Introduction
Choosing the right life insurance provider is an important decision. You want to find a financially stable company with comprehensive coverage, flexible options, and affordable rates.
In this in-depth review, we’ll take a close look at one of Canada’s largest and oldest life insurance providers — The Canada Life Assurance Company. We’ll cover everything you need to know to decide if their policies are the right fit for you and your family’s needs.
Specifically, we’ll discuss:
- Company history and financial standing
- Types of life insurance offered
- Available riders and policy customization
- Costs and Pricing
- Sample rates compared to competitors
- Pros and cons of choosing Canada Life
By the end, you’ll have a clear understanding of Canada Life’s offerings and whether they live up to their long-standing reputation. Let’s get started.
A Brief Company Overview
With over 175 years of history, The Canada Life Assurance Company has cemented itself as one of the most established and trusted names in Canadian insurance. But how did it get its start? And what’s its current standing?
Founding and History
Canada Life first opened its doors in 1847 in Hamilton, Ontario as the country’s first domestic life insurance provider. Over the last century and a half, it expanded operations across Canada and beyond through various acquisitions and mergers.
Some key events in the company’s history include:
- 1994: Acquired New York Life and Manulife Financial in the UK
- 1997: Bought out MetLife in the UK
- 2003: Canada Life became a subsidiary of Great-West Lifeco Inc. after its acquisition
- 2020: Merged operations with London Life Insurance Company and Great-West Life under the Canada Life banner
(source: https://www.canadalife.com/about-us/who-we-are.html)
Today, Canada Life provides insurance and investment products in Canada, the UK, the Isle of Man, Ireland, and Germany.
With over 175 years of experience, Canada Life has grown into one of the largest life insurance providers in the country. The AM Best A+ rating indicates excellent financial strength. This high score means Canada Life has the resources to pay out claims for decades to come—an important consideration for long-term life insurance.
Canada Life’s Life Insurance Products
Canada Life provides a comprehensive suite of life insurance solutions, including term, whole, universal, and participating life insurance policies. Let’s take a closer look at the key features and benefits of each offering:
Canada Life Term Life Insurance
Canada Life offers a variety of term life insurance products to meet different temporary coverage needs.
Canada Life My TermTM
This customizable term product is one of Canada Life’s most flexible options. Some key details include:
- Issue ages between 18 and 80 years old
- Individual coverage amounts from $100,000 up to $50,000,000
- Joint first-to-die coverage available from $200,000 up to $100,000,000
- Any term length can be chosen between 5 and 50 years
- Initial term can be layered with secondary terms for targeted protection
- Annual renewable after the initial term expires
- Available riders include accidental death, disability waiver, children’s term insurance, and more
- Conversion available to universal life or participating whole life until age 70
- Underwritten by Canada Life’s Instant Approval process for faster decisions
My Term provides unmatched flexibility to align temporary coverage with your evolving needs. From customized term lengths to layered terms and abundant riders, you can really tailor your protection.
Traditional Pre-Set Terms
Alongside the adaptable My Term, Canada Life also offers pre-set 10, 20 and 30-year term policies. Key details include:
- Issue ages between 18 and 75 years old
- Individual coverage amounts from $100,000 up to $50,000,000
- Joint first-to-die amounts from $200,000 up to $100,000,000
- Level premiums locked in for the entire 10, 20 or 30-year term
- Option for guaranteed renewable terms at the end of the level period
- Convertible until age 70 to permanent insurance options
- Same selection of available riders as My Term
These traditional term life policies provide straightforward temporary coverage and financial protection for your loved ones.
Term to Age 65
This policy provides affordable coverage with guaranteed premiums until age 65. Key product specs:
- Issue ages between 18 and 60 years old
- Individual amounts from $100,000 up to $50,000,000
- Converts to permanent insurance at age 65 without evidence of insurability
- Policy riders available to enhance and customize coverage
- Underwritten through Canada Life’s Instant Approval process
Term Life Insurance is best for:
- Young families needing temporary coverage
- Parents providing for minor children
- Young couples buying a house
- Small business owners
- People needing affordable protection
Term life insurance is ideal for temporary needs like mortgages, income replacement, and final expenses. It provides affordable protection when you need it most.
