Canada Life Company Review: Benefits, Features and Pricing

Canada Life is one of the oldest and largest life insurance companies in Canada, with a history dating back to 1847. The company offers a wide range of insurance and financial products, including term and permanent life insurance, critical illness insurance, disability insurance, health insurance, creditor insurance, workplace benefits, and more. In this article, we will review some of the benefits, features and pricing of Canada Life’s insurance products, and compare them with other providers in the market.

Benefits of Canada Life Insurance

Canada Life has several benefits that make it a reputable and reliable insurance provider, such as:

Financial strength: Canada Life has a strong financial position, with $396 billion in assets and a financial strength rating of A+ from A.M. Best. This means that the company has the ability to pay out claims and meet its obligations to policyholders.
Experience and expertise: Canada Life has been in the insurance business for over 170 years, and has accumulated a wealth of experience and expertise in the industry. The company has a team of qualified and professional advisors who can help customers find the best solutions for their needs and goals.
Customer service: Canada Life has a high level of customer satisfaction, with a 92% retention rate and a 96% claims approval rate. The company also offers online services and tools, such as My Canada Life at Work and My Canada Life, that allow customers to access and manage their policies, claims, and investments anytime and anywhere.
Product diversity and flexibility: Canada Life offers a diverse and flexible range of insurance products, that can cater to different needs, preferences, and budgets. The company allows customers to customize their policies with various options, riders, and benefits, such as disability waiver of premium, accidental death, guaranteed insurability, children’s term insurance, living benefits, and more.

Features of Canada Life Insurance Products

Canada Life offers two main types of life insurance products: term and permanent. Term life insurance provides coverage for a specific period of time, such as 10, 20, or 30 years, or to age 65 or 85. Permanent life insurance provides coverage for the entire lifetime of the insured, and also accumulates cash value that can be used for various purposes, such as retirement income, education funding, or estate planning. Here are some of the features of Canada Life’s term and permanent life insurance products:

Term life insurance: Canada Life’s term life insurance products are called My Term, and they offer level premiums and coverage for the chosen term. The policies are renewable and convertible, which means that customers can renew their policies without having to undergo medical exams, or convert their policies to a permanent product before the end of the term or age 70, whichever comes first. The minimum coverage amount is $500,000, and the maximum is $20,000,000. The policies also include a terminal illness benefit, which pays out 50% of the face amount if the insured is diagnosed with a terminal illness with less than 12 months to live.
Permanent life insurance: Canada Life’s permanent life insurance products are called Wealth Achiever and Estate Achiever, and they offer level premiums and coverage for life, as well as cash value accumulation and tax advantages. The policies also include a guaranteed cash value, which is the minimum amount that the policy will pay out upon surrender or death, regardless of the performance of the underlying investments. The policies also include a paid-up insurance option, which allows customers to stop paying premiums after a certain number of years and still maintain their coverage. The minimum coverage amount is $25,000, and the maximum is $20,000,000. The policies also include a terminal illness benefit, which pays out 50% of the face amount if the insured is diagnosed with a terminal illness with less than 12 months to live.

Pricing of Canada Life Insurance Products

The pricing of Canada Life’s insurance products depends on various factors, such as the type, amount, and term of coverage, the age, gender, health, and lifestyle of the insured, and the options and riders chosen. The company uses a rating system that assigns a risk class to each applicant, based on their medical history, family history, and personal habits. The risk classes are:

Preferred Plus: This is the best and lowest risk class, and it is reserved for applicants who have excellent health, no family history of serious illnesses, and no tobacco or nicotine use in the past 12 months.
Preferred: This is the second-best and second-lowest risk class, and it is reserved for applicants who have very good health, no family history of serious illnesses, and no tobacco or nicotine use in the past 12 months.
Standard Plus: This is the third-best and third-lowest risk class, and it is reserved for applicants who have good health, no family history of serious illnesses, and no tobacco or nicotine use in the past 12 months.
Standard: This is the fourth-best and fourth-lowest risk class, and it is reserved for applicants who have average health, no family history of serious illnesses, and no tobacco or nicotine use in the past 12 months.
Substandard: This is the worst and highest risk class, and it is reserved for applicants who have poor health, family history of serious illnesses, or tobacco or nicotine use in the past 12 months.

