If someone relies on your income or you have a debt that will pass on to a loved one after your death, you need life insurance. People buy life insurance because it is the smartest way to protect their loved ones. All the same, many people put off buying a life insurance policy, even when they know they need one. This is often because they overestimate how much a life insurance policy is going to cost.
But the thing is: life insurance does not have to be expensive.
Many Canadian providers offer a range of products to suit all kinds of budgets and insurance needs. One such insurance company is Co-operators. From term life to whole and universal life, they sell it all.
Keep reading our Co-operators life insurance review to find out more about this insurance company and whether they are right for you.
Who Are Co-operators Life Insurance?
Founded in 1945, Co-operators sell more than life insurance. They also sell property and casualty insurance, as well as investment products. They are a reputable name in the Canadian insurance industry niche, with financial assets worth roughly $47 billion and an impressive financial rating from AM Best.
Co-operators Facts & Financial Information
Founded in 1945
Headquartered at Saskatchewan, Canada
$47 billion in Financial Assets
AM Best Financial Strength Rating: A-
Products and Features
Co-operators offers a wide range of life insurance solutions, ranging from term life to whole and universal life.
Term Life Insurance
Term life insurance offers affordable coverage for a predetermined length of time. At the time of buying, you need only make three decisions:
- pick the right provider for you
- select the coverage amount that will be adequate for your needs
- decide the policy’s term (that is, how long you want your policy to last)
Term life insurance is usually the best option for people who are looking for affordable coverage or know beforehand the period for which they need protection.
With Co-operators, you get a choice of two term plans: Term Life 1 and Versatile Term.
Term Life 1
As the name suggests, the default policy term is 1 year. This plan comes with the guaranteed renewability promise, meaning you can renew the policy at the end of a term — 1 year — without submitting proof of good health up to a certain age. Your renewal premium may be higher than the previous year, but this increase will only be due to age — not your health. The latter will not come into the equation at all.
- Minimum coverage amount available is $5,000, Maximum - $475,000
- Available for people between ages 18 to 49
- A 1-year, guaranteed-renewable term. The policy renews automatically
- Guaranteed death benefit. The policy amount will not change, even if your health does
- Premiums start low but increase gradually with age
- Option to convert your term life insurance plan into a permanent one before the age of 70
- Get an online quote. You can even apply and purchase the plan online
This plan lets you purchase term life insurance for a predetermined period — 10 years, 15 years, 20 years, or 30 years. The premium rate and the death benefit amount will remain the same throughout the term.
- The following term options are available: 10 years, 15 years, 20 years, and 30 years
- You can renew the life insurance policy without evidence of insurability
- Guaranteed death benefit. The death benefit amount will not change
- Guaranteed level premiums. Your premium rate will remain the same throughout a policy term
- Option to convert the plan into a permanent life policy before the age of 70
Permanent Life Insurance
Permanent life insurance provides coverage that lasts your entire lifetime. This type of policy is a good option for anyone who wants a shut-it-forget-it life insurance product.
Many of these plans also have a built-in saving component, known as cash value. This money is yours to spend during your lifetime.
The beneficiary will only receive the policy amount upon your death, not the cash value. High-net-worth individuals looking for an additional investment vehicle may also benefit from buying permanent life insurance.
Co-operators offer the following permanent life insurance plans — Whole Life Suite, Universal Life Suite, Infinity Term, and Responsibility and Responsibility Plus Life.
Whole Life Suite
Whole life insurance is the most popular type of permanent life insurance. These policies provide lifelong coverage and accumulate cash value at a predetermined rate.
- Available for people between the ages of 0 to 80
- Minimum coverage amount is $25,000
- Potential to earn dividends
- Payable for 20 years or payable for life
- Guaranteed cash value
Universal Life Suite
Universal life insurance provides coverage that lasts your entire life and includes a savings component. However, it offers more flexibility than whole life policies. You get to decide how you want to invest the money in the built-in savings component. Additionally, you can adjust your coverage as your life changes.
- Tax-advantaged accounts
- Create an investment strategy that matches your risk tolerance and investment goals
- Cash that grows with time
- Flexible coverage options
- Option to take occasional breaks from premium payments (provided the policy has enough funds to cover monthly insurance costs)
Ideal for people looking for an affordable permanent life policy, it offers lifelong coverage without a savings component.
- Available for people between ages 0 to 80
- 20-pay option for people between ages 0 to 70 and Life-pay option for people between ages 0 to 80
- Minimum coverage amount is $25,000
- Guaranteed level premiums that are fully paid up at age 110
- Different premium payments options available
- A wide range of life insurance riders available
Responsibility and Responsibility Plus Life
This plan is aimed at Canadians who are between the ages of 40 and 80 or who are on a fixed retirement income. No medical exam is required for approval, but the coverage is rather small.
This plan can be a good option for covering end-of-life expenses, like medical bills and burial costs.
