Assumption Life Insurance: 2025 Canadian Review
Our expert's opinion on Assumption Life
Assumption Life’s insurance offering receives a moderate assessment, characterized by strong simplified and no-medical plans but hampered by a complete lack of optional riders, minimal premium flexibility, and unspecified cash-value growth. Compared to industry leaders, Assumption Life strategically avoids direct competition by offering accessible, competitively priced coverage for hard-to-insure individuals rather than feature-rich policies.
Consequently, its plans best serve older applicants or those with pre-existing health conditions seeking straightforward, guaranteed protection without a medical exam.
While financial strength ratings are not publicly available, the insurer has a public Trustpilot score of 3.2/5 from 19 reviews, a claims processing time of several weeks, and policyholder service centered on phone and email with limited digital options.
- ✅No-medical issue up to age 85
- ✅Simplified issue for common health conditions
- ✅High coverage limits up to $750,000
- ✅Permanent coverage options available
- ✅Quick and easy application process
- ✅Guaranteed premiums on core products
- ❌No optional riders available on plans
- ❌Limited selection with no universal life
- ❌Low public customer rating (Trustpilot 3.2/5)
- ❌Reports of slow claims processing
- ❌Limited digital account management tools
Our expert's opinion on Assumption Life
- ✅No-medical issue up to age 85
- ✅Simplified issue for common health conditions
- ✅High coverage limits up to $750,000
- ✅Permanent coverage options available
- ✅Quick and easy application process
- ✅Guaranteed premiums on core products
- ❌No optional riders available on plans
- ❌Limited selection with no universal life
- ❌Low public customer rating (Trustpilot 3.2/5)
- ❌Reports of slow claims processing
- ❌Limited digital account management tools
Score- ✅No-medical issue up to age 85
- ✅Simplified issue for common health conditions
- ✅High coverage limits up to $750,000
- ✅Permanent coverage options available
- ✅Quick and easy application process
- ✅Guaranteed premiums on core products
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Chez HelloSafe, our life insurance experts analyze the coverage options and pricing structures of life insurance policies available on the market each year to provide you with a reliable and unbiased analysis. Thanks to this rigorous methodology, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
Assumption Life Life Insurance Guarantees
Assumption Life is a Canadian insurer known for its simplified and accessible life insurance products, particularly its no-medical options.
They offer a range of term and permanent policies with distinct pricing for smokers and non-smokers, catering to individuals who may have difficulty obtaining coverage elsewhere.
As a mutual company with a long history, Assumption Life distributes its products through a network of independent financial advisors, focusing on personalized service and simplified underwriting.
Through its innovative approach, the company provides valuable protection for families and individuals across Canada.
- Term Life: Affordable, temporary protection for fixed terms (e.g., 15, 20, 25 years), ideal for covering mortgages and income replacement needs.
- Whole Life: Permanent, lifelong coverage with guaranteed premiums and cash value accumulation, including simplified issue and no-medical exam options.
- Hybrid (Simplified Issue): Specialized permanent plans designed for individuals with common health conditions, offering immediate or graded benefits with minimal underwriting.
- Key Riders Available:
- Accidental Death & Dismemberment (AD&D)
- Waiver of Premium for disability (WOP)
- Critical Illness
- Conversion guarantee
- Indexed growth
- Participating dividends
- Education/conjoint annuity
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Guaranteed for the term | Guaranteed for life | ❌ | Graded or immediate benefit |
| 📈 Cash value accumulation | ❌ | Yes, guaranteed growth | ❌ | Yes, on some plans |
| 💸 Policy loans | ❌ | Yes, against cash value | ❌ | Yes, on some plans |
| 🛡️ Available riders | Limited options | Limited options | ❌ | Limited/built-in benefits |
| 🔄 Conversion guarantee | Yes, on select plans | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | ❌ | ❌ | ❌ |
| 💲 Cost of key riders | 5–15% of premium | 5–15% of premium | ❌ | Often included in base premium |
| 🔄 Premium flexibility | ❌ | ❌ | ❌ | ❌ |
| ⏳ Surrender charges | ❌ | Yes, decreasing over 15-20 years | ❌ | Yes, on cash value plans |
| 🎂 Issue age range | 18–70 | 18–85 | ❌ | 18–85 |
| 🔒 Guaranteed level | Premiums for the term | Premiums and benefit for life | ❌ | Premiums for life |
How much does Assumption Life life insurance cost?
Assumption Life determines premiums through a comprehensive underwriting process that evaluates the risk associated with each applicant.
Factors such as your age, health history, smoker status, and lifestyle are carefully assessed to establish a base rate.
This rate is then adjusted based on the specific policy details you select, including the coverage amount and any optional riders, to arrive at your final premium.
- Age: Premiums increase with age, with each decade typically adding about 15% to the base cost.
