Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner-up for no medical
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for universal life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for decreasing term coverage
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best life insurance for the self-employed
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for cancer survivors
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for credit union members
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for participating life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for seniors and no medical life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for short-term life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for whole life insurance for children
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best life insurance for smokers
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for wealth transfer to children
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner up for life insurance for children
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best life/disability insurance for the hard-to-insure
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for business owners life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for permanent life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for parents & homeowners
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner-up for best term life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for existing customers
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for whole life insurance with cash value
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Best for simplified & guaranteed issue life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Second runner-up for best term life
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Rated between 1-5 stars for cost, trustworthiness, policy options, customer reviews, and financial stability. Pulling from sources including but not limited to AM Best, Better Business Bureau, Fitch Ratings, InsurEye, TrustPilot, Google Reviews, etc.
Runner-up for smokers life insurance
Cost
Based on monthly premiums, pulling from publicly available rates. $ - most affordable rates $$ - average rates $$$ - most expensive rates
Rated between $, $$, $$$ in relation to comparable life insurance products on the market in Canada. Based on publicly available rates pulled from WinQuote and other external sources.
Laura McKay is the co-founder and COO of PolicyMe, Canada's fastest-growing digital life insurance company. In 2021, she was named one of the Women of the Year by Bay Street Bull. Laura has a Bachelor of Mathematics from the University of Waterloo. Her degree focused on Actuarial Science, which included learning about mortality risk, the basis of life insurance pricing and valuation. After her degree, she was employed by Manulife and Munich Re in Actuarial Science. Laura then worked at famed management consulting company Oliver Wyman in New York from 2013-2018. In this position, she worked with many Fortune 500 life insurance companies and helped them develop growth strategies and solve operational problems and regulatory issues.
Joint life insurance policy is a single policy that covers two people, usually spouses or common-law partners. If one partner passes away while the policy's active, the beneficiary gets a tax-free, lump-sum payment that they can spend however they wish.
The key flaws with joint life insurance policy for couples? While joint policies can sometimes be cheaper, they only pay a death benefit out once. And if you ever break up, separate or get divorced, splitting the policy up can be a big headache.
How does joint life insurance work in Canada?
Joint life insurance policy provides a death benefit ensuring a financial safety net for your partner, surviving spouse (or other dependents) if you pass away.
Here's how joint life insurance policy works in Canada:
The couple applies at the same time and both partners are covered under the same exact terms (coverage amounts, term lengths, etc.)
The couple pays one premium per month, with only one death benefit payout
The policy expires after the payout so the surviving spouse will need to apply for another policy if they need insurance coverage
Joint life insurance policy can be either temporary or permanent
What type should you get? Term works best for couples and families; it provides for “temporary” dependents, like your kids before they grow into adulthood. It's also useful when debt, like your mortgage, is at its highest.
PolicyMe has some of Canada's most affordable term life insurance rates, plus $10,000 in free child coverage. See how much couples term life insurance might cost. No commitment necessary:
What happens to a joint life insurance policy after divorce?
A joint life insurance policy can be tough to divide if you and your partner decide to divorce or separate. This is the main reason that many life insurance experts advise against combined insurance policies. Here are your options if you need to split up a joint policy:
Name each spouse as the beneficiary in trust to manage the financial benefit on behalf of the kids
Keep the policy as-is (i.e. forgo splitting it)
Transfer the policy to one spouse
Cancel the policy outright
If your partner doesn't agree to split the policy, you may be out of luck
Types of life insurance for couples
There are three main types of joint life insurance policies: first-to-die joint life insurance, last-to-die joint life insurance, combined life insurance.
What is joint first-to-die life insurance?
Joint first-to-die is a type of life insurance policy that pays out a death benefit when the first partner passes. The policy ends after the payout, so the surviving partner would have to apply for a new policy if they want one.
A first-to-die policy can cover expenses such as a mortgage, debts or childcare.
Joint first-to-die may be a good choice if you have:
Living expenses paid for by one person
Large financial obligations (like a mortgage)
What is the main drawback for this type of joint coverage? Once there's a payout after the first death, the policy is no longer active. If the surviving partner wants coverage, they'd have to buy a new policy.
What is joint last-to-die life insurance?
