Industrial Alliance Life Insurance: A Complete 2025 Review
Our expert's opinion on Industrial Alliance
Industrial Alliance (iA) receives a positive rating in Canada for its highly structured and transparent life insurance underwriting, which clearly defines requirements based on age and coverage amount. The insurer leverages predictive analytics for simplified underwriting on many policies, though its approach can be stringent for those with significant health histories, particularly for critical illness coverage.
iA is well-suited for a diverse range of clients, from income-earning adults and business owners requiring key person or buy-sell insurance, to families seeking coverage for children or non-working spouses.
The company offers a digital Client Space and the iA Mobile application for policy management, allowing clients to perform tasks such as changing a beneficiary or address online.
- ✅No-exam consideration up to $499,999 for ages 15-50
- ✅Coverage for business needs like key person and loan insurance
- ✅Transparent financial guidelines for determining coverage amounts
- ✅Specific insurance solutions for non-income earning spouses
- ✅Life insurance availability for children and students
- ✅Consideration for some well-controlled chronic conditions
- ✅Clearly defined underwriting for various aviation risks
- ❌Strict decline criteria for many common critical illnesses
- ❌Postponement periods following recent medical diagnoses or events
- ❌Automatic decline for Type 1 Diabetes and Multiple Sclerosis on CI plans
- ❌History of coronary disease results in high ratings or decline
- ❌Extra premiums or exclusions for high-risk hobbies like aviation sports
Score- ✅No-exam consideration up to $499,999 for ages 15-50
- ✅Coverage for business needs like key person and loan insurance
- ✅Transparent financial guidelines for determining coverage amounts
- ✅Specific insurance solutions for non-income earning spouses
- ✅Life insurance availability for children and students
- ✅Consideration for some well-controlled chronic conditions
- ✅Clearly defined underwriting for various aviation risks
Our expert's opinion on Industrial Alliance
- ✅No-exam consideration up to $499,999 for ages 15-50
- ✅Coverage for business needs like key person and loan insurance
- ✅Transparent financial guidelines for determining coverage amounts
- ✅Specific insurance solutions for non-income earning spouses
- ✅Life insurance availability for children and students
- ✅Consideration for some well-controlled chronic conditions
- ✅Clearly defined underwriting for various aviation risks
- ❌Strict decline criteria for many common critical illnesses
- ❌Postponement periods following recent medical diagnoses or events
- ❌Automatic decline for Type 1 Diabetes and Multiple Sclerosis on CI plans
- ❌History of coronary disease results in high ratings or decline
- ❌Extra premiums or exclusions for high-risk hobbies like aviation sports
Score- ✅No-exam consideration up to $499,999 for ages 15-50
- ✅Coverage for business needs like key person and loan insurance
- ✅Transparent financial guidelines for determining coverage amounts
- ✅Specific insurance solutions for non-income earning spouses
- ✅Life insurance availability for children and students
- ✅Consideration for some well-controlled chronic conditions
- ✅Clearly defined underwriting for various aviation risks
Pourquoi faire confiance à HelloSafe ?
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 opinion. Thanks to this rigorous methodology, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
Industrial Alliance Life Insurance Guarantees
Industrial Alliance (iA Financial Group) is one of Canada's largest insurance and wealth management companies, offering a vast and flexible range of life insurance products.
Their policies are known for being highly customizable and competitively priced, with distinct rates for smokers and non-smokers, catering to both standard and hard-to-insure applicants.
As a major Canadian publicly-traded financial services group, Industrial Alliance distributes its products through an extensive network of independent advisors and brokers.
- Term Life Insurance: Provides affordable, temporary coverage with flexible terms (10-40 years), highly convertible to permanent plans, and a wide array of optional riders.
- Whole Life Insurance: Offers lifelong protection with guaranteed premiums and cash value, available in both non-participating and participating versions that can earn dividends.
- Universal Life Insurance: Combines permanent life insurance with a tax-advantaged investment component, offering significant flexibility in premium payments and death benefit design.
- Hybrid (Simplified & Guaranteed Issue): Includes specialized no-medical and simplified-issue policies designed for quick approval, often for individuals with health conditions, with some plans featuring graded death benefits.
