Life insurance is a practical option for you regardless of your location in Canada. While many policyholders determine the best choice based on the insurance premium amount, the best life insurance companies in Canada include plans for couples, customizable policies, and no medical insurance options.
Whether you want to protect your family should you face an accidental death or you already have a life-diminishing condition, many plans exist for your specific needs. Your policy may be as low as $30 or over $300, depending on several factors including the coverage requirements you need,
Keep reading to learn about how life insurance works, the various types, and why you should get it. You’ll also discover the best life insurance companies in Canada, their offerings, and policy costs—and find out how to determine which company and how much coverage is best.
In this article
Understanding How Life Insurance Works
Life insurance provides coverage for your specified beneficiaries in the event of your death. You pay into a monthly plan in exchange for a lump-sum benefit that your beneficiaries will receive after your passing.
Beneficiaries can use tax-free life insurance policy payouts to pay debts or funeral costs, supplement income, or donate to a charitable fund.
Each life insurance plan has different details regarding its:
- Whom they benefit most
- Whether you’ll need a physical exam to be eligible
- How long it takes to get coverage
As the policyholder, you work with the insurance company to determine the policy’s length and the lump sum amount. Some of the best life insurance companies in Canada include layering options and combine other coverage. Some plans offer individual coverage, while others offer coverage for couples or the entire family.
Your beneficiaries will only receive the lump sum if you pass away while the policy is still active. Depending on the type of life insurance you choose, your beneficiaries may not get a payment under certain conditions, such as suicide.
Different Types of Life Insurance
The best life insurance companies in Canada offer two different types of life insurance. One policy type spans your entire life, while the other offers coverage for a set term. Multiple factors can help you determine which type of life insurance is best.
- Policyholder age: Younger policyholders get lower premium costs, as they are typically in better health. Older policyholders will pay more since they more statistically have medical conditions.
- Dependents’ needs: Depending on whether your beneficiaries will have many financial requirements, one life insurance type may be better than the other.
- Your current financial limitations: Policyholders with considerable debt should consider a policy type that covers owed and upcoming expenses.
Some Canadian individuals are eligible for specific group life insurance policies. If you’re a public service worker or member of the military, it’s possible to get multiple subtypes of life insurance.
Term Life Insurance
Term life insurance pays your beneficiaries the set amount if you pass away during the term. Term lengths typically range from 10 to 30 years. Families can save money by getting this type of coverage only when it’s most necessary.
With a term life insurance policy, parents with declining health can still provide for their children in the event of their passing. Your loved ones won’t be left struggling to pay your home’s mortgage or maintain an adequate lifestyle.
Additional term lengths are available. Some companies with highly-customizable policies allow even smaller terms than ten years. Other customizable term plans will enable you to extend coverage to various milestones in your life, such as purchasing a home or getting married.
You will also find medical and no-medical term life insurance policies available. A no-medical life insurance policy doesn’t require you to get a physical exam or blood test to determine policy eligibility. In contrast, medical term life insurance plans do require you to get medical testing for qualification purposes.
Whole Life Insurance
A whole or permanent life insurance policy lasts for the holder’s entire life. It provides a lump-sum payment to specified beneficiaries, regardless of when the covered individual passes away.
The coverage will never run out, and there may be a few investment return benefits. Whole life is also the more expensive option of the two types, due to its length. Policyholders will pay up to ten times more for a whole life insurance plan.
Whole life insurance policies come in different subtypes, including universal and variable life insurance. It’s necessary to work with the best life insurance companies in Canada when getting a whole life insurance policy, as these policies involve significantly more details. Avoid working with insurance brokers who push you to get this type of insurance if you think term life insurance is the better choice.
Universal life insurance is a subtype of whole life insurance that gives you the flexibility to contribute your premium to your Tax-Free Savings Account or select other investment accounts or particular beneficiaries. Medical and no-medical whole life insurance are available in whole-life lengths.
Reasons to Get Life Insurance
It’s not mandatory to get life insurance, but having a plan from one of the best life insurance companies in Canada can significantly help your beneficiaries. Between protecting your family’s future, repaying your personal or business debts, or helping on an international scale, you may have many reasons to get life insurance. Life insurance advisors can further detail how life insurance might benefit you.