Overall, Canada Life offers unmatched term life insurance flexibility. You can find the perfect customized duration and amount of temporary coverage.
See also: Mortgage Protection Insurance
Canada Life Participating Whole Life Insurance
Canada Life provides two types of participating whole life insurance: Wealth Achiever and Estate Achiever.
Wealth Achiever
Some details regarding the Wealth Achiever plan:
- Issue ages between 0 and 80 years old
- Minimum coverage amount of $100,000 up to a maximum of $10,000,000
- Limited pay options available over 10, 15 or 20 years
- Dividends begin accumulating in policy year 6
- Dividends can be taken as cash, used to pay premiums, or purchase additional insurance
- Policy builds up strong guaranteed cash value in early years
Wealth Achiever is ideal for those seeking wealth accumulation within their coverage. Dividends and cash value contribute to financial growth.
Estate Achiever
Some key specs for the Estate Achiever policy:
- Issue ages between 0 and 80 years old
- Minimum coverage amount starts at $25,000 up to a maximum of $10,000,000
- Limited pay options of 10, 15 or 20 years available
- Dividends accumulate starting in year 11
- The focus is on leaving a larger estate legacy versus building early cash value like Wealth Achiever
- Dividends are flexible – you can take them as cash, pay premiums, buy additional insurance
Estate Achiever prioritizes maximizing the future value of your estate. Dividends are invested over the long term to facilitate wealth transfer.
Both policies allow policyholders to share in Canada Life’s financial success through dividend payouts. Guarantees provide safety, while dividends enable growth.
Participating Whole Life Insurance is best for:
- High-net-worth individuals
- People focused on wealth transfer
- Business owners funding buy-sell agreements
- Older individuals beyond convertibility age
- Those who prefer guarantees and conservative growth
Whole life insurance is ideal for permanent protection and estate planning. Its guarantees provide safety, while dividends offer an upside.
Canada Life Universal Life Insurance
Canada Life provides universal life insurance for lifelong coverage with investment flexibility. Key details:
- Issue ages between 0 and 80 years old
- Minimum coverage amounts start at $25,000 up to a maximum of $10,000,000
- Choice of a level cost of insurance (COI) or annually increasing COI structure
- A variety of investment accounts available to grow your policy cash value
- Index interest options offer upside market exposure without downside risk
- Flexible premium payments – adjust amounts subject to policy minimums
- Loans and withdrawals accessible from accumulated cash value
- Several limited pay premium options available as well
Universal life insurance from Canada Life gives you the control to tailor investments and premiums. You can also access tax-advantaged policy cash value to help reach financial goals.
Universal Life Insurance is best for:
- Middle-income households
- Young accumulators looking to build wealth
- People wanting investment customization
- Anyone seeking permanent protection plus flexibility
- Those who prefer adjustable payments
Universal life insurance is great for flexibility on premiums and growth potential from indexed interest options. It’s a versatile permanent solution.
Available Riders
Riders allow you to customize your base life insurance policy with additional benefits. Canada Life offers a selection of riders from which to choose.
Accidental Death Benefit Rider
The Accidental Death Benefit rider provides an additional payout if the insured dies due to an accident.
- Available on individual life policies
- Provides an extra 10% to 100% of the base death benefit amount if death is accidental
- Doubles the policy payout to beneficiaries in the event of an accidental passing
- Added financial protection at a relatively low cost
This rider helps safeguard your beneficiaries in the unfortunate event of an untimely accidental death.
Disability Waiver of Premium Rider
The Disability Waiver of Premium Rider ensures your policy continues even if you become disabled.
- Available on individual life insurance policies
- Waives your premium payments if you become totally disabled
- Keeps your life insurance coverage active if sick or hurt
- Qualifying disabilities include inability to work, cognitive impairment, and loss of independent living
- Added peace of mind without breaking the bank
This rider prevents policies from lapsing due to disability. You can maintain your coverage when you need it most.
