Fact CheckedIf you want to get the best life insurance policy possible, I have a few words of advice.
The internet is an incredible source of information. Nearly anything you want to know is just a click away, which can make shopping for life insurance easier, at least on the surface.
The problem is consistency. Some articles are solid, others are outdated or misleading, and the sheer volume of information can be overwhelming. Many people end up frustrated, unsure who to trust, and ultimately give up.
That’s exactly why I started the Policy Architects blog to create a one-stop resource for clear, practical guidance that helps Canadians save time, money, and unnecessary hassle.
Below, I’ll share my top tips for choosing the best life insurance policy, without overpaying or overcomplicating the process.
What Is a Life Insurance Policy?
Life insurance has a long history. Versions of it date back to ancient Rome around 100 BC, when burial clubs were created to help families cover funeral costs. These early arrangements, often credited to reforms associated with Caius Marius, were designed to ease the financial burden placed on widows and surviving family members.
Today, life insurance is far more structured, but the purpose remains the same.
A life insurance policy is a contract between the policyholder (the person who purchases the coverage) and a life insurance company. To fully understand the basics, it helps to start with Canada-specific rules, since policies and regulations vary by country.
In simple terms, you pay premiums. Regular payments are made to keep the policy active. In return, the insurance company agrees to pay a lump sum, known as the face value or death benefit, to your beneficiaries if you pass away while the policy is in force. (If you want a deeper breakdown, see how life insurance works in Canada.)
There are two primary types of life insurance policies.
Term life insurance provides coverage for a specific period of time, typically during years of higher financial responsibility. Common term lengths include 10, 20, and 30 years. If the policy expires and you are still living, no benefit is paid. Because it is temporary and does not guarantee a payout, term life insurance is generally the most affordable option.
Permanent life insurance, on the other hand, is designed to last for your entire lifetime. These policies usually include a cash value component that grows over time. Because permanent insurance guarantees a payout and consists of a savings element, it is significantly more expensive than term coverage.
Choosing between these options depends on your goals, budget, and the level of coverage you actually need. If you’re unsure, understanding how much life insurance you need is often the best next step.
The Beautiful Thing About Life Insurance Is That It Provides Options For Your Loved Ones. It Doesn't Even Have To Be A Large Policy To Make A Big Difference In Their Lives.
After Selecting Your Coverage, You Typically Answer Questions and Take a Medical Exam
Traditionally, fully underwritten life insurance policies, both term and permanent, require a medical exam.
When clients come to me, the process usually starts with a conversation about their finances, goals, and the type of coverage they’re considering. During this meeting, I ask a series of questions to help determine which policy structure and insurance company are the best fit.
Once that information is gathered, we arrange a medical exam. This exam is typically completed at your home or workplace and may include measurements such as height, weight, blood pressure, and basic lab work.
The medical results, along with the information collected during our discussions, are then sent to the insurer’s underwriting department. The underwriter reviews this data to assess risk and assigns a rating. That rating determines how much the policyholder pays, whether monthly, annually, or as a lump sum.
If the offer is accepted, the insurer finalizes the approval and issues the policy. At that point, the life insurance policy is delivered, and coverage officially begins.
If you want a broader explanation of this process, understanding how life insurance works in Canada can be helpful. And if you’re curious why pricing can vary so much from one person to another, learning how life insurance rates are determined provides important insight.
Please Note: You Can Get No Exam Medical Insurance. But Please Be Aware That It Will Cost You More. Life Insurance Is All About Assessing Risk. The More An Insurer Knows About You The Cheaper Your Premiums Are.
5 Tips to Get the Best Life Insurance Policy Today
1. Always Work With an Independent Life Insurance Agent
If you’re looking for the best life insurance policy, always work with a qualified independent life insurance agent.
And before you ask… no, this isn’t self-serving advice. Even if I weren’t in this business, this is precisely what I’d tell my own family to do.
Why? Independent agents have access to multiple insurers and understand the nuances of each company’s underwriting rules. Not all life insurance companies evaluate risk the same way, and those differences matter.
Having someone in your corner who understands underwriting niches can save you time, money, and unnecessary frustration.
By contrast, a tied agent, someone who works for only one insurance company, can only quote the products their employer offers. That limitation can easily result in higher premiums or a less-than-ideal policy structure over the long term.
2. Don’t Choose No-Medical-Exam Life Insurance Unless It Truly Fits Your Situation
In general, the more a life insurance company knows about your health, the better your pricing will be. Life insurance is built on risk assessment. The higher the perceived risk, the more expensive the coverage.
When you skip a medical exam, you’re often grouped into a higher-risk pool, which usually means higher premiums.
There are exceptions.