Joint last-to-die life insurance pays out a death benefit when the last surviving partner passes. Last-to-die is also called survivorship life insurance.
This type of life insurance for couples is best used to support the kids because the surviving partner doesn't get a payout when the first person passes.
Joint last-to-die may be a good choice if you're concerned about:
Your beneficiaries paying estate and inheritance taxes
Leaving savings behind for your loved ones
The couple can name their children as the beneficiary to ensure financial stability after both parents are gone. It can also be used to reduce any estate taxes and reduce end-of-life costs for the surviving family (like funeral expenses).
The bottom line? Joint last-to-die policies are best used for complex estate planning purposes. Couples can use a last-to-die policy to ensure their children's future.
What is combined life insurance?
Combined life insurance isn't a joint policy at all; it's two combined insurance policies with different terms, conditions and payouts. When each partner holds their own policy, two separate death benefits can be paid out.
Here’s how these three main types of life insurance for couples compare:
Combining two individual life insurance policies is generally a safer and more flexible choice. Both partners hold their own policies on their own terms.
Joint life insurance: pros and cons
Joint vs individual life insurance
Joint life insurance policy is a single policy that covers two people, with one premium. A joint life insurance policy can be cheaper than buying two separate individual life insurance policies. On the flip side, individual life insurance gives you the flexibility to pick different lengths, conditions and coverage amounts for you and your partner.
A joint life insurance policy is the better option if:
You and your partner have a big age gap
One of you is in poor health
One partner is a smoker, and the other is a non-smoker
One partner is financially reliant on the other
You have just one main shared debt, like a mortgage
Individual life insurance policies are the better option if:
You want different levels of coverage
You want to shop around; there are lots of term options
You're 40 or younger
Both of you are of average health
You want to skip the headache of splitting the policy if you break up
The long and short of it is that joint life insurance policy is best suited for couples in very specific life situations. It's usually a better idea for each partner/spouse to get a single life insurance policy that is tailored to your particular needs.
Where do you buy joint life insurance in Canada?
There are a few joint life insurance companies where you can buy joint life insurance policies in Canada:
BMO: The "Special Death Benefit Option” means you can get a death benefit on the first death while having a joint-last-to-die policy.
Canada Life: Choose from multiple riders to add to your joint policy, such as child coverage.
ivari Life: Offers the option of joint policies for up to five people, but prices that are higher on average.
Manulife: Affordable joint policies and an extra 3% in savings for couples who choose the same policy length and coverage amount.
PolicyMe: We don't offer joint policies, but a first-year 10% discount on premiums when couples apply together, with $10,000 in free child coverage for the whole term.
Why should married couples and newlyweds consider life insurance?
Married couples and newlyweds should consider life insurance for several important reasons:
Financial Protection: Life insurance provides a financial safety net for your spouse or partner in the event of your death. It ensures that they will have financial support to cover expenses such as mortgage payments, debts, daily living costs, and future financial goals, even in your absence.
Income Replacement: If one spouse passes away, their income might be lost, impacting the surviving spouse's ability to maintain their standard of living. Life insurance can replace this lost income, helping the surviving spouse cover expenses and maintain financial stability.
Debt Coverage: Life insurance can help cover outstanding debts, such as a mortgage, car loans, or other liabilities, preventing the surviving spouse from shouldering these financial obligations alone and providing financial security.
Funeral and Final Expenses: The cost of a funeral and other final expenses can be substantial. Life insurance can alleviate the financial burden on the surviving spouse by covering these costs.
Future Planning: Life insurance can also be a part of a couple's long-term financial planning. It can help in building savings, funding education for children, or providing an inheritance for future generations.
Locking in Rates: Obtaining life insurance at a younger age can mean lower premiums, as rates often increase with age and potential health risks. Getting coverage early can lock in lower rates, providing cost savings in the long run.
Considering life insurance as a married couple or as newlyweds can offer peace of mind, knowing that your partner will be financially supported in case of the unexpected. It's crucial to assess your financial needs and goals together and determine the appropriate coverage amount and type of life insurance that best fits your circumstances.
How much life insurance coverage do married couples need?
The amount of life insurance for married couples needed will depend on a few factors. For example, things like debts, income, financial obligations, existing policies, etc. will play into how much coverage is needed.
