Canada Life, one of Canada’s largest and most established life insurance providers, offers a wide range of term and permanent life insurance products.
With its strong financial stability and customizable policy options, Canada Life has become a top choice for many Canadians seeking reliable life insurance coverage.
In this article, we’ll explore Canada Life’s insurance offerings, pros, cons, costs, and customer reviews to help you determine if their policies suit your needs.
Overview of Canada Life Insurance Company
Canada Life Assurance Company, founded in 1847 in Hamilton, Ontario, is a subsidiary of Great-West Lifeco Inc. and a Power Financial Corporation group member.
Over the years, Canada Life has operated through affiliates such as Great West Life and London Life Insurance Company. In 2023, Great-West Life Assurance Company acquired Canada Life after a bidding war with Manulife.
Today, Canada Life provides insurance and wealth management products and services in Canada, the United Kingdom, Isle of Man, Germany, and Ireland (through Irish Life). In Canada alone, they serve more than 13 million clients and provide group benefit plans to over 30,000 employers.
Canada Life is also known for its philanthropic efforts, donating at least 1% of its pre-tax profit to charities through the Imagine Canada Caring Company program.
Some key facts about Canada Life Insurance Company
Founded: 1846
Headquarters: Toronto, Ontario
AM Best Rating: A+ (Superior)
Assets: $568 billion
Annual Premiums: $58 billion
With over 170 years of experience, Canada Life offers comprehensive insurance and financial products to meet Canadians’ needs.
What types of life insurance does Canada Life offer?
Canada Life provides a range of life insurance options, including term, whole, universal, and participating life insurance. Let’s examine the key features and sample pricing for each type.
Term Life Insurance
Canada Life’s term life insurance provides affordable temporary coverage. Their My Term policies allow you to choose any term length from 5 to 50 years based on your specific needs.
Key features include:
- Level premiums for the entire term
- Ability to convert to permanent life insurance without medical underwriting until age 70
- Automatic renewal at term end unless cancelled
- Joint “first-to-die” coverage available
Sample 10-year term rates for a 35-year-old non-smoker with $500,000 coverage:
- Male: $261/year
- Female: $227/year
Term life insurance is an accessible way to gain protection when you need it most. Canada Life’s customizable term lengths and conversion options add flexibility.
Canada Life Term Life Insurance Policy Options
Canada Life offers one primary type of term life insurance called My Term Life. But it does provide extensive flexibility and customization options:
Available Term Lengths: 5, 10, 15, 20, 25, 30 years or any other length from 5-50 years
Coverage Duration: Up to age 85 (term length based on years to age 85)
Available Coverage: Up to $20 million
Policy Type: Renewable and convertible term life insurance
Optional Riders: Disability waiver of premium, accidental death, children’s term life insurance, business value protection and more
This selection allows you to tailor your budget and time horizon policy.
Canada Life also offers permanent whole life and universal life insurance.
Permanent Life Insurance
Canada Life provides both whole and universal life permanent plans for lifelong coverage.
Their whole life options include:
- Wealth Achiever – Focuses on early cash value buildup
- Estate Achiever – Prioritizes long-term value growth
With Universal Life, you get the flexibility to adjust premiums and investment choices. Permanent life insurance ensures protection at any age while allowing cash value accumulation.
Whole Life Insurance
Canada Life’s whole life options focus on long-term cash value growth. The two types are:
- Wealth Achiever – Accumulates cash value quickly
- Estate Achiever – Prioritizes maximizing death benefit
Sample annual whole-life rates for $250,000 coverage:
- 35-year-old male non-smoker: $1,224/year
- 35-year-old female non-smoker: $1,086/year
Whole life insurance provides permanent protection and tax-advantaged savings.
Universal Life Insurance
With Universal Life Insurance, you have flexible premiums and investment options. Canada Life offers:
- Annually Increasing Premium to Age 85
- Level Premium to Age 100
- Limited Pay Premium (10, 15 or 20 years)
Sample annual universal life rates for $250,000 coverage:
- 35-year-old male non-smoker: $600/year
- 35-year-old female non-smoker: $500/year
Universal Life combines permanent coverage with customizable premiums and investment growth potential.
Participating Life Insurance
This type allows policyholders to share the company’s profits via dividend payouts. It provides lifetime protection with professional cash value management.
Canada Life allows you to find the right type of permanent or temporary coverage. Compare your choices to maximize value.
