Best Life Insurance Companies in Canada Based on Specialty

There is no “one size fits all” option when it comes to choosing a life insurance company. What is best for others may not represent what is best for you. That’s why we’ve decided to help simplify the process and provide a clear guide on the best life insurance companies in Canada so you can discover which trusted provider best represents your unique needs and make the decision that’s right for you.

In this article:

• The Best Life Insurance Companies in Canada at a Glance
• Best Life Insurance Company for Seniors
• Best Life Insurance Company for Business Owners
• Best Life Insurance Company for Families
• Best Life Insurance Company for Investment and Cash Value
• Best for Critical Illness Insurance
• Frequently Asked Questions (FAQs)

The Best Life Insurance Companies in Canada at a Glance

Best Life Insurance Company for Seniors

Being a senior can make it challenging to qualify for traditional life insurance policies. Despite having a higher need for life insurance coverage, seniors often face higher rates and a lengthier application process. Fortunately, companies such as Canada Protection Plan offer simplified and guaranteed issue policies that offer an easier application process and do not require a medical exam.

If you would like to learn more about qualifying for life insurance as a senior check out our Ultimate Guide to Life Insurance for Seniors in Canada.

Canada Protection Plan:

Canada Protection Plan (CPP, not to be confused with the Canadian Pension Plan) is a Toronto based company that has been around since 1992. It is most well known for its no medical life insurance options which make it ideal for Canadian seniors looking for a simplified process that doesn’t require a medical exam.

Pros of Canada Protection Plan Life Insurance for Seniors:

• Accessible and Simple
• No Medical Exams
• Fast Approval Times

Canada Protection Plan is a great option for seniors for many reasons. Firstly, it is accessible to seniors due to its specialization in simplified issue and guaranteed issue life insurance policies. These policies are designed to be accessible to all populations, including seniors who may face difficulties due to pre-existing health conditions. Canada Protection Plan also doesn’t require medical exams which some seniors may prefer for various reasons. The ability to apply without having to undergo a medical exam streamlines the application process and can help seniors who have faced difficulties finding a policy due to pre-existing health concerns. In addition, Canada Protection Plan has a very quick approval process when compared to other life insurance providers. Applicants can feel peace of mind knowing that they can be approved in just a matter of weeks or even days.

Cons of Canada Protection Plan Life Insurance for Seniors:

• Premiums May Be Higher
• Limited Coverage Amounts
• Coverage Restrictions

While Canada Protection Plan aims to provide accessible coverage, premiums for simplified issue and guaranteed issue policies can be higher compared to traditional policies. This is due to the increased risk to the insurer on no-medical policies. Additionally, coverage amounts available through Canada Protection Plan policies may have maximum limits, which could be insufficient for seniors with substantial financial obligations or estate planning needs. Specific policies may also have waiting periods or exclusions for applicants with specific illnesses or conditions. Seniors should carefully review policy terms to understand any potential limitations.

Best Life Insurance Company for Business Owners

While business owners often take many risks, choosing an insurance provider shouldn’t be one of them. The best life insurance providers for business owners in Canada are companies that provide specific solutions and expertise tailored to their specific needs. Certain life insurance companies such as Manulife Financial are well known for being able to address business-related needs through tailored coverage.

If you’re interested in a guide to navigating life insurance as a business owner check out our Life Insurance Guide for Business Owners in Canada.

Manulife Financial:

Manulife Financial is a Canadian multinational insurance company that was founded in 1887. Manulife is known for being one of the oldest and most trusted insurers in Canada. Its strong reputation and established expertise in addressing the unique needs of business owners make it the best choice for business owners interested in life insurance.

Pros of Manulife Financial Life Insurance for Business Owners:

• Financial Stability
• Integration with Other Financial Services
• Claims Handling Expertise

Manulife Financial is one of Canada’s largest and most established insurance providers meaning business owners can feel confident in its ability to meet its financial obligations while offering expert advice to policy holders. Manulife Financial also offers integrated financial planning services which allows business owners to streamline both their personal and business financial goals all through one provider. The established expertise of Manulife Financial makes it an ideal provider in handling business-related claims ensuring a smooth and efficient process for business owners in the event of a claim.

