If you're in the market for life insurance, you've probably come across Scotia Life Insurance.
They offer a range of policies to suit a variety of needs, and they're one of Canada's leading providers of life insurance. But is Scotia Life the right provider for you?
In this review, we'll take a closer look at their policies and rates, and see how they compare to other providers. Stay tuned for the inside scoop on Scotia Life!
|Available only for Scotia Bank customers
|Limited term options
|Easy and Fast Online Application Process
|No Whole or Universal Life Policy
|Might not require a medical examination for term coverage up to $250,000
- Scotia Life offers three term life products and one critical illness plan.
- Scotia Life is only available to Scotiabank customers.
- There is no term life to permanent life conversion option for Scotia Life term life plans.
Who is Scotia Life Insurance?
Scotia Life Financial is the life insurance subsidiary of Scotia Bank, the third-largest bank in Canada. They entered the insurance market through its subsidiary in 2009, as banks are not allowed to sell insurance products directly. Scotia Life Financial sell their products through their own captive agents and offer several types of financial protection as well as life insurance, including home and auto insurance.
However, Scotia life insurance products are available only to Scotiabank customers.
Scotia Life Facts & Financial Information
Founded in 1900
Headquartered at 40 King St W, Toronto, ON M5H 1H1, Canada
$1 trillion in Financial Assets
No BBB Rating
AM Best Financial Strength Rating: A
When shopping for life insurance, always take into account the financial stability of the selected insurers. After all, picking an insurer that then went bankrupt would not only mean a loss of investment but also having to buy the insurance coverage all over again from another carrier.
You can get an idea about a company’s financial soundness by checking its AM Best score. The AM Best Company focuses on the insurance industry and is one of the most reputable credit rating agencies there is. They gave Scotia Life an A (Excellent) rating, which demonstrates that this company is financially stable.
Scotia Life Insurance Reviews
Online reviews of life insurance companies are not as straightforward as you may think. That is because:
- Statistically speaking, people are more likely to leave a review when things are bad, then when they are good.
- Often, these reviews are not for life insurance products. You must keep in mind that many life insurers sell other financial products as well as life insurance, such as home or auto insurance. And usually, these divisions are completely separate. So, ensure you consider only those reviews that pertain to the product you wish to buy, instead of home and auto insurance.
- Finally, online businesses need to put up with trolls. It is almost impossible to say for sure if a particular review is genuine or motivated by malice or something else.
Coming back to Scotia Life, what kind of reputation do they have online?
Well, they are doing quite well. They have a score of 2.5 stars out of 5, which is better than some of the bigger insurers — RBC Insurance and Manulife for instance — can maintain. Scotia Life’s performance on Insureye is marginally poorer, 1.9 stars out of 5.
"Always pleasant to deal with on the phone, they explain everything in detail and don't leave you in the dark about any of the processes." - Gavin Bergeron on Google review
Products and Features
Scotia Life Insurance does not have a wide range of life insurance products like some other big insurers, such as Sun Life. But that is not necessarily a bad thing. It just means they specialize in specific types of life insurance products and as such are able to offer an attractive deal to customers.
Scotia’s product line includes term life, permanent life, and critical illness products. They do not offer whole life or universal life insurance, both of which also act as an investment tool.
Term Life Insurance
Term life is the best kind of life insurance for most people due to its simplicity and low pricing. The coverage lasts for a specific period, and if you pass away within the policy’s term, your family receives the death benefit. If you are looking for a plan that will give you the best coverage at the best price, term life insurance is right for you.
Scotia Life Insurance offers the following term life insurance plans:
Scotia Term One Life Insurance
If you are looking for an affordable term life plan with a million or less in coverage, Term One might make sense for you.
- Coverage amount available for $50,000 to $1 million (in increments of $25,000)
- Renewable up to age 70 without proof of good health
- Guaranteed level premium. Your premium rate will not change during a policy term
- You might not need to undergo a medical examination if you are younger than 50 years and need coverage for $250,000 or less
- Living benefit available. The insurer will issue you a living benefit equaling 50% of your coverage or $50,000, whichever is less, if you develop a terminal illness and have a life expectancy of fewer than 12 months
- The plan comes with a 30-day money-back guarantee. You get a full refund if you cancel the policy within 30 days of its issue
- Scotia will not issue the death benefit to your family if you commit suicide within the first two years of receiving the policy
Scotia Term Ten Insurance
If you want a 10-year term life policy and are content with $250,000 worth of coverage or less, you may want to take a closer look at this option. This is a no-medical term life plan, so you will not have to undergo a physical exam.
- Coverage amount available is $25,000 - $250,000
- Available term is 10 years
- Guaranteed level premiums. That is, the insurer cannot change your premium rate during a policy term, regardless of any change in your health
- Renewable up to age 75 without medical underwriting
- No medical exam needed
- Living benefit available. If you receive a terminal illness diagnosis with a life expectancy of fewer than 12 months, the insurer will issue a part of your death benefit to help you cover medical expenses or other costs
- 30-day money-back guarantee. You will get a full refund if you cancel the policy within 30 days of the issue date
- Scotia will not pay the death benefit amount if you commit suicide within the first two policy years
Scotia Term Twenty Insurance
A 20-year term is a suitable option for young families and homeowners with a mortgage. Businesses owners looking to cover start-up costs may also want to consider it.
