Canada Life Insurance Review
Learn more about Canada Life insurance. Talk to one of our experienced advisors, today!
9 Minute read
Originally Published: Feb 8, 2022
Updated: May 11, 2023
Canada Life Insurance Review
Learn more about Canada Life insurance. Talk to one of our experienced advisors, today!
9 Minute read
Originally Published: Feb 8, 2022
Updated: May 11, 2023
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. They have a financial strength rating of A+ from AM Best Company and offer some of the best life insurance policies. They offer a variety of plans with high flexibility and affordability, as well as multi-variety discounts for families. They lack in term life insurance offerings and it can be difficult to obtain a quote online, but their pros outweigh the cons and we at Protect Your Wealth have awarded them a rating of 5/5 stars.
In this article:
Company Overview
Canada Life was founded in 1847, and has been servicing consumers for over 170 years. They provide their insurance and wealth-management products all around the globe in Canada, the UK, Germany, and Ireland. Canada Life has recently combined with Great-West Life and London Life to create one of the largest life insurance brands and is now a subsidiary of Great-West Lifeco, as well as a member of the Power Corporation group of companies. They employ over 10,000 employees and manage over $125 billion in assets to assist over 12 million Canadian customers. They offer a wide range of wealth management products for individuals, families, and business owners all around the world.
Canada Life is one of the largest life insurance brands in Canada, managing over $125 billion in assets to assist over 12 million Canadian customers. In the beginning of 2020, Canada Life merged with Great-West Life and London Life to form one of the largest insurance and wealth management companies in the country.
The merger resulted in a consolidation of operations and resources to provide a wider range of products and services to customers. However, policyholders were not majorly affected, as all existing policies, benefits, and coverage remained unchanged. Any policy term or condition change will be communicated well in advance. If you are a policyholder of any of these companies, your coverage will continue as before, with access to the same products and services.
Canada Life – Life Insurance Pros
Competitive pricing
Multiple rider options for joint and single policies
Wide range of insurance products
Offer renewable and convertible policies
Variety of term life insurance lengths
Multi-variety discounts
Canada Life – Life Insurance Cons
No online life insurance quotes are available
Less term period offerings
Canada Life – Life Insurance Products
Canada Life Term Life Insurance
Canada Life offers term life insurance at a lower cost through fixed payments. Term life insurance only guarantees temporary coverage by replacing lost income and covering debt and funeral expenses, but you have an option to convert to permanent life insurance if you wish. You do not get investment options, but you will get to choose who receives a tax-free one-time payment when you die.
Term length (dependent on your age)
- Short term: 5-10 years
This is recommended for people unsure about their financial future who need flexibility; you are able to renew or extend your coverage later. It is also the lowest cost option for people of a younger age and better health. It is also a good way to cover the costs of your financially dependent family members and mortgage.
- Medium term: 11-20 years
This is recommended if you have a shorter amortization period or are several years into the mortgage, and you want to provide for your financially dependent children until they grow up.
- Long term: 21-50 years
This is recommended if you require longer period coverage to get married, have children and/or buy a house. It is also beneficial to those who want coverage while paying off their mortgage or taking care of children.
Optional Benefits
- Single-life policies:
- Waiver of premium benefit
- Accidental death benefit
- Guaranteed insurability rider
- Business growth protection rider
- Child’s term life insurance rider
- Joint first-to-die policies:
- Business growth protection rider
- Child’s term insurance rider
Options when the term ends:
1. Renew
Your policy will automatically do this on a yearly basis for the same length of time as the initial term.
2. Convert to a longer term
You may qualify to increase your term length by 10+ years with gradually increasing premiums.
3. Convert to permanent insurance
You can switch to permanent life insurance which will last a lifetime with the potential to grow in value.
Canada Life presently offers 8 types of term life insurance. They have been categorized and split into Term 10, Term 20, Term 30 and Term-to-age-65 life insurance products:
Canada Life Term Life Insurance Products
Canada Life Insurance has simplified their product line with a brand new, refreshed term life insurance policy called My Term. This policy lets you choose any term length starting from from 5 to 50 years.
- Issue ages:
- Non-smoker: 18-85
- Smoker: 15-85
- Issue minimum of $100,000
- Matures: age 85 – Term length is dependent on years left to turn 85 (i.e, a 60-year old is eligible for a 25 year term, a 77-year old can only get an 8-year term, etc)
- Convertible to:
- Permanent insurance
- Any Term of at least 10 years longer than current term length
- Coverage type:
- Single
- JFTD (joint first-to-die)
- Level premiums for length of term
- Policy renews automatically without proof of insurability
- Policy renews annual unless cancelled
Canada Life Permanent Life Insurance
Canada Life offers permanent life insurance at a higher cost than term life insurance with flexible payments. Permanent life insurance guarantees lifetime coverage by replacing lost income, covering debt and funeral expenses, building wealth and estate planning. You will have investment options, alongside your choice of who receives a tax-free one-time payment when you die. You are guaranteed a payout.
