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The Best Canadian Life Insurance Plans

Who Offers the Best Life Insurance in Canada?

People are increasingly turning to the internet to explore their life insurance options. And why not? Traditionally, shopping for life insurance involved long meetings with agents or salespeople. Instead, people can shop for life insurance from the comfort of their home, whenever they feel like it.

Life insurance is one of those things you don't often think about until it's too late. Why is it important? The right policy can provide financial support to your beneficiaries - usually, your spouse and/or dependents - helping them cover expenses like final arrangements, replace your income, and continue to meet financial obligations in a worst-case scenario.

Friday, March 1st

2024 Canadian Life Insurance Reviews

Emma Review Top Consumer Reviews Best-In-Class Blue Ribbon Award 5 Star Rating

Emma

5 Star Rating Top Consumer Reviews Best-In-Class Blue Ribbon Award

Emma is a standout addition to Canada's life insurance market, focusing on young families and offering a speedy 20-minute online process for coverage. With an emphasis on user-friendly customization and eliminating medical tests, Emma customizes packages based on individual needs and recommends extra coverage only when necessary. Backed by Humania Assurance Inc., Emma has gained popularity with over 1,000 five-star reviews for its fast, easy, and enjoyable service, making it a top contender and earning a 5-star rating.

Serenia Life Review 4.5 Star Rating

Serenia Life

4.5 Star Rating

Serenia Life offers a distinctive approach to life insurance, assuring some of the most competitive prices in the industry along with a 25% discount for your first year of coverage. Their coverage options include Term Life, Whole Life, and Term to 100. While their services are currently available only in Alberta, British Columbia, Ontario, and Saskatchewan, the lower-than-average prices and high praise from customers earn this company an excellent rating.

PolicyMe Review 4 Star Rating

PolicyMe

4 Star Rating

PolicyMe operates as an impartial life insurance broker, focusing on term life plans and providing quick applications in about 20 minutes. Offering coverage from $100,000 to $5 million with various benefits, including a 10% discount for couples, PolicyMe is a fan favourite overall. We really would have liked to get a more detailed quote online, but still PolicyMe earns a high rating and is worth your consideration.

PolicyAdvisor Review 3.5 Star Rating

PolicyAdvisor

3.5 Star Rating

PolicyAdvisor presents itself as a modern life insurance solution, combining technology and human expertise, but it's currently limited to four provinces, affecting its competitiveness. The platform offers instant online quotes from various insurers, with positive customer feedback, but glitches in the system prevented a quote during our testing. Despite a solid reputation and user-friendly interface, the restricted coverage area and technical issues bring their rating down a bit.

RatesDotCA Review 3 Star Rating

RatesDotCA

3 Star Rating

RatesDotCA is a rebranding of two Canadian companies, Kanetix and RateSuperMarket. This service connects you with many different insurers, as long as you live in one of the 8 provinces in their service area. You may be redirected to a third-party insurance agency while using the site, but you'll still find a good range of life insurance policies at competitive rates.

Arbetov Insurance Review 3 Star Rating

Arbetov Insurance

3 Star Rating

Arbetov Insurance, established in 2007, offers life insurance though its primary focus is health and travel insurance. Despite a slightly cluttered website, the company provides helpful information, a new online quote form, and responsive customer service. While lacking in detailed policy information, Arbetov Insurance maintains an "A+" rating from the Better Business Bureau and a 4.8-star average on Google Reviews. However, due to some of the outdated designs and cluttered interface, the company earns a middle-of-the-road rating overall.

Insurance Hotline Review 2.5 Star Rating

Insurance Hotline

2.5 Star Rating

Insurance Hotline is a broker that assists Canadians in finding competitive insurance rates. While effective, the website proved less user-friendly than its sister site, RatesDotCA. Coverage is available for various term lengths and amounts, but the process involves interactions with third-party sites. Despite operational challenges, Insurance Hotline maintains a solid reputation with an "A+" BBB rating and zero complaints, earning an average Trustpilot rating of 4 stars. However, concerns about outsourced services and customer service led to a cautious rating from us.

Sun Life Review 2 Star Rating

Sun Life

2 Star Rating

Sun Life, with over a century of history, offers its own life insurance but has a more limited selection compared to brokers. The streamlined application process provides quick quotes, but the coverage options are restricted, ranging from $5,000 to $1,000,000, with higher-than-average premiums. While the company holds an "A+" BBB rating, customer reviews highlight dissatisfaction with customer service, leading to a lower rating in our review.

Compare the Best Reviews

Continued from above...

Determining the right amount of life insurance involves considering various factors, such as your annual income, number of dependents, outstanding debts, and anticipated funeral expenses. However, there's a cap on the amount of insurance you can secure. Referred to as "insurable interest," your coverage must align with your net worth and income. You can't, for example, acquire a $10 million policy if your net worth is $100,000 and your annual salary is $75,000. Thankfully, many of the modern quote processes on insurance sites and brokerages will walk you through the process and only show you coverage options that are relevant to your financial situation.