Guaranteed Insurability Rider
The Guaranteed Insurability rider allows you to increase your coverage in the future without medical underwriting.
- Available on individual life insurance plans
- Gives you the option to buy more insurance at key life milestones without evidence of insurability
- Milestones include marriage, birth of a child, college graduation, etc.
- Simplified process to raise your policy’s death benefit as your needs evolve
- Especially useful for young people expecting major life changes
This rider makes it easy to boost your protection over time when your responsibilities increase.
See also: Guaranteed Issue Life Insurance
Child Term Life Insurance Rider
The Child Term Life Insurance rider adds a death benefit for insured children.
- Available on individual life policies and joint first-to-die plans
- Covers newborn children up to age 25
- Provides term life insurance protection for your kids’ end-of-life expenses
- Payouts can help cover funeral costs, medical bills, debts, and more
- Peace of mind knowing your children have financial protection
This rider can provide vital coverage for families worried about protecting their children.
Business Growth Protection Rider
The Business Growth Protection rider increases the death benefit as your business value rises.
- Available on individual life and joint first-to-die policies
- Raises your policy’s payout by the appraised growth of your business
- Simplified process to increase coverage as your business expands
- No medical exam or underwriting required to grow the death benefit
- Especially useful for business owners without buy-sell agreements
This rider provides a flexible way for business owners to scale their life insurance coverage.
The above riders is best for:
- Families wanting to protect their children
- Business owners lacking buy-sell agreements
- Young people expecting major life milestones
- Anyone needing their policy to adapt over time
- Those wanting an added layer of protection
Riders help customize your base policy for added coverage when you need it most. They provide tailored protection.
See also: Corporate-Owned Life Insurance
As you can see, Canada Life provides a well-rounded selection of life insurance solutions to suit different needs and budgets. From customizable term insurance to permanent and participating policies, you have plenty of options. Add in supplementary riders, and you can really tailor coverage. Their products make Canada Life a versatile life insurance provider.
Additional Insurance Products from Canada Life
Beyond life insurance, Canada Life provides a suite of other insurance solutions to meet different needs.
Canada Life Disability Insurance
Canada Life offers both individual and group disability insurance. Individual policies include:
- The Independence Plan – Benefits for up to 2 years if unable to work at any job. Issue ages 18-60.
- The Lifestyle Protection Plan – Replaces income if unable to work at your own occupation. Issue ages 18-60. Monthly benefits from $1,500 to $25,000.
- The Overhead Expense Plan – Covers business overhead costs if disabled. Issued up to age 55.
Group disability plans are also available. Canada Life has expertise supporting absence management and claims management.
Further reading: Disability Insurance
Canada Life Critical Illness Insurance
Critical illness insurance provides a tax-free living benefit if diagnosed with a covered condition. Options from Canada Life include:
- LifeAdvance – Covers 25+ conditions. Available benefits up to $2 million. Additional partial payment coverage.
- Critical Illness Recovery benefit – Extra 10% payout for supplementary care.
- Child critical illness – Coverage for illness events specifically impacting children.
Multiple riders are available, such as recurrence benefits, death benefits, conversion, and more.
Canada Life Health Insurance
Canada Life provides supplemental health insurance to fill gaps in government coverage:
- Freedom Health Plans – Range of options for prescription drugs, dental, vision, paramedical, and more. Plans for individuals, families, and groups.
- HealthChoices – Customizable benefits package. Coverage for dental, vision, prescription drugs, therapy, medical supplies and more. Wide range of annual limits and deductibles.
Travel Medical Insurance – Emergency medical coverage for trips outside province or Canada. Trip cancellation, interruption and delay protection also available.
Canada Life Group Insurance
Canada Life is a leader in group benefits for all sizes of employers. They offer:
- Life insurance – range of group life insurance options, including core coverage, optional benefits, riders, and more.
- Disability insurance – short-term and long-term group disability solutions.
- Critical illness – lump-sum payment for employees diagnosed with covered conditions.
- Extended health and dental – comprehensive supplemental health and dental benefits.
Canada Life has expertise in group pricing, enrollment, claims management, and administration.
