Best Life Insurance in Canada: Top 30 Companies
What is the best life insurance in Canada?
There's no one-size-fits-all answer for what is the best life insurance in Canada. It depends on what you're looking for and your situation. That said, here are some quick recommendations:
[fs-toc-omit]Methodology: Best life insurance in Canada
To find the best life insurance in Canada, we reviewed life insurance products for each company, following a comprehensive rubric of criteria.
Our analysis pulled from data from WinQuote, an independent life insurance quote comparison service owned by Equisoft. We also looked at policy details, cost, financial stability, ratings from trusted sources like AM Best, Better Business Bureau, Fitch Ratings and customer reviews.
We don’t get compensation for our life insurance reviews.
[fs-toc-omit]Video summary: what to consider when choosing life insurance policies
Life insurance advisors Stephanie and Erik walk you through the best life insurance in Canada in this video primer:
[fs-toc-omit]Best life insurance company for parents & homeowners
[fs-toc-h2]Best life insurance for parents & homeowners
When it comes to homeowners and parents especially, we know you are juggling lots of financial responsibilities all at once. We picked the following companies because they are known for their low and affordable rates and easy application process. The best companies for parents and homeowners are:
- PolicyMe
- Beneva
- RBC Insurance
- Wawanesa Insurance
Best term life insurance overall: PolicyMe
Google score: ★★★★★ (5)
Key takeaway: PolicyMe has some of Canada's most affordable term life insurance. Family-friendly features like free child coverage, discounts for joint applications and a streamlined online application process make it a great choice for parents and couples.
Company profile: PolicyMe is an online insurance solution based in Toronto, ON. Founded in 2018, PolicyMe secured $18M in Series A funding. They added critical illness insurance in 2022 and now have $5B in coverage in force across Canada.
PolicyMe customer review: "Very easy way to shop and apply for life insurance. PolicyMe got me a way cheaper policy than I had before. [...] I was very impressed and highly recommend them." – Customer on Google
Best for decreasing term coverage: Beneva
Our score: ★★★★☆ (4/5)
Why we chose it: Beneva has affordable term life insurance prices and your policy comes with a free Extreme Disability Benefit. They also offer a decreasing coverage option but your premiums stay the same for the entire term, so this doesn't seem like a good deal.
Company profile: Beneva is a newer insurer coming from the merger of SSQ and La Capitale in December 2022. It is the largest mutual insurance company in Canada with 3.5M clients and members.
» Read the full Beneva life insurance review
Runner-up for best term life insurance: RBC
Our score: ★★★★☆ (4/5)
Why we chose it: RBC has two term products and a T100 option which is good value. Their rates are competitive against other providers, especially for term life insurance.
Company profile: The Royal Bank of Canada (RBC) was founded in 1864 in Halifax, Nova Scotia and is the largest bank in Canada by revenue. They have an A.M. Best financial strength rating of A+.
» Read full RBC life insurance review
Second runner up for best term life insurance: Wawanesa
Our score: ★★★☆☆ (3/5)
Why we chose it: Wawanesa has a range of term options, like term to 80 and term to 100. They used to have really affordable term life insurance, but their prices have gone up. They tend to be risk averse, so those with any health issues may be declined.
Company profile: Founded in 1896, Wawanesa is one of the oldest insurers in Canada. Headquartered in Manitoba, they are licensed to sell life insurance in all provinces. Wawanesa has a financial strength rating of A- (Excellent) from A.M. Best.
» Read the full Wawanesa life insurance review
Best life insurance for estate planning
When it comes to estate planning, choosing the best life insurance company is crucial for ensuring your assets are efficiently passed on to your beneficiaries. Here are the top life insurance companies in Canada for estate planning:
- BMO Insurance
- Canada Life
- Manulife
- Sun Life
- UV Insurance
Best for universal life insurance: BMO
Our score: ★★★★☆ (4/5)
Why we chose it: BMO is known for their universal life insurance. They have many options for both term and permanent life insurance. Best suited for a customer that wants lots of options when choosing their policy.
