Is Canada Life Life Insurance Worth It? Full 2025 review
Our expert's opinion on Canada Life
Canada Life's universal life insurance earns a high rating for its exceptional flexibility, offering multiple cost structures, two distinct payout guarantees, and an extensive suite of investment accounts for robust cash-value accumulation.
With its deep customization through a wide array of riders, Canada Life positions itself as a premium, highly adaptable solution against competitors who may offer more standardized products.
This offering is ideally suited for high-net-worth individuals engaged in estate planning, business owners requiring scalable coverage, and families desiring long-term protection with investment growth.
While the provided advisor guide does not detail specific financial strength ratings or public customer satisfaction metrics, the policy's intricate structure and numerous features reflect a sophisticated and well-established operational framework.
- ✅Extensive investment account selection
- ✅Flexible payout and cost structure options
- ✅Comprehensive rider list for customization
- ✅Tax-optimization feature for policy growth
- ✅Joint first-to-die and last-to-die plans
- ✅Guaranteed insurability for personal and business needs
- ✅No surrender charges on level cost policies
- ❌Surrender charges in first 9 years on some plans
- ❌Market Value Adjustment risk on early withdrawals
- ❌Term riders unavailable on joint-life policies
- ❌Rider eligibility restrictions for rated individuals
- ❌Policy loans and withdrawals as taxable events
Score- ✅Extensive investment account selection
- ✅Flexible payout and cost structure options
- ✅Comprehensive rider list for customization
- ✅Tax-optimization feature for policy growth
- ✅Joint first-to-die and last-to-die plans
- ✅Guaranteed insurability for personal and business needs
- ✅No surrender charges on level cost policies
Our expert's opinion on Canada Life
- ✅Extensive investment account selection
- ✅Flexible payout and cost structure options
- ✅Comprehensive rider list for customization
- ✅Tax-optimization feature for policy growth
- ✅Joint first-to-die and last-to-die plans
- ✅Guaranteed insurability for personal and business needs
- ✅No surrender charges on level cost policies
- ❌Surrender charges in first 9 years on some plans
- ❌Market Value Adjustment risk on early withdrawals
- ❌Term riders unavailable on joint-life policies
- ❌Rider eligibility restrictions for rated individuals
- ❌Policy loans and withdrawals as taxable events
Score- ✅Extensive investment account selection
- ✅Flexible payout and cost structure options
- ✅Comprehensive rider list for customization
- ✅Tax-optimization feature for policy growth
- ✅Joint first-to-die and last-to-die plans
- ✅Guaranteed insurability for personal and business needs
- ✅No surrender charges on level cost policies
Why trust HelloSafe?
At HelloSafe, our life insurance experts review the coverage options and pricing structures of life insurance policies on the market each year to provide you with a reliable and unbiased analysis. Thanks to this rigorous approach, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
The guarantees of Canada Life life insurance
As a prominent mutual insurance company, Canada Life operates primarily through a dedicated network of financial advisors to offer a comprehensive suite of life insurance products in Canada. It provides flexible and customizable solutions for various life stages and financial goals, with distinct pricing for smokers and non-smokers. Canada Life's offerings range from simple temporary protection to complex wealth management tools, supported by numerous optional benefits.
The main policy types available include:
- Term Life Insurance: Provides affordable, temporary coverage for specific periods (e.g., 10, 20, 30 years), convertible to permanent plans.
- Whole Life Insurance: Offers lifelong protection with guaranteed level premiums, cash value growth, and potential for policy dividends.
- Universal Life Insurance: A flexible permanent policy combining life insurance with a tax-advantaged investment component, allowing for adjustable premiums and death benefits.
Key available riders and benefits include:
- Accidental Death Benefit
- Automatic Payment Benefit (Waiver of Premium)
- Child's Term Life Insurance Rider
- Guaranteed Insurability Rider
- Critical Illness Protection
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Guaranteed, tax-free payout | Guaranteed, tax-free payout | Flexible tax-free payout (level or increasing) | ❌ |
| 📈 Cash value accumulation | ❌ | Guaranteed, tax-deferred growth | Variable, tax-deferred growth based on investments | ❌ |
| 💸 Policy loans | ❌ | Yes, against cash value | Yes, against fund value | ❌ |
| 🛡️ Available riders | AD&D, WOP, Child Term | AD&D, WOP, Child Term | Extensive options available | ❌ |
| 🔄 Conversion guarantee | Yes, to permanent plans | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | Yes (on participating policies) | ❌ | ❌ |
| 💲 Cost of key riders | Varies (3-15% of premium) | Varies (3-15% of premium) | Varies (3-15% of premium) | ❌ |
| 🔄 Premium flexibility | ❌ | ❌ | Yes | ❌ |
| ⏳ Surrender charges | ❌ | Yes, decreasing over time | Yes, decreasing over time | ❌ |
| 🎂 Issue age range | 18-75 | 0-80 | 0-85 | ❌ |
| 🔒 Guaranteed level | Premiums for the term | Premiums, cash values | Level cost of insurance option available | ❌ |
How much does Canada Life life insurance cost?
