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Which Are the Best Life Insurance Companies in Canada?

Life insurance companies in Canada are great avenues to save your money on monthly premiums. They provide great coverage and help you ensure a secure future for your beneficiaries and family.

However, finding the best life is a tricky business. Cost often plays a pivotal role, but here are the other things that you need to consider:

  • Does the life insurance company have good financial stability and rapport?
  • Which kind of life insurance should you acquire: A term or permanent life insurance. 
  • How much coverage are you looking for?

Read: All About Life Insurance in Canada

Hence, answering these questions is important when you are choosing from the best life insurance companies in Canada. As per recent studies, 62% of Canadians with life insurance get their insurance from their employers. 

While a lot of people have acquired insurance when the pandemic started since it threatened lots of lives, but some of them have been conned into buying expensive permanent policies that are not required by them.

This article covers the best life insurance companies in Canada, how you can choose the one that suits you the best, and the costs that align with your budget

Read: How To Choose The Right Life Insurance In Canada?

The Best Life Insurance Companies in Canada

Life Insurance Companies in Canada

When choosing the best life insurance provider you have to look at the cost of coverage, the proprietary products that are offered, the financial stability of the said company, and the ease of applying for the insurance. 

Read: What Is Comprehensive Insurance & What Does It Cover?

The best life insurance companies in Canada are:

1. PolicyMe

PolicyMe is a company that provides life insurance online and is also the first digital life insurance platform to provide services in Canada.

The company was launched as a life insurance comparison site in 2018. However, it has not transitioned to a life insurance platform that offers good life insurance policies that are mostly issued through the Canadian Premier Life Insurance company which is a federally regulated life insurance company.

The Canadian Premier Life Insurance company has been in the business for 60 years and it also has a Financial Strength Rating of  A from AM Best. PolicyMe provides the policies that are issued by BMOLife Assurance Company, Manufacturers Life Insurance Company, and Wawanesa Life Insurance Company. 

This company outshines the other in the field of online onboarding. Once you fill out the 15-minute online application, you will get a quote instantly and won’t need to give medical exams. 

Read: What Is Homeowners Insurance & What Does It Cover?

PolicyMe’s rates are 10-15% less than the other players, this makes it the best life insurance company in Canada.

  • Coverage provided: $100,000 to $5,000,000.
  • Term: 10, 15, 20, 25, and 30 years. 
  • Cost for 10 year term: $19.24/month (non-smokers, female, $500k coverage).

Policyme provides a 5% discount for couples for each month, child coverage is inclusive without any added costs if you have kids. 

Advantages of PolicyMe

  • You will get approval without having to visit any branch and don’t have to wait for a long time for the same.
  • In case you have kids at home, $10,000 per kid is provided at zero cost. 

Disadvantages of PolicyMe

  • Permanent life insurance is not provided and its operation and scale are not as extensive as other companies that we will talk about. 
  • PolicyMe is not present for residents of Newfoundland, New Brunswick, Newfoundland. 

2. PolicyAdvisor

PolicyAdvisor is not a whole insurance company but it is a great company to compare and contrast quotes from the top life insurance companies of Canada.

Not only can you rely on PolicyAdvisor for the term and whole life, but you can also acquire the quotes for disability insurance, illness insurance, medical insurance, mortgage protection, and no medical insurance. 

To get quotes, you have to fill out an application. You can get the quotes, instantly for long terms, insurance needs, etc.  For that, you can also consult license advisors for free by phone and ask about different alternatives. 

Read: Gap Insurance In Canada: What Is It & How Does It Work?

You also get to use several different calculators to find out what kind of coverage you need.

  • Coverage needs: $25,000 to $5,000,000.
  • 10 year term insurance: $20.52 per month, $28.80 (non-smoker, female, $500k coverage)
  • Terms available: 10,15, 20, 25, 30, 35, and 40 years.

Advantages of PolicyAdvisor

  • You can get free tools, resources, and calculators. 
  • Easy to compare different quotes for free. 
  • Quick online application filling, assistance, and more chances of approval.

Disadvantages of PolicyAdvisor

  • You can only get the products of PolicyAdvisor in Alberta, Ontario, and Manitoba. 

3. Manulife

Manulife has 1.3 trillion assets in management and is also the largest insurance company in Canada. Additionally, it provides policies, banking, and investment services as well. This company has a vast range of insurance policies to offer. 