These questions will help you think about how much life insurance you need for your family’s financial well-being in the face of an unexpected death.
Sample questions for evaluating life insurance needs:
In your absence, do you need mortgage payments covered?
What other large debts, loans, etc. would you leave behind?
Would you want to cover final expenses?
If you have kids, how many years of financial security will you leave them? What about their education/tuition?
How long does your partner or spouse have until they retire?
Would they need an income replacement without you around?
Calculate how much income you'd need to provide for your family, along with an estimate of how long that coverage will be necessary to keep your family afloat.
Generally, coverage amounts can range between five to 10 times the holder's salary. The average Canadian household is insured for about $442,000, reports the Canadian Life & Health Insurance Association.
How much does life insurance for couples cost?
How much would a life insurance premium cost for couples' coverage? Here's a sample quote for life insurance for couples from PolicyMe to help you get an idea:
The cost of life insurance for couples will depend on your particular policy needs and where you are at in your life journey (i.e. age, health). But your couple life insurance rates may surprise you: get a quote in a few clicks, apply in 20 minutes and get the peace-of-mind you deserve. PolicyMe is the only Canadian insurer with free child coverage!
Not sure if you and your partner are ready for the full-on application yet? Get your online quote and come back to it later — no commitment necessary.
When is the best time for couples to get life insurance?
The best time for couples to get life insurance is when either of them depends on the other's income. Are you in a relationship with shared financial obligations and dependents in your care? If so, consider couples' life insurance. The sooner you get coverage, the better.
You're likely to be healthier at this stage of life and less risky to insure. Life insurance rates go up as you grow up, so it makes sense to lock your rate in; senior life insurance tends to be pricier.
And term life insurance policies for young families can be quite affordable. In a recent survey, we found that while 77 per cent of Canadian parents have life insurance, many either have:
Inadequate coverage (i.e. a group insurance plan through their employer)
Unnecessary coverage (i.e. whole life insurance or life insurance policies on their child)
Bottom line: joint life insurance for couples
It's essential to have a policy in place for you and your partner to protect your family financially if something happens.
You and your spouse can choose to separate flexible life insurance policies or get joint life insurance coverage.
You save 10 per cent on the first year of premiums when you and your partner apply together with PolicyMe (and free child coverage!).
Joint life insurance insures two people's lives and pays out just one death benefit. While joint can be cheaper, couples get more flexibility from individual life insurance policies.
FAQ: More about joint life insurance, spousal life insurance and combined insurance
Does joint life insurance pay out twice?
Whether joint life insurance pays out twice depends on the type of joint life insurance you hold. For example, first-to-die and last-to-die insurance will payout the entire death benefit just once because they operate as one policy covering two people.
However, combined life insurance does pay out twice. It's when you and your spouse opt for two separate policies from the same insurance company at the same time. Essentially, two policies = two death benefit payouts.
What is family life insurance?
Family life insurance isn’t a specific type of life insurance coverage, but a term that insurance companies can use for life insurance plans geared toward families, you may have also seen them referred to as "family life insurance plans". Think of this as a provider-created package deal.
One example of "family life insurance" is bundling a term life insurance policy with a child life protection rider. But broadly speaking, knowing how much life insurance your family needs for financial protection will help you select coverage that makes sense for you – whether or not the word “family” is on the tin.
What is spouse life insurance?
Spouse life insurance is a type of life insurance for couples that sets up a death benefit for the surviving spouse. Some life insurance companies also offer a spousal rider, covering the policyholder’s spouse. Generally, the coverage amounts for a spousal rider are much smaller than a joint policy or two separate policies.
How much coverage your spouse needs will depend on how much you rely on your spouse for financial support. Think about things like your shared monthly expenses, your housing costs, childcare costs, etc. This type of joint life insurance can also be called spousal life insurance.
Do you need life insurance when you get married?
Married couples don't necessarily need life insurance to complete the marriage. The purpose of life insurance is to leave behind a financial safety net for your family in case you or your partner passes.
If you're married and have shared financial obligations, like a mortgage or young kids, it's a good idea to consider getting couples' life insurance. Many married couples chose to get spousal life insurance so their family gets a monetary cushion if the worst happens.