Canada Life Insurance Costs and Pricing
So, how much does life insurance from Canada Life cost? Here are a few factors that impact your premiums:
- Age – rates are lower when younger
- Gender – women pay less as they tend to live longer
- Health – medical history impacts prices
- Lifestyle – risky hobbies or smoking can increase costs
To give you an idea, Let’s take a look at some sample monthly premiums:
Term Life Premiums
Here are estimated monthly rates for a 10-year, $500,000 term life policy from Canada Life:
| Age | Male Non-Smoker | Female Non-Smoker |
|---|---|---|
| 30 | $23.38 | $16.63 |
| 40 | $29.11 | $21.58 |
| 50 | $67.43 | $48.42 |
| 60 | $207.06 | $151.50 |
And, here are estimated monthly rates for a 20-year, $500,000 term life policy from Canada Life:
| Age | Male Non-Smoker | Female Non-Smoker |
|---|---|---|
| 30 | $30.43 | $22.39 |
| 40 | $48.10 | $35.96 |
| 50 | $127.08 | $89.01 |
| 60 | $423.90 | $296.26 |
As expected, term life premiums start relatively low for younger applicants and increase with age as risk rises. A 10-year term is more affordable than 20-year coverage.
Whole Life Premiums
Here are some estimated monthly costs for a participating whole life policy from Canada Life with $100,000 in coverage:
| Age | Male Non-Smoker | Female Non-Smoker |
|---|---|---|
| 30 | $120.24 | $110.25 |
| 40 | $161.91 | $146.52 |
| 50 | $225.09 | $201.24 |
| 60 | $337.23 | $293.40 |
Permanent life insurance commands much higher premiums due to lifelong coverage. However, it also builds cash value that you can access while living.
Whole life premiums are significantly higher than term life rates for the same coverage amount. The trade-off is permanent protection and growth potential over time.
Critical Illness Premiums
These are sample monthly premiums for a $100,000 critical illness policy from Canada Life:
| Age | Male Non-Smoker | Female Non-Smoker |
|---|---|---|
| 35 | $31.41 | $30.33 |
| 45 | $62.10 | $61.11 |
| 55 | $158.40 | $124.83 |
| 65 | $410.40 | $255.15 |
As with life insurance, critical illness premiums rise steadily with age due to increased health risks.
Disability Premiums
Here are estimated monthly disability insurance premiums from Canada Life with $1,000 in monthly coverage:
| Age | Male Non-Smoker | Female Non-Smoker |
|---|---|---|
| 35 | $22.24 | $35.56 |
| 45 | $30.11 | $43.68 |
| 55 | $47.46 | $58.14 |
| 61 | n/a | n/a |
Canada Life’s rates are fairly competitive but tend to be slightly higher than the average insurer. While not the most budget-friendly, you’re paying for Canada Life’s financial stability and reputation.
How Canada Life’s Costs Compare to Competitors
When shopping for life insurance, it’s always smart to compare quotes from multiple providers. Let’s see how Canada Life’s premium rates stack up against key competitors for some common policy types and age groups:
Looking at estimated monthly premiums for a 20-year, $500,000 term life policy:
| Age | Canada Life | Sun Life | RBC Insurance |
|---|---|---|---|
| 35 | $36.45 | $34.15 | $32.85 |
| 45 | $85.50 | $78.75 | $75.00 |
| 55 | $234.45 | $215.10 | $198.75 |
Canada Life’s rates are competitive but fall on the slightly higher end of the spectrum compared to leading insurers like Sun Life and RBC.
Here are estimated monthly premiums for a whole life policy with $120,000 of coverage:
| Age | Canada Life | Manulife | Sun Life |
|---|---|---|---|
| 30 | $160 | $150 | $140 |
| 40 | $190 | $180 | $170 |
| 50 | $300 | $285 | $260 |
Once again, Canada Life’s permanent life insurance premiums are in line with competitors but trend a bit higher.
Looking at sample monthly premiums for a $75,000 critical illness policy:
| Age | Canada Life | Empire Life | Manulife |
|---|---|---|---|
| 30 | $27 | $24 | $21 |
| 40 | $39 | $35 | $33 |
| 50 | $88 | $81 | $77 |
Canada Life is on the higher end for critical illness rates among its peers.