- Available for people ages 18–55 years
- Coverage amount available is from $25,000 to $250,000
- Guaranteed level premium. Your premium rate will remain the same during a policy term
- You can renew the policy at an increased rate without evidence of insurability
- Include a living benefit. You will receive a part of your death benefit if you are diagnosed with a terminal illness and expected to live less than 12 months
- 30-day money-back guarantee. The insurer will issue a full refund if you cancel the policy within the first 30 days
- Scotia Life Insurance will not pay the death benefit amount if you commit suicide within the first two policy years
Permanent Life Insurance
A permanent life policy is the nearest thing to the “fill it, forget it” life insurance. The coverage lasts as long as you do — provided you pay premiums — so you do not need to worry about renewing it. Many permanent life insurance policies also bundle up as an investment vehicle.
However, neither of the two permanent life plans offered by Scotia Life Insurance includes an investment component. All of your premium dollars go toward covering the cost of insurance.
Scotia Term 100 Life Insurance
Do not be fooled by the word “term”. This product is as much a permanent policy as any other. Since this plan offers lifetime protection, it could make sense for those who have lifelong dependents, wish to leave an inheritance to their heirs, or want to preserve the full value of their estates from taxes.
- The maximum coverage available is $250,000
- Premiums stop after the age of 100
- Guaranteed level premium. Your premium rate will remain the same throughout
- Scotia Life Insurance will not pay the death benefit if you commit suicide within the first two policy years
Scotia Life Guaranteed Life Insurance
If you have a medical condition that prevents you from getting a medically underwritten life insurance policy, consider a guaranteed life insurance policy. As the name suggests, it involves neither a medical exam nor health questions and acceptance is guaranteed. However, the coverage amount is rather small and premium rates significantly higher. Nevertheless, a guaranteed life insurance product, like this one, can help you cover end-of-life expenses, such as medical bills and funeral costs.
- Lifetime coverage
- Guaranteed level premium (Your premiums will not change)
- You will not have to pay premiums after age 90
- Terminal illness benefit. You receive a part of your coverage amount in advance if you develop a terminal illness and are expected to live less than 12 months
- Accidental death benefit. Your family will receive an additional cash benefit, on top of the policy amount, if your death occurs due to injuries sustained in a covered accident
- 30-day review period. You will get a full refund if you cancel the policy within the first 30 days
- Acceptance guaranteed for applicants ages 50-75
- Does not require a medical exam or health questions
- Two-year waiting period. Scotia will not pay the death benefit if you die within the first two policy years but will return the premiums paid with interest
Critical Illness Insurance
Critical illness insurance guarantees a lump-sum payment should you fall ill. The payout can help you cover costs not included in your health, disability or life insurance.
Scotia Life Insurance offers one critical illness plan — Children360.
The Children360 critical illness plan is available for coverage amounts from $25,000 to $100,000. Your policy renews automatically without any medical underwriting every year until age 70. If you cancel the policy within 30 days of its issue, you will get a full refund.
Why We Like Scotia Life Insurance
Easy and Fast Online Application Process
Scotiabank customers can apply for term life or critical illness insurance online. The process is straightforward and simple. All the same, remember, you will need to speak to a captive agent to sign up.
Scotia Life Financial is a subsidiary of Scotiabank — the third largest bank in Canada. That alone is proof enough that your investment will be in good hands. But if you need more convincing, here is additional proof. AM Best — an independent credit rating agency with a strong focus on the insurance industry — gives it an A (Excellent) rating. That just goes to show this company is on a solid financial footing.
What We Did Not Like About Scotia Life Insurance
Available Only to Scotiabank Customers
Not a Scotiabank customer? Then we are afraid you cannot buy any of its life insurance products (even if you happen to like one).
For one thing, there are no whole life or universal life insurance plans. Secondly, it offers only three term life products. Thirdly, it has only one critical illness plan, and not a very comprehensive one at that.
No Conversion Option
You cannot convert your term life plan into a permanent one.
Is Scotia Life Right for You?
Scotia Life is financially strong and offers affordably priced term life insurance. If you are a Scotiabank customer and looking for term life insurance to protect your family from the unexpected, check out its term life offerings.
Gregory Rozdeba is the CEO of Dundas Life, Canada's leading digital insurance brokerage. He has over 8 years of experience in the life insurance industry. Gregory previously served as Director of Sales at a Toronto-based insurtech firm. He took the company from having no product to raising over $7.6M+ in venture capital to transform the prospect to policy process in Canada. Gregory holds a Bachelor's Degree in Finance & Accounting from Ontario Tech University and a Master of Information Management from FH Joanneum.