Best Canadian Life Insurance: Top-Rated Companies And Plans

AM Best is a financial rating agency that assesses and analyses the creditworthiness of insurance companies worldwide. It has a financial strength rating scale ranging from A+ to D, with each rating having the potential for a notch to indicate the strength of the company's rating within that category. For example, an A+ company with an additional + is viewed by AM Best as having impeccable financial strength. When comparing life insurance policies, AM Best ratings can help you focus your search on strong companies.

Simplified issue

It's important to understand whether your policy includes immediate or deferred claim payouts. An immediate claim payout means that a claim can be submitted even if the policyholder passes away immediately after purchasing the policy. In contrast, a policy with deferred payouts will not pay a death benefit within the first one or two years. These options depend on the policy's specific conditions and can affect the premium.

Assumption Life, one of the oldest Canadian life insurance companies, offers simplified, non-medical issue options and is rated highly for this type of policy. Their policies do not require a medical exam but may include some simple health questions on the application. Assumption Life provides four different types of non-medical policies, making them an attractive choice for people with health issues. They also offer the option of higher coverage amounts if you opt for full underwriting.

Sample Simplified Issue Life Insurance Quotes

• Female, 35 years old, non-smoker, coverage amount $1,000,000
• Female, 35 years old, diabetes pre-condition, non-smoker, coverage amount $500,000

Combo coverage

Beneva is rated as the best provider for combo coverage by PolicyAdvisor. They have been given four stars and an AM Best Rating of A. Beneva's insurance products, riders, and features allow you to access different types of insurance in one place.

Beneva is unique in that they include an Extreme Disability Benefit for free in all their life insurance plans. This means you get double the coverage. They also offer several optional riders, including accidental death and dismemberment and children's term coverage.

Beneva is one of the top 10 largest insurance companies based on annual premiums. However, they have longer turnaround times for policy approval.

AM Best is a rating agency that assesses the financial strength and claims-paying ability of insurance companies. They are the only rating agency that specialises solely in the insurance industry. They use a letter-grade rating system, with A++ and A+ being the strongest ratings.

Affordability

Wawanesa and Assumption Life

Dundas Life, a leading digital insurance brokerage in Canada, has ranked Wawanesa and Assumption Life as the best options for affordability in its 2024 guide to the best life insurance companies in the country. Wawanesa, founded in 1896 and headquartered in Winnipeg, Manitoba, offers competitive pricing and a variety of options for term lengths. Assumption Life, founded in 1903 and based in Moncton, New Brunswick, is known for its affordable coverage, particularly for longer periods such as for those with young children or long-term mortgages.

BMO Insurance

PolicyAdvisor has given BMO Insurance a 5-star rating and named it the best company for affordability. BMO's term life insurance is suitable for individuals, couples, or business owners, and its plans cover most of the standard features expected in a Canadian life insurance plan. BMO Insurance also offers multi-policy discounts and the option to exchange 10-year terms into longer-term products.

Canada Life

Canada Life, one of the oldest and largest life insurance companies in Canada, offers a range of plans with high flexibility and affordability. They provide multi-variety discounts for families and have a financial strength rating of A+ from AM Best Company. However, they have fewer term life insurance offerings and obtaining a quote online can be difficult.

RBC Insurance

RBC Insurance, a subsidiary of the Royal Bank of Canada, is known for its competitive premiums and flexible term lengths and coverage amounts. Their term life insurance products are some of the most flexible in Canada, allowing customers to pick their own term length with the "YourTerm Life Insurance" product. RBC Insurance also offers multi-policy discounts and renewable term life policies.

Other Affordable Options

In addition to the companies mentioned above, there are several other life insurance providers in Canada that are worth considering for their affordable coverage:

• Foresters: Known for offering affordable life insurance policies, particularly for smokers. They also have a Quit Smoking Incentive Plan that allows former smokers to get lower rates.
• Canada Protection Plan: Specializes in simplified issue and no-medical exam life insurance policies, which are usually targeted at seniors or people with pre-existing health conditions.
• Empire Life: Offers competitive life insurance prices and higher term life coverage. They were named Life and Health Insurer of the Year in 2019 and have won this award three times previously.

Financial strength

AM Best, one of the major rating agencies, uses a letter-grade rating scale, with A+ being the highest score. Canada Life, a subsidiary of Great-West Lifeco, has consistently received strong ratings from major rating agencies, including an A+ financial strength rating from AM Best. This indicates that Canada Life has a superior ability to meet its financial obligations and is one of the most stable insurance companies in Canada.

The financial strength of an insurance company is determined by various factors, including product diversification, quality and mix of investments, ownership structure, years in business, and mergers and acquisitions. These factors are evaluated to assess the company's stability, performance, and ability to meet its financial commitments.

When choosing a life insurance company, it is essential to consider financial strength ratings alongside other factors such as premium costs, policy types, term length, and customer satisfaction. While financial strength is a crucial indicator of a company's ability to fulfil its promises, it is not the sole factor in making an informed decision.

Non-medical policies

Non-medical life insurance is a type of insurance that doesn't require a medical exam for approval. It has a simplified application process, making it a good option for those who want coverage without the hassle of medical tests or paperwork.

With non-medical life insurance, even if you have pre-existing medical conditions or are concerned about the results of a medical exam affecting your eligibility, you can still secure life insurance protection for yourself and your loved ones. However, because non-medical life insurance typically costs much more than a traditional life insurance policy, it may not be the best option for everyone.

Canada Protection Plan

Canada Protection Plan (CPP) is a leading insurer for non-medical life insurance in Canada. They offer a wide variety of guaranteed acceptance and simplified issue products. However, a non-medical life insurance policy is generally more expensive compared to a standard term life insurance policy. CPP also has a two-year waiting period, during which beneficiaries cannot make a claim on the policy if the insured passes away.

PolicyMe

PolicyMe is a good option for healthy individuals as their term life insurance policy typically doesn't require a medical exam or extensive medical tests. Instead, it has minimal health questions and a dynamic application process that only asks for the necessary medical information. PolicyMe offers affordable rates and instant approval decisions, making it a convenient choice for those seeking non-medical life insurance.

Humania Insurance

Humania, a Quebec-based insurance company, offers Insurance Without Medical Exam, which asks just six eligibility questions online and provides immediate approval. This product may be suitable for those seeking urgent life insurance without medical questions or tests. However, Humania's coverage options are limited, and their policy exclusions are more stringent than those of other companies in the market.

Sun Life

Sun Life's Guaranteed No Medical Life Insurance is a guaranteed acceptance product that provides life insurance coverage for the whole life of the insured. While Sun Life is one of the biggest life insurance companies in Canada, this particular product is not their specialty, and they offer limited coverage options. Additionally, there is a waiting period of two years, during which claims may be limited if the insured passes away.

Assumption Life

Assumption Life is known for its no-medical term life insurance policy and has competitive pricing for no-medical coverage. They offer FlexTerm, which provides up to $999,999 in coverage without a medical exam for individuals up to age 45. Assumption Life also has easy qualifications for new immigrants, making it a good option for those who may not be Canadian citizens or permanent residents.

Frequently asked questions