Company profile: BMO is a multinational investment bank founded in Montreal, Quebec, operating in Toronto. In 2022, BMO announced it was working to close a $16.3B USD deal to buy California's Bank of the West.
» Read the full BMO life insurance review
Best participating life insurance: Canada Life
Our score: ★★★★☆ (4/5)
Why we chose it: Known for having the largest participating fund in Canada. Best for those who are experienced in fund management. They also offer life insurance products specifically for business owners.
Company profile: Canada Life is Canada's second largest insurer with a financial strength rating of A+ and $220B in assets. Canada Life was founded in 1846 and is headquartered in Toronto. Great-West Life acquired Canada Life in 2003.
» Read the full Canada Life insurance review
Best for permanent life insurance: Manulife
Our score: ★★★★☆ (4/5)
Why we chose it: Manulife is known for its expertise with permanent life insurance. Manulife has several permanent policies, plus its own mutual and segregated funds. Customers complain of difficulty with cancellations and long processing times, and that it's hard to get someone on the phone.
Company profile: Founded in 1887, Manulife is one of the biggest life insurance companies in Canada, with $200B in assets. Manulife made $31.6 billion in customer payments between 2020 and 2021. The company has an A+ financial strength rating from S&P as of 2022.
» Read the full Manulife life insurance review
Best whole life insurance for cash value: Sun Life
Our score: ★★★★☆ (4/5)
Why we chose it: Sun Life has lots of experience in participating whole life insurance. It’s expensive, but it has the highest dividend scale in Canada as of 2023. It's a good option for high-net-worth individuals and it has extra perks like succession planning.
Company profile: Sun Life is a financial services company, founded 150 years ago. They are the third largest insurer in Canada and are known for its individual insurance products and group benefits. They have a financial strength rating of A+.
» Read the full Sun Life life insurance review
Best for simplified & guaranteed life insurance: UV Insurance
Our score:★★★☆☆ (3.5/5)
Why we chose it: UV Insurance is known for its variety of no medical simiplified and guaranteed issue life insurance products, but make sure to check their prices against Canada Protection Plan's. They do have a unique cash value product.
Company profile: UV Insurance has been in business for over 130 years. It's based out of Drummondville, Quebec. UV offers both individual and group life insurance. It is a mutual insurance company (like Foresters) which means that it is owned by its policyholders, kind of like a co-operative.
» Read the full UV life insurance review
[fs-toc-omit]Best life insurance policy for business owners & the self-employed
[fs-toc-h2]Best life insurance for business owners & the self-employed
When it comes to finding the best life insurance policy for business owners and the self-employed, it’s crucial to choose a provider that understands your unique financial needs.
Best for joint policies for business owners: Ivari
Our score: ★☆☆☆☆ (1/5)
Key takeaway: Ivari has a feature that allows up to five people to be insured under one joint policy; this may appeal to business owners. Each person can customize their own policy with riders and optional benefits. But Ivari’s prices are more expensive.
Company profile: Ivari is a life insurance company headquartered in Toronto. It serves about 700,000 policyholders, according to Advisor’s Edge. It was acquired by Barbados-based Sagicor Financial Company in 2022, causing AM Best to downgrade its Financial Strength rating from A+ (Superior) to A (Excellent).
[fs-toc-omit]Best life insurance company for seniors
[fs-toc-h2]Best life insurance for seniors
Finding the right life insurance as a senior can be challenging, but we’ve rounded up the best option to help you make an informed decision.
Best life insurance for seniors & no medical: Canada Protection Plan
Our score: ★★★★☆ (4/5)
Why we chose it: CPP is our top pick for seniors, especially those with a health condition that would get them declined or charged sky-high rates elsewhere. Most plans let you skip the medical exam, blood tests or doctor reports.