- Health status: The presence of pre-existing conditions can raise premiums by 20% or more, depending on the severity of the condition.
- Smoker status: Applicants who smoke pay approximately 50% more than non-smokers for the same coverage.
- Coverage amount: The premium rises with the death benefit, for example, increasing by about 10% for each additional $50,000 of coverage.
- Payment term: For permanent policies, limited-pay options (e.g., paying for 20 years) have higher annual premiums compared to policies with lifetime payments.
- Rider costs: Adding optional benefits, such as a waiver of premium or critical illness rider, will typically increase the premium by 3–5% per rider.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 years old, healthy | $500,000 | $38/month | $57/month | $35/month |
| 45 years old, pre-existing condition | $250,000 | $55/month | $80/month | $52/month |
| 40 years old, healthy professional | $1,000,000 | $75/month | $115/month | $70/month |
What are the surrender charges for Assumption Life life insurance?
For Assumption Life permanent insurance policies that accumulate cash value, such as their Whole Life products, a surrender charge is applied if the policy is terminated within a specified number of years after its inception. These charges are designed to allow the insurer to recover the high upfront costs associated with issuing a policy, including underwriting expenses and agent commissions. Term life policies do not have surrender charges as they do not build cash value.
There is a defined waiting period, detailed in the policy contract, during which these charges are active. The surrender charge is highest in the first policy year and decreases systematically each year until it is eliminated entirely, at which point the policy can be surrendered penalty-free. The impact of these charges is a direct reduction from the policy's accumulated cash value; the final amount paid to the policyholder, known as the cash surrender value, is the total accumulated value less the applicable surrender charge and any outstanding policy loans.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 10% | $90,000 returned on $100,000 cash value. The portion of the cash value exceeding the policy's adjusted cost basis is taxable. |
| 2 | 8% | $92,000 returned on $100,000 cash value. The portion of the cash value exceeding the policy's adjusted cost basis is taxable. |
| 3 | 6% | $94,000 returned on $100,000 cash value. The portion of the cash value exceeding the policy's adjusted cost basis is taxable. |
| 4 | 4% | $96,000 returned on $100,000 cash value. The portion of the cash value exceeding the policy's adjusted cost basis is taxable. |
| 5 | 2% | $98,000 returned on $100,000 cash value. The portion of the cash value exceeding the policy's adjusted cost basis is taxable. |
| 6+ | 0% | $100,000 returned on $100,000 cash value. The portion of the cash value exceeding the policy's adjusted cost basis is taxable. |
Example of Decreasing Surrender Charge
To illustrate the decreasing nature of the surrender charge, consider a policy with an accumulated cash value of $25,000.
- Surrendering in year 1 would incur a 10% charge ($2,500), resulting in a precise capital return of $22,500.
- Surrendering in year 5 would incur a 2% charge ($500), resulting in a precise capital return of $24,500.
The Exclusions and Limitations of Assumption Life's Life Insurance
Assumption Life insurance policies contain specific exclusions and limitations under which a death benefit will not be paid:
- Suicide first year: No benefit is paid if death from suicide occurs within the first year of the policy.
- Criminal acts: No benefit is paid if death occurs during the commission of a criminal or illegal act.
- Hazardous activities: Death resulting from participation in high-risk activities like extreme sports is excluded from coverage.
- Private aviation: Coverage excludes death while operating or serving as crew on a non-commercial aircraft.
- War and terrorism: Death as a direct result of an act of war, declared or undeclared, is not covered.
- Intoxication: No benefit is paid if death results from being under the influence of non-prescribed drugs or alcohol.
- Misrepresentation: The policy can be voided if the application contained material misstatements about health or lifestyle.
- Assistance services: The policy does not include additional support like medical teleconsultation or repatriation.
What customers think of Assumption Life's life insurance
The following points summarize the feedback from clients who have subscribed to an Assumption Life insurance policy:
✅ The rates for simplified issue products are often considered competitive.
✅ The application process is frequently described as quick and easy.
❌ A number of customers have complained about slow claims processing.
❌ The digital self-service options available to clients are seen as limited.
Here are examples of reviews left online:
- "Very straightforward process and affordable premiums. My application was approved quickly and customer service was responsive.", Lucas J., May 2024, Trustpilot.
- "Claims took longer than expected and follow-up communication was lacking. Not satisfied with the delay.", Maria S., February 2024, Trustpilot.
How to Contact Assumption Life
| Detail | Information |
|---|---|
| Address | The head office is located at 770 Main St, PO Box 160, Moncton, NB E1C 8L1. |
| Phone | For all inquiries, you can call their client services team at 1-800-455-7337. |
| You can send your questions or service requests to client.services@assumption.ca. | |
| Website | https://www.assumption.ca/en/Individuals/Insurance-Coverage/ |
| Responsiveness / Hours | Client services are available Monday to Friday, from 8:30 a.m. to 4:30 p.m. Atlantic Time. |
| Live chat | A live chat service is not currently offered for customer support. |
| Social media | Assumption Life does not use social media channels for customer service inquiries. |
FAQ
Is the death benefit from an Assumption Life insurance policy taxable in Canada?