- Maximum coverage amount is 25,000
- No medical exam needed
- Up to four times the life insurance policy amount in the event of accidental death
- Guaranteed level premiums
A critical illness can be hard on your savings, even if you have a health plan in place. That is why investing in a critical illness insurance policy can be a smart decision. It helps you cover costs not included in your health policy and provides a financial cushion at a time when you may need it most.
If you are diagnosed with a covered condition, the insurer will issue you a cash benefit, which you can use any way you like. For example, you can use the funds to:
- pay mortgage installments if you cannot work due to illness
- cover health care expenses not included in your health or life insurance
- pay for childcare to allow you to focus on getting well
- pay for everyday living expenses
Co-operators offer two critical illness plans — Critical Assist and Critical Assist Head Start for Children.
All critical illness plans by Co-operators include these four features:
- Premium Payback at Death: If you die while the critical illness policy is active and no full payout has been paid, Co-operators will return the premiums paid to your beneficiary.
- Conversion Privileges: You have the option to convert a shorter-term Critical Assist policy into a longer-term one.
- Best Doctors: You can see a second opinion regarding your illness from a global pool of more than 50,000 doctors.
- Counseling Benefit: If you are diagnosed with a covered condition, you or your family members can access counseling over the phone.
You can tailor your Critical Assist plan to suit your needs by adding these riders:
- Premium Payback at Surrender Rider
- Premium Payback at Expiry Rider
- Automatic Waiver of Premium on Owner’s Death or Disability Benefit
- Disability Premium Waiver Rider
The Critical Assist plan helps reduce your financial concerns while you cope with your illness.
- Available for people between the ages of 18 to 65
- Coverage amount available is from $25,000 to $2 million
- Includes 25 full payout conditions and 4 Early Assist partial payout conditions. (You are eligible to receive the full policy amount if you are diagnosed with any of the 25 conditions listed in the plan. If you are diagnosed with any of the four partial payout conditions, you will receive 10% of the policy amount or $50,000, whichever is less.)
Critical Assist – Head Start for Children
The Head Start plan provides you financial peace of mind should your child be diagnosed with a serious illness.
- Available for children between the ages of 30 days to 17 years
- The coverage is available up to age 75
- The coverage amount available is from $25,000 to $250,000
- The plan includes 32 full payout covered conditions and 4 Early Assist partial payout health conditions (If your child is diagnosed with any of the 32 full payout conditions, you will receive the entire benefit amount. By contrast, a diagnosis of any of the four early payout conditions will result in a partial payout — 10% of your coverage amount or $50,000, whichever is less.)
Co-operators Term Life Insurance Rates
Term life insurance rates depend on many factors. Some of which you can control, some others you cannot. For example, while you cannot do anything about your age, picking the right life insurance company can save you thousands of dollars in premiums.
So, does Co-operators offer great coverage at a great price?
To find out, we grabbed quotes for men and women of different ages (shared below). These monthly rates are for a 20-year term policy with $400,000 in coverage.
Time Life Insurance Review - Price Comparison vs. Competitor Products
How affordable are Co-operators’ term life plans compared to their competitors?
To find out, we compared them against one of their main rivals, SunLife. When it comes to term life insurance, Co-operators is a cheaper option, whether you are a 40-year-old man or a 60-year-old female.
Why We Like Co-operators
Life insurance, in most cases, is a long-term contract. Therefore, it is necessary you pick an insurer that is on solid financial footing. Co-operators is one such insurance company, receiving an impressive A- rating from AM Best.
Get term life insurance quotes in less than 2 minutes
Co-operators makes it easier for consumers to compare their rates with those of other providers. Its online quoting tool is among the simplest and gives a price estimate in a jiffy. All you have to do is select the coverage amount, date of birth, gender, and smoking status.
Wide range of life insurance products
Whether you are looking for a term life plan, whole life insurance or universal life insurance policy, Co-operators has got your back.
Comprehensive critical illness insurance
Co-operators offers two robust critical illness plans, both of which include some unique benefits, like access to a global network of over 50,000 doctors.
What We Did Not Like About Co-operators
You can only buy Term Life 1 online
You cannot purchase other life insurance products, such as Versatile Term, online.
Online term life insurance quotes are not for 15-, 20-, or 30-year terms
You get online quotes only for Term Life 1 (provided the coverage amount is not more than 475,000) and Versatile Term 10. If you want a longer term, you will have to speak to an advisor.
The longest term available in term life insurance is only 30 years
Many Canadian insurers, by contrast, offer 35-year term life plans.
Website is not very informative
While the website is nicely laid out, it does not provide all the relevant information. For example, we could not learn which riders are available with term and whole life insurance.
Conclusion - Is Co-operators Insurance Right for You
Co-operators boast a wide range of life insurance products, including term life, whole life insurance, and universal life insurace. If you are in the market for a new life insurance policy, you may want to take a closer look at this life insurance company.