Future Protection for Your Family
Consider whether your family needs you to have life insurance. Many families struggle to return to normal life after a death in the household, especially when it’s the primary provider. Enrolling in a policy is wise if your family or other dependents would have to face large financial requirements or have no way to support themselves after your death.
Your death means you’re no longer able to support your family. Between paying for funeral expenses and other debts, replacing lost income, and helping them maintain a standard quality of life after your passing, a life insurance payout can help your family and other loved ones regain their footing.
A life insurance policy is practical for paying off business expenses or personal debt, no matter how much you’ve accumulated. Upon your death, an executor can disperse the policy’s payout to pay off mortgages and outstanding expenses and help your family avoid taking on these financial responsibilities alone.
Those without beneficiaries can still contribute positively by getting life insurance. Many policyholders choose a charity to receive their life insurance payout. It’s also possible to donate a portion of your life insurance payment to charity and split the rest among other beneficiaries.
Cost of Life Insurance
The best life insurance companies in Canada offer coverage with matching prices. Costs for life insurance premiums depend on many factors, including the following:
- Age: Younger policyholders have lower premium costs. Those in their early 20s have the best chance of getting a highly affordable life insurance policy due to having better health.
- Gender: Men typically pay more for life insurance than women, even if they’re the same age.
- Lifestyle or hobbies: If you participate in high-risk activities like extreme sports, you may pay more for life insurance, as your potential risk of death may be higher than that of other individuals.
- Type of life insurance you choose: Whole life insurance policies are significantly more expensive than term life insurance policies, as they may provide alternative investment options for policyholders and last longer than term options.
- If you’re a smoker: Smokers have higher coverage costs due to the risks associated with using tobacco products.
- If you have pre-existing conditions: Pre-existing conditions like diabetes may not disqualify you from life insurance, but you’ll pay significantly higher costs than healthier individuals. Other pre-existing conditions that can increase your premium include cancer or asthma.
Insurance comparison websites and tools help you compare the best life insurance companies in Canada to determine the best plan. You can easily find a plan that fits your budget and coverage needs with help from insurance professionals.
Determining How Much Life Insurance Is Right for You
You should consider several factors to determine how much life insurance is ideal for you. Between your family’s future and current expenses, you want the right amount of coverage that meets your family’s future needs but is still affordable for you to pay monthly.
Most insurance companies recommend a policy amount between six and ten times your yearly income. Each individual has a different situation, potentially warranting less or more than that amount.
Factors to consider include:
- Daily living expenses for your family
- Children’s college tuition and other future educational costs
- How much debt you have, including things you’re still paying for
- Additional expense needs, such as emergencies or future large purchases
You can use online life insurance calculators to compare the best life insurance companies in Canada and see if you can afford a plan. It’s wise to discuss your coverage needs with the whole family before choosing a final amount. The last thing you want is to get too little life insurance and leave your family unprepared to deal with the financial aftermath in the event of of your untimely death.
Deciding Which Life Insurance Company Is Best
You can find a multitude of excellent life insurance companies across the country. Before looking for the best life insurance companies in Canada, it’s necessary to establish your monthly budget and determine an amount for your policy’s lump sum payment. After determining your policy requirements, consider doing the research yourself or using an insurance company comparison website.
Due to the varied nature of Canadians’ life insurance needs, suitable options do exist for those on a budget, Canadians requiring life insurance for the whole family, and those needing quick approval without a medical exam.
It’s best to start by comparing company reviews, flexibility in insurance policy offerings, and company reputation. For extensive comparisons, insurance policy advisers can show you ratings for each company and plan and help you understand the inclusions for each life insurance policy option.
Establish your list of priorities for a life insurance company. The company you choose should offer:
- Affordable and competitive policy prices
- Trustworthy coverage and payments
- Expert customer service that provides helpful assistance
- A relatively fast approval time
- A simple application process
Top 15 Best Life Insurance Companies Canada Offers
You can find many top life insurance companies, no matter your province. Whether you’re applying as an individual or adding your spouse to the policy, something exists for almost everyone. The best life insurance companies in Canada include BMO Insurance, Assumption Life Insurance, Desjardins Life Insurance, and Foresters Life Insurance.