And take note: you don’t need to be married to share financial obligations. For example, common law or civil union couples often rely on each other for monetary contributions to the household.
Can I take life insurance out on my partner in Canada?
Yes, you can take out life insurance on your partner in Canada. This is called "insurable interest," which means you're allowed to get insurance because their well-being is important to you. It's common for people to insure their partners, especially if they rely on each other financially or have kids together. We've also seen many buy life insurance for their elderly parents this way as well.
To get life insurance for your partner, you'll need their permission and they may have to answer some questions about their health. An insurance expert can help you find the best plan for your family's needs and guide you through the process. That way, you and your partner can have peace of mind knowing you're both protected.
Do you need life insurance as a stay-at-home parent?
As a stay-at-home parent, the decision to buy life insurance should be based on your individual circumstances. You may not have a “traditional” income to replace, but consider the financial contributions you make to your family.
Without you, your family may have to pay for everything you do in order to run your home, like childcare for example. And if you were to pass away, your family may face unexpected expenses like funeral costs or medical bills.
Ultimately, the decision to purchase life insurance should be based on your unique situation, but don’t discount your financial contribution as a stay-at-home parent!
Do couples need to buy life insurance policies from the same company?
You and your partner won't always buy your policies from the same insurance company, as is the case with joint and combined life insurance. This may happen when one partner gets approved with one insurer but the other doesn't, and has to get their life insurance elsewhere.
For example, if one of you poses a higher risk to the insurer and is declined coverage. Like if you have a pre-existing condition, have a criminal record or driving incidents on record.
In which case it makes sense for that partner to look into a "no medical" life insurance policy. But those kinds of policies are more costly, so it's a better idea to mix-and-match your couples coverage with single life insurance policies.
Can you have multiple life insurance policies in Canada?
Yes, you can have multiple life insurance policies in Canada. Sometimes, people get multiple policies to make sure they have enough coverage for different needs, like mortgage costs or supporting their kids' education.
Just remember, each policy will have its own cost and terms. It's important to talk to an insurance expert who can help you understand what's best for you and your family. They'll guide you through the process and make sure you're not paying too much or getting too little coverage. That way, you can feel confident knowing you've made a smart decision.
Can business partners get joint life insurance?
A joint first-to-die policy is a good idea in a business setting too. You and your business partner(s) can use it for a buy-sell agreement and to protect your business from financial troubles if one of you passes away unexpectedly.
This is different from survivorship life insurance because after the insurer pays out the death benefit, the joint policy's coverage ends. The surviving person must reapply if they want active life insurance.
Should both partners have life insurance?
Yes, it's often advisable for both partners in a marriage or a committed relationship to have life insurance coverage. Here's why:
Income Replacement: Both partners might contribute to the household income, and if one were to pass away, the financial impact on the surviving partner could be significant. Life insurance on both partners ensures that if either were to die, the surviving partner would receive financial support.
Equal Financial Responsibilities: In many households, both partners share financial responsibilities, such as mortgage payments, bills, and other expenses. Life insurance on both individuals helps ensure that these obligations can be met if either partner passes away.
Childcare and Domestic Responsibilities: If one partner is primarily responsible for childcare or domestic duties, the death of that partner could require the surviving partner to hire help or make other arrangements. Life insurance can help cover these costs.
Future Protection: Life insurance not only provides immediate financial assistance but can also support future financial goals like children's education, retirement savings, or leaving an inheritance for loved ones.
Lower Rates at Younger Ages: Life insurance premiums are generally lower for younger, healthier individuals. Obtaining coverage early can lock in lower rates, making it a cost-effective decision to secure coverage for both partners as early as possible.
Peace of Mind: Having life insurance on both partners offers peace of mind, knowing that regardless of who passes away, the surviving partner will have financial support during a difficult time.
Each couple's financial situation and needs may vary, so it's essential to assess these factors and determine the appropriate coverage amounts and types of life insurance that best suit your circumstances.
Our sources:
ACCAP - Canadian life and Health Insurance Facts, 2022 edition. CLHIA. (n.d.). http://clhia.uberflip.com/i/1478447-canadian-life-and-health-insurance-facts-2022-edition/3
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