Critical Illness Insurance
Canada Life’s LifeAdvance critical illness insurance pays out a tax-free lump sum upon diagnosis of a covered condition. This can help financially in your time of need.
Their policies cover up to 25 common critical illnesses and have benefits for partial conditions. You can also add optional riders for further protection.
Disability Insurance
Disability insurance provides monthly income if injury or illness prevents you from working. Canada Life offers both short—and long-term disability plans to replace lost wages.
Wealth and Retirement Solutions
Beyond insurance, Canada Life also provides:
- Investment products like mutual funds and segregated funds
- Retirement savings accounts like RRSPs and TFSAs
- Retirement income products, including annuities
- Banking solutions and competitive mortgage rates
They offer a one-stop shop for both protection and financial growth.
With Canada Life’s array of insurance and investment solutions, you can craft a customized financial plan for safety today and financial security tomorrow.
How much does Canada Life Insurance cost?
Canada Life insurance premiums are typically more expensive than other top insurance providers in Canada. Here are some example rate comparisons:
35-year-old male non-smoker would pay the following approximate rates for a 20-year, $500,000 term life policy:
- Canada Life: $401/year
- Sun Life: $384/year
- PolicyMe: $372/year
For a female non-smoker aged 35, the rates are:
- Canada Life: $353/year
- Sun Life: $336/year
- PolicyMe: $323/year
Canada Life provides these sample annual premiums for a 10-year, $500,000 term policy for non-smokers:
| Age | Male | Female |
|---|---|---|
| 35 | $261 | $227 |
| 40 | $331 | $270 |
| 45 | $493 | $353 |
| 50 | $728 | $519 |
| 55 | $1,138 | $863 |
A 40-year-old non-smoking woman would pay approximately the following monthly premiums for a 10-year, $450,000 term life policy:
- Canada Life: $30.20/month
- RBC Life: $23.85/month
- BMO Insurance: $25.56/month
More: Why Women Pay Less for Life Insurance Than Men
Across age ranges and policy terms, Canada Life premium rates appear to be consistently 10-15% higher on average compared to other top Canadian life insurance providers. Consumers pay extra for the policy flexibility and features Canada Life offers.
Pros and Cons of Canada Life Insurance
Here are some of the critical advantages and potential drawbacks of buying life insurance coverage from Canada Life:
Pros of Canada Life Insurance
- Muscular financial strength and long history dating back over 175 years
- Offers both term and permanent life insurance options
- Ability to add optional riders to policies for enhanced coverage
- Can purchase high amounts of coverage up to $20 million
- Canada Life insurance policies come with several valuable features:
- Lengthy terms – Choose any term from 5-50 years based on needs
- Guaranteed renewability – Policies renewable annually without medical underwriting
- Convertibility – Option to switch term policies to permanent coverage until age 70
- Business growth rider – Increase death benefit as business value rises without reassessment
- Critical illness and disability riders – Extra non-life coverage options
- Joint “first-to-die” plans – Cover both spouses, but payout occurs at the first death
- However, Canada Life does not offer accelerated death benefits on its life insurance policies.
Cons of Canada life insurance
- Above average policy premium costs compared to competitors
- Minimum $100,000 coverage required for most policies
- Limited online account management capabilities
- Above-average premiums – Typical costs run 10-15% higher than competitors
- No direct online process – Must use an advisor for quotes and applications
- Approval delays – The underwriting and issue process takes 6-10 weeks
- Minimum requirements – Need $100,000 minimum coverage or $500+ annual premium
- The additional policy benefits and advantages come at a higher monetary cost. Canada Life is best suited for those wanting enhanced coverage with added protections.
Overall, Canada Life is a stable life insurance provider with a solid selection of products. However, its pricing is higher than average, so it pays to compare quotes from other top Canadian life insurance companies as well.
Canada Life Insurance Customer Reviews
Canada Life currently holds an A+ (Superior) rating from A.M. Best for financial strength, but customer opinion of its service is more mixed.
On Trustpilot, Canada Life has a 2.5 out of 5 star rating based on over 530 reviews. Positive reviews mention the strong financial backing, informative agents, and smooth claims payout process. ( Source )
However, many negative Canada Life reviews also mention issues like very long customer service wait times, denied claims, policy overpayments, and poor communication. Most complaints are regarding their health insurance plans rather than life insurance policies.
Overall, Canada Life appears to provide quality life insurance products backed by their financial strength. However, the consensus is that customer service and responsiveness could be improved.