Understanding each company’s advantages and offerings is instrumental in selecting the right one. The following insurance companies are some of the most popular for their affordability, comprehensive offerings, flexibility, and more. Keep reading to learn about the top life insurance companies in Canada so you can determine which may be the best fit for you.
1. Best Affordable Premiums: BMO Insurance
BMO Insurance is one of the best life insurance companies in Canada, offering highly affordable term and permanent life insurance plans. The company’s size puts it among the ten most prominent companies, making it a stable choice for Canadians wanting life insurance.
Applicants can choose from five different coverage options between ten and 30 years. This plan is ideal for those wanting enough coverage for their business, employees, family, funeral costs, and more. They also offer the ability to convert a term policy into a whole life insurance policy.
Term life insurance from BMO is ideal for business owners, single individuals, and couples. Due to its digital contract delivery, the process is simple, but policyholders don’t have access to an online account and receive paper policies. Discounts are available for those who apply together.
A significant benefit of getting a BMO Insurance policy is the compassion program. Individuals requiring additional financial help while combatting terminal illness can get an advance on their life insurance policy to pay for expenses.
BMO Insurance’s online rates are estimates of your potential monthly premium and may differ from your actual expenses. Its costs are reasonable for average life insurance policy applicants, at around $25 to $35, depending on gender and other factors.
2. Best Comprehensive Coverage: La Capitale Life Insurance
La Capitale is a highly reliable life insurance company offering comprehensive coverage and excellent financial stability. This company offers term insurance with additional coverage additions for critical illness, children’s life insurance, and more. This company’s policies are ideal for those wanting future policy renewal abilities.
As one of the best life insurance companies in Canada, La Capitale’s partnership with Beneva makes it a stable and versatile life insurance provider. Its line of Enhanced coverage products is available to applicants living in Quebec. This line adds extra benefits due to a loss of autonomy and legal fees.
La Capitale’s online application process and account accessibility make it easy to apply and even add other insurance options to your policy later. However, the term life insurance features limits on no-medical and simplified coverage amounts. These restrictions may make coverage best for older adults.
3. Best Overall Price: Wawanesa Life Insurance
Wawanesa is one of the oldest and best life insurance companies in Canada, offering life and health insurance. You can receive coverage on a term basis. The company offer a paper application process, so you’ll need to apply in person.
Wawanesa Life’s low prices and excellent term variety make this a leading consideration for those looking to save money and purchase a term policy of a particular length. Wawanesa offers policies across Canada and has excellent financial strength.
In addition to affordable premiums for healthy adults and several term lengths, Wawanesa’s rewards incentives and payment flexibility are significant benefits that Canadian individuals and couples receive. Adults active in healthy lifestyle choices get premium discounts. Monthly or annual premiums are easy to pay via credit card.
Monthly costs for men average at around $37, which is nearly $450 annually. Women pay less than $30 monthly and about $320 per year. Coverage additions bring no extra costs.
Wawanesa’s other products are also compatible with life insurance policies. Layered products are renewable with term policies. Individuals younger than 45 can also get up to $500,000 in coverage without a medical exam.
4. Best for Simplified Issue Coverage: Assumption Life Insurance
Assumption Life Insurance offers term and permanent life insurance and has a high score among policyholders. It is one of the best life insurance companies in Canada for its many simplified, no-medical options. The company has maintained an excellent credit rating for over two decades.
Assumption Life features five term coverage options for those wanting a no-medical policy. Many applicants consider Assumption Life after receiving coverage denials from traditional life insurance policies. Both you and your significant other can get life insurance at the same time.
The wide range of policies can be challenging to navigate without a professional. Due to the lack of medical exam requirements, the online application process is fast and effortless, but you’ll receive a paper policy. You’ll also get access to an online account to edit or view your policy anytime.