Canada Life offers 2 types of permanent life insurance: participating life and universal life.
Participating Life Insurance
Canada Life’s participating life insurance guarantees cash values and insurance payout on all their policies. You may be required to pay a yearly dividend, but your premiums will stay the same. Participating life insurance will be slightly more expensive than the term life and universal life options due to the growth guarantees. You are guaranteed your money will grow inside the policy with conservative asset management and policy owner dividends. Here is how it works:
- Pay your premiums, which enter the participating account managed professionally
- The money pays of expenses, taxes, insurance claims… etc
- Your dividends vary depending on the performance of the account
- Your dividend exists and can be taken out as cash
- Your tax-free payment is given to the person of your choice upon death
Canada Life presently offers 2 types of participating life insurance. They have been categorized and split between early value products and delayed value products:
- Issue ages:
- Single-life:
- Pay to age 100: 0-85
- Max 20: 0-80
- Joint first-to-die and Joint last-to-die:
- Pay to age 100: 18-85
- Max 20: 18-80
- Single-life:
- Issue minimums: $100,000
- Premium bands:
- Band 1: $100,000–$249,999
- Band 2: $250,000–$999,999
- Band 3: $1 million+
- Pay period:
- • Pay to age 100
• Pay for a maximum of 20 years
• Pay for a maximum of 10 years
• Guaranteed premium for base coverage amount
- • Pay to age 100
- Coverage type
- Single
- JFTD (joint first-to-die)
- JLTD (joint last-to-die; Premiums payable to first or last death)
- Guaranteed cash value: start in policy year 1
- Dividend Options:
- Paid-up additional coverage
- Enhanced coverage
- Cash payment
- Issue ages:
- Single-life:
- Pay to age 100: 0-85
- Max 20: 0-80
- Joint first-to-die and Joint last-to-die:
- Pay to age 100: 18-85
- Max 20: 18-80
- Single-life:
- Issue minimums:
- Single-life: $25,000
- Joint-life: $50,000
- Premium bands:
- Band 1: $25,000 – $99,999
- Band 2: $100,000 – $249,999
- Band 3: $250,000 – $999,999
- Band 4: $1,000,000+
- Pay period:
- • Pay to age 100
• Pay for a maximum of 20 years
• Pay for a maximum of 10 years
• Guaranteed premium for base coverage amount
- • Pay to age 100
- Coverage type
- Single
- JFTD (joint first-to-die)
- JLTD (joint last-to-die; Premiums payable to first or last death)
- Guaranteed cash value: start in policy year 6
- Dividend Options:
- Paid-up additional coverage
- Enhanced coverage
- Cash payment
Universal Life Insurance
Canada Life’s participating life insurance guarantees cash values on some of their policies with flexibility in investment options and premium payments. Universal life insurance will be slightly more expensive than the term life, but cheaper than participating life insurance. This cost-effective option allows you to manage your own risk profile by choosing investment options with payment flexibility. Here’s how it works:
- Pay your premiums, and after the insurance costs are covered the money will start going to the policy’s investment part
- This money then goes to investments of your choice
- The money can be accessed to use however you want
- The money then goes to whoever receives the money from your insurance protection when you die
Canada Life presently offers 3 types of universal life insurance. They have been categorized and split into annually increasing pay to 85 COI products, level COI products, and limited-pay COI products.
- Issue ages:
- Single-life: 0-65
- Joint first-to-die and Joint last-to-die:
- Minimum: 18
- Maximum: equivalent single age 65
- Issue minimums:
- Single-life: $25,000
- Joint-life: $50,000
- Premium bands:
- Band 1: $15,000 – $99,999
- Band 2: $100,000 – $249,999
- Band 3: $250,000 – $499,999
- Band 4: $500,000 – $999,999
- Band 5: $1,000,000+
- COI (Cost of Insurance) charges: pay to age 85
- Guaranteed cash value: no
- Issue ages:
- Single-life: 18-85
- Joint first-to-die and Joint last-to-die: :
- Minimum: 18
- Maximum: equivalent single age 85
- Issue minimums:
- Single-life: $25,000
- Joint-life: $50,000
- Premium bands:
- Band 1: $15,000 – $99,999
- Band 2: $100,000 – $249,999
- Band 3: $250,000 – $499,999
- Band 4: $500,000 – $999,999
- Band 5: $1,000,000+
- COI (Cost of Insurance) charges: pay to age 100
- Guaranteed cash value: no
- Issue ages:
- Single-life:
- 10 year: 0-85
- 15 year: 0-85
- 20 year: 0-80
- Joint first-to-die (10 year and 15 year)
- Minimum: 18
- Maximum: equivalent single age 85
- Joint first-to-die (20 year)
- Minimum: 18
- Maximum: equivalent single age 80
- Joint last-to-die (10 year and 15 year)
- Minimum: 18
- Maximum: equivalent single age 85
- Joint last-to-die (20 year)
- Minimum: 18
- Maximum: equivalent single age 80
- Single-life:
- Issue minimums:
- Single-life: $25,000
- Joint-life: $50,000
- Premium bands:
- Band 1: $15,000 – $99,999
- Band 2: $100,000 – $249,999
- Band 3: $250,000 – $499,999
- Band 4: $500,000 – $999,999
- Band 5: $1,000,000+
- COI (Cost of Insurance) charges:
- 10 year: pay for 120 months
- 15 year: pay for 180 months
- 20 year: pay for 240 months
- Guaranteed cash value: beginning of year 6
Other Life Insurance Products
Canada Life offers Critical Illness Insurance, Disability Insurance, Health and Dental Insurance, and Creditor Insurance as a riders to term or permanent life insurance plans, but also as its standalone product.
