CAA Life Insurance: Is It Worth It in 2025?
Our expert's opinion on CAA
CAA delivers a focused and highly competitive term life insurance offering, earning a strong rating for its straightforward plans, guaranteed tax-free payouts, and member-centric value. While its products lack cash-value accumulation and have limited riders beyond complimentary child coverage and a conversion option, its premium structure is transparent and fixed for the term. Positioned as a value leader for its members, CAA leverages a simplified, often no-exam underwriting process and significant premium discounts to stand out against full-service insurers that offer more complex, higher-priced permanent policies.
This insurance is ideally suited for young families and individuals seeking affordable, temporary protection for specific liabilities like mortgages or income replacement during their working years.
Although specific financial strength ratings are not provided, policies are backed by Securian Canada, and the service framework is robust, featuring an efficient claims process with payouts typically settled within 30 days, guidance from non-commissioned advisors, and a fully digital online portal for claims and account management; however, public customer satisfaction scores are mixed.
- ✅Exclusive member discounts up to 15%
- ✅Complimentary child life insurance coverage
- ✅No medical exam for most applicants
- ✅Term policies convertible to permanent coverage
- ✅Guidance from licensed, non-commissioned advisors
- ✅Efficient claim payout within 30 days
- ✅100% digital claims and account portal
- ❌No whole or universal life insurance options
- ❌Policies with no cash value accumulation
- ❌Limited selection of optional policy riders
- ❌Mixed public customer service reviews
- ❌Standard exclusions for high-risk activities
Score- ✅Exclusive member discounts up to 15%
- ✅Complimentary child life insurance coverage
- ✅No medical exam for most applicants
- ✅Term policies convertible to permanent coverage
- ✅Guidance from licensed, non-commissioned advisors
- ✅Efficient claim payout within 30 days
- ✅100% digital claims and account portal
Our expert's opinion on CAA
- ✅Exclusive member discounts up to 15%
- ✅Complimentary child life insurance coverage
- ✅No medical exam for most applicants
- ✅Term policies convertible to permanent coverage
- ✅Guidance from licensed, non-commissioned advisors
- ✅Efficient claim payout within 30 days
- ✅100% digital claims and account portal
- ❌No whole or universal life insurance options
- ❌Policies with no cash value accumulation
- ❌Limited selection of optional policy riders
- ❌Mixed public customer service reviews
- ❌Standard exclusions for high-risk activities
Score- ✅Exclusive member discounts up to 15%
- ✅Complimentary child life insurance coverage
- ✅No medical exam for most applicants
- ✅Term policies convertible to permanent coverage
- ✅Guidance from licensed, non-commissioned advisors
- ✅Efficient claim payout within 30 days
- ✅100% digital claims and account portal
Why trust Hellosafe?
At HelloSafe, our life insurance experts analyze the coverage options and pricing structures of life insurance contracts available on the market each year to provide you with a reliable and unbiased opinion. Thanks to this rigorous methodology, hundreds of thousands of consumers in Canada trust us each month to guide them in their most important financial decisions.
CAA Life Insurance Guarantees
CAA focuses on term-based insurance products, meaning they provide coverage for a specific period. They do not currently offer permanent options like whole or universal life insurance.
- Term life insurance: This is CAA's core life insurance product. It provides a tax-free, lump-sum payment to beneficiaries if the insured person passes away during the term.
- Term lengths: 10, 15, 20, 25, or 30 years.
- Issue age: You can apply up to age 75 for a 10-year term, with coverage available until age 85.
- Medical exam: Most applicants do not need to complete a medical exam.
- Key features: Includes a complimentary child coverage rider ($10,000 per child) and can be converted to a permanent policy at the end of the term. Couples can get a 10% discount in the first year by applying for a joint policy.
- Critical illness insurance: This policy provides a tax-free, lump-sum benefit upon the diagnosis of a covered condition.
- Coverage: Protects against 44 conditions, including 27 critical illnesses and 17 early-stage conditions.
- Benefit amount: From $10,000 to $1,000,000.
- Term lengths: 10, 15, 20, 25, or 30 years.
Optional riders:
- Conversion guarantee
- Critical Illness
- Child coverage (complimentary)
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Yes | ❌ | ❌ | ❌ |
| 📈 Cash value accumulation | No | ❌ | ❌ | ❌ |
| 💸 Policy loans | No | ❌ | ❌ | ❌ |
| 🛡️ Available riders | Child, Conversion | ❌ | ❌ | ❌ |
| 🔄 Conversion guarantee | Yes | ❌ | ❌ | ❌ |
| 📈 Participating dividends | No | ❌ | ❌ | ❌ |
| 💲 Cost of key riders (% of base premium) | 0% (Child: free) | ❌ | ❌ | ❌ |
| 🔄 Premium flexibility | No | ❌ | ❌ | ❌ |
| ⏳ Surrender charges | No | ❌ | ❌ | ❌ |
| 🎂 Issue age range | 18–75 | ❌ | ❌ | ❌ |
| 🔒 Guaranteed level | Yes (term-based) | ❌ | ❌ | ❌ |
How much does CAA life insurance cost?