The lower the risk class, the lower the premium rate. The higher the risk class, the higher the premium rate. Here are some examples of the monthly premium rates for Canada Life’s term and permanent life insurance products, based on a $500,000 coverage amount for a 35-year-old male non-smoker:

Term 10: $23.85 for Preferred Plus, $26.55 for Preferred, $29.70 for Standard Plus, $33.30 for Standard, and $66.60 for Substandard.
Term 20: $36.75 for Preferred Plus, $40.95 for Preferred, $45.90 for Standard Plus, $51.30 for Standard, and $102.60 for Substandard.
Term 30: $57.75 for Preferred Plus, $64.35 for Preferred, $72.45 for Standard Plus, $81.00 for Standard, and $162.00 for Substandard.
Term to 65: $69.30 for Preferred Plus, $77.40 for Preferred, $87.75 for Standard Plus, $98.10 for Standard, and $196.20 for Substandard.
Term to 85: $117.60 for Preferred Plus, $131.40 for Preferred, $149.40 for Standard Plus, $167.40 for Standard, and $334.80 for Substandard.
Wealth Achiever: $402.15 for Preferred Plus, $447.00 for Preferred, $507.15 for Standard Plus, $567.30 for Standard, and $1,134.60 for Substandard.
Estate Achiever: $402.15 for Preferred Plus, $447.00 for Preferred, $507.15 for Standard Plus, $567.30 for Standard, and $1,134.60 for Substandard.

Comparison with Other Providers

Canada Life is not the only insurance provider in the market, and there are other companies that offer similar or better products, features, and pricing. Here are some of the competitors of Canada Life, and how they compare with the company:

Manulife: Manulife is one of the largest and most well-known insurance companies in Canada, with a history dating back to 1887. The company offers a range of insurance and financial products, including term and permanent life insurance, critical illness insurance, disability insurance, health insurance, travel insurance, and more. Manulife’s term life insurance products are called Family Term and Business Term, and they offer level premiums and coverage for the chosen term, which can range from 10 to 40 years, or to age 65 or 100. The policies are renewable and convertible, and the minimum coverage amount is $100,000. Manulife’s permanent life insurance products are called Performax Gold and Manulife UL, and they offer level premiums and coverage for life, as well as cash value accumulation and tax advantages. The policies also include a guaranteed cash value, a paid-up insurance option, and a terminal illness benefit. The minimum coverage amount is $25,000. Manulife’s premium rates are generally lower than Canada Life’s, especially for term life insurance. For example, the monthly premium rate for a $500,000 term 10 policy for a 35-year-old male non-smoker is $19.80 for Manulife, compared to $23.85 for Canada Life.
Sun Life: Sun Life is another large and well-known insurance company in Canada, with a history dating back to 1865. The company offers a range of insurance and financial products, including term and permanent life insurance, critical illness insurance, disability insurance, health insurance, dental insurance, and more. Sun Life’s term life insurance products are called SunTerm and SunSpectrum Term, and they offer level premiums and coverage for the chosen term, which can range from 10 to 40 years, or to age 65 or 85. The policies are renewable and convertible, and the minimum coverage amount is $50,000. Sun Life’s permanent life insurance products are called SunSpectrum Permanent and SunUniversalLife, and they offer level premiums and coverage for life, as well as cash value accumulation and tax advantages. The policies also include a guaranteed cash value, a paid-up insurance option, and a terminal illness benefit. The minimum coverage amount is $10,000. Sun Life’s premium rates are similar to Canada Life’s, but the company offers more options and flexibility for term