In Canada, the lump-sum death benefit paid to a beneficiary from a life insurance policy is generally received tax-free. This means your loved ones get the full amount of your coverage without having to report it as income. However, if a policy accumulates cash value, any gains may be taxable if the policy is surrendered for cash before death.
What happens if I cancel my Assumption Life policy and can I get a refund?
You can cancel your policy at any time by submitting the required form, but a full refund of premiums is not guaranteed. Term life policies do not have cash value and therefore provide no refund. Whole life policies may have a cash surrender value, but it can be significantly reduced by surrender charges, especially if you cancel in the early years of the contract.
How long does it typically take for beneficiaries to receive the payout after a claim is filed?
Assumption Life generally processes claims within several weeks after receiving all the necessary documentation, including the claim form and proof of death. The final payout time can be affected by the complexity of the claim or if any information is missing. Prompt submission of all required paperwork helps to ensure the process moves as quickly as possible.
Can I choose who receives the money from my policy and can I change it later?
Yes, you can designate any person, trust, or organization as the beneficiary of your life insurance policy. You are free to change this designation at any time, unless you have named an irrevocable beneficiary, which requires their consent to be changed. All changes must be formally submitted to Assumption Life using the appropriate form to be valid.
Do I need to undergo a medical exam to get life insurance with Assumption Life?
A medical exam is not always required to get coverage with Assumption Life. They offer simplified issue products, such as Platinum Protection, which can be approved with no medical exam or blood tests, based on your answers to health questions. However, traditional policies with higher coverage amounts may require a medical exam as part of the underwriting process.
What is the main difference between term and whole life insurance from Assumption Life?
Term life insurance provides coverage for a specific period, like 15 or 25 years, and is generally more affordable but does not build cash value. In contrast, whole life insurance provides permanent, lifelong protection with guaranteed premiums and a cash value component that grows over time. Whole life is designed for long-term needs, while term life is better suited for temporary obligations.
Does coverage start immediately after my policy is approved?
For most policies, coverage begins as soon as your application is approved and the first premium is paid. However, all policies are subject to standard clauses, such as a suicide exclusion, which typically applies for the first two years of the policy. This means the full death benefit would not be paid if the insured's death is a result of suicide within that initial period.
Is the death benefit from an Assumption Life insurance policy taxable in Canada?
In Canada, the lump-sum death benefit paid to a beneficiary from a life insurance policy is generally received tax-free. This means your loved ones get the full amount of your coverage without having to report it as income. However, if a policy accumulates cash value, any gains may be taxable if the policy is surrendered for cash before death.
What happens if I cancel my Assumption Life policy and can I get a refund?
You can cancel your policy at any time by submitting the required form, but a full refund of premiums is not guaranteed. Term life policies do not have cash value and therefore provide no refund. Whole life policies may have a cash surrender value, but it can be significantly reduced by surrender charges, especially if you cancel in the early years of the contract.
How long does it typically take for beneficiaries to receive the payout after a claim is filed?
Assumption Life generally processes claims within several weeks after receiving all the necessary documentation, including the claim form and proof of death. The final payout time can be affected by the complexity of the claim or if any information is missing. Prompt submission of all required paperwork helps to ensure the process moves as quickly as possible.
Can I choose who receives the money from my policy and can I change it later?
Yes, you can designate any person, trust, or organization as the beneficiary of your life insurance policy. You are free to change this designation at any time, unless you have named an irrevocable beneficiary, which requires their consent to be changed. All changes must be formally submitted to Assumption Life using the appropriate form to be valid.
Do I need to undergo a medical exam to get life insurance with Assumption Life?
A medical exam is not always required to get coverage with Assumption Life. They offer simplified issue products, such as Platinum Protection, which can be approved with no medical exam or blood tests, based on your answers to health questions. However, traditional policies with higher coverage amounts may require a medical exam as part of the underwriting process.
What is the main difference between term and whole life insurance from Assumption Life?
Term life insurance provides coverage for a specific period, like 15 or 25 years, and is generally more affordable but does not build cash value. In contrast, whole life insurance provides permanent, lifelong protection with guaranteed premiums and a cash value component that grows over time. Whole life is designed for long-term needs, while term life is better suited for temporary obligations.
Does coverage start immediately after my policy is approved?
For most policies, coverage begins as soon as your application is approved and the first premium is paid. However, all policies are subject to standard clauses, such as a suicide exclusion, which typically applies for the first two years of the policy. This means the full death benefit would not be paid if the insured's death is a result of suicide within that initial period.
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