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The Complete Guide to the Best Life Insurance in Canada

In a world of complexity, we bring you simplicity.

Welcome to LifeSimple, where safeguarding your family's financial future has never been more straightforward. 

We offer some of the best life insurance in Canada for your specific needs. Insurance of life shouldn't be a maze of confusion; it should be an accessible shield for your loved ones. 

In this blog, we'll explore the best insurance options in Canada, ensuring you have the knowledge and power to protect what matters most. Let's discover the best ways to secure your family's tomorrow!

What is Life Insurance?

Life insurance is a financial product that offers protection and peace of mind for you and your loved ones.It is a contract between an individual (the policyholder) and an insurance company. In exchange for regular payments - known as premiums - the insurance company promises to provide a lump-sum payment to the beneficiaries named in the policy upon the policyholder's passing.This money can be used to cover various expenses, such as funeral costs, outstanding debts, or ongoing living expenses for the family. Insurance serves as a safety net, ensuring that your family and dependents are financially secure even if you are no longer there to provide for them. It's a crucial part of any comprehensive financial plan, especially if you have people who rely on your income or if you want to leave a financial legacy.

What Types of Insurance Policies are available in Canada?

1. Term Life Policy

Term life insurance is the simplest and most affordable type of insurance policy. It provides coverage for a specified period which can range from 5 to 30 years. If the policyholder passes away during the term, the death benefit is paid out to the beneficiaries by the insurance company. If the policyholder survives the term, the coverage expires, and there is no payout. Term life policy is an excellent choice for those looking for straightforward, cost-effective coverage to protect their family during a specific period of their life, such as while raising children or paying off a mortgage.

2. Permanent Life Policy

Whole or permanent life insurance, offers lifelong coverage. It's also considered guaranteed insurance, as it offers a payout no matter what happens. If you like investing in your family and like a "set and forget" style of insurance, then this coverage is likely for you. It not only pays a death benefit but also includes a cash value component that grows over time. This type of insurance costs more than term life, but it provides insurance coverage for your entire life, builds cash value that can be borrowed against, and can potentially earn dividends. It is often chosen by those who want both protection and a long-term financial investment.

Understanding the difference between term vs whole can help you decide which is the better option in Canada.

How Life Insurance Works?

How life insurance works in Canada

Insurance for life is a straightforward concept: you pay premiums to an insurance company, and in return, the insurance company promises to pay out a death benefit to your chosen beneficiaries when you pass away.

Here's a basic overview of how it works:

Step 1: Purchase a Policy

To get insurance, you choose a policy that suits your needs and budget, considering factors like coverage amount and term length.

Step 2: Pay Regular Premiums

You pay regular premiums, usually monthly or annually, to the insurance company. The premium amount is determined based on factors like your age, health, and the type of policy. Your insurance company or broker will help guide you on your payment frequency and what you can afford.

Step 3: Receive the Payout

The beneficiaries, typically your family members, receive the lump-sum payment, which can be used to cover expenses or financial needs. This is tax-free!

Having a complete understanding of how life insurance works is a vital for providing financial security and peace of mind, making it essential to understand the different types available and how they work to choose the right coverage for your unique circumstances.

Read Also: Is Life Insurance Taxable in Canada?

Finding The Best Life Insurance Companies in Canada

Best life Insurance company in Canada

When it comes to choosing the best life insurance in Canada, there are several critical factors to consider to ensure that your coverage aligns with your unique needs and circumstances:

1) Coverage Amount

The best insurance companies will ensure you're adequately covered. The amount of coverage is one of the most important decisions you'll make (for whole or term life policy coverage). It should be sufficient to meet the financial needs of your beneficiaries. A rule of thumb is to multiply your annual income by 6-10 times. However, the coverage amount shouldn't be made rashly. Consider your outstanding debts, ongoing living expenses, and any future financial goals, such as college tuition for your children, when determining the coverage amount. Talking to a professional will give you a deeper understanding of how much insurance you need.

2) Premiums & Affordability

The premium is the amount you pay for your insurance coverage. It's crucial to choose a premium that you can comfortably afford over the long term. Keep in mind that premiums can vary based on factors such as your age, health, and the type of policy. Balancing adequate coverage with affordability is essential.

3) Term Length

If you're considering term life policy you'll need to decide on the duration of the policy. The term length should align with your financial goals and the time frame during which your loved ones will depend on your income. Common term lengths are 10, 20, or 30 years.

4) Assessing your Life Insurance Policy Needs

Assessing your insurance needs is another crucial step in finding the right policy. Do you want to be covered for critical illness insurance? What about disability insurance? How much will this affect premiums paid?

These questions are a drop in the bucket. The point is that everyone's circumstances are unique, so it's essential to consider your specific financial situation, goals, obligations and responsibilities.

Here's a basic checklist on how to go about your policy:

  • Evaluate Your Financial Obligations: Start by taking stock of your financial obligations. Consider your outstanding debts, including mortgages, personal loans, and credit card balances. Calculate the total amount needed to pay off these debts.
  • Family and Dependent Needs: Think about the financial needs of your family or dependents. Do they need dental, disability, critical illness or medical insurance? This includes ongoing living expenses, education costs, and other future financial goals, such as retirement.
  • End-of-Life Expenses: Account for expenses such as funeral and burial costs, as well as any potential medical bills in a whole or term insurance policy.
  • Existing Savings and Assets: Take into account any existing savings, investments, and assets that can contribute to your family's financial security.
  • Estate Planning: If you have specific estate planning goals, such as leaving a legacy or supporting charitable causes, factor these into your needs.

