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The best bank-owned life insurance in Canada is RBC if you're looking at affordability. But that's just one consideration; the best option depends on your specific needs.
For starters, here are rates for term life insurance from bank-owned insurance compared to PolicyMe.
Here's a look at the top bank-owned life insurance companies with quotes (for a 34-year-old non-smoking man, coverage for $500,000 over 20 years):
Takeaway: BMO has a wide range of life insurance policies, which is good for customers that want options. But compared to other providers, there are more medical requirements at the time of application.
Takeaway: Canada Life has the largest participating fund in Canada, sitting at $49B (compared to Sun Life's $16B and Manulife's $13B.) This makes them a viable choice for participating permanent life insurance.
Takeaway: CIBC only has term lengths of 10 and 20 years. There's an option to convert your policy to a Term 100 plan (a type of permanent coverage).
Takeaway: Desjardins has a variety of life insurance products you'd expect most insurance companies to have, including term and permanent life insurance options.
Takeaway: Manulife has a host of insurance products: term life insurance, permanent life insurance, universal life insurance, etc. They also have the option to combine insurance policies.
Takeaway: RBC is the highest revenue bank in Canada. Their term life insurance options are quite wide-ranging, with rates that can be pretty competitive.
Takeaway: Scotiabank life insurance is only sold to existing banking customers. They generally have less expertise in the insurance space.
Takeaway: PolicyMe is a Canadian insurtech company that offers affordable term life insurance, with a no-brainer online application process. Here's why you might consider PolicyMe over a bank:
Because our advisors aren't incentivized to oversell you on life insurance, you get honest advice — the kind of real-talk advice we'd give our closest friends.
Buying life insurance through a bank may not be the best option for everyone. Need some pointers? Here are some examples of what an advisor can help with:
The bottom line? Our advisors read the fine print so you don't have to.
There are two main ways to buy life insurance from a bank in Canada — either from the insurance division of the bank or an independent insurance broker.
Let's get into some tips to get the best banked-owned life insurance Canada has to offer.
You can purchase life insurance policies from a few key sources in Canada. These include financial institutions such as insurance companies, insurtech companies, brokers and banks.
Insurance companies are a popular place, offering a wide range of policies, including term, universal and permanent life insurance. Banks also offer life insurance policies, but their selection is limited and they may not be able to give you the personalized attention you need. Ultimately, the best place to buy life insurance depends on your needs and budget.
Business-owned life insurance, also known as corporate-owned life insurance (COLI), is a life insurance policy that a company purchases on the lives of key employees, with the company being the policyholder and beneficiary.
Business-owned life insurance can also serve as a tax-efficient risk management strategy for the company, providing insurance coverage for key employees. The company pays the premiums for the insurance policy. Upon the passing of the insured employee(s), the company receives tax-free death benefits (or insurance proceeds), which can further enhance the company's risk management and financial stability.
Want to learn more about other life insurance options? Here are more reviews of Canadian life insurance companies:
Background research and fact-checking by Jordan Rodrigues, licensed life insurance specialist at PolicyPlan.ca have been pulled from a subject matter expert interview conducted in 2023. All reviews were fact-checked and updated with new information.
Term Life Insurance Quote Online | TD Insurance. (n.d.). https://www.tdinsurance.com/products-services/life-insurance/quote/en#!/
WinQuote®. (n.d.). https://www.winquote.net/