Canada Life Insurance Review 2023

You'll learn:

Canada Life Insurance Products and Features

Whole Life Insurance

Whole life insurance covers you for your entire life (also called permanent life insurance) and includes a savings component to fall back on if things go wrong. However, these perks don’t come cheap. Whole life insurance is generally more expensive than other types of life insurance.

Canada Life Insurance offers both participating and non-participating whole life or permanent life insurance policies. Unlike the latter, participating whole life policies pay a dividend based on the profits of the company

They have two participating permanent life insurance products in place: Estate Achiever and Wealth Achiever.

While Estate Achiever works to maximize the insured’s estate, Wealth Achiever aims to build cash value. Since the latter accumulates more cash value, its premiums are higher.

Universal Life Insurance

Universal life insurance is a form of permanent life insurance. Like whole insurance, it offers lifetime life insurance coverage and has an investment savings element. But with universal life insurance, cash value growth is not guaranteed, premiums are flexible and more affordable.

Canada Life offers many investment options to grow your money. Some are riskier than others, but with greater risk comes the opportunity to accumulate more cash value.

Term Life Insurance

Term life insurance can cost less than a permanent life insurance policy and lasts for a set period. It’s a smart option for covering expenses that come with an expiry date, such as a mortgage.

Canada Life Insurance offers term life insurance coverage in 10, 20, and 30-year term periods. They also offer Term-to-age 65 which covers you until you reach age 65. You can change your term life policy into a whole life or universal life coverage without a medical test up to the age of 70. This feature is a must-have for any term life insurance and can come in handy if you become uninsurable in the future.

They also offer a generous term exchange option on its 10-year term policies. You can convert your 10-year term life insurance policy to a 20-year term anytime between the second and sixth policy year.

Now let’s look at different term life insurance products offers in detail.

Optional Riders and Benefits

A rider is supplemental insurance coverage that adds benefits to or amends the terms of a basic insurance policy. If the insurance coverage is inadequate, you can beef it up by adding the appropriate insurance rider(s).

Canada Life Insurance offers all the standard insurance riders that you expect from a top-ranking carrier.

Riders Available on Single-Life Policies

👉  Accidental Death Benefit

Your beneficiary revives an additional benefit if you die as a result of an accident.

👉  Waiver of Premium Benefit

It helps you keep your coverage without paying premiums if you are laid up due to an illness or injury.

👉  Guaranteed Insurability Rider

You can buy additional coverage in the future with no underwriting.

👉  Child’s Term Life Insurance Rider

It pays out a benefit if your child passes away to cover funeral expenses, hospital bills, and more.

👉  Business Growth Protection Rider

You can increase the death benefit amount as your business grows in value. No new medical evidence is needed.

Riders Available on Joint First-To-Die Policies

• Child’s Term Life Insurance Rider
• Business Growth Protection Rider

Other Insurance Coverage Offered

In addition to whole life (permanent life insurance), universal, and term life insurance, Canada Life Insurance company provides a range of personal insurance products.

Disability Insurance

Disability insurance provides you with a tax-free monthly income if you can’t work due to an illness or accident.

They offer the following three disability plans:

➢ The Independence Plan

Consider this plan if your occupation makes it harder for you to qualify for disability insurance. It pays a benefit for up to 24 months in case of permanent total disability and up to 9 months in case of partial disability.

➢ The Lifestyle Protection Plan

You get a monthly benefit if you become totally disabled. It has level premiums and cannot be modified or canceled once issued.

➢ The Overhead Expense Plan

It covers the cost of running your business should you — the owner — can’t work. You cannot cancel the plan once issued.

Critical Illness Insurance

Critical illness insurance guarantees the policyholder a lump sum payment if he or she develops a severe illness. Critical illness insurance can help you whether a crisis without exhausting your savings.

Health and Dental Insurance

It pays for medical expenses that provincial health care plans don’t pay for. These include dental care, prescription drugs, vision care, and paramedical services, among others.

They offer the following two health and dental insurance plans:

PlanDirect: It is suitable for people who don’t qualify for group benefits or who are self-employed. You can choose from three plans depending on your needs: Core, Core Plus, and Elite. PlanDirect: It is ideal for those who are losing coverage or are retiring. You can choose from three plans depending on your needs: Basic, Comprehensive, and Premier. Besides these, you can also buy creditor insurance and group insurance from this insurer.

Canada Life Term Life Insurance Rates

Term life insurance is the simplest form of life insurance and usually the cheapest. We grabbed online quotes from their portal to find out its rates.

Here’s a look at average monthly life insurance company rates for non-smoking, healthy men and women at different ages. These quotes are $40,000 coverage over a 20-year term life insurance length.