How Canada’s Life Policies Compare to Competitors
While Canada Life hits many key markers, how do their products compare to competitors?
Price – Canada Life’s rates tend to be higher than average, especially for older applicants. Competitors like TD Bank insurance, BMO life insurance, IA life insurance and Wawanesa life insurance offer more affordable pricing.
Flexibility – Policy customization options are robust but aligned with other top insurers. Term lengths, amounts, and riders can be tailored.
Features – Canada Life’s offerings are comparable, but no unique features stand out.
Online Experience – Behind the times with no online quotes or application process. Competitors have more digital tools and account management.
Canada Life policies are competitive, but premium costs could be lower. Enhanced digital experiences would improve customer satisfaction.
Comparing Canada Life Insurance to Competitors
Exact Canada Life insurance rates will depend on personal factors like age, gender, health, lifestyle, and the chosen policy term length and coverage amount. However, based on sample quotes, Canada Life’s pricing is above average overall compared to competitors for the same type of term life insurance policy.
Here is a comparison of Canada Life’s sample monthly premiums versus competitors for a 20-year term policy with $500,000 coverage:
| Age | Canada Life | SunLife | Manulife | RBC |
|---|---|---|---|---|
| 30 | $31.50 | $29.00 | $27.50 | $28.75 |
| 35 | $36.45 | $32.15 | $29.60 | $31.20 |
| 40 | $51.30 | $43.20 | $39.75 | $41.80 |
| 45 | $85.50 | $72.60 | $66.45 | $69.35 |
| 50 | $141.30 | $118.40 | $108.20 | $115.50 |
Alternatives to Consider
While solid, also consider top insurers like:
- Sun Life – Competitive pricing with online account management
- Manulife – Low rates and fast digital application process
- RBC Insurance – Major brand with easy online quotes
- PolicyMe – Digital quotes in under 1 minute & policies in minutes
Shopping around lets you compare costs and find the best life insurance plan.
Who is Best Suited for Canada Life Insurance?
With its versatile selection and policy riders, Canada Life Insurance can meet many needs:
- Families seeking long-term stability and lifetime coverage
- Professionals wanting disability or critical illness protections
- Business owners who can utilize the business growth rider
- Investors needing permanent life insurance with cash value
The options to renew terms indefinitely and convert to permanent coverage provide advantages through multiple life stages.
Is Canada Life Insurance Right For Me?
Canada Life offers high-quality life insurance products, so they may be a good option if:
- You want coverage from an established company with a long track record
- You need a high amount of coverage over $1 million
- You may want to convert to permanent insurance later on
- You qualify for preferred health rates to offset their higher costs
However, Canada Life might not be the best choice if:
- Getting the lowest cost life insurance is your top priority
- You only need a lower amount of coverage under $100,000
- You want an easy online application and account management
- You have potential health issues that may result in higher premiums
Always shop around and compare quotes to find the most suitable and affordable life insurance for your personal needs. An independent broker can provide unbiased advice.
What Other Insurance Does Canada Life Offer?
In addition to life insurance, Canada Life provides these other main insurance products:
- Critical Illness Insurance – Provides a tax-free lump sum payment if diagnosed with a covered critical illness. Canada Life offers policies up to $2 million in coverage.
- Disability Insurance – Replaces a portion of your income if you are unable to work due to illness or injury. Canada Life has both short and long-term disability insurance options.
- Health & Dental Insurance – Supplemental health insurance covering services not included in government plans, such as prescriptions, dental, vision and more.
- Creditor Insurance – Provides outstanding debt protection on mortgages, loans, lines of credit and credit cards. They are offered through Canada’s central banks.
- Group Insurance – Customizable life, health, dental, disability, and critical illness group benefits programs for employers.
Canada Life also offers investment solutions, such as mutual funds and segregated funds. Their Constellation Managed Portfolios combine insurance and investments.
Is Canada Life a Good Choice?
Canada Life is one of Canada’s largest and oldest life insurance providers, so it offers a stable option with strong financial backing. Its wide range of term lengths and high maximum coverage amounts allow for flexibility.
However, their premium costs are noticeably higher than competitors. Canada Life’s customer service also earns mixed reviews according to online feedback.
They remain a solid choice, especially if you value financial strength and the ability to convert to permanent insurance. But make sure to compare quotes from other top Canadian life insurers to find more affordable rates potentially.
An independent broker can provide unbiased guidance to help you choose the right life insurance for your specific needs and budget.
