10 Best Life Insurance Companies In Canada
10 Best Life Insurance Companies In Canada

There are variations, however, as some life insurance companies in Canada are happy to enroll higher-risk clients like seniors and those with pre-existing conditions, and others less so.

A good rule of thumb is the company is less important than whether the product really suits your personal needs. Of course, not all companies offer the same products. That's why we've built this page. In our experience, finding the best life insurance is done by getting a range of quotes, from a range of companies. Our free tool can help you compare multiple life insurance quotes - give it a try when you're ready.

Discover the best insurance companies that offer insurance products to protect the financial future of Canadians with "Cheapest Quotes and Good Services".

Best Life Insurance Companies In Canada

We have curated a few of the best life insurance companies in Canada based on the factors stated above (and a few more). The companies are ranked from the best to “least best”. The rates are calculated using the online calculator of the life insurance companies based on a hypothetical candidate with the following characteristics:

  • 40 years old
  • Male
  • Non-smoker
  • An Ontario resident
  • 20-year term policy or Whole life insurance policy
  • Policy value: $1,000,000

Smokers tend to land at relatively higher rates than non-smokers. Still, we chose a non-smoker because only about 12% of Canadians smoke, so more people would find the non-smoker policy costs more relatable. Males also tend to land at a higher rate than females. Furthermore, the higher your age, the costlier your policy is likely to be.

On the other hand, the reason for choosing a relatively high $1,000,000 policy amount (death benefit) is inflation. In twenty years or so, the purchasing power of one million dollars will be significantly less than what it is now.

What are the top 10 best life insurance companies in Canada?

(Cheapest Quotes and Good Services)

1. PolicyAdvisor - Best overall

2. Manulife - Best insurance for digital innovation

3. PolicyMe - Best term life insurance

4. Canada Life - Best insurance for financial strength

5. Sun Life - Best insurance for in-person purchase

6. Equitable Life - Best insurance for families

7. Industrial Alliance Life Insurance

8. Canada Protection Plan - Best insurance for non-medical policies

9. RBC Insurance - Best value for money life insurance

10. BMO Life Insurance - Best insurance for affordability

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Top 10 Best Life Insurance Companies In Canada: Cheapest Quotes and Good Services

1. PolicyAdvisor - Best overall

Photo: newswire
Photo: newswire

Insurance Types: Term life insurance, whole life insurance, disability insurance, and children’s insurance

Term Life Insurance Cost: $80.55/month for $1 Million

Whole Life Insurance Cost: $768.4/month for $1 Million

If you are looking for the best life insurance companies in Canada, resources like this article can help. But what might be even more helpful is getting a side-by-side comparison of several different insurance policies that Canadian life insurance companies are offering, and that’s where PolicyAdvisor comes into play.

It’s a life insurance policy search engine and comparison tool that allows you to compare quotes from Canada’s 17 largest life insurance companies. You can also consider it an online broker. The advice is commission-free and unbiased and is augmented by PolicyAdvisor’s online support.

The platform allows you to find the best rates for both term and whole life insurance. It also provides several other insurance products, including disability insurance, but life insurance is still the platform’s primary offering.

The introductory price you get from the initial survey tends to be accurate since it’s based on the life insurance company’s calculators, so applicants need not worry about a different treatment once they pass the PolicyAdvisor’s layer and get to the insurance company directly.

The comparison tool is potent for whole life insurance policies, where you can compare different policies with riders and features and find the right fit for yourself.

2. Manulife - Best insurance for digital innovation

Photo: manulife
Photo: manulife

Insurance Types: Term life insurance, Permanent Life Insurance

Term Life Insurance Cost: Manulife offers 4 distinct plans in this category - CoverMe, Family, Business, and Family Vitality - that allow you to protect your beneficiaries with flexible and affordable solutions.