Cons of Manulife Financial Life Insurance for Business Owners:

• Policy Restrictions
• Policy Complexity
• High Premium Costs

Insurance policies can often contain exclusions which are specific events or circumstances not covered by the policy. Business owners looking to get insurance through Manulife Financial should carefully review policy documents to understand any exclusions that may apply due to certain business types and occupational hazards. Due to the complexity of the financial needs of business owners, the policies offered through Manulife Financial can also be complex. This means that those looking to obtain life insurance through this provider should be sure to fully review their policy options before making a final decision. While Manulife Financial strives to offer competitive pricing, premiums for specialized business insurance can still be relatively high. Business owners looking for comprehensive coverage should ensure they are willing to cover these costs before agreeing to a policy.

Best Life Insurance Company for Families

If you are the primary breadwinner of your family, a life insurance policy can ensure that your family will remain financially secure should anything happen. This peace of mind is one of the many reasons people opt to get a life insurance policy that is both comprehensive and customizable to your family’s needs. With a wide range and options we believe that Canada Life is the best life insurance for families in Canada.

If you would like to learn more about protecting your family with a life insurance policy check out our guide on Family Life Insurance in Canada.

Canada Life:

Founded in 1847, Canada Life is a subsidiary of the Canada Life Assurance Company and is one of the largest and oldest life insurance companies in the nation. This life insurance provider based in Manitoba offers a variety of plans with high flexibility and affordability, with optional multi-variety discounts for families.

Pros of Canada Life Insurance for Families:

• Comprehensive Coverage Options
• Flexible Policy Features
• Robust Policy Options

Canada Life offers a wide range of life insurance products that can be beneficial to families, including term life, whole life, universal life, and critical illness insurance. Families can choose policies that best suit their specific financial goals and needs. With a variety of riders and additional benefits such as accidental death coverage, critical illness protection, and more as well as various options for premium payment frequencies, the flexibility of policies through Canada Life is hard to beat. With options for income replacement which can replace lost income in the event of a policyholder’s death as well as the option for cash values in permanent policies, the robust policy options Canada Life offers can further help families to maintain their standard of living in any circumstances.

Cons of Canada Life Insurance for families:

• High Premium Cost
• Policy Complexity
• Health Underwriting

While Canada Life offers comprehensive life insurance coverage for families in Canada, these policies can be relatively expensive due to the large amounts of options that can be added. Families should carefully assess their budgets and discuss affordability before deciding on a plan. Another downside of the robust and flexible options provided by Canada Life, is that their policies can become complex. This is especially true for plans that involve investment components which may require a good understanding of insurance and investment concepts before a commitment can be made. Those with pre-existing health conditions and concerns may also experience challenges or restrictions when applying for certain Canada Life policies. As with any insurance provider, families should thoroughly review policy terms, conditions, and any restrictions or exclusions to ensure they understand the coverage they are purchasing.

Best Life Insurance Company for Investment Opportunities

For Canadians seeking more from their life insurance policy than just protection, finding the right provider that offers investment opportunities and cash value growth is essential. Whether you’re interested in growing your wealth or leveraging your policy as a financial tool, it’s important to find an insurer that can help you reach your financial goals. Thanks to its established expertise and diverse investment choices, we believe Sun Life Financial is the best life insurance for investment opportunities in Canada.

To learn more about building wealth through a life insurance policy, check out our guide to understanding Guaranteed Cash Value Life Insurance.

Sun Life Financial:

Sun Life Financial is a Canadian financial services company that is headquartered in Toronto and well known for their life insurance coverage. They provide a wide range of life insurance products, including options that allow policyholders to build cash value over time and invest in various investment options within the policy. Sun Life is known for its diverse investment choices and financial expertise, making it an attractive option for individuals seeking investment-linked life insurance.

Pros of Sun Life Financial Life Insurance for Investment Opportunities:

• Diverse Investment Options
• Cash Value Accumulation
• Dividend Potential

Sun Life Financial offers a wide range of investment options within their life insurance policies allowing policy holders to tailor investments based on their risk tolerance and financial goals. These investments have the potential to grow tax-deferred, meaning policyholders do not pay taxes on investment gains until they withdraw funds from the policy. This can result in more significant long-term growth compared to taxable investment accounts. Sun Life’s permanent policies typically include a cash value component that grows over time. Policyholders can access this cash value through policy loans or withdrawals, providing a source of funds for various financial needs, such as emergencies, education expenses, or retirement income. Depending on the type of policy and its performance, Sun Life policyholders may also be eligible to receive dividends. These dividends can be used to increase the cash value of the policy or to pay premiums, potentially reducing out-of-pocket costs.