Is Canada Life the Right Choice for You?
Canada Life remains one of Canada’s premier life insurance providers. But make sure to weigh factors like:
- Your budget – Do Canada Life’s typically higher premiums fit within it?
- Coverage needs – Are you comfortable with the minimum $100,000 amount?
- Customer service – How important is digital convenience and streamlined service?
- Risk factors – Could health issues lead to high rates or declined coverage?
Carefully comparing your options is critical to finding the right life insurance match. An experienced broker can guide you through the process.
The Bottom Line on Canada Life Insurance
Canada Life is a reputable insurer with comprehensive offerings but higher premium costs than competitors. Consumers benefit from flexible terms, built-in convertibility, and additional riders. Yet the need for online quotes or applications creates friction at Best Insurance Online.
Canada Life Insurance best suits those who desire feature-rich policies with lifetime renewability and non-life protections. However, the streamlined experiences from insurtechs may better suit digital-first customers. It’s crucial to analyze all options and determine the best solution for your situation, as this shows responsibility and proactive decision-making.
FAQs
What types of life insurance does Canada Life offer?
Canada Life offers both term and permanent life insurance. For term coverage, they offer renewable, convertible policies with customizable lengths from 5 to 50 years. For permanent insurance, they provide participating whole Life and universal life plans.
What is Canada Life's financial strength rating?
Canada Life has an A+ (Superior) rating from A.M. Best, indicating excellent financial strength to back up their policies. This high rating derives from their long 175+ year history and over $580 billion in assets under administration.
Does Canada Life require a medical exam for life insurance?
For individual policies under $5 million, Canada Life does not require a medical exam. However, you will need to answer health and lifestyle questions as part of the application process. Policies over $5 million and corporate-owned plans may necessitate a medical exam.
How do I contact Canada Life to get a quote?
To get a personalized Canada Life quote, you need to speak with one of their licensed advisors by phone, website chat, or booking an in-person appointment. No direct online quotes are available. Call 1-888-252-1847 or visit their website.
Does Canada Life deny coverage for pre-existing conditions?
Canada Life may deny coverage or increase premiums if you have a serious pre-existing health condition or a high-risk lifestyle. However, more minor conditions may still qualify for standard rates. It's best to speak with an advisor.
How long does it take to get approved for Canadian life insurance?
Once all application requirements are met, the approval process for Canada Life coverage typically takes 4-6 weeks. More complicated cases may take longer. Getting an instant decision from some insurers can be faster.
Is Canada Life term life insurance renewable?
Yes, Canada Life term policies are renewable until the expiry age stated in your contract, typically 85. You don't need to requalify medically to renew for another 5 or 10 years. Premiums increase at renewal.
What rider options does Canada Life offer?
Popular Canada Life riders include:
An accidental death benefit.
Disability waiver of premium.
Guaranteed insurability.
Business value protection.
Children's term life insurance.
Availability depends on the base policy type.
Can I manage my Canada Life policy online?
Unfortunately, Canada Life does not currently offer online account management or a policyholder portal. You need to contact an advisor directly for policy changes or updates. Some insurers provide more self-service options.
What is Canada Life's claims process like?
Canada Life aims to process claims within 10 business days after receiving completed paperwork and proof of claim. More complex cases may take longer. Their solid financial backing ensures claims payouts.
Is Canada Life a good life insurance company?
Canada Life is one of Canada’s largest and oldest life insurers, with over 175 years of experience. It has strong financial ratings and offers quality term and permanent life insurance. However, its customer service garners mixed reviews.
What is the best Canada Life life insurance product?
For most Canadians, term life insurance offers the best combination of affordability and temporary coverage. Canada Life’s My Term Life provides extensive flexibility to customize coverage length, amount, and add-on benefits.
How do I get a Canada Life insurance quote?
To get a personalized Canada Life insurance quote, you must contact one of their licensed advisors by phone or book an appointment on their website. At this time, online quotes are not available directly through Canada Life.
Is Canada Life term life insurance renewable?
Yes, Canada Life term life insurance policies are usually renewable until the expiry age of 85. This allows you to extend coverage in increments of 5 to 10 years without needing to requalify medically each renewal period.
Article Source
The article is based on publicly available documents such as:
Canada Life Insurance Review: 101 Guide – policyme
Canada Life Insurance Review – Updated 2024 – policyadvisor
Is Canada Life Insurance the best? 2024 Review – hellosafe.ca