Permanent Life Insurance Cost: Manulife Participating Whole Life insurance offers coverage starting at $100,000 and immediate cash value growth. The cash value is guaranteed for the first few years of the policy, and Manulife lets you decide how often and for how long you want to pay your premiums. The second product - Performax Gold Whole Life Insurance - provides you with permanent coverage starting at $25,000, which you can pay for in as little as 15 years or in equal installments until you reach age 100. This product also offers payment options and guaranteed cash surrender values.

Manulife Financial (MFC) is the largest insurance provider in Canada and also offers financial services. The company is headquartered in Toronto, and in 2019 earned $61 billion Canadian in revenue ($47 billion U.S.),which included insurance premiums and income earned from investing those premiums.

Manulife operates in Canada, Asia, and Europe as well as in the United States, through its John Hancock subsidiary. By the end of 2019, the company employed about 38,000 people and had nearly 98,000 agents. Manulife had $1.2 trillion Canadian ($920 billion U.S.) in assets under management.

The firm was established as The Manufacturers Life Insurance Company in 1887 and sold its first out-of-country policy in Bermuda in 1893. In 2002, the China Insurance Regulatory Commission (CIRC) granted a branch of the company approval to open a branch in Guangzhou. It was the first license to open a branch in China granted to a foreign-invested joint-venture life insurance company. Manulife now has licensed branches in more than 50 cities on the Chinese mainland.

3. PolicyMe - Best term life insurance

Photo: moneyaftergraduation
Photo: moneyaftergraduation

Insurance Types: Term life insurance only

Term Life Insurance Cost: $81.84/month for $1 Million

Whole Life Insurance Cost: N/A

PolicyMe is on a mission to make the process of buying term life insurance significantly easier. It started as an online platform that allowed Canadians to compare different insurance policies side-by-side, but it has now partnered up with Canadian Premier Life Insurance Company, a wholly-owned subsidiary of Securian Financial Company.

Canadian Premier Life Insurance underwrites all the life insurance policies sold by PolicyMe. It has been operating in the country since 1955, has about $300 million in assets, and has a financial strength rating of A from A.M. Best. The company also offers insurance policies issued by four other prominent names, including Canada Protection Plan and BMO Life Assurance.

PolicyMe is now Canada’s first completely online life insurance policy provider, which carries the same cost-benefit that digital banking does. Since it doesn’t rely on a brick-and-mortar setup and a costly physical presence, it offers significantly cheaper life insurance policies compared to others. It also makes the process easier by cutting out brokers, medical professionals, and separate underwriters.

The term life insurance it provides offers fairly typical coverage. Your survivors get the death benefit in case of your early demise, regardless of the circumstances of your death (except suicide in the first two years of buying the policy).

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4. Canada Life - Best insurance for financial strength

Photo: canadalife
Photo: canadalife

Insurance Types: Term life insurance, Permanent life insurance, Participating life insurance, Universal life insurance

Canada Life Term Life Insurance: A Canada Life insurance plan would cost $27.45/month or $305.00/year for a man and $26.55/month or $295.00 year for a woman.

Canada Life, by providing life insurance products for families and businesses alike, aims to offer a safety net to your loved ones, making sure they will be taken care of whatever happens.

Focused on the well-being of their community, Canada Life works towards building a financially, physically, and mentally stronger Canada. They support many sporting events such as the 24h Trembant, PGA events, and the Canadian Hockey League events (CHL).

Canada Life is owned by Great-West Life, a major player in the Canadian insurance market.

Whether you are planning on starting a family, buying a house, getting married, or running a business, Canada Life has life insurance protection for you. The insurer also provides critical illness, disability, and health and dental insurance.

5. Sun Life - Best insurance for in-person purchase

Photo: financialpost
Photo: financialpost

Insurance Types: term life insurance, whole life insurance

Term Life Insurance Cost: $139.84/month for $1 Million

Whole Life Insurance Cost:

Sun Life is another giant in the Canadian life insurance sphere. The company has a market capitalization of $38.18 billion and a financial strength rating of A+. The company also underwrites annual premiums of about $20.9 billion.