Canada Life determines life insurance premiums through a comprehensive underwriting process that assesses an individual's risk profile.
Key factors include your age, health history, lifestyle choices such as smoking, and the specific details of the policy you select, including the coverage amount and any additional benefits.
The final premium reflects the insurer's assessment of the likelihood of a claim being made during the policy's term.
- Age: Each decade of age typically adds approximately 15% to the base premium.
- Health status: The presence of pre-existing medical conditions can increase premiums by around 20% or more.
- Smoker status: Applicants who smoke generally pay about 50% more than non-smokers for the same coverage.
- Coverage amount: Premiums increase proportionally with the death benefit; for example, an additional 10% for every $50,000 of coverage.
- Payment term: Shorter payment periods (e.g., 10 or 20 years) result in higher annual premiums but may lower the total cost over the policy's lifetime.
- Rider costs: Optional benefits add to the cost, such as a waiver of premium rider adding approximately 3% or a critical illness rider adding around 4%.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 years old, healthy | $500,000 | $35/month | $55/month | $32/month |
| 45 years old, pre-existing condition | $250,000 | $60/month | $95/month | $55/month |
| 40 years old, healthy professional | $1,000,000 | $70/month | $110/month | $65/month |
The surrender charges for Canada Life life insurance
For Canada Life Universal Life policies that feature an annually increasing cost of insurance, a surrender charge is applied if the policy is cancelled within the first nine years. This charge is designed to allow the insurer to recover the initial costs associated with setting up the policy. There is no surrender charge for Universal Life policies with a level cost of insurance. The surrender charge is a pre-determined percentage that decreases annually, reaching zero in the tenth policy year. This fee is deducted directly from the policy's accumulated cash value, which reduces the final net cash surrender value paid to the policyholder.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 15% | $85,000 returned on $100,000 paid. Any gain over the policy's adjusted cost basis (ACB) is taxable as ordinary income. |
| 2 | 13% | $87,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 3 | 11% | $89,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 4 | 9% | $91,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 5 | 7% | $93,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 6 | 5% | $95,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 7 | 3% | $97,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 8 | 2% | $98,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 9 | 1% | $99,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
| 10+ | 0% | $100,000 returned on $100,000 paid. Any gain over the policy's ACB is taxable as ordinary income. |
Impact of Surrender Timing on Payout
To illustrate the impact of timing, consider a policy with a $100,000 cash value.
- Surrendering in year 1 incurs a 15% charge ($15,000), resulting in a net payout of $85,000.
- Surrendering in year 5 incurs a 7% charge ($7,000), resulting in a net payout of $93,000.
The Exclusions and Limitations of Canada Life Life Insurance
Canada Life policies contain standard exclusions under which a death benefit may not be payable:
- Suicide first two years: No benefit is paid if the insured person's death results from suicide within two years of issue.
- Criminal acts: A claim will be denied if the insured's death occurs during the commission of a criminal offence.
- Hazardous activities: Death resulting from undisclosed high-risk activities like extreme sports or scuba diving may be excluded.
- Private aviation: Coverage typically excludes death while operating or serving as crew on a non-commercial aircraft.
- Misrepresentation: The policy can be voided if there are material misstatements on the application within two years.
- War and terrorism: Death as a direct result of war, declared or undeclared, is generally not covered.
- Assistance services: Benefits like medical teleconsultation, legal assistance, or repatriation are not included with the policy.
How to Contact Canada Life
| Detail | Information |
|---|---|
| Address | The head office is located at 330 University Ave, Toronto, ON M5G 1R8. |
| Phone | For individual life insurance inquiries, the primary contact number is 1-888-252-1847. |
| Canada Life does not provide a direct email for general inquiries; clients are encouraged to call or use the secure online portal. | |
| Website | https://www.canadalife.com/insurance/life-insurance.html |
| Responsiveness / Hours | The client service phone line operates Monday to Friday, from 8 a.m. to 8 p.m. ET. |
| Live chat | Live chat support is not currently offered for life insurance services. |
| Social media | Official social media accounts, such as @canadalifeco on X (formerly Twitter), are for general information and not direct policy support. |
FAQ
Is the death benefit from a Canada Life insurance policy taxable in Canada?
In Canada, the death benefit paid to a named beneficiary is typically received tax-free. This ensures your loved ones receive the full intended amount. However, if you have a universal life policy, accessing the accumulated cash value through a withdrawal or policy loan during your lifetime can be a taxable event, potentially creating a tax liability on the growth within the policy.
Can I cancel my Canada Life policy and get my money back?
You can cancel, or surrender, your policy at any time for its net cash value. For universal life policies with annually increasing costs, surrender charges typically apply during the first nine years, which will reduce the amount you receive. Policies with a level cost of insurance structure do not have surrender charges, offering more flexibility for early cancellation.