For instance: You can select Family Term, CoverMe, Business Term, Family Term with vitality, and policies that provide good policies when you qualify in the fitness and health-related activities. You can also use the feature in it to waive the medical tests. 

Read: What You Need to Know About Credit Bureaus in Canada?

Manulife provides policies for permanent life insurance, which also includes Guaranteed Issue Life Insurance and coverage without regard to age and health records.

  • Coverage amount: $50,000 to $20 million. 
  • 10-year term life insurance: $25.20 monthly (non-smokers, female, $500 coverage).
  • 10-year term life insurance: $30.35 monthly (non-smokers, male, $500k coverage. 
  • Term available: 10,20, until age 65, 100.

Advantages of Manulife

  • When you take part in different programs, you have the chance to lower your premium amount. 
  • It is a very old insurance premium company that is over 133 years old. 
  • Policies without the need for medical tests. 
  • Easy online application submission, and coverage options. 

Disadvantages of Manulife

  • Limited-term lengths. 
  • If you prefer low rates, then this is not the cheapest one. 

4. SunLife

This is one of the biggest life insurance companies in Canada. Its assets include $328 billion and are also operable in Australia, the United States, and the United Kingdom. SunLife has an expansive array of insurance coverage which includes permanent life insurance, and term life insurance as well. 

The term lengths available are 10,15, 20, and 30 years. People can also find options for when they do not want to go through an extensive medical underwriting process. 

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  • Term includes: 10, 20, 15, 30 years.
  • Coverage provided: $5,000 to $1 Million (For permanent life term you can get up to $10 million coverage)
  • Cost of the 10-year term: $41.20 monthly (non-smokers, females, $500k coverage).
  • Cost of the 10-year term: $51.24 monthly (non-smokers, females, $500k coverage)

Advantages of Sunlife

  • Provides other insurance products like long-term care, personal health, and critical illness insurance. 
  • Customize the life insurance as per your needs for your unique situations/ 
  • A company with a 150-year-old relationship with Canada. The financial score rating is A+ from A.M. Best Company and AA rating from Standard and Poors. 

Disadvantages of SunLife

  • No medical insurance policy is expensive. 
  • The application process is only partially online. 
  • The term life insurance of SunLife can also be expensive as compared to the policies of other companies.

5. RBC Insurance

Life Insurance Companies in Canada

RBC insurance is the division of Royal Bank Of Canada, and it is the largest bank in Canada as per the market capitalization. 

Read: Do You Need Life Insurance in Canada?

The insurance products provided are:

  • Coverage for whole life insurance can be up to $25 million, has provisions for dividends, and cash value guarantees. 
  • The coverage for term life insurance is 10, 15, 20, or 40 years and the whole amount goes up to $1 million. 
  • The universal life insurance includes options like riders, tax-advantaged investing Term 100 life insurance with initial coverage of $50,000, and other additional features. 

No medical exam insurance with coverage of about $40,000.

  • Coverage provided: $5,000 to $25 million.
  • Term: 10-40 years. 
  • Cost of 10-year term insurance: $20.52 monthly (non-smokers, female, $500K coverage)
  • Cost of 10-year term insurance: $29.25 monthly (non-smokers, male, $500K coverage)

Advantages of RBC Insurance

  • The largest bank is based on market capitalization. 
  • The term life insurances of this bank are competitive, you can exchange your policies on the need to take medical exams. 
  • The coverage of this bank is high and goes up to $25 million, and the term can extend as long as 10-40 years. 

Disadvantages of RBC Insurance

  • The application process is only partially electronic. 
  • To get the products of RBC Insurance, you should be a Canadian Citizen or Permanent Resident who has resided in Canada for over 12 years.

6. Canada Life

This is one of the best life insurance companies in Canada. It is also one of the largest companies as it comprises London Life, Great-West Life Company, and Canada life. The various insurance products of this company are suitable for critical illness, disability, life, and creditor insurance. 

The coverage period for those who want term insurance is 5 to 50 years. This can be on an annual basis and can be whole life insurance as well. The 2 kinds of permanent life insurance include universal and participating life insurance.

Read: Your Guide to Investing in Index Funds in Canada!

The rating of Canada life is AM Best rating of A+.

  • Coverage provided: $100,000 minimum amount. 
  • Cost of 10-year term insurance: Not present on online sources.
  • Term available: 5-50 years. 