Apart from being one of the largest and most extensive life insurance companies in the country, with over a trillion dollars of assets under its management if we combine all of its businesses and domains, Sun Life is also one of the most expensive term insurance providers in the country.

The main benefit of opting for a company like Sun Life is the range of options it offers. for example, in term life insurance alone, Sun Life offers four different policy types. The most basic option gets you maximum coverage of $100,000, while the premium term life insurance offers maximum coverage of about $15 million, with up to 30 years of coverage.

Some term life insurance policies also include living benefits in case of a terminal illness and business protection, among others. Not many insurance companies offer such options with term life insurance.

Moreover, the company offers three types of permanent life insurance policies. The simplest one offers you a maximum of $25,000 coverage, which is enough for funeral arrangements. Meanwhile, the best option offers up to $10 million of coverage and comes with many of the same riders as Sun Life’s term life insurance does.

6. Equitable Life - Best insurance for families

Photo: newswire
Photo: newswire

Insurance Types: Term Life, Indexed Universal Life, Long-Term Care Insurance

As one of Canada’s top 15 life insurers, Equitable Life Insurance Company of Canada is one of the largest independent mutual and life insurance companies in Canada. For over 80 years it has provided its customers with not only financial protection but long-term ongoing stability and effective relationships.

RBC Insurance’s term policies also have the following riders/benefits available as add-ons: accidental death benefit, guaranteed issue rider, waiver of premium rider, and children’s life insurance rider. Below are examples of RBC Insurance’s Term 10 rates at $250,000 of coverage or visit our instant quote page for more information.

As a progressive and competitive organization, the firm is committed to providing the best possible and most suitable products to its policyholders. Having no shareholders, the policyholders are eligible for company dividends.

Individuals are offered life and health insurance such as participating, whole life, term life, and critical illness insurance. Retirement planning, commercial mortgages, and savings services are also offered to individuals, tailored to their requirements. For small and medium-sized businesses, Equitable Life offers group benefits which include accidental death and dismemberment coverage, dental care coverage, short/long-term disability, and out-of-province/country travel assistance. Group savings vehicles and retirement services are available as well.

They offer competitively priced Term Plans, which are available in 10 and 20-year renewable and convertible policies. The 10YRCT provides level life insurance protection with guaranteed rates renewing every 10 years, while 20YRST provides the same protection every 20 years. Equitable Life enhanced their Participating Whole Life plans in the past and has one of the best plans on the market. Participating Whole Life Sales in Canada have risen with the rash of price increases on Level Cost Universal Life plans.

Moreover, Equitable’s plan is sold by a mutually owned company so the policyholder is truly a part-owner of the company. Equitable Life operates in provinces from British Columbia to Ontario, in the Atlantic provinces, and since 1982, in Bermuda.

7. Industrial Alliance Life Insurance

Photo: stingypig
Photo: stingypig

Insurance Types: term life insurance, whole life insurance

At a time when insurance products and services are multiplying, as well as the number of companies offering such an offer, this is a very legitimate question. In 2008, Industrial Alliance, the fourth largest life and health insurance and financial services company in Canada, acquired iA Excellence, a life insurance company established in Montreal in 1962. The logical conclusion of this strategic acquisition materialized in January 2020 following the announcement by Group management of the merger of these two divisions - Industrial Alliance and iA Excellence - into a single entity, iA Financial Group.

Doing business with iA Excellence (now iA Financial Group) therefore means ensuring an unprecedented synergy between the fourth largest life and health insurance and financial services company in Canada and a major local player specialized in life insurance. It also means being able to rely on a financially solid company with a long experience in the life and health insurance and financial services industry. iA Financial Group is present in all regions of Canada and in the United States.