While not the most affordable, Canada Life offers financial stability. But it’s always wise to compare quotes across top insurers to find potential savings for the same calibre of coverage.
The Pros and Cons of Choosing Canada Life
Canada Life has a long-standing reputation as one of Canada’s top life insurance providers. But is it the right choice for your needs? Let’s dive deeper into the advantages and disadvantages.
Pros
Established Reputation
With over 175 years of history and a strong AM Best rating, Canada Life offers stability and peace of mind many competitors can’t match. You can trust they’ll be there to pay claims down the road.
Wide Range of Policies
Canada Life provides all the standard life insurance offerings – term, whole, universal, and participating policies. Their flexible MyTerm product is one of the most customizable on the market.
Premium Flexibility
For permanent insurance, Canada Life offers a variety of limited pay options to fit different budgets. Their universal life policies allow adjustable premiums as well.
Customizable Coverage
Canada Life enables you to tailor coverage through policy riders for business needs, adding children, and more. Few insurers offer a Business Growth rider.
Tax-Advantaged Growth Potential
Permanent and participating life insurance allows you to grow your money tax-free within policy cash values. This benefit is unique to permanent protection options.
Cons
Above Average Cost
Canada Life’s premiums skew slightly higher than competitors across all life insurance products. You can likely find lower rates for the same amount of coverage.
No Online Quotes
Canada Life still requires contacting an advisor to get pricing information. This makes it harder to compare costs versus insurers offering instant online quotes.
Slower Application Process
Many reviewers cite long wait times during underwriting and when receiving a policy decision. The process takes longer than that of more streamlined insurers.
Limited Online Account Management
Canada Life’s online portal for policyholders has fewer self-service features compared to competitors. However, they offer strong over-the-phone support.
So, while Canada Life isn’t the cheapest provider, its financial stability, diverse products, and flexibility make it a strong option for the right applicant. Comparing rates from other top insurers can reveal potential savings.
Is Canada Life Right for You?
Canada Life is a great option if you value reputation and financial strength. Their wide selection of policies and riders makes it easy to customize coverage.
However, they aren’t the most affordable provider. If you want to save money, be sure to compare quotes from other top Canadian life insurers and look beyond just name recognition.
That said, you can’t go wrong choosing Canada Life insurance if:
- Your priority is establishing trust and confidence in your insurer
- You want access to permanent and term life insurance
- You value having growth potential with participating life insurance
- You need special riders to customize your plan
At the end of the day, finding the right life insurance is about more than just rates. It’s about protecting your family’s financial future with a provider you can trust. With a long-standing reputation for delivering on promises, Canada Life remains a top choice for many Canadians.
In addition to this focused Canada Life Assurance Company review, we provide similarly extensive analyses of the Top Life Insurance Companies in Canada across a range of helpful categories. Check out our detailed posts covering major insurers like Industrial Alliance, BMO Insurance, Manulife, Sun Life, RBC Life Insurance, Equitable Life, Assumption Life, Empire Life and more. Using thorough research and analysis, we outline key factors like products offered, pricing/costs, financial ratings, advantages & disadvantages, and answers to common questions. Our goal is to equip customers exploring both Canada Life and other leading insurance providers with all the information required to find the perfect policy match.
Get Expert Help Finding the Right Life Insurance
The decision to protect your family with life insurance is important. But with so many options, where do you start? The licensed advisors at IDC Insurance Direct Canada can help.
IDC Insurance simplifies the process by providing instant quotes for all major insurance providers in Canada. We make it easy to compare and find affordable rates. Whether you need individual or group coverage, our advisors offer unbiased guidance and insights. We work for you, not the insurance companies.
To get started, simply request a quote or call us. There’s no obligation to buy. We’re here to answer your questions and help you every step of the way. Take control of this important decision. Get life insurance quotes and advice tailored to your unique needs. Protect the people that matter most with peace of mind.
The Canada Life Assurance Company Frequently Asked Questions (FAQs)
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