No-medical policies feature higher pricing for premiums and include extra fees for mortgage coverage and more. Healthy men pay around $41 per month, while women spend around $30. Costs are higher to combat additional risks due to pre-existing conditions or dangerous hobbies that traditional life insurance companies may use to deny your application.
5. Best Financial Stability: Canada Life Insurance
The Canada Life Assurance Company is one of the oldest, biggest, and best life insurance companies in Canada. It receives an A+ rating for its excellent financial strength. Individuals, couples, and business owners can select between term and permanent life insurance policies.
Those looking for a wide variety of highly customizable life insurance policies will find satisfying considerations ideal for their specific financial limitations. Key benefits of choosing a Canada Life policy are the company’s non-renewable plans, the ability to convert term policies to permanent types, and easy life insurance rider additions.
Canada Life’s requirements mean you must purchase a policy of $100,000 minimum. Extended term lengths are available for those wanting fixed terms over a more expensive whole-life policy, between five and 50 years. Those who wish can switch to a permanent policy.
Applying to Canada Life requires speaking with an insurance advisor because the company has no online tool to get a quote on the company’s policies. Those needing a life insurance policy within a short period may consider other companies, as the approval process can take over two months. Despite the lengthy process, policy prices are highly reasonable.
Annual and monthly premium payments are possible, but average costs between men and women are similar. Men pay just over $300 annually, while women will pay about $295 annually. Additional fees apply if you get riders, such as accidental death insurance.
6. Best in-Person Option: Sun Life Insurance
Individuals wanting to get a policy from one of the best life insurance companies in Canada in person should consider Sun Life Insurance. Sun Life offers permanent and term life insurance policies with typical benefits and extra inclusions. Policies are highly customizable whether you or your loved ones are applying.
Sun Life’s top benefits include easy conversions and extensive life insurance coverage of up to one million dollars. Policyholders with term plans can convert their life insurance policy to a permanent option until they reach age 75, compared to other companies that limit this age to 70. Alternatively, applicants can switch to subtypes of permanent life insurance.
Sun Life Financial offers decent flexibility with no-medical and medical policies. However, pricing is significantly more expensive for term policies as compared to competing companies offering term life insurance.
Applying for and getting a life insurance policy has considerably more steps and limitations for pre-existing conditions. You cannot select your coverage term, but you can choose between four policies with different term lengths.
Average pricing is more expensive for Sun Life policyholders than competing companies. Women will pay between $20 and $35 monthly, while the averages for men are between $29 and over $40. Additional riders will add to these premium costs.
7. Best for Smokers: iA Financial Life Insurance
Smokers have a higher risk of respiratory illness, making it more challenging to get a life insurance approval. Rates can also be up to three times more expensive than those of non-smokers. iA Financial is one of the best life insurance companies in Canada for its reasonable rates for smokers.
iA Financial features the best rates for smokers as compared to competing life insurance companies in Canada. Term and whole life insurance policies are available. Applying for iA Financial life insurance is a paper process that gives you a paper policy, but you get online account access after approval.
This life insurance company also allows you the flexibility to apply with your significant other, making this option suitable for couples who use tobacco products. Another important benefit is the extensive life insurance policy amount up to $10 million.
Not many non-smoking individuals find iA Financial’s premium rates affordable. You’ll find better premium costs with other life insurance companies if you’re healthier. Smokers wanting a relatively quick life insurance approval process will find iA Financial satisfying.
The average cost for a woman who smokes would be around $745 per year or over $65 monthly. A male smoker could pay almost $1,000 annually, making monthly premium costs nearly $90.
8. Best Application Process: Manulife Insurance
Canadians wanting an easy, stress-free life insurance application process should consider Manulife. As one of the oldest and largest life insurance providers, it beats many of the other best life insurance companies in Canada. Individuals and families have many policy options.
Whole life insurance policies are especially popular with Manulife customers. The company offers few term life insurance policies. Customers can swap short-term policies for those of longer durations, up to 65 years.
Manulife’s simple delivery system and other insurance offerings make it a top choice for those looking for life insurance, travel coverage, and other products. Applying is incredibly streamlined and requires no medical exam. You receive a digital policy upon approval, which is rare for Canadian life insurance providers.
