Toronto, Ontario. Its operations have existed since 1887. Currently, Manulife Financial is the largest provider of insurance in Canada. Manulife offers various types of life insurance, all of which come with the flexibility that makes the insurance provider suitable for everyone.
Sun Life is one of the world’s largest and oldest insurance companies, opening its doors for business back in 1865 in Montreal, but has since become one of the world’s largest insurance companies, with $1 trillion under management.
Another major player in Canadian finance, TD Bank, also offers life insurance and great financial products that the major bank offers. TD provides life insurance quotes with custom assessments, which come in Term or Fixed rates. The term package is called Term Life, while the TD Guaranteed Acceptance Life offers fixed premiums for those between the ages of 50 to 75.
Life insurance is a legally binding contract that acts as a safety net to protect your loved ones if you face an illness or (knock on wood) pass away. It is a policy that provides your dependants with money.
This money allows your loved ones to continue living their lives without receiving the financial burden of a lost income in the household.
It can also help cover funeral expenses and medical costs if there are any.
The life insurance policy pays the family and usually comes with tax-free and in a lump sum, depending on the policy that the insurer purchases.
Whether it’s life insurance, health insurance, auto insurance, home insurance, or any other type of insurance, insurance provides financial protection against life’s unforeseeability.
When it comes to life insurance, however, people generally purchase insurance by paying a monthly fee known as a premium for a set amount of time or the duration of their entire life, through an agreement between you and the insurance company.
The contract between the insurance buyer and the insurance provider is a contract known as a policy. You are known as the policyholder.
Insurance holders pay a monthly, quarterly, or annual fee known as a premium. Premiums are different for every insurance purchaser depending on the type of insurance, their age, health, gender, and occupation.
You will pay premiums on your insurance depending on the term that you agree on. Some insurance providers will require a medical exam before receiving coverage.
Insurance companies may charge a fee known as a deductible, an upfront payment required with certain policies. When purchasing life insurance, a 10-day grace period allows the insurance purchaser to look over their contract to ensure that it meets all of their requirements.
Both the insurer and the policyholder take a risk when it comes to life insurance. The insurer takes a risk if you require an insurance payout if the amount paid in premiums is lower than the sum that they owe. The policyholder takes a risk if they never actually require the insurance payout.
Generally speaking, there are two insurance options available from most Canadian life insurance providers: Term Life Insurance and Permanent Life Insurance.
Term Life Insurance allows insurance purchasers to have a fixed-term on their insurance policy. It is a basic life insurance policy that insures the insurer. Since term life insurance policies come in terms, they require renewal. Often, term life insurance is available in decade terms.
Permanent Life Insurance is also referred to as Whole Life Insurance, does not come with a fixed term and is available for the duration of your life. It also provides an investment or cash value that you can borrow or use as retirement income. Note that since the duration of the term is permanent, the premium which you pay is higher.
Health insurance helps cover insurance expenses that are not typically covered by provincial health care, including dental, vision, prescription fulfillment, medical equipment, travel-related health expenses, and practitioners, among other expenses.
Health insurance can also provide you with illness insurance in the event you’re not able to work. Health insurance is usually a good option for those who are self-employed.
Several factors can impact how much you will have to pay in life and health insurance premiums. It can differ from one insurance provider to another and the life insurance packages that they provide. It also depends on the amount of coverage that you’re seeking. Typically, a life insurance premium depends on the customer’s age, gender, and whether they are a smoker or not.
Simply put, life is unpredictable. Chances are, life has probably thrown you a few curveballs already. That said, insurance is essential if anyone depends on you for income.
For example, if you are married and have a mortgage, life insurance can leave your partner with money to continue paying that mortgage or any other debts. If your partner should pass away, you would receive life insurance in their absence. It sounds grim, but the first-to-die benefit is in place with many life insurance policies. There are also joint insurance policies for these types of scenarios.
If you have children, they can receive the life insurance payout and use it for their education or any other needs that they may have.
Insurance rates are not only different in provinces but different around the world! Considering that life circumstances are different all over Canada, insurance rates are too.</p>
For example, let’s shift from life insurance and look at home insurance. Residents who own homes in British Columbia are more susceptible to earthquakes. On the other hand, residents who own homes in Ontario are more susceptible to flooding. Thus, insurance rates are different in different places due to different circumstances.
At the end of the day, what rate you pay on your life insurance depends on the provider.</p>
Post-secondary students who do not have insurance may reap the benefits of health insurance and life insurance. However, many secondary students can likely claim health benefits through their parents if they are under 24 or through tuition.
Many universities and colleges typically offer health insurance through tuition. If you do not have insurance through a parent, you’ll likely have coverage through your school for health benefits.
When it comes to life insurance, students should consider life insurance nonetheless. If you are a post-secondary student who has co-signed a student loan through a bank with a parent and you should pass away, your parent may be responsible for that student loan or any other expenses.
By now, we’re all too familiar with the fact that life is unpredictable. So, even if you’re young and healthy, it’s never a bad idea to have a failsafe.
Even though young people need insurance less than anyone. However, if you live with or have a family of your own, it is a good idea to pay the low monthly premium to ensure that they’re taken care of should you pass away. That said, it’s never a bad idea to pay a few bucks a month to get life insurance.