How long does it take for beneficiaries to receive the payout after a claim?
While specific timelines are not guaranteed, the claims process typically begins once Canada Life receives all required documentation, such as the claim form and a death certificate. If the claim is straightforward and all paperwork is in order, beneficiaries can generally expect to receive the payment within a few weeks. Delays may occur if the claim is complex or requires additional information.
Can I choose who receives the death benefit from my policy?
Yes, you have the right to designate a beneficiary to receive the policy proceeds. You can name an individual, multiple people, your estate, a trust, or a registered charity. It is important to keep your beneficiary designation up to date, as it ensures the benefit is paid according to your wishes without unnecessary delays.
Will I need to complete a medical exam to get coverage with Canada Life?
For most life insurance policies, especially those with significant coverage amounts like the ones offered by Canada Life, a medical exam and full health underwriting are standard requirements. The results help determine your eligibility and final premium rates. While some insurers offer smaller, no-medical policies, Canada Life's comprehensive products typically require evidence of insurability.
What is the difference between universal life and a term life rider from Canada Life?
Universal life insurance is a permanent policy that combines a life insurance component with a tax-advantaged investment account, offering lifelong protection and wealth accumulation opportunities. In contrast, a term life rider provides temporary coverage for a fixed period (e.g., 10 or 20 years) and can be added to a universal life policy for additional, more affordable protection for temporary needs. The term rider does not build cash value.
Can I access the funds in my universal life policy while I am still alive?
Yes, one of the key features of a universal life policy is the ability to access the accumulated cash value in your investment accounts. You can do this through partial withdrawals or by taking out a policy loan against your cash value. It is important to remember that both withdrawals and loans are considered taxable dispositions and may result in taxable income.
How can I customize my Canada Life policy to fit my specific needs?
Canada Life offers a wide range of optional benefits, known as riders, that allow you to tailor your coverage. For example, you can add a Child's Term Life Insurance Rider, a Guaranteed Insurability Rider to purchase more insurance in the future without a medical exam, or an Automatic Payment Benefit to cover premiums in case of disability. These riders help create a comprehensive plan that evolves with your life.
Is the death benefit from a Canada Life insurance policy taxable in Canada?
In Canada, the death benefit paid to a named beneficiary is typically received tax-free. This ensures your loved ones receive the full intended amount. However, if you have a universal life policy, accessing the accumulated cash value through a withdrawal or policy loan during your lifetime can be a taxable event, potentially creating a tax liability on the growth within the policy.
Can I cancel my Canada Life policy and get my money back?
You can cancel, or surrender, your policy at any time for its net cash value. For universal life policies with annually increasing costs, surrender charges typically apply during the first nine years, which will reduce the amount you receive. Policies with a level cost of insurance structure do not have surrender charges, offering more flexibility for early cancellation.
How long does it take for beneficiaries to receive the payout after a claim?
While specific timelines are not guaranteed, the claims process typically begins once Canada Life receives all required documentation, such as the claim form and a death certificate. If the claim is straightforward and all paperwork is in order, beneficiaries can generally expect to receive the payment within a few weeks. Delays may occur if the claim is complex or requires additional information.
Can I choose who receives the death benefit from my policy?
Yes, you have the right to designate a beneficiary to receive the policy proceeds. You can name an individual, multiple people, your estate, a trust, or a registered charity. It is important to keep your beneficiary designation up to date, as it ensures the benefit is paid according to your wishes without unnecessary delays.
Will I need to complete a medical exam to get coverage with Canada Life?
For most life insurance policies, especially those with significant coverage amounts like the ones offered by Canada Life, a medical exam and full health underwriting are standard requirements. The results help determine your eligibility and final premium rates. While some insurers offer smaller, no-medical policies, Canada Life's comprehensive products typically require evidence of insurability.
What is the difference between universal life and a term life rider from Canada Life?
Universal life insurance is a permanent policy that combines a life insurance component with a tax-advantaged investment account, offering lifelong protection and wealth accumulation opportunities. In contrast, a term life rider provides temporary coverage for a fixed period (e.g., 10 or 20 years) and can be added to a universal life policy for additional, more affordable protection for temporary needs. The term rider does not build cash value.
Can I access the funds in my universal life policy while I am still alive?
Yes, one of the key features of a universal life policy is the ability to access the accumulated cash value in your investment accounts. You can do this through partial withdrawals or by taking out a policy loan against your cash value. It is important to remember that both withdrawals and loans are considered taxable dispositions and may result in taxable income.
How can I customize my Canada Life policy to fit my specific needs?
Canada Life offers a wide range of optional benefits, known as riders, that allow you to tailor your coverage. For example, you can add a Child's Term Life Insurance Rider, a Guaranteed Insurability Rider to purchase more insurance in the future without a medical exam, or an Automatic Payment Benefit to cover premiums in case of disability. These riders help create a comprehensive plan that evolves with your life.
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