Best Life Insurance Companies in Canada: Our Top 8 Picks For 2021!
If you are looking for the best life insurance companies in Canada you needn’t look further. We have spent the past two years sifting through all the information so YOU don’t have to.
First off, It’s important to know that the life insurance industry in Canada is highly regulated. All insurance companies operating in Canada have to be members of Assuris by law. What is Assuris? It’s a body set up under the Insurance Companies Act of Canada that guarantees all life insurance policies in the event an insurance company has financial difficulty.
What does this mean for you as a consumer? It means, regardless of the life insurance company you choose, if something happens, any one of them will be able to pay out the death benefit. Rest assured, the vast majority of life insurance companies in Canada are financially stable, including the ones on our list.
That’s where the similarities end, as I repeat in many of my posts, all insurers are NOT created equal. In fact, they all have different niches – so the RIGHT company for you may not be right for someone else.
So here are our picks for the 8 top life insurance companies in Canada.
Disclaimer: These are our picks for the 8 top best life insurance companies in Canada. But that doesn’t mean they’re necessarily right for you. There are many carriers, not included in this list, positioned to provide you with excellent coverage and guarantees.
Wawanesa Life is one of our favourite life insurance companies. From very competitive term rates to their reputation for excellent broker and customer service, Wawanesa life is a company we feel confident recommending.
Awesome Customer/ Advisor Service and Claims Handling
In our experience, Wawanesa Life is very responsive to insurance advisors and offers excellent customer service.
Mutual Life Insurance Company Status
Similar to, Assumption Life, Wawanesa Mutual, the parent company of Wawanesa Canada, is a mutual insurance company owned by its policyholders. All profits and earnings are shared through dividends, lowered premiums and other benefits.
Affordable Term Rates
Right now, Wawanesa has among the lowest term life insurance rates in Canada.
High Guaranteed CashValues For Whole Life
If you are looking for the highest guaranteed cash value when it comes to whole life policies Wawanesa is a good bet.
Low Face Amounts for Traditional Whole Life
You can get full medically underwritten coverage with Wawanesa for amounts low as $10,000.
Unique Guaranteed Issue Life Insurance Plan
Wawanesa has an Instant Issue Life Insurance product that is a 20 pay, Guaranteed issue Whole Life. Answer 5 simple questions to qualify and the pricing is extremely competitive. If you're a smoker with a serious health issue, you may qualify for this plan.
This year Equitable Life celebrates its 101st Year in business! As the largest mutual life insurance company in Canada, Equitable’s policyholders share in their success. They offer consumers great insurance and investment products including the best performing whole life product on the market.
Mutual Life Insurance Company Status
Equitable Life of Canada is owned by participating policyholders, not shareholders, allowing them to focus on long term growth and providing clients with personalized service.
Best Participating Whole Life Insurance Product in Canada
Equitable Life has one of the best performing, participating whole life products in Canada. With consistent high returns on policyholders’ equity, Equitable has announced they’re maintaining their 6.2% interest rate for dividends through 2021. This is great news as other carriers have already announced reductions to their interest rate in light of the effects of COVID-19 on the economy.
Great Claims & Policy Service
Equitable has fantastic customer service! If this is important to you, they are the company for you.
Equitable is very competitive when it comes to cost of their products.
As the largest individual life insurance company in Canada, Manulife is a giant among giants. With a global reach including the U.S. and other major markets, Manufacturers Life is a brand Canadian’s trust. They have a wide selection of high-quality life insurance products including term, permanent to critical illness coverage.
Manulife was the first carrier to offer up to $1 million of life insurance – within prescribed limits – without requiring full medical underwriting. Suffice to say, Manulife is synonymous with the best life insurance in Canada.
Staggering Selection Of Products
You name it, Manulife has it. Yeah I know, big isn't always better but in this case it is.
Great Website User Experience
When it comes to life insurance in Canada, Manulife is a digital leader. They have a great website, with great online tools and a fast and easy application process.
Get Up To $1,000,000 Of Life Insurance Without Providing Any Fluids
Manulife was the first carrier to have accelerated underwriting for healthy individuals up to the age of 50 who want $1 million of coverage without the hassle of a life insurance medical exam.
Manulife's term rates aren't the cheapest but they're certainly not the most expensive. They also have very competitive permanent life insurance rates.
Best Conversion Options Of Any Carrier In Canada!