CAA life insurance premiums are calculated based on an individual's risk profile, taking into account personal factors like age, health, and lifestyle.
Premiums are fixed for the entire duration of the selected term, ensuring predictable payments.
As a member-based organization, CAA offers exclusive discounts that can significantly lower the cost of coverage, especially for long-standing members.
- Age: Each decade adds approximately 15% to the base premium.
- Smoker status: Smokers typically pay up to 50% more than non-smokers.
- Health status: Pre-existing conditions may increase premiums by around 20%.
- Coverage amount: Each additional increment of coverage raises the premium proportionally.
- Rider costs: The complimentary child coverage rider adds 0% to the premium.
- Membership status: Classic members save 10%, while Premier members save 15% on their premiums.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30-year-old, healthy | $250,000 | $25/month | $38/month | $21/month |
| 45-year-old, with pre-existing condition | $250,000 | $54/month | $90/month | $46/month |
| 40-year-old professional, healthy | $500,000 | $65/month | $115/month | $55/month |
What are the surrender charges for CAA life insurance?
CAA's life insurance products in Canada, specifically their Term Life and Critical Illness policies, are designed as pure protection instruments. This means they do not accumulate a cash surrender value. Consequently, these policies do not have surrender charges because there is no accumulated capital to withdraw. There are no waiting periods after which a penalty-free surrender is possible, as the concept of surrender value does not apply. If a policyholder decides to cancel their policy at any time after the initial 30-day free-look period, the coverage simply ceases, and no funds are returned.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 0% (No cash value) | $0 returned on premiums paid. Tax treatment is not applicable. |
| 2 | 0% (No cash value) | $0 returned on premiums paid. Tax treatment is not applicable. |
| 3 | 0% (No cash value) | $0 returned on premiums paid. Tax treatment is not applicable. |
| 4 | 0% (No cash value) | $0 returned on premiums paid. Tax treatment is not applicable. |
| 5 | 0% (No cash value) | $0 returned on premiums paid. Tax treatment is not applicable. |
| 6+ | 0% (No cash value) | $0 returned on premiums paid. Tax treatment is not applicable. |
Surrender of a CAA term life insurance policy
- Surrender in year 1: The capital returned is $0, as the policy has no cash value.
- Surrender in year 5: The capital returned is also $0, for the same reason.
The Exclusions and Limitations of CAA Life Insurance
CAA life insurance policies include standard exclusions under which a death benefit will not be paid:
- Suicide exclusion: The death benefit is not paid if death is due to suicide within the first policy year.
- Extreme sports: Death resulting from participation in hazardous or extreme sports is not covered by the policy.
- Private aviation: Loss of life that occurs as a result of non-commercial aviation is excluded from coverage.
- Criminal acts: No benefit is payable if the insured's death occurs during their participation in a criminal act.
- War and terrorism: Death caused directly or indirectly by acts of war or terrorism is not covered.
- Alcohol or drug abuse: Death resulting from the abuse of alcohol or non-prescribed drugs may be excluded.
- Assistance services: Benefits such as concierge services, teleconsultation, or medical repatriation are not included.
What Customers Think of CAA's Life Insurance
| Review site | Rating and number of reviews |
|---|---|
| Trustpilot (CAA South Central Ontario) | 2.8/5 (331 reviews) |
Customer feedback for CAA life insurance is mixed, highlighting both strengths and areas for improvement:
✅ An easy online application and claims process is often praised by members.
✅ The competitive pricing available to members is a significant positive factor.
❌ A recurring issue mentioned by customers is slow or inconsistent customer support.
❌ The limited product range, which lacks permanent life insurance options, is a drawback for some.
Here are examples of reviews left online:
- "They've been very good, prompt and smooth through two claims. Price was very competitive and I've been really pleased.", Reddit user, 2024.
- "Most reviewers were unhappy with their experience overall. Customers express dissatisfaction with various aspects of the company's services.", Trustpilot, 2024.
How to Contact CAA
| Detail | Information |
|---|---|
| Address | 378 Westmorland Rd, Saint John, NB E2L 3Y2 |
| Phone | 1-866-714-9007 |
| service@caa.securiancanada.ca | |
| Website | atlantic.caa.ca/insurance/life-insurance |
| Responsiveness / Hours | Monday to Friday, from 8:30 AM to 8:00 PM EST |
| Live chat | Direct live chat is not available; support is offered via advisor appointments scheduled online. |
| Social media | https://www.facebook.com/caaatlantic and https://twitter.com/CAA |
FAQ
Is the death benefit from a CAA life insurance policy taxable in Canada?