It's best to consult a life insurance brokerage like Dundas Life to help you compare rates.

Canada Life Insurance Price Based on Customer Characteristics

You and your best friend may have to pay different premium rates for the same life insurance product. That’s because various factors affect the calculation of premium rates. These include age, medical history, existing health conditions, and smoking status, among others. Some insurers take a slightly more lenient view of certain customer characteristics. As such, they may offer people with those characteristics a better deal.

So how does Canada Life stack up against its competitors when it comes to customer characteristics?

Let’s find out.

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Canada Life Term Life Insurance Price vs. Competitor Products

Looking for the cheapest term life product?

The best way to save money on insurance is to compare all your options. We twice stacked up Canada Life against Wawanesa and found it the better option both times.

Example 1: 40-Year-Old Male, Non-Smoker, Regular Health, 20 Year Term:

Canada Life $400K - $48.96

Wawanesa $400K - $51.48

Cost Savings over 20 years: $605

Example 2: 60-Year-Old Female, Non-Smoker, Regular Health, 20 Year Term:

Canada Life $250K - $166.95

Wawanesa $250K - $170.32

Cost Savings over 20 years: $810

Canada Life Insurance Pros ✅

• Long History, Strong Financial Standing

Canada Life has been paying claims for 150 years! So you can rest easy knowing they are going to be there for your family when they need them.

Its financial strength rating also enthuses confidence.

AM Best awarded Canada Life the second-highest possible rating of A+. You can’t go wrong with it when it comes to financial stability and security.

• 4 different term life insurance lengths available

They offers more options so that you can pick the exact coverage term you want — not more or less. Whether you are in your 30s, 40s, or 50s, you can count on Canada Life to offer you a term life insurance policy or permanent life insurance plan that perfectly matches your needs.

• Competitive Rates

When it comes to buying insurance, the critical question is — how to get the best value?

Canada Life is among the more pocket-friendly insurers. Its rates are competitive across all niches. You can count on them to makes it easier for you to secure your family’s financial future.

• Multiple Rider Options

They aim to provide life insurance coverage tailor-made to your needs. And a host of rider options make that possible. You can tweak your life insurance policy — single or joint — as per your needs. You won’t ever have to worry about having less coverage than you need.

• Generous Term Exchange Option

Canada Life allows you to convert your 10-year term insurance policy to a 20-year term without underwriting or a medical review.  This feature is available after the first policy anniversary and before the 7th policy year. Most Canadian insurers have a shorter eligibility window.

• Wide Range of Life Insurance Products

Canada Life offers a gigantic range of insurance solutions, including whole life, term life, universal, critical illness, and more.

Canada Life Cons ❌

• You Can’t Pick Your Own Term

They offer four types of level term life insurance plans, so there are plenty of options for you. However, some insurers have taken this to a whole new level. They let customers pick their own terms. Unfortunately, Canada Life is not of them — at least not yet.

• You can’t get online life insurance quotes

Picking an insurance provider is a big decision. You would want to compare rates to ensure you make the right decision. Online life insurance company quotes make it easier to compare rates. Sadly, Canada Life still does things the old way. You need to contact an insurance brokerage agent to apply.

FAQ

What are the benefits of Canada Life Insurance?

There are many benefits of Canada Life Insurance. Some of these benefits include:

• Protection for you and your family: In the event of your death, Canada Life can provide financial security for your loved ones.
• Peace of mind: Knowing that you and your family are protected financially can help you enjoy your life more fully.

What are the drawbacks of Canada Life Insurance?

There are a few potential drawbacks of Canada Life Insurance that consumers should be aware of before purchasing a policy. First, the death benefit payout may be less than the face value of the policy if the policyholder dies within the first few years of the policy. This is because Canada Life uses a "graded death benefit" structure for its life insurance policies, which means that the benefit payout decreases during the first few years of the policy.

How does Canada Life Insurance stack up against the competition?

There are a few ways to compare life insurance policies from different companies. One way is to compare the premiums, or the price of the policy. Another way to compare policies is to look at the death benefit, or the amount of money that the policy will pay out if the insured person dies. Finally, you can compare the policy's features and benefits to see what each company offers.

When it comes to premiums, Canada Life is often very competitive.

Is Canada Life Right for You?

Canada Life Assurance Company has a long-standing history and excellent financial strength. They offer Canadian life insurance consumers good pricing and a wide range of insurance products. They also have many policy riders in place to allow you to customize your policy according to your needs.

All in all, Canada Life stands out as the right choice for people who want affordable life insurance products.

👉  View our other life insurance company reviews here