Company profile: Canada Protection Plan (CPP) is a leading provider of no medical and simplified issue life insurance. In 2020, CPP merged with Foresters. CPP is an accredited Better Business Bureau member with an A+ rating. CPP says their claims paid rate is 98%.
» Read full Canada Protection Plan life insurance review
[fs-toc-omit]Best life insurance policy for those with health issues
[fs-toc-h2]Best life insurance for those with health issues
Those with health issues often find it challenging to get life insurance due to the increased risk they pose to insurance companies. As a result, insurance companies may either deny coverage or offer policies at significantly higher premiums to compensate.
Our top companies for those with health issues are:
- Assumption Life Insurance
- CIBC
Runner-up for no medical coverage: Assumption Life Insurance
Our score: ★★★★☆ (4/5)
Why we chose it: Assumption Life is known in the industry for its no medical plan with minimal health questions. And it has easy qualifications for new immigrants. Good option if you're denied coverage from a traditional provider, you're not a citizen, or PR holder.
Company profile: Assumption Life is a Canadian insurance and asset management company. In 2021, credit rating agency A.M. Best gave Assumption Life an A- (excellent) rating for the 22nd consecutive year.
» Read the full Assumption Life life insurance review
Best life insurance for cancer survivors: CIBC
Our score:★★★☆☆ (3.5/5)
Why we chose it: CIBC has a guaranteed acceptance product for those unable to get approved elsewhere, which can benefit cancer survivors. CIBC only has 10 and 20-year term life insurance policies, though there is an option to convert to a Term-100 plan.
Company profile: The Canadian Imperial Bank of Canada (CIBC) is a bank founded in the 1960s in Toronto. CIBC has a strong business profile according to the rating agency Fitch Ratings. CIBC is the fifth largest bank in Canada by loans, deposits and market capitalization.
[fs-toc-omit]Best life insurance provider for smokers
[fs-toc-h2]Best life insurance for smokers
Insurance companies often categorize smokers as higher-risk individuals, leading to higher premiums. Some insurers might even decline coverage for heavy smokers or offer limited coverage options. Quitting smoking can lead to improved chances of securing more affordable life insurance rates over time. Find more reviews of Life Insurance companies for smokers in Canada here.
Our top choices for smokers are:
- Empire Life
- iA Financial
Best life insurance for smokers: Empire Life
Our score: ★★★☆☆ (3.5/5)
Why we chose it: Empire has reasonable rates for smokers compared to other providers, especially since smoker rates can be up to 35 to 50 per cent higher than non-smoker rates. Empire Life isn’t always the cheapest insurer for smokers but they're fairly competitive.
Company profile: Empire Life is a Canadian life insurance company that was founded in the 1920s. They offer a range of financial products, including life, critical illness insurance and investment options.
Empire Life customer review: "The service was fast and courteous; zero problems on my claims." – Customer on Google Reviews
» Read the full Empire Life life insurance review
Runner-up for best life insurance for smokers: iA Financial
Our score: ★★★☆☆ (3.5/5)
Why we chose it: iA Financial is best known for its reasonable rates for overweight folks. You can net standard pricing, even if you've been quoted more elsewhere. iA also has decent rates for smokers compared to other providers.
Company profile: Founded in 1892, iA Financial Group is one of Canada's largest insurance and wealth management groups, with operations in the United States. It's based in Quebec City.
» Read the full iA Financial life insurance review
[fs-toc-omit]Best life insurance company for children
[fs-toc-h2]Best life insurance for children
We don't recommend buying life insurance for kids; read our post on life insurance for children for more information.
That said, the most affordable life insurance options in Canada for children are:
- Desjardins
- Equitable Life
- Foresters Financial
Best whole life insurance for children: Desjardins
Our score: ★★★☆☆ (3/5)
Why we chose it: Desjardins offers one of the most affordable whole life policies for children. Their 5 Pay option is unique; it lets grandparents pay up their grandkid's policy in five years to transfer wealth.
