With so many life insurance companies in Canada offering different products, rates, and features, choosing the right provider can feel like comparing apples to oranges. Here’s how to evaluate insurers — and why a broker can make the process far less stressful and far more effective.
What to Look for in a Life Insurance Company
1. Financial Strength
You want a company that will be around for the long haul. Look for insurers with strong credit ratings from agencies like AM Best, DBRS Morningstar, or Moody’s.
Examples:
- Canada Life: One of the oldest and most financially stable providers in the country
- Sun Life: A global insurer with consistently strong ratings
- Manulife: Highly rated and known for its long-standing financial strength You want a company that will be around for the long haul. Look for insurers with strong credit ratings from agencies like AM Best, DBRS Morningstar, or Moody’s.
2. Product Selection
Some companies specialize in low-cost term insurance, while others offer more advanced permanent policies like whole life or universal life with robust investment features.
Examples:
- Empire Life: Known for flexible term and whole life options
- iA Financial Group (Industrial Alliance): Offers a wide mix of term, whole, and universal life
- BMO Insurance: Popular for competitively priced term insurance Some companies specialize in low-cost term insurance, while others offer more advanced permanent policies like whole life or universal life with robust investment features.
3. Underwriting Style
Each insurer evaluates health risks differently. Some are more lenient with pre-existing conditions, smoking history, or age than others.
Examples:
- Assumption Life: Known for fast approvals and simplified underwriting
- Canada Protection Plan: Offers no-medical and simplified issue options for harder-to-insure clients
- Desjardins: More flexible underwriting for non-traditional applicants Each insurer evaluates health risks differently. Some are more lenient with pre-existing conditions, smoking history, or age than others.
4. Customer Service
Good service matters. Check online reviews, Better Business Bureau ratings, and client testimonials to see how the company handles claims and questions.
Examples:
- Sun Life: Frequently recognized for excellent digital tools and support
- RBC Insurance: Strong in customer satisfaction and claim servicing
- Equitable Life of Canada: Noted for its advisor support and client care Good service matters. Check online reviews, Better Business Bureau ratings, and client testimonials to see how the company handles claims and questions.
5. Cost vs. Value
The cheapest policy isn’t always the best. Look at what’s included — like conversion options, policy riders, or access to cash value — when comparing quotes.
Examples:
- Manulife: Offers a good mix of features and long-term value
- Desjardins: Competitive pricing with strong rider options
- Canada Life: Known for flexible policies that balance cost and customization The cheapest policy isn’t always the best. Look at what’s included — like conversion options, policy riders, or access to cash value — when comparing quotes.
Why You Should Use a Life Insurance Broker
A broker works with multiple insurers and acts on your behalf — not the insurance company’s. They can:
- Compare rates from dozens of Canadian insurers
- Find companies that match your specific health or financial profile
- Explain policy options clearly
- Help you apply and get approved faster
Since brokers are paid by the insurance company (not you), there’s no extra cost to benefit from their expertise.
When a Broker Makes the Biggest Difference
- You have health conditions or past insurance denials
- You want both term and permanent coverage
- You’re unsure how much coverage you need
- You want to avoid high-pressure sales tactics from captive agents
Final Thought
Choosing a life insurance company is a big decision — and not just about price. It’s about finding a policy that works for your life now and in the future. A broker gives you the guidance, options, and peace of mind to make the right choice the first time.
If you would like for a licensed professional to help you explore your options, fill in a quick form below to get connected to a Canadian Insurance Broker.