Almost all life insurance companies in Canada offer consumers consumers a conversion feature with their term life insurance. It gives you the ability, within prescribed limits, to exchange your term for a permanent policy with guaranteed rates for life. When you need it, this is an important feature to have. Manulife simply has the best and most flexible conversion options in the Canadian market today. For example, if you have a Manulife term policy, you're eligible to exchange a portion of it for permanent coverage and then flip the remaining face amount into a brand new term policy. You can do this without providing any medical evidence or going through additional underwriting!
Canada Protection Plan is Canada’s largest provider of no medical life insurance plans. These policies are ideal for consumers who have health issues and/or are looking for a smaller amount of coverage to pay for funeral expenses. CPP is an excellent life insurance company and we have no problem recommending them to our clients. Amalgamating with Foresters Financial in 2020, Canada Protection Plan is simply the best no medical life insurance company in Canada.
Widest Range of No Medical Products in Canada
Canada Protection Plan specializes in No Medical Life Insurance and because of that narrow focus, they do a good job.
Fast & Easy Application, No Blood or Urine Tests
Canada Protection Plan's electronic application can be completed in as little as 20 minutes over the phone with your independent insurance agent.
Electronic Policies Issued Fast
CPP delivers your E-policy to you when and where you want it, via any device, often within 72 hours. Of course you can receive a paper copy if you'd prefer.
Highest Maximum Coverage Amounts
Compared with other no medical life insurance companies in Canada, CPP offer highest maximum coverage amounts, up to $750,000.
Ideal For Higher Risk Conditions
If you have or have diabetes or have had heart trouble or cancer in the past, you may be eligible for Canada Protection Plan's most affordable coverage.
The Longest Simplified Issue Term Life Insurance Coverage Length: 30 Years!
This is the longest term offered by any no medical life insurance Carrier in Canada!
Plan Protection Canada is very affordable compared with other Simplified Issue life insurance companies.
We Are Half Way Through Our Picks for the Best Life Insurance Companies in Canada
As you can see not all life insurance companies are interchangeable. For example, we like Canada Protection Plan for people that are harder to insure. For someone healthy, looking for a million dollars of insurance without a visit to the nurse, Manulife may be their best bet.
Your selection really does depend on your medical history in its entirety.
Did you know insurers automatically penalize those of us with a family history for cancer? Yep. As unfair as this may be, they consider your background before issuing your rating.
Unfortunately, my mom died when she was 40 of breast cancer which automatically puts me in the standard pool.
Anyway this is why you really need to do your homework BEFORE you select a life insurer. So let’s move on with the show.
Here is the second half of my picks for the Best Life Insurance Companies in Canada.
Looking For Life Insurance Quotes?
Purchasing life insurance can seem like a daunting task, especially when there are so many types of insurance and providers available. Fortunately, by making use of the resources and quotes available on the websites listed above, it’s possible to choose a simple, straightforward insurance policy that will meet your needs in the short and long term. Getting life insurance is just as important as other types of insurance, such as home insurance, car insurance, pet insurance, or travel insurance.
Foresters Life Insurance is a solid company with a long history in Canada. Joining forces with Canada Protection Plan in 2020, community activism is at the core of Forester Financial’s culture. As a policyholder, you automatically become a Foresters member with access to benefits including legal help, terminal illness loan, community grants and their well-known orphan benefits.
Long History in Canada
Foresters Canada has a long and solid history. If longevity means something to you Foresters is the way to go. They’re one of the oldest and most stable life insurance companies in the country.
Joining Forces with Canada Protection Plan
Foresters Financial combined with Canada Protection Plan amplifies the strengths of both companies and will provide consumers with more choice and financial security.
Affordable Life Insurance Rates
Foresters Rates are competitive. In many cases, their non-participating whole life comes out on top in terms of affordability.
Fraternal Benefit Society Status
When you purchase a policy from Foresters Financial, you’re automatically enrolled as a member of The Independent Order Of Foresters.
Foresters Financial Orphan Benefit
If you pass away with dependents, on top of the full death benefit, Foresters will also pay your child’s guardians $900 per month, per child to age 18. In addition to that, Foresters will also supplement your children’s education with $6000 annual grant for 4 years. I don’t know any other life insurance company that does this.