Company profile: Founded in Quebec in 1900, Desjardins is the largest federation of credit unions in North America. Desjardins is often listed as one of the world’s top 50 safest banks and financiers.
» Read the full Desjardins life insurance review
Best for wealth transfer to children: Equitable Life
Our score: ★★★☆☆ (3.5/5)
Why we chose it: Best known for its child whole life policies. A good choice for parents or grandparents who're looking to transfer wealth in a tax-advantaged manner. Equitable is also known for its unique participating life insurance offering.
Company profile: Founded in 1920, Equitable Life is one of Canada's largest mutual life insurance companies. A mutual company is owned by participating policyholders—meaning you become a shareholder, have voting rights and are eligible for dividends.
» Read the full Equitable Life review
Second runner-up for best life insurance for children: Foresters Financial
Our score: ★★★☆☆ (3)
Why we chose it: Foresters has a built-in Children's Insurance Benefit, plus a guaranteed insurability benefit for kids. Foresters is also known for its member program that helps families give back. Foresters has lowered its term life rates by up to 14 per cent, but only until October 31, 2023.
Company profile: Foresters Financial is a 150-year-old insurance company based in Toronto. They merged with CPP in 2020. Foresters is a fraternal benefit society, meaning you get benefits with your insurance policy. Their BBB rating is A+ (Excellent).
» Read the full Foresters life insurance review
[fs-toc-omit]Best life insurance policy provider for short-term needs
[fs-toc-h2]Best life insurance for short-term needs
Sometimes we don't need coverage for a long period of time. Especially if we are in particularly tough financial spot. In those cases we recommend the following companies for short-term coverage:
- Co-operators Life Insurance
- CUMIS Insurance
- ScotiaLife
Best for short-term life insurance with low coverage: Co-operators
Our score: ★★★☆☆ (3/5)
Why we picked it: Co-operators offers a unique take on short-term life insurance if you need to cover temporary risks like small busiuness loans or home equity lines of credit. Get yearly renewable life insurance with as little as $50,000 in coverage.
Company profile: Co-operators is a Canadian insurance and financial services cooperative that provide a wide range of insurance products, investment solutions and advisory services.
» Read the full Co-operators life insurance review
Best life insurance for credit union members: CUMIS
Our score: ★★★☆☆ (3)
Why we don't recommend it: With preferred rates for eligible Canadians and a variety of products and add-ons, CUMIS life insurance could be a good choice if you're a credit union member, but there are better options otherwise.
Company profile: CUMIS (credit union members insurance society) is a leading insurance provider specializing in the credit union and cooperative sector. They've been in business for over 80 years and work with 230 credit unions and over five million members. CUMIS whole life policies are backed by Co-operators Life Insurance Company.
» Read the full CUMIS life insurance review
Best for Scotiabank customers: ScotiaLife
Our score: ★★☆☆☆ (2/5)
Why we don't recommend it: You can only get Scotia Insurance life insurance if you're a Scotiabank (Bank of Nova Scotia) customer. It does have one of the more affordable term life insurance policies in Canada.
Company profile: The Bank of Nova Scotia (Scotiabank) is the third-largest bank in Canada (by deposits and market capitalization). Scotia Insurance is Scotiabank's insurance arm. Their term life insurance is actually underwritten (risk assessed) and issued by Empire Life.
» Read the full Scotiabank life insurance review
[fs-toc-omit]Life insurance companies that aren’t recommended
Price based on publicly available rates for a 45 year-old non-smoking woman, with $50,000 in coverage for a 10-year term
[fs-toc-omit]More pointers on getting the best life insurance in Canada
Which life insurance company should I choose?
- Price: How does the company's prices compare to other providers?
- Time: How long does it take to get approved, days or weeks?
- Product: Do they specialize in the type of policy you want?
- Process: Is the process simple or does it involve unnecessary paperwork, phone calls or meetings?
- Trustworthiness: What do customers say about this company?
