Table of Contents
Best life insurance companies In Canada 2022
Which life insurance company should I choose?
Selecting the right life insurance company is a very personal, subjective preference. Every individual and family has specific needs that need to be met by their life insurance policy.
Fortunately, there are quite a few life insurance providers; choosing the best life insurance company to suit your needs is simply a matter of shopping around.
We have researched the top life insurance companies in Canada and rated them according to characteristics that are high on the list for those seeking the best insurance coverage.
Best life insurance company for affordability: BMO insurance
When looking for the lowest price for the best life insurance coverage you need, BMO insurance company comes in at the top. Their term life insurance products offer great value for the money.
BMO offers policies from $100,000 to as high as $5,000,000. The age of buyers can range from 18 to 75 years old. You can get life insurance quotes directly from their website for current premiums. BMO term life insurance policies can be purchased in five-year increments ranging from 10 to 30 years.
One of the reasons their prices are so affordable is that they are selective in who they insure. Mostly a medical exam is required to qualify for their term life insurance policies, which lowers both their risk and the premiums.
Best life insurance company for financial strength: Canada Life
Canada Life is one of the top-rated and most stable life insurers in Canada. Canada Life has an A+ rating in financial strength from A.M. Best. The company has a reported $396 billion in assets giving it a rock-solid reputation for financial strength.
Canada Life was founded in 1847. It was the first life insurance company in Canada and it rates at the top of the best life insurance companies. The company offers a range of insurance products which make it a great choice for millions of Canadians.
Best life insurance company for non-medical policies: Canada Protection Plan
If you are shopping for a non-medical exam life insurance policy, your best choice will be Canada Protection Plan. CPP is privately owned and has been in operation for 25 years, specializing in no medical and simplified issue insurance policies.
Given that there is no medical exam, you will get your policy relatively fast, usually in about 48 hours. Their ‘no medical exam’ plans can be either term life insurance plans or permanent life insurance coverage, which is great news for those that have been turned down for any type of insurance before.
One thing to remember with ‘no medical’ plans is that your life insurance cost will be higher than with fully underwritten policies. In addition, the death benefit limits are also lower than with standard policies.
Best life insurance company for personalization: Empire Life
If you are looking for highly customizable life insurance, look no further than Empire Life. The company offers the widest selection of coverage options, some of which are quite unique.
One of the most uncommon offerings from Empire Life is the age up to which they offer renewals of their insurance policies; 100 years old. The company also offers a cash value term life insurance policy, their Solution 100, which is quite rare for term life insurance policies.
Most life insurance companies give you options in many areas. Empire life gives you more options on term life insurance coverage as well as permanent life insurance coverage options.
Best life insurance company for families: Equitable Life
Families looking specifically for life insurance providers that cater to families will find that Equitable Life of Canada is a great option. The company offers affordable life insurance solutions in both permanent life insurance policies and term insurance policies.
What is unique about the products they offer is the ability to mix and match various options with the ability to “ladder”, which is the option to only pay for coverage as needed.
Equitable Life offers several insurance riders that offer coverage for items such as therapy sessions and lab tests. Adding a child term rider allows the insured to build a family plan.
Best value for money life insurance company: RBC Insurance
RBC Insurance offers some of the most competitive rates for term life insurance policies. In addition, they offer a plethora of options and riders that allow you to customize your policy to your exact requirements.
A very unique offering that gives you control over your life insurance premiums is the ability to choose terms in one-year increments instead of the typical five years. You can select how much life insurance you want for the term you need.
RBC Insurance offers plans as low as $12.22 per month for a $100,000 death benefit for young males who do not use tobacco. This is very affordable life insurance coverage which keeps your life insurance cost very reasonable.
Best term life insurance company for physical purchase: Sun Life
Insurance shoppers wanting to do in-person purchase of a term life insurance policy will find that Sun Life Financial insurance is the best option. The company only offers paper policies, no digital options are available.
Buying life insurance is not a simple choice for everyone. There are those that require face-to-face guidance to feel that they are making the best choice possible.
Sun Life products are highly customizable with riders that can accommodate the needs of the individual and family members. They offer whole life insurance and universal life insurance products.
Best life insurance company for simplified issue: Assumption Life
Buying simplified issue or “no medical” life insurance does not mean having limited options. Assumption Life offers some of the best life insurance products with no medical exam required.
One of the unique offerings from Assumption Life is their “Participating Life Insurance” product. This type of life insurance policy pays out dividends to the insured. The dividends can lower the cost of insurance and may also offer tax-shelter features.
Assumption Life offers no medical exam term life coverage policies with death benefits up to $999,999, which is a larger death benefit amount than is offered by most other life insurance companies.
Best life insurance company for layering: Ivari
Ivari life insurance shoppers who love numbers and options will eventually discover the benefits of layering insurance policies to get the most insurance coverage for the lowest price.
When you layer multiple smaller policies to benefit from the combined coverage of all of them for a period of time, you can plan based on your future accumulation of assets and reduced need for insurance.
The best life insurance company for layering coverage would be RBC Insurance. We discussed how RBC already provides the best value for your money in terms of cost and coverage. It makes sense that layering their products will maximize your investment and give you the best layering options.
Frequently asked questions
1. How do you choose the best life insurance for yourself?
To choose the best life insurance policy, you need to carefully assess your needs and your goals with insurance. Do a methodical research and compare plans, premiums, coverage and death benefit.
2. Which is the oldest life insurance company in Canada?
Canada Life Insurance was founded by banker Hugh C. Baker in 1847 It is the first domestic life insurance company in Canada.
3. Which is the most reliable life insurance company?
Manulife Insurance’s size and reach in Canada make it the most reliable insurance company in Canada. They have the largest amount of assets, 1.3 trillion. AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) to Manulife. (1)
4. What is the most trusted life insurance company?
Sun Life Financial continues to dominate as the most trusted brand in life insurance in Canada. A poll in early 2022 of 4,000 Canadians showed that Sun Life Financial was among the most trusted brands in several categories, including life insurance, compared to other life insurance companies (2)
5. Which is the number one life insurance company in Canada?
Manulife Financial also rates as the largest life insurance company in Canada. The sheer size in the volume of premiums collected, policies issued, and assets under management put them at the top of the categories.
6. Where do I buy life insurance in Canada?
Buying life insurance plans in Canada is extremely convenient. Where you buy it will be a matter of preference for the most part. You can buy insurance from the comfort of your home using your computer or smartphone. You can visit insurance companies’ offices directly, or you can buy through the thousands of licensed agents across the country.
It’s important to remember that there is a difference between a good company and a good policy. Although not mutually exclusive, you want to look at both with a discerning eye.
The best life insurance company may not offer the best product for your needs, and vice versa. You may find that your special needs and circumstances are only met by an A- rated life insurance company. That rating in itself does not indicate that your policy is substandard, especially if that policy is the only one available to you.
Buying the best life insurance policy is not an easy answer, although many would think that it is as simple as choosing the term, death benefit, and premium. There are many nuances to life insurance that only an experienced, knowledgeable and licensed professional would know in full.
If you are ready to get the best life insurance policy for you, give us a call today.