If you haven’t heard of Industrial Alliance or iA Financial Group (as it was rebranded in 2015), they’re one of the largest insurance companies in Canada. In business for over 125 years and operating in both Canada and the United States, Industrial Alliance’s offering includes group benefits, term, permanent, disability, critical illness insurance and much more. If you have a mild to moderate health issue like diabetes, you may get a more favourable result applying with iA vs other life insurance companies.
Large Range of Life Insurance Products
They have a large selection of high-quality products that include:
- whole life
- universal life
- critical illness
- no medical life insurance
- group benefits, the list goes on….
Excellent User Experience
iA Financial Group provides a lot of detailed information for consumers on its website including a cool little term life insurance calculator.
Great Selection of No Medical Life Insurance Plans
IA offers consumers, 6 months to 80 years of age, fast, guaranteed coverage without any need for a physical or medical exam. Amounts range from $10,000 to $500,000 and can be a combination of term and permanent protection.
Lenient With Diabetics & Moderate Risk Applications
If you have well-managed diabetes type 2, you stand a good chance of receiving standard rates and NOT being charged extra premiums.
While they aren’t the cheapest insurer, Industrial Alliance rates are very competitive compared with other life insurance companies in Canada.
Empire Life has been recognized by the Insurance Canada Business Awards as Life and Health Insurer of the Year two years in a row (2018 & 2019)! They have a fantastic suite of insurance products including great term options as well as one of the better whole life products on the market.
Wide Selection of Products That Include Group Benefits
Empire life has a wide selection of products including:
- Term Insurance
- Whole Life
- Critical Illness
- Flexible, innovative, group Benefit Plans for small companies and employers
Competitive Term Life Insurance Rates
Empire is consistently in the top 5 when it comes to the pricing of their term coverage.
One of The Better Performing Whole Life Products in Canada
Empire whole life insurance participating account has an average rate of return of 6.91% over the past 25 years (from 1993 to 2017).
Contrast this with the best dividend performance (Equitable Life) over the same period: 8.2%. So Empire Life is in pretty good company.
Affordable Non-Participating Whole Life Insurance with Great Guarantees
Empire Life’s Solution 100 coverage is not a term to 100 product like its name suggests. It’s permanent non-participating whole life plan with some of the highest guaranteed cash and paid up values in the Canadian marketplace.
Quick & Easy Transactions
Empire Life is an easy company to do business with for both advisors and customers which is really important.
Built on the foundation of Transamerica Life Canada, Ivari insurance is a solid company with strong Canadian roots. It is also owned indirectly by the Canadian Pension Plan Investment Board, a well respected global investor. Suffices to say, if you buy an Ivari life insurance policy, the premiums you pay may eventually end up in your own CPP retirement benefits.
Superior Claims Experience
Like most major carriers, Ivari Insurance pays out a high percentage of life insurance claims they receive, something like 99.1%. Not only that, but they do it fast!
Ivari Loves Big People
Ivari has a responsive underwriting department not to mention, Ivari’s build chart is one of the most forgiving in Canada.
What does that mean? If you’re carrying a few extra pounds, you’ll stand a better chance of getting standard rates with Ivari than other carriers and you’ll save money.
Their Universal Life Product is Excellent & Affordable
Ivari Insurance is #1 in the marketplace for their Universal Life Insurance (UL) product which is one of their best sellers. It’s also very affordable.
Ivari Has a Unique TERMselect30 Product
Ivari’s flexible TERMselect30 is term 30 has paid-up options in years 15 – 20 which enable you to stop paying premiums and opt for paid-up term, permanent or cash value.
Community Based Culture
Ivari Canada has deep roots in the community and supports a number of efforts including a food program for children and matching employees’ charitable contributions.
Why Policy Architects?
If you are looking for the best life insurance in Canada, we have you covered. At Policy Architects we only work with the very best…
…and I have some good news for you. Our advice is free. The life insurance companies pay our commission once you sign on the dotted line.
This is the reason you should always work with an independent agent. When you get a great policy that’s affordable it reflects well on us as you’re a client for life.
We aren’t just looking to sling coverage to make cash, we’re building a business and look forward to serving you and your family throughout the years.
How Does Policy Architects Work?
1. We find your accurate rating class as it ultimately determines the price
2. We go over life insurance options with you
3. We shop to multiple carriers to find you the best rate!
We only work with the best life insurance providers in Canada.
So Get in touch with Policy Architects Today! Click the button below to get a free quote or schedule a call here.
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