- Customer service: Can you get unbiased advice? Are complaints resolved quickly?
And here's the order of operations for comparing life insurance options:
- Consider what type of life insurance you need: term, permanent, etc.
- Find life insurance providers that specialize in the policy you need. This blog is a good place to start!
- Is there anything else you need: a joint life insurance policy, child coverage, bundling with disability/critical illness insurance?
- Read customer reviews for these life insurance companies on Google, Trustpilot, InsurEye, etc.
- Check insurance company ratings in Canada: the Better Business Bureau is a good place to start.
- Get life insurance quotes from these companies from their websites or through a licensed financial professional
- Select the policy that works for you in terms of both price and features.
How much life insurance do I need?
The Government of Canada recommends getting 7-10 times your income in life insurance coverage (example: If you earn $60,000 annually, aim for $420,000-$600,000 in coverage).
This number is a starting place; it may leave you overinsured or underinsured. Your specific needs should consider your financial obligations, future expenses and existing resources.
To determine the right coverage amount for you:
- Use an online life insurance calculator that will add up your current and future expenses, plus account for inflation.
- Contact a licensed financial professional like a PolicyMe insurance advisor.
FAQ: Best Life insurance in Canada
Who benefits from life insurance?
Life insurance is a safety net for your loved ones, offering financial protection and peace of mind. This is why getting coverage is a smart move for many Canadians.
Here's who likely needs life insurance:
- Parents
- Spouses and partners
- Breadwinners
- Homeowners
- Business owners
- Anyone with dependents
On the other hand, here's a look at who probably doesn't need life insurance: retirees, individuals with ample savings and young, single individuals.
The bottom line? It's essential to consider your unique situation. Talking to a financial advisor can help you decide what's best for you.
Who is the number one life insurance company in Canada?
Manulife could be considered the number one life insurance company in Canada, as it's the largest life insurance company in Canada. Based in Toronto, Ontario, Manulife operates in Asia and Europe, as well as in Canada and the United States. The company was established in 1887 and brings in more than $60B in revenue.
Who is the most trusted life insurance company?
When it comes to finding the most trusted life insurance company in Canada, many Canadians turn to Manulife, Sun Life, and Canada Life. These companies have been around for decades and have built strong reputations based on their reliable customer service, comprehensive coverage options, and financial stability. They’re known for offering a wide range of policies that cater to various needs, from term life to permanent life insurance, ensuring that Canadians can find a policy that fits their specific requirements.
However, if you're looking for a modern approach, PolicyMe is making waves in the industry by simplifying the process. PolicyMe offers a fully online application process that's quick and straightforward, helping you get a quote and apply for term life insurance in under 20 minutes. With transparent pricing and no hidden fees, PolicyMe aims to make life insurance more accessible and affordable for Canadian families. Whether you prefer the traditional route or a tech-driven solution, there's a trusted option out there for you.
Is it worth buying life insurance in Canada?
Yes, buying life insurance in Canada is definitely worth considering. Life insurance acts as a financial safety net for your loved ones, ensuring they're supported if you're no longer around to provide for them. The peace of mind knowing that your family's mortgage, education, and daily living expenses will be covered can be invaluable. Additionally, in Canada, life insurance payouts are typically tax-free, providing your beneficiaries with full access to the policy benefits.
Beyond the financial benefits, modern life insurance policies, like those offered by PolicyMe, make the process easy and affordable. You can get a quote and apply online in just 20 minutes, and many Canadians get approved without needing a medical exam. This streamlined process removes much of the hassle and red tape traditionally associated with buying life insurance, making it a practical choice for busy families looking to secure their financial future.
How does life insurance work in Canada?
Life insurance is designed for those with financial dependents, like young kids or a partner, though some use it as an investment vehicle or for estate planning.
In a nutshell, life insurance is an agreement with an insurer. Here's how it works:
- You pay a monthly or yearly fee for coverage.
