What’s the Best Life Insurance Company in Canada?

Dec 2, 2018 | Life Insurance, Permanent Life Insurance, Term Life Insurance

Many of us are focused on getting the “best” of everything, and that doesn’t change when Canadian’s begin their search for Life Insurance. Sorry to let you down, but by the time I finish writing this blog, the best life insurance company has probably already changed.

Family protected by life insurance

There is 91 different life insurance companies in Canada as of 2017, and all of them are vying for your business. All life insurance companies have a different suite of products that address different areas of concern, and the premium for these products is being changed all the time. The sheer number of life insurance companies, coupled with various products and premium rates, makes finding life insurance for the average person very difficult. That’s why NorthWise really believes in utilizing an unbiased independent broker for all your insurance needs.

So what’s the best life insurance company in Canada? We like to try and make things as simple as possible. There are 3 main things we look for when considering what life insurance companies to recommend to our clients:

Strength & Stability – Most people rush to pay the lowest possible premium for their insurance. While this is understandable, it’s important to consider the financial strength and history of life insurance companies. If you are to put a life insurance policy on a newborn baby today (sounds morbid, but ask us why this makes sense), their policy may not pay out for another 100 years! This means you want a life insurance company with a long history.

Feel free to ask us about the stability of life insurance companies. A&M Best is a credit rating company used to judge life insurance companies based on their financial strength, and can be useful in ranking companies.

Monthly/Annual cost of premium 
– Usually the first thing on peoples minds. Life insurance companies are becoming more and more competitive on premium costs, putting more of the conversation onto what company is best suited for you. Most people would rather choose a larger and more stable company if they don’t have to pay more than $5/month more in additional premium.

Product Shelf 
 – You want to make sure that the company you choose has the product that’s perfect for your situation. If purchasing Term Life Insurance, it’s a good practice to make sure the life insurance company you’re choosing has a good suite of permanent life insurance, because you may wish to convert your term insurance to permanent insurance as some point during the life of your policy.

  • Term Life Insurance – some companies are limited to Term 10 or Term 20 life insurance, whereas some companies have Term 10-40 (and every year in-between). Some Term insurance outright cancels at the end of the term, whereas some term insurance will continue on until age 100, increasing in cost every 10 years or so. Remember, if you eventually want to convert this life insurance to permanent coverage, the permanent life insurance must be with the same company, so make sure they have the type of permanent life insurance coverage you require.
  • Permanent Life Insurance – there is much more variety with permanent life insurance, and it’s best to speak with one of our licenced representatives. There is almost an infinite different types of insurance, and behind the scenes how this product is built is rather complicated. Each company designs their permanent life insurance a little bit differently and can be more/less competitive in certain situation.

I’m sure if you’ve read to this point you can see it’s more than likely in your best interest to reach us directly when making the choice of what life insurance company is best for you. We will make sure you can check-off all three boxes of Strength, Low Premium, and Right Product, and be confident in the purchase of your life insurance coverage!

Contact us today!