No, life insurance death benefits paid to a named beneficiary are generally received tax-free under current Canadian tax law. This applies to the lump-sum payout from CAA's term life policies, allowing your beneficiaries to use the full amount without deductions for income tax. The same tax-free principle applies to the benefit received from a critical illness policy.
Can I cancel my policy and get my money back?
You can cancel your policy within the first 30 days for a full refund of any premiums paid, which is known as the "free look" period. After this period, you can cancel at any time to end your coverage, but no premiums will be refunded. Since CAA offers term life insurance, the policies do not accumulate any cash surrender value.
How long does it take for a beneficiary to receive the claim payout?
Once all the necessary claim forms and supporting documents have been submitted and the claim is approved, the payout is typically issued within 30 days. To ensure a smooth and timely process, beneficiaries should file the claim as soon as possible with complete and accurate information. Delays can occur if documentation is missing or incomplete.
Who can I name as my beneficiary?
You have the flexibility to name any person, trust, or organization as your beneficiary. This can include a spouse, children, other relatives, a friend, or even a charitable organization. It is crucial to keep your beneficiary designation up to date, especially after major life events like marriage, divorce, or the birth of a child.
Is a medical exam required to get approved for CAA life insurance?
For many applicants, a medical exam is not required to secure coverage with CAA, which simplifies the application process. However, a medical exam or additional health information may be requested depending on your age, the coverage amount you are applying for, and your answers to the health questions on the application. This helps the insurer accurately assess the risk.
What happens when my term life insurance policy expires?
At the end of your policy's term, your life insurance coverage will cease. Before it expires, you may have the option to renew the policy for another term, often at a higher premium based on your new age. CAA policies also include a conversion privilege, allowing you to convert your term coverage into a permanent life insurance policy without needing to provide new evidence of health.
What types of life insurance does CAA offer?
CAA specializes in offering term life insurance policies, which provide coverage for a specific period, such as 10, 20, or 30 years. These policies are designed for temporary needs and do not build cash value. CAA does not currently offer permanent life insurance products like whole life or universal life, which provide lifelong coverage and include an investment component.
Can I get CAA life insurance if I already have coverage through my employer?
Yes, you can and it is often recommended to have a personal policy in addition to any group insurance from your employer. Workplace coverage is often basic and may not be sufficient for your family's needs. Furthermore, group insurance is typically not portable, meaning you lose your coverage if you change jobs, whereas a personal policy stays with you.
Is the death benefit from a CAA life insurance policy taxable in Canada?
No, life insurance death benefits paid to a named beneficiary are generally received tax-free under current Canadian tax law. This applies to the lump-sum payout from CAA's term life policies, allowing your beneficiaries to use the full amount without deductions for income tax. The same tax-free principle applies to the benefit received from a critical illness policy.
Can I cancel my policy and get my money back?
You can cancel your policy within the first 30 days for a full refund of any premiums paid, which is known as the "free look" period. After this period, you can cancel at any time to end your coverage, but no premiums will be refunded. Since CAA offers term life insurance, the policies do not accumulate any cash surrender value.
How long does it take for a beneficiary to receive the claim payout?
Once all the necessary claim forms and supporting documents have been submitted and the claim is approved, the payout is typically issued within 30 days. To ensure a smooth and timely process, beneficiaries should file the claim as soon as possible with complete and accurate information. Delays can occur if documentation is missing or incomplete.
Who can I name as my beneficiary?
You have the flexibility to name any person, trust, or organization as your beneficiary. This can include a spouse, children, other relatives, a friend, or even a charitable organization. It is crucial to keep your beneficiary designation up to date, especially after major life events like marriage, divorce, or the birth of a child.
Is a medical exam required to get approved for CAA life insurance?
For many applicants, a medical exam is not required to secure coverage with CAA, which simplifies the application process. However, a medical exam or additional health information may be requested depending on your age, the coverage amount you are applying for, and your answers to the health questions on the application. This helps the insurer accurately assess the risk.
What happens when my term life insurance policy expires?
At the end of your policy's term, your life insurance coverage will cease. Before it expires, you may have the option to renew the policy for another term, often at a higher premium based on your new age. CAA policies also include a conversion privilege, allowing you to convert your term coverage into a permanent life insurance policy without needing to provide new evidence of health.
What types of life insurance does CAA offer?
CAA specializes in offering term life insurance policies, which provide coverage for a specific period, such as 10, 20, or 30 years. These policies are designed for temporary needs and do not build cash value. CAA does not currently offer permanent life insurance products like whole life or universal life, which provide lifelong coverage and include an investment component.
Can I get CAA life insurance if I already have coverage through my employer?
Yes, you can and it is often recommended to have a personal policy in addition to any group insurance from your employer. Workplace coverage is often basic and may not be sufficient for your family's needs. Furthermore, group insurance is typically not portable, meaning you lose your coverage if you change jobs, whereas a personal policy stays with you.
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