- If you pass while the policy is active, the insurer pays a tax-free lump sum (death benefit) to your beneficiaries.
- This money helps them cover things like bills and secure their financial future.
The death benefit can be used to do things like replace income, pay for childcare, cover funeral expenses and take care of outstanding debts, explains the Financial Consumer Agency of Canada.
Where is the best place to buy life insurance in Canada?
You can buy life insurance in Canada through a licensed broker (online or not) or directly through an insurance company or through an online life insurance solution. Good to know: whether you go with a broker or you go direct, you'll get the same rates.
You can reach out to the bank for a quote, but do your research online, compare insurance company ratings on Better Business Bureau and compare prices.
With PolicyMe, you can buy life insurance online directly or speak to our expert advisors.
Based in Toronto, we provide life insurance in Ontario, Alberta, British Columbia, Quebec and 8 other Canadian provinces and territories including Manitoba and Saskatchewan.
What is the best type of life insurance for me?
Here's how to decide what type of life insurance most benefits you:
- Benefits of term life insurance: you need coverage for a temporary period (ex: while paying off debt, while the kids are young), so you never pay for something that you don't need.
- Benefits of whole life insurance: you have a high net worth and are looking for some of the tax-deferred benefits of a life insurance payout.
- Benefits of universal life insurance: you're within a high tax bracket and have maxed out your TFSA and RRSP investments. And you want to decide where the investment portion of your premiums go.
- Benefits of no medical life insurance: you've been denied by a traditional life insurance provider and must use this policy as a plan B, as a traditional policy is often more affordable.
Term is recommended as the best type of life insurance for most Canadians because it covers you for the years you need it the most.
[fs-toc-omit]Next steps: ready to start looking for life insurance?
[fs-toc-h2]Next Steps
Sources:
Assumption Life reports best results ever. Insurance Portal. https://insurance-portal.ca/life/assumption-life-reports-best-results-ever/
Canadian Health and Life Insurance Facts. CHLIA-ACCAP. clhia.uberflip.com/i/1478447-canadian-life-and-health-insurance-facts-2022-edition
Canadian Imperial Bank of Commerce (CIBC). Fitch Ratings. https://www.fitchratings.com/research/banks/
canadian-imperial-bank-of-commerce-cibc-25-07-2022
Celebrating the Reader’s Digest 2023 Trusted Brand™ Winners as Voted by Canadians! Readers Digest. https://www.readersdigest.ca/trusted-brands/trusted-brand-winners/
Foresters, Canada Protection Plan amalgamate. Investment Executive. https://www.investmentexecutive.com/news
/industry-news/foresters-life insurance canada-protection-plan-amalgamate/
Harriss, S. (n.d.). 82-year-old great-grandmother takes on BMO for suspect life insurance advice. CBC News. https://www.cbc.ca/news/business/ella-beck-bmo-life-insurance-1.4532351
Life Insurance. Financial Consumer Agency. https://www.life insurance canada.ca/en/financial-consumer-agency/services/insurance/life.html
Nova Scotia widow blasts bank for denied life insurance claim. CTV News. https://atlantic.ctvnews.ca/nova-scotia-widow-blasts-bank-for-denied-life-insurance-claim-1.5816170
Revealed – Canada's 10 largest life insurance providers. Insurance Business. https://www.insurancebusinessmag.com/ca/news
/life-insurance/revealed--life insurance canadas-10-largest-life-insurance-providers-in-2022-417657.aspx
Sagicor buys insurer Ivari for $325 million. Advisor's Edge. https://www.advisor.ca/insurance/life/sagicor-buys-insurer-ivari-for-325-million/
S. O. Canadian insurance company denies death claim, says form was inaccurate. Global News. https://globalnews.ca/news/9088188/ivari-insurance-company-denies-death-claim/
Sun Life Financial. Forbes. https://www.forbes.com/companies/sun-life-financial/
More reviews of Canadian life insurance companies:
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.