Top 5 Life Insurance Companies for Self-Employed Canadians

Talk to one of our experienced advisors today!

8 minute read

Originally published: September 10, 2024

Get life insurance with multiple sclerosis in Canada

Top 5 Life Insurance Companies for Self-Employed Canadians

Talk to one of our experienced advisors today!

8 Minute read

Originally published: September 10, 2024

Get life insurance with multiple sclerosis in Canada

As a self-employed individual, you know the importance of protecting both your personal and business interests. But without any employer benefits, it’s up to you to find the right coverage both for your family and your business. But with so many options available, how do you know which provider suits your needs?

In this blog, we’ll explore the top 5 life insurance companies for self-employed Canadians to help you make an informed decision for long-term peace of mind.

Why is Life Insurance Important for Self-Employed Canadians?

As a self-employed individual, you enjoy the freedom of being your own boss, but with that freedom comes unique financial challenges. Unlike traditional employees, you don’t have the benefit of employer-provided health or life insurance. This leaves you responsible for securing your own safety net. That’s where life insurance comes in.

Without a steady paycheck or company benefits, your income might fluctuate from month to month. While you may have good months, there could also be times when business slows down, and it becomes harder to cover expenses. If you were to pass away unexpectedly, this financial uncertainty could be passed on to your loved ones. Life insurance ensures they’re financially protected, covering costs like mortgage payments, business debts, and everyday living expenses.

For entrepreneurs, having life insurance is a key component of financial security. It can provide peace of mind that your family and your business will be taken care of no matter what happens.

Choosing the right life insurance provider is essential. Look for companies that understand the needs of self-employed Canadians, offering flexible policies that can adjust to your changing circumstances. Whether you’re just starting out or running an established business, life insurance is a critical part of your financial plan.

Now that we’ve covered the importance of life insurance for self-employed individuals, let’s dive into Protect Your Wealth’s top recommendations. These companies have been carefully chosen based on their flexibility, affordability, and the unique benefits they offer to entrepreneurs and freelancers. Whether you’re just starting your business or looking to expand your coverage, these top life insurance providers offer tailored solutions that can adapt to your changing needs. Let’s explore what makes each of these companies stand out for self-employed Canadians.

You should consider no medical life insurance if you don’t mind a smaller death benefit, are looking for coverage as fast as possible, you do not qualify for traditional coverage, or you don’t want to do a medical exam.

Manulife Financial 

Manulife offers flexibility that’s perfect for self-employed individuals who need to balance personal and business expenses. Entrepreneurs often face variable income, and Manulife understands this by offering customizable term life insurance plans. You can adjust your coverage and payment structure as your financial situation changes, ensuring that both your family and your business remain protected.

Manulife Financial Key Features

  • Customizable Coverage: Tailor policies to suit both personal and business needs.

  • Business Riders: Offers business-related riders like critical illness and disability coverage, providing extra security.

  • Affordability: Competitive premiums that don’t compromise on comprehensive coverage.

  • Flexible Terms: Term options that adjust to changing needs, ensuring that you only pay for the coverage you need at any given time.

  • Financial Strength: Manulife’s strong financial backing gives you peace of mind for the long term.

This combination of flexibility, affordability, and comprehensive protection makes Manulife a top choice for self-employed Canadians.

Sun Life Financial

Sun Life is ideal for entrepreneurs who are looking for affordable and straightforward life insurance. Their term life insurance products provide essential coverage at lower premiums, which is perfect for business owners managing fluctuating income. Sun Life’s easy-to-use online tools allow you to manage your policy effortlessly, whether you’re on the go or handling business tasks.

Sun Life Financial Key Features

  • Affordable Term Life: Lower-cost term life insurance that doesn’t skimp on protection.

  • Online Management: Streamlined online tools for busy entrepreneurs to handle their policies efficiently.

  • Additional Protection: Riders for critical illness and disability help provide coverage in case of unexpected health issues.

  • Flexible Options: Available for both term and permanent coverage, allowing you to scale your insurance based on business growth.

  • Comprehensive Support: Sun Life offers exceptional customer service to help you navigate your insurance needs, from setup to claim filing.

