While some opt to find a policy through a dedicated insurance company, others choose to look at bank owned life insurance to partner with their current banking habits. There are a ton of options through your bank, including BMO Insurance, RBC Insurance, or TD Insurance.
But how do you get the best deal on life insurance coverage from a bank? We'll tell you how to find the best life insurance through a bank and share some tips for finding the best life insurance in Canada (so be sure to read to the end!).
In Canada, there are 3 ways to buy an insurance policy from a bank:
If you work directly with the insurance division of a bank, you’ll receive options and quotes for coverage from that bank only. After all, banks want to sell you their coverage, not someone else’s.
If you work with an independent insurance broker, you’ll receive options and quotes from multiple insurance providers. This will let you see how the rates for a particular bank compare to rates from other banks and even rates from a dedicated insurance company.
To give you some ballpark estimates, here are sample rates for life insurance coverage from major Canadian banks:
Want to make sure you’re getting the best life insurance through a bank? Here’s what to consider when sizing up different financial institutions in Canada:
Life insurance is one of the most important purchases you can make. Why?
Life insurance protects the people who are financially dependent on you. It ensures that they’ll have enough money to pay for their expenses if you die unexpectedly and your income disappears. It won’t help with the emotional pain of losing a loved one, but it does cushion the financial loss.
When you buy an insurance policy, you agree to pay monthly premiums to cover the cost of your coverage. If you die while holding your policy, your insurer will have to cough up money to pay out a death benefit to your beneficiary (or beneficiaries). A death benefit is a tax-free lump sum payment that your beneficiary can use in any way they want (like to pay off a mortgage or cover the cost of competitive gymnastics lessons).
Bank owned life insurance can be a great product, especially when you have had a positive experience with other financial products under their brand already.
When you’re informed of all the options available to you, you can rest easy knowing that you found the best life insurance in Canada for your needs, bank owned or not.