5) Comparing different Insurance Providers in Canada

Canada's insurance market is diverse, with numerous providers offering a wide range of policies. When seeking the best life insurance in Canada, consider both established market leaders and niche providers that cater to specific needs:

6) Canadian Insurance Companies: Market Leaders

Established insurance companies like Manulife, Sun Life Financial, Industrial Alliance (IA), Royal Bank (RBC), BMO, Canada Life and Desjardins have a strong presence in the Canadian insurance market. They offer a wide variety of insurance products, from term to whole life, and often have a long history of financial stability and customer trust.

We know... That's a lot of insurance companies!

However, if you work with a qualified and reputable life insurance broker, they can find you the best coverage made for you at the best price (More on that in a bit!).

7) Niche Providers for Specific Needs:

Some insurance providers specialize in niche areas, such as policies tailored for seniors, individuals with pre-existing health conditions, or unique financial objectives. These niche providers may offer customized solutions that better suit your circumstances.

To choose the right insurance provider, consider factors like the provider's reputation, financial strength, customer service, and the specific policies they offer. Comparing multiple providers and seeking quotes can help you make an informed decision that meets your coverage needs and budget.

Again, the process can be sped up considerably when you search for a insurance broker.

How to Choose the Right Life Insurance & Get the Best Deal?

Types of life insurance in Canada

Option 1: Meticulous, DIY Method: Comparing Quotes and Policies

If you're doing this yourself (trying to find the best insurance company) then get ready. Since you'll be paying premiums for years for most coverage, it's important that you get as many pricing details as possible.

To ensure you're getting the best value for your money, it's crucial to compare quotes and policies from various companies.

Here's how to go about it:

  • Try to Get Multiple Quotes: Obtain quotes from different insurance companies. Many providers offer online tools that can give you preliminary quotes based on your information.
  • Review Policy Details: Examine the policies closely to understand what's covered, the length of coverage, and any additional benefits. Ensure that the policies align with your assessed needs.
  • Consider Premiums: Compare premium and insurance costs to find a balance between affordability and adequate coverage. Be cautious about policies with unrealistically low premiums, as they might have limited benefits.
  • Read Customer Reviews: Research customer reviews and feedback on the insurance providers you're considering. This can provide insights into the company's customer service and claims handling. Ensure to look at all reviews - the positives and negatives - and find insights about the types of insurance policies you're seeking (whole, universal , term etc).

Option 2: Simplifying The Process: Get a Life Insurance Broker (ie: LifeSimple)

The first way is possible, but it is meticulous to do it yourself.

An insurance broker can be a valuable resource in the process of selecting the right policy. At LifeSimple, we understand the importance of providing you with expert guidance and custom solutions to meet your needs. Here's how an insurance broker, such as LifeSimple, can assist you:

  • Practical, Expert Advice: Our experienced brokers have in-depth knowledge of the Canadian insurance market and can provide you with expert advice on the best policies available.
  • Customized Solutions: We take the time to understand your individual circumstances and financial objectives, ensuring that the insurance policy recommended is personalized to your needs.
  • Access to Multiple Providers: LifeSimple has access to multiple insurance providers, allowing us to offer a variety of options and help you compare policies effectively. This also allows you to select a company and policy at the best price (At LifeSimple, we work with the major, trusted companies we mentioned earlier: Sunlife, Desjardins, BMO, RBC, Manulife, IA, Canada Life, Assumption Life and more).
  • Simplified Process: We simplify the complex insurance process by helping you with application paperwork, underwriting, and policy management.
  • Ongoing Support: LifeSimple provides ongoing support, ensuring that your coverage remains suitable as your life circumstances change. Need to renew a term insurance policy, even in your 60s? No sweat, we've got you!
Read Also: How to Buy Life Insurance in Canada?

Common Medical Exams & Typical Approval Times

Common Requirements & Medical Exams

  • Health Questionnaire: Most applications require you to answer health-related questions. This is regarding any conditions you may have, medical history, dangerous hobbies, prescriptions, and if you're a smoker or non-smoker.
  • Medical Exam: Depending on the coverage amount and your health history, you may need to undergo a medical exam. It includes a physical, blood test, urine test and possibly an EKG for heart health.
  • Medical Records: The insurer may request access to your medical records, especially if you have a complex health history or pre-existing medical conditions.

How Long Does It Take to Get Approved?

The approval process varies. Some policies offer immediate coverage, these are typically called simplified issue life insurance.

Other insurance policies may take a few weeks to approve, particularly if medical exams or further assessments are needed. Working with a broker can expedite the process by helping you navigate requirements and select a policy that suits your needs and timeline.


There you have it!

We've explored the best insurance options in Canada, ensuring you have the knowledge and power to protect what matters most. Let's discover the best ways to secure your family's tomorrow!

If you're looking for the best life insurance in Canada and want a hassle-free experience, LifeSimple is here to help. Our expert brokers can guide you through the process, ensuring you get the right coverage at the best possible price. Apply now and take the first step in securing your family's financial future.

If you have any other queries, contact us today!

Frequently Asked questions

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