Due to being one of the most popular life insurance providers in the country, customer service and cancellation processing can be slow. However, the company offers multiple whole life and universal life insurance plans and options for your family.
An average whole life insurance premium for a woman getting a $250,000 policy is approximately $120 monthly. A male would pay around $135. You can get discounted rates when you combine policies for you and your significant other.
9. Best for Families: Equitable Life Insurance
Equitable Life is another of the best life insurance companies in Canada, and its policies are ideal for many different types of people. The company allows individual or multiple-person term coverage. Business owners and families both get excellent coverage for varying levels of protection.
Flexible laddering terms make it easy to pay for the most necessary coverage and combine it with other insurances for extra safety. Customers can add a child rider to cover the entire family. You’ll get access to up to 30-year terms and policies for those 65 and older.
Equitable’s significant financial stability allows customers to convert term plans into permanent life insurance. After policy approval, you’ll receive access to an online account and a paper life insurance policy.
Whether you want protection for a certain period of your life or you want to start contributing to your family’s security immediately, Equitable Life offers an option for everyone. Men and women pay higher prices for a permanent life insurance plan. You’ll pay premium rates similar to other Canadian averages.
10. Best for Bundled Insurance: Desjardins Life Insurance
Desjardins is one of the best life insurance companies in Canada offering bundled insurance products. Working with one of the most secure life insurance providers, Canadians get access to a full suite of coverage. The company offers term and whole life insurance.
Desjardins’ main benefit is the easy ability to add disability insurance, critical illness insurance, and other coverages to your life insurance policy. Customers don’t have to look elsewhere to meet their additional coverage needs. Desjardins’ plans also provide coverage for the whole family, increasing savings.
While you only have four term policies to choose between, they’re highly affordable, and you can convert them to long-term policies. The application process is paper-only, and you’ll receive a paper policy, but your insurance agent can help you get a digital version. You’ll also have access to an online account.
Healthy, younger adults will pay more affordable prices for Desjardins life insurance. Women spend around $25, while men pay about $35. Costs increase with additional customizations, but this means you can cover your whole family for less.
11. Best for Future Protection: Foresters Financial Life Insurance
Foresters Financial is among the best life insurance companies in Canada for its unique contribution model. Individuals wanting to protect their family or community’s future can do so with this company. Customers get several additional benefits with term or permanent life insurance.
Applicants have many other benefits to add to their life insurance policy. Foresters’ life insurance policyholders receive outstanding benefits for their families, like low-cost legal assistance, educational scholarships for kids, and financial advisement. The company also contributes a small portion of your payout to charity upon your death.
Other vital benefits include children’s life riders, discounts on premiums, and increased death benefit riders for accidents and different situations. With these additions, you can cover all possibilities and save money.
The company offers several no-medical choices for higher-risk individuals, but you can’t apply or contact customer service online, making the enrollment process less convenient for many adults. Foresters has an extensive selection of permanent life insurance plans that may meet various future needs for your family and community. Term conversion is possible after a two-year period, and a no medical examination is necessary.
12. Best Value Overall: RBC Life Insurance
RBC Life Insurance is from the Royal Bank of Canada, the highest-earning bank in the country. It offers term life insurance with the ability to convert to a permanent policy when it’s time to renew. RBC is one of the best life insurance companies in Canada for the excellent customer service its life insurance policyholders receive.
Policyholders select from four pre-selected term lengths or choose their own. They can renew and convert their term policy to a permanent option with no medical underwriting up to age 71. Maximum coverage for term and whole-life policies is $25 million.
After the initial policy term ends, renewal costs increase. Average premium costs for women are around $25, while men have monthly premiums closer to $30. Laddering helps keep premium prices attainable as you age.
RBC offers a stable premium rate throughout your term. Rates won’t change as you age or as your health declines, but smokers get significantly higher rates. Monthly premium costs can be higher than average depending on your health at the time of application and other factors.
Life insurance from RBC is ideal for individuals and families who are permanent Canadian residents. Students and those on work visas can’t get coverage, but residents can quickly get policies of less than one million in value.