Canada Life’s critical illness insurance provides consumers with a tax-free payment when diagnosed with a serious condition. The terms and conditions of your contract will dictate which conditions are covered. This will help you cover daily costs and retirement savings, allowing you to fully concentrate on your recovery.
Key highlights:
- Receive a tax-free, one-time payout when you are diagnosed with a covered condition
- Offers full coverage for life, unless you add return-of-premium benefit
- Optional return-of-premium benefit to get money back
- Finances to cover medical expenses, mortgage and pay off debts
- Offers maximum coverage of $2.5 million for up to 25 critical illnesses
- Offers partial payouts for 8 different conditions
- Survival period of usually 0 days
- Options of 10- and 20-year terms or coverage up to 100 years of age
Canada Life’s disability insurance provides consumers with a tax-free monthly payment when diagnosed with an illness or injury that keeps them from working. The terms and conditions of your contract will dictate which conditions are covered, chronic pain or mental health issues can qualify. This will help you replace your income and cover expenses during your recovery.
Key highlights of disability insurance:
- Receive a tax-free, monthly payment when your illness or injury affects your work
- Can add coverage on top of employer insurance for better coverage
- Monthly benefit can cover up to 80-90% of income up to $25,000
- Premium costs range from 1-9% of your salary
- Offers benefit periods of 1, 2, 5, 10 years, or until the age of 65
Lifestyle Protection Plan
- It offers income replacement ranging from $3,000 to $25,000 based on one’s age and work and is open to Canadians ages 18 to 60. Benefit periods might range from two to ten years or even up to age 65.
Independence Plan
- Offering a maximum of $3,000 in income replacement and benefit periods of 1, 2, or 5 years, or until age 65, it is open to Canadians ages 18 to 60.
Canada Life’s health and dental insurance plans cover eligible costs when you pay a monthly premium. Their plans cover:
- Routine dental services
- Eye exams, glasses, contact lenses and laser surgery
- Prescription drugs
- Physiotherapy, chiropractor visits and massage therapy
- Social workers and psychologists
- Naturopaths, dieticians and acupuncturists
Canada Life’s creditor insurance offers a unique coverage product that provides benefit amounts to match large debts like mortgage, loans and lines of credit. It also helps you cover unexpected life events:
- Critical illness
- Disability
- Involuntary job loss
- Death
Canada Life Insurance Customer Reviews
Many Canada Life clients are satisfied with their experience with the company:
Advisors are well-educated and knowledgeable on insurance policies
Effective quote estimations with good benefits for reasonable prices
High rates of return
However, some customers have found that:
Low transparency on the website which offers limited information on policies
Difficult to obtain quotes as it can only be done through advisors
Get In Touch With Us Today
If you are unsure of what’s the best insurance plan or company for you, working with a life insurance specialist can help you find the best solution to fit your particular situation. At Protect Your Wealth, we’ve been providing expert advice for all types of life insurance since 2007. As your trusted Life Insurance broker and financial planner, we work with you to create a plan for your family or business that covers and meets your needs.
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today. We’re proudly based out of Hamilton, and service clients anywhere in Ontario, Alberta, and British Columbia, including areas such as Toronto, Calgary, and Vancouver.
FAQs about Canada Life Insurance
Canada Life has a financial strength rating of A+ from AM Best Company.
Canada Life offers a range of life insurance products, including term life insurance, permanent life insurance, and other insurance products. They also offer other insurance products such as critical illness insurance, disability insurance, and group benefits insurance.
Canada Life has recently combined with Great-West Life and London Life to create one of the largest life insurance brands and is now a subsidiary of Great-West Lifeco, as well as a member of the Power Corporation group of companies.
Canada Life advisors are praised for their expertise on insurance policies, effective quote estimations, and good benefits for reasonable prices with high rates of return. However, negative reviews suggest limited transparency on their website and the difficulty of obtaining quotes as it can only be done through advisors.
The type of life insurance you should get from Canada Life depends on your individual circumstances, financial situation, and needs. It’s best to consult with a licensed insurance advisor or agent who can provide you with personalized recommendations based on your unique situation. Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today.
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