Advantages of Canada Life

  • A reliable company that has been around since 1847.
  • The term range is from 5-50 years. 
  • You can also convert the term insurance to permanent life insurance.

Disadvantages of Canada Life

  • Minimum coverage is very high as it is $100,000 and an annual premium can be $500.
  • If you want to get a quote, you need to consult with an advisor as online calculators are not available. 

7. Canada Protection Plan

Canada Protection Plan is best for the people who do not want a medical process and simple life insurance. You can choose from over 5 alternatives which include coverage of $500,000 without any medical and $1 million included with the medical. 

You can also get over 6 different types of life insurance with no medical underwriting. They were launched in 1992 and it has over 25000+ independent advisors in Canada. 

Read: Know These Terms For Retirement Planning In Canada

  • Terms: 10, 20, 25, and 30 years. 
  • Coverage provided: $25,000 to $1,000,000.
  • Cost of 10-year term insurance: $33.75 monthly (non-smokers, female, $500k coverage)
  • Cost of 10-year term insurance: $39.15 monthly (non-smokers, male, $500k coverage)

Advantages of Canada Protection Plan

  • Insurance for health, travel, or critical illness is available. 
  • The pricing is good and you can get the quote online.
  • This is great for people who find it hard to get approval due to bad health, or if they are involved in extreme sports. 

Disadvantages of Canada Protection Plan

  • Limited coverage amount of up to $1 million only. 
  • If your health is good, you can get premiums at lower costs by taking medical tests. 

8. IA (Industrial Alliance)

This is one of the most prominent Financial Groups in Canada with the highest wealth and insurance management of over $214.5 billion as of September 30, 2021. The rating is AM Best Rating of A+.

It is an insurance ar, of Industrial Alliance Insurance, and Financial Services, inc. They offer personal products which include RV, Home, Car, Mortgage, Health, Disability, and travel insurance. 

The term life insurance is provided through Access Life for terms of 15, 20, and 25 and no medical exams and coverage of over $500,000 and Pick-A-Term of (10-40 years with a coverage of up to $10 million).

Read: 13 Amazing Places to Retire in Canada!

The life insurance product includes 4 products that you can customize as per your needs.

  • Terms: 10-40 years. 
  • Coverage amount of over: $10,000 to $10 million.
  • Cost of 10 year term: $36 month (non-smoker, female. $500 coverage) 
  • Cost of 10 year term: $49.05 month (non-smoker, male. $500 coverage) 

Ai insurance provides participating life insurance which also has provisions for dividends. They are expensive and have a cash value or savings component. 

Advantages of Industrial Alliance

  • Medical life insurance coverage is not provided. 
  • You can also get other kinds of insurance from them including home, car, mortgage, travel, and health.
  • The coverage term is flexible and also has permanent life insurance alternatives. 

Disadvantages of Industrial Alliance

  • You can find insurance that is more affordable at other banks. 
  • The application process is only partially electronic. 

9. Empire Life

This company provides different kinds of insurance and investment products including annuities, mutual funds, and other insurance plans. 

The assets under its umbrella as of December 31, 2020, were $18.7 billion. The term for life insurance is 10, 20, 25, and 30 years. It has an annual renewable term policy that changes each year, hence, it is a great alternative for people looking for temporary coverage. 

Read: Guide to Investing in Mutual Funds in Canada

The other products that Empire Life provides are permanent life insurance, guaranteed issue life insurance, permanent participating life insurance. Etc. 

  • Coverage : $50,000 to $10 million. 
  • Terms provided: 10, 20, 25, and 30.
  • Cost of the 10-year term: No information online.

Advantages of Empire Life

  • Term of up to 30 years, and flexible temporary coverage. For the ART product, it allows good coverage. 
  • You can get both permanent and temporary life insurance, and other kinds of insurance from their wide array of financial products. 

Disadvantages Empire Life

  • The highest coverage amount for Solution ART products is $499,999. 
  • No online calculator is provided, so you have to consult an advisor.

Read: A Comprehensive List of High-interest Savings Accounts in Canada


Devanshee Dave

Devanshee is a staff writer at YourFirst.ca. She is a finance enthusiast and has completed her Master’s degree in Mass Communication & Journalism. She has worked as a journalist in a local business newspaper, multiple start-ups as well as finance and economy-related online media houses.

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