8. Canada Protection Plan - Best insurance for non-medical policies

Photo: bestinsuranceonline
Photo: bestinsuranceonline

Insurance Types: Term life insurance only

Term Life Insurance Cost: $81.84/month for $1 Million

Whole Life Insurance Cost: N/A

Canada Protection Plan or, shortly, Canada Protection Plan, similar to other Canadian life insurance companies, offers a wide range of products spanning across Life insurance, Critical Illness Insurance, Health and Dental Insurance, No Medical and Simplified Issue life Insurance, and Travel Insurance.

Though LSM Insurance is not directly affiliated with this insurer, our experienced life insurance brokers have access to products and quotes of over 20 Canadian insurers similar to the ones provided by the Canada Protection Plan.

Canada Protection Plan offers a wide variety of Non-Medical Life Insurance plans.

Their product lineup includes both a deferred and simplified Term 10, Term 20, and Term 100 plan. The deferred plan asks fewer health questions but has a 2 year waiting period on nonaccidental death benefits. Their simplified Term plan has additional health questions but is available from day one.

Canada Protection Plan also offers both a deferred and simplified Whole Life plan. The maximum issue limit is $50,000. The plan is also available on a life pay and quick pay basis.

9. RBC Insurance - Best value for money life insurance

Photo: dundaslife
Photo: dundaslife

Insurance Types: term life insurance, universal life insurance

The Royal Bank of Canada, or RBC, is Canada’s biggest bank by market capitalization, with over 16 million clients and has 80,000 employees worldwide. In fact, RBC is Canada’s biggest overall company by market cap, and in the top ten for revenue and profit. RBC life insurance has been offered since the 1960s as part of its insurance division, RBC Insurance. RBC Insurance is now the largest bank-owned insurance organization in Canada, with over 5 million clients.

For life insurance, RBC has the most sophisticated product lineup, offering an incredibly flexible term policy, as well as permanent and universal policies. While RBC life insurance doesn't have the product depth of the big three Canadian life insurance companies (which include Sun Life, Great-West Life, and Manulife) RBC certainly beats out other bank-owned life insurance offerings. For instance, BMO life insurance is a very basic product, while TD Bank doesn't offer participating or universal life insurance.

10. BMO Life Insurance - Best insurance for affordability

Photo: solutionsfinancial
Photo: solutionsfinancial

Insurance Types: Term life insurance, whole life insurance

Term Life Insurance Cost: $90.9/month for $1 Million

Whole Life Insurance Cost (60-year old male. Max Coverage $50,000): $166/month for $1 Million

As a subsidiary of BMO Financial Group, BMO Insurance has more than 200 years of heritage and experience. This financial strength and established reputation allow the company to offer insurance products with comprehensive benefits, flexible coverage options, and highly competitive pricing.

BMO Insurance has earned the trust of its customers through its integrity, commitment to innovation and diversity, and dedication to delivering an exceptional customer experience. BMO Insurance has earned the trust of our customers through integrity, a commitment to innovation and diversity, and a dedication to delivering an exceptional customer experience. BMO Insurance offers a wealth of expertise in the design and underwriting of insurance products and an experienced support team to answer all your questions. BMO Insurance customers are guaranteed to receive the assistance they need, whether it's assessing their financial needs or completing the claims process in the event of a major setback. BMO Insurance is committed to simplifying the insurance underwriting process and positioning itself as a trusted partner to its customers.

How do we evaluate Canadian life insurance providers?

When you're signing an agreement that can last decades, it's important to take the time to weigh your options.

But what factors should you be considering? Some of the factors you'll want to consider include:

Price: How much will your policy cost?

Time: How long does it take to get approved?

Process: Can you do everything online or do you have to make numerous trips to see somebody in person?

Trustworthiness: What do other Canadians say about this life insurance company? How long have they been in business and is a reputable company backing them so claims are sure to be paid out?

Coverage: Does the insurer only offer small payouts or are there options to buy over $1M in coverage?

No Medical: Does the insurer require a medical? Is there a “no medical” option?

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