Some employers offer life insurance as part of a package when you're hired. But even if you have coverage through your employer, you may want to assess whether it's sufficient. Despite a record-high number of Canadian households having life insurance coverage, a recent LIMRA study revealed that many policies were inadequate to cover remaining mortgage payments in the event of death.

In essence, having life insurance doesn't necessarily mean you have enough coverage. This is where individual life insurance plans come in. There are plenty of options that you can select to bolster or replace any insurance you might have with an employer.

Affordability is another crucial aspect to evaluate when deciding how much insurance to get. Larger policies come with higher premiums, and your age at the time of coverage initiation impacts the cost too.

The type of life insurance you choose is also a factor. In Canada, the main types are term insurance, generally more budget-friendly but limited to a specific number of years, and permanent life insurance, lasting your entire life with potential cash value but higher premiums.

Exploring insurance options online is a convenient way to discover available policies, determine your eligible coverage, and get an estimate of potential premiums. While a medical exam is usually required before your policy takes effect, initiating the process online is an efficient first step.

As you shop for life insurance in Canada you might get overwhelmed with the many sites and brokerages out there. We totally understand. So, here are several criteria to keep in mind, to guide your decision-making:

  • Selection. Are you able to find a wide range of policies from your chosen provider? How much coverage do they offer? Do the term lengths match what you were looking for?
  • Cost. Are you looking for the lowest cost out there or a balance of cost and high coverage? Make sure you're not overpaying for your insurance plan by comparing rates from different providers and brokers.
  • Reputation. What do other customers have to say about the site? Has the company been rated by the Better Business Bureau? You want to make sure your life insurance company has a solid reputation in case of troubles during a claim later on.
  • Ease of use. How quickly can you find the plans you need on the website? Is the quote process simple and provides you with the details you're looking for? Make sure that you're not wasting time with an out-of-date website that's more hassle than it's worth.

To help you make the best decision to provide financial stability for your loved ones down the line, Top Consumer Reviews has reviewed and ranked the best sources of life insurance policies in Canada. We hope this information helps you find the right provider so you can have the peace of mind that comes from knowing the future is taken care of, and your loved ones will be covered by the policy you're setting up today!

The Best Canadian Life Insurance Plans Compare Canadian Life Insurance Plans Compare Canadian Life Insurance Reviews What are the best Canadian Life Insurance Plans Best Canadian Life Insurance Reviews

Canadian Life Insurance FAQ

In Canada there are two main types of life insurance: term and permanent (also known as whole life). Term policies last for a specified time period, usually 10, 20 or 30 years. The premiums are usually lower, partially because the policy has no cash value if you cancel before you die. Permanent policies generally have higher premiums but last until you pass away, and there's a cash value if cancelled prior to death.
While many Canadians do have life insurance policies through their work, the coverage amounts have dropped considerably over the past few years. Instead of a benefit representing a year or more of the employee's salary, it's now common for the coverage to include a flat payout (e.g. $25,000). Studies show that many people in Canada are underinsured, and for that reason they turn to privately-purchased life insurance policies.
There's no one-size-fits-all answer, but you can start by looking at your current situation. Do you have a partner or dependents who would face hardships without your salary? Do you have a mortgage that would be an undue burden on your loved ones? Consider future expenses as well, like paying for a child's university costs. And, don't forget to estimate any funeral costs. Those considerations can help you decide how much coverage you'd like to have in place.
It's obvious that the higher the benefit, the higher the premiums will be. Term life insurance will usually be more affordable than whole life.
Now. The older you are when you purchase life insurance, the more you'll pay in premiums (because it's more likely you'll pass away, making you more of a financial risk to the insurer). The younger and healthier you are, the less you'll pay in premiums.
Most of the time, yes. It may require blood and/or urine tests, a doctor visit, and several weeks to be underwritten and the policy issued. There are life insurance policies designated as "no medical" or "simplified issue" ; these usually just have a few medical questions but no tests or doctors. Generally speaking, the larger benefit amounts require more in-depth medical underwriting.
Yes. You'll need "insurable interest" : in other words, your coverage has to match your life situation and the hardship your loved ones would experience if you passed away. For example, if you have an annual salary of $25,000, you wouldn't qualify for a $2 million life insurance policy. Your coverage limit will be determined by your salary, net worth, and several other factors.
Yes - to a certain extent. Depending on the insurer and policy you select, you may be able to complete the entire application process online and make your initial payment. But, most insurance policies will need to go through an approval process that includes medical underwriting, so you won't have your coverage immediately. Shopping for life insurance online is a great way to compare quotes and get an idea of what your options are - before working with an agent.
The Best Reviews of Canadian Life Insurance Plans