The combination of affordability and ease of management makes Sun Life a top choice for self-employed individuals who need reliable coverage.

Canada Life Assurance Company

Canada Life is a standout option for self-employed individuals due to its broad product offerings and strong financial strength. Canada Life offers flexibility in its policies, allowing business owners to create custom plans that suit both personal and professional financial needs. In addition to life insurance, they provide wealth management services that can help you build your assets while protecting your loved ones and business.

Canada Life Assurance Company Key Features

  • Customizable Plans: Adjust your coverage to protect both your business and personal interests.

  • Riders for Entrepreneurs: Business-focused riders like key person insurance or buy-sell agreements help keep your business afloat in case of loss.

  • Wealth Management Services: Access to investment options and financial planning to help manage both your business and personal wealth.

  • Critical Illness Coverage: Comprehensive protection in case of serious health issues that could affect your ability to run your business.

  • Financial Stability: Backed by strong financial ratings, ensuring that Canada Life will be there when you need it.

Canada Life’s broad range of services makes it ideal for entrepreneurs looking for both protection and long-term financial growth.

iA Financial Group (Industrial Alliance)

iA Financial Group is perfect for self-employed individuals who want quick and hassle-free coverage. Their no-medical life insurance options make it easy to get insured without the lengthy application process, which can be a major advantage for busy entrepreneurs. With flexible payment options, iA Financial also allows you to adjust your premiums to match your variable income.

iA Financial Group (Industrial Alliance) Key Features

  • No-Medical Policies: Quick and easy approval without the need for extensive health exams.

  • Flexible Payment Options: Tailor your premiums based on your income and business performance.

  • Term and Permanent Options: Choose from flexible term life insurance or opt for permanent coverage if you’re looking for long-term protection.

  • Customizable Riders: Add-on options such as disability and critical illness coverage help provide financial security for health-related events.

  • Business Protection: Offers options like key person insurance to protect your business’s continuity.

The ease of application and flexible payment structure make iA Financial a great option for busy entrepreneurs.

RBC Insurance

RBC Insurance is highly rated for its customer service and fast claims process, which is essential for business owners who need efficient solutions. RBC offers both term and permanent life insurance policies, with competitive pricing that makes it accessible for self-employed individuals. Their permanent life policies also offer cash value growth, which can serve as a long-term financial tool for business owners.

RBC Insurance Key Features

  • Competitive Pricing: Affordable premiums for both term and permanent policies.

  • Fast Claims Process: Efficient claims handling that is especially important for business owners needing quick resolutions.

  • Permanent Life Policies: Cash value growth in their permanent life plans, offering savings and investment potential.

  • Critical Illness and Disability Riders: Additional protection for both personal and business financial security.

  • Strong Financial Stability: RBC’s reputation for financial strength ensures reliability for the long term.

With its focus on customer service, competitive pricing, and financial security, RBC Insurance is an excellent choice for self-employed Canadians.

Frequently Asked Questions (FAQs) About Life Insurance for Self-Employed Canadians

Yes, life insurance is important for self-employed Canadians to protect their families and businesses in case of death. It covers personal expenses and helps with business continuity.

Generally, life insurance premiums are not tax-deductible. However, policies related to business purposes, like key person insurance, may offer deductions.

Term life insurance is usually the most affordable and flexible, but whole life can provide long-term security and investment opportunities.  To find the best life insurance policy tailored to your needs, contact Protect Your Wealth today for expert guidance and personalized advice!

You should calculate your total debts, living expenses, and business obligations. A financial advisor can help determine the right coverage.

For a more detailed explanation on how much life insurance you should get, check out our blog: 5 Easy Tips to Discover How Much Life Insurance You Need

Yes, some companies offer no-medical-exam life insurance, which may be faster but can come with higher premiums or lower coverage amounts.

Find a solution for what you’re looking for 

Ultimately, a well-structured trust can provide peace of mind, knowing your estate will be managed and distributed exactly as you wish.  At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need. 

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, British Columbia, Alberta, and Manitoba including areas such as Toronto, Victoria, Calgary, and Winkler

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