If you have serious medical conditions or are looking specifically for end-of-life coverage, no-medical options can make sense. For example, final expense insurance is commonly used by older Canadians who want affordable coverage to handle funeral and burial costs.
It’s also important to understand that there are two very different types of no-medical coverage:
Simplified issue life insurance
You answer medical questions, and your premiums are based on those answers. This is typically the most affordable no-medical option.Guaranteed issue life insurance
Acceptance is guaranteed, but premiums are higher and policies usually include a two-year waiting period. If death occurs during that period, beneficiaries typically receive a return of premiums rather than the full benefit.
Knowing the difference can prevent costly mistakes. You can explore these options further through life insurance with no medical exam and guaranteed life insurance resources.
3. Quit Smoking (Your Wallet Will Thank You)
Smoking is one of the biggest factors affecting life insurance pricing, and underwriters know it.
Smokers often pay nearly double the premiums of non-smokers for the same coverage.
Ouch.
The good news is that being a smoker doesn’t mean you’re locked into those rates forever. If you quit and remain smoke-free for at least 12 months, many insurers will reconsider your classification.
My best advice is to work with your physician during the process and make sure your medical records clearly reflect when you quit. That documentation can make a real difference when reapplying for non-smoker rates.
(You can learn more about this in smoking and life insurance.)
Get the Right Life Insurance Policy… With Confidence
If you want a life insurance policy that actually fits your situation, speaking with an experienced independent advisor matters.
At Policy Architects, we work with multiple Canadian life insurance companies to help match you with coverage that aligns with your goals, budget, and health profile. Because insurers assess risk differently, choosing the right carrier can make a meaningful difference in both pricing and long-term value.
If you’ve been reading our blog, you already know this industry isn’t one-size-fits-all. Not all policies, or insurers, are created equal. Having a knowledgeable independent agent in your corner can save you time, reduce frustration, and help you avoid costly missteps.
In many cases, the right policy structure and carrier selection can result in substantial long-term savings over the life of the policy … without sacrificing coverage quality.
If you’re ready to move forward or simply want clarity, we’re here to help.
👉 Start by answering do I need life insurance, or reach out to speak with an advisor who takes the time to understand your needs.
4. Don’t Put Off Coverage
If you want the best life insurance policy, get started today. Waiting rarely helps, and more often than not, it turns into an endless cycle of procrastination.
I’ve heard every version of it: “I’ll apply after I lose 10 pounds, get fitter, quit smoking… maybe next year.”
The reality is that it’s never going to feel like the perfect time to buy life insurance. There will always be a reason to delay.
Unfortunately, I’ve seen too many people wait themselves into higher premiums — or worse, into a situation where coverage is no longer available at all.
Most people are healthier than they think. And the younger and healthier you are, the more affordable your options tend to be.
5. Avoid Permanent Coverage Unless It’s Truly a Good Fit
Permanent life insurance can be expensive and complex. For most people, term life insurance provides the right balance of protection, flexibility, and affordability.
That said, permanent coverage does have a place, just not for everyone.
Permanent life insurance may be a good fit if:
You have a large estate and are concerned about future tax obligations
You own a business and want to fund succession or protect partners and employees
You have a child with special needs who will require lifelong financial support
You want to cover final expenses so loved ones aren’t burdened
You own a cottage or other property your family may be forced to sell to pay taxes
You’ve co-signed major debt, such as a child’s mortgage or student loans
Permanent coverage is typically best suited for people with higher disposable income and long-term planning needs. For income replacement during your most financially vulnerable years, term insurance is usually the more practical solution.
6. Don’t Underinsure Yourself
No one wants to buy life insurance. It’s not exciting, but it’s one of the most responsible and loving decisions you can make for your family.
When an income disappears, financial pressure hits fast. Mortgages, loans, and everyday expenses don’t go away, and many families never fully recover from the loss.
That’s why it’s critical to run the numbers.
A standard guideline is 7–10 times your annual income. For example, someone earning $60,000 per year may reasonably need $420,000–$600,000 in coverage. While that sounds like a large amount, it can be depleted quickly when replacing income, paying debts, and covering future expenses.
7. Choose the Right Beneficiary and Keep It Updated
Selecting the correct beneficiary is just as important as choosing the policy itself.
One common mistake is naming a minor directly without appointing a trustee. If that happens, the funds may be tied up until the child reaches legal age, which is rarely what parents intend.
It’s also critical to keep beneficiary information current. Life changes: marriages, divorces, deaths, and relocations happen. Outdated beneficiary details can cause delays, disputes, or even unclaimed payouts.
You don’t want the insurance company trying to track down your beneficiary years later.
To avoid these issues, regularly review life insurance beneficiaries and update them as needed.
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