Cons of Sun Life Financial Life Insurance for Investment Opportunities:

• Policy Complexity
• Risk Exposure
• Policy Lapses

Investment-linked life insurance policies are typically more complex than other types of policies. Potential customers looking to obtain this type of life insurance through Sun Life Financial will require a strong understanding of both insurance and investment principles and should be prepared to manage and monitor their investments actively. It’s also important to note that while many policies offer guaranteed minimum returns to ensure your financial security, there are still inherent investment risks. The performance of the policy’s underlying investments can impact the cash value and death benefit, potentially leading to lower returns. If policyholders do not manage their policies effectively, including paying premiums and monitoring investments, there is also a risk of policy lapsing, potentially resulting in the loss of coverage and accumulated cash value. It is important to understand your policy thoroughly to prevent this from happening.

Best for Critical Illness Insurance

While life insurance pays out in the event of death, critical illness insurance offers a lump sum payment in the event of a critical illness diagnosis such as cancer, heart attack, stroke, blindness, and more. Some examples of those who would benefit from this plan include breadwinners, self-employed individuals, parents/guardians, and those with a high risk of developing a critical illness. Due to the comprehensive options offered, we believe BMO Insurance offers the best critical illness insurance coverage in Canada.

For more information, check out our guide to see if Critical Illness Insurance is Right for You.

BMO Insurance:

BMO Insurance, a member of BMO Financial Group, is well established as a reputable and trustworthy provider of insurance in Canada. BMO was founded in Montreal, Quebec in the year 1817 making it one of Canada’s oldest and most well-known banks. With a wide range of options and policies, it is a great option for those looking for comprehensive critical illness insurance coverage.

Pros of BMO for Critical Illness Insurance:

• Additional Riders
• Coverage for Various Critical Illnesses
• Survivorship Benefit

One of the benefits of getting critical illness insurance through BMO Insurance is the optional riders and benefits that can be added to critical illness policies, such as return of premium options, disability income coverage, or coverage for additional conditions. These optional extras offer policy holders confidence that they will be covered no matter the circumstances. BMO Insurance also offers competitive and comprehensive protection for anyone interested in a critical illness insurance policy and covers a very wide range of specified critical illnesses and medical conditions. In the unfortunate event of a policyholder’s death due to a covered critical illness, policies through BMO Insurance might also provide a death benefit to beneficiaries. This helps to further secure the financial futures of a policy holder and their family.

Cons of Sun Life Financial Life Insurance for Investment Opportunities:

• Policy Terms and Conditions
• Health Underwriting
• Waiting Periods

With any insurance policy, it’s essential to thoroughly review the terms and conditions and those interested in BMO Insurance’s critical illness policies should be sure to do the same. Interested applicants should carefully review the list of covered conditions and any possible exclusions. Much like other insurers, BMO Insurance may assess applicants’ health status during underwriting, which can impact eligibility and premium rates. Pre-existing health conditions can affect coverage options for those looking to obtain critical illness insurance. Additionally, some critical illness policies may have waiting periods before coverage becomes effective. During this waiting period, which can vary by policy, the insurance may not pay benefits if a critical illness is diagnosed. It’s essential to be aware of any waiting periods and their duration before deciding on a policy.

Frequently Asked Questions (FAQs)

Find a solution that’s right for you

No matter what circumstance you find yourself in, life insurance is an essential way to protect those who depend on you. No case will be the same as someone else’s, so it’s essential to work with a life insurance advisor that understands all the possible options and can work to get the best policy for you. 

Here at Protect Your Wealth we have helped connect individuals to insurance providers since 2007 and believe in understanding the unique needs of our clients. Contact us online today or call us at 1-877-654-6119 to be connected to a knowledgeable advisor who has your best interests at heart, with no cost to you! We happily serve clients in Ontario, British Columbia, and Alberta including areas such as Toronto, Calgary, and Vancouver.