13. Best Term Coverage: Humania Assurance
Individuals requiring a term life insurance policy should consider Humania. These Individuals and families can also add riders to meet their complete life insurance requirements.
Humania offers term life insurance with the option to convert to a whole life insurance policy. Yearly term policies mean your premium costs increase each time you renew them. Additional riders will increase costs.
The application and purchasing processes are over the phone, making it especially easy to get coverage. You must apply to see potential premium costs, as quotes are unavailable online. The maximum coverage amount for life insurance policies is $2 million dollars.
Life insurance premiums from Humania Assurance are highly affordable, with average prices for a man in his 30’s being less than $20. A 35-year-old female will pay less than $15 monthly. Young applicants get the best prices, starting at just over five dollars.
While costs are lower than other life insurance providers, you have no premium limit. The company only guarantees premiums for longer policy terms up to 30 years in length and for those who are 80 years and younger. If you’re unsatisfied with your policy, cancelling is a stress-free process.
14. Best for Custom Bundles: Empire Life Insurance
Empire Life Insurance is one of the best life insurance companies in Canada for its comprehensive bundling with extensive customizability. Its significant variety of life insurance products and vast renewal limits make it a top consideration for aging individuals or business owners and families.
Empire’s above-average life insurance policy amounts reach up to $10 million. Coverage remains affordable whether you choose a term with multiple years or one with a yearly policy renewal. Individuals up to age 100 can get renewals. Short-term policies can switch to long-term options from ten to 30 years.
The high level of personalization Empire Life Insurance offers makes it a one-stop solution. With an instant online application, approval, and policy delivery process with subsequent online account access, you can get coverage fast and with the additional insurance products you need. Critical illness insurance, child riders, and other insurances cover other concerns.
Costs are neither expensive nor cheap for Empire Life’s insurance premiums. Individuals with a half-million-dollar policy will only pay between $20 and $35 monthly for 20 years of coverage. Some policyholders report a significant premium increase upon yearly renewal.
Overall, Empire Life Insurance is a wise option for short- or long-term policies with multiple customization options at relatively fair prices. While you can’t get a quote online, premiums are competitive and indicate average costs for all insurance inclusions.
15. Best for No-Medical: Canada Protection Plan
Canada Protection Plan is another top option for Canadians wanting a fast approval process and no medical underwriting. They offer excellent financial reliability as they are wholly owned by Foresters Financial, a top tier insurer in Canada. You’ll receive life insurance that is ideal for the whole family.
Canada Protection Plan life insurance policies options include terms between 10 and 25 years and permanent life insurance. Customers can get up to $1 million and plans are available for a wide range of situations including very serious medical conditions, no-so-serious health conditions and even those who engage in extreme sports. Additional child riders and coverage for critical illness are available for extra costs.
The no-medical process makes it easy to get life insurance regardless of pre-existing conditions like diabetes or asthma. You can get approvals without blood tests and other medical examinations. Applicants must answer various medical inquiries to apply.
The application process for Canada Protection Plan is by phone, online and also in person. Advisors explain pricing models and help you understand yearly renewal requirements. Prices for both women and men can begin at less than $15 monthly and increase annually.
Policyholders with significant medical concerns can still have affordable coverage. While costs increase with yearly renewals, Canada Protection Plan’s terminal illness coverage allows you to receive a partial amount of your total payout upfront to meet your family’s needs and make you comfortable.
Conclusion: Choose the Perfect Life Insurance Plan for You
Protecting your family’s future in case of your death is a matter you should take seriously, no matter where you live in Canada. You can compare the best life insurance companies in Canada with help from Alliance Income Services Corporation.
At Alliance Income, our skilled insurance advisors compare the top rates for life insurance to help you get a plan that meets your budget and coverage needs. We’ll help you find the most reliable company with solid financial stability and excellent benefits.Don’t leave your family and other beneficiaries without protection in the event of your untimely death. Call 416.477.2254 to reach Alliance Income Services Corporation in Vaughan, Ontario. Fill out our website’s online contact form to discuss your life insurance coverage requirements and begin comparing the best life insurance companies in Canada today with help from our life insurance experts.