Key available riders and benefits include:
- 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 level for the term | Guaranteed for life, can grow with dividends | Flexible, level or increasing | Graded or level, depending on plan |
| 📈 Cash value accumulation | ❌ | Yes, guaranteed and potential dividend growth | Yes, linked to investment performance | Yes, on some simplified plans |
| 💸 Policy loans | ❌ | Yes, against cash value | Yes, against cash value | Yes, on cash value plans |
| 🛡️ Available riders | Comprehensive suite (CI, WOP, AD&D) | Comprehensive suite (CI, WOP, AD&D) | Comprehensive suite (CI, WOP, AD&D) | Limited or built-in benefits |
| 🔄 Conversion guarantee | Yes, to a permanent plan | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | Yes, on participating plans | ❌ | ❌ |
| 💲 Cost of key riders (as % of base premium) | 5-15% | 5-15% | 5-15% | Limited or built-in |
| 🔄 Premium flexibility | ❌ | ❌ | Yes | ❌ |
| ⏳ Surrender charges | ❌ | Yes, typically decreasing over 15-20 years | Yes, typically decreasing over 10-15 years | Yes, on cash value plans |
| 🎂 Issue age range | 18-70 | 0-85 | 0-85 | 18-80 |
| 🔒 Guaranteed level | Premiums for the term | Premiums for life | Guaranteed cost of insurance | Premiums for life |
Industrial Alliance Life Insurance Cost
Industrial Alliance determines life insurance premiums through a detailed underwriting process that assesses each applicant's individual risk profile.
Key factors such as age, health status, lifestyle, and smoker status are analyzed to calculate a base premium.
This rate is then adjusted according to the desired coverage amount, policy term, and any selected optional riders to arrive at the final cost.
The insurer's financial guidelines also ensure the requested coverage amount is appropriate for the individual's financial circumstances.
- Age: Premiums increase with age, with each decade adding approximately 15% to the base rate.
- Health status: Pre-existing conditions, such as diabetes or heart disease, can increase premiums by 20% to over 100%, or may lead to a declined application.
- Smoker status: Smokers typically pay around 50% more for coverage than non-smokers.
- Coverage amount: The premium increases proportionally with the coverage amount; for instance, each additional $50,000 in coverage may raise the cost by about 10%.
- Occupation and hobbies: High-risk activities, such as private aviation or extreme sports, can result in a flat extra premium or a percentage-based increase.
- Payment term: For permanent policies, choosing a limited payment period (e.g., 20 years) results in higher annual premiums than a policy with lifetime payments.
- Rider costs: Optional add-ons, such as a waiver of premium or critical illness coverage, typically add 3% to 5% to the premium per rider.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 years old, healthy | $500,000 | $35/month | $52/month | $32/month |
| 45 years old, pre-existing condition | $250,000 | $60/month | $90/month | $55/month |
| 40 years old, healthy professional | $1,000,000 | $70/month | $105/month | $65/month |
Surrender Charges for Industrial Alliance Life Insurance
When surrendering a permanent life insurance policy from Industrial Alliance that has accumulated cash value, a surrender charge is applied if the cancellation occurs within a specified period. This period, known as the surrender charge period, lasts for the first five years of the policy. The purpose of these charges is to allow the insurer to recover the initial costs associated with issuing the policy, such as commissions and administrative expenses.
The charge is calculated as a percentage of the policy's accumulated cash value and decreases annually. In the first year, the charge is at its maximum, and it reduces systematically each subsequent year until it reaches zero after the fifth year. The final amount paid to the policyholder, known as the cash surrender value, is the total accumulated cash value minus the applicable surrender charge. Any gain (the cash surrender value minus the policy's adjusted cost basis) is considered taxable income in Canada.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 100% | $0 returned on $100,000 accumulated value. Any gain is taxable. |
| 2 | 80% | $20,000 returned on $100,000 accumulated value. Any gain is taxable. |
| 3 | 60% | $40,000 returned on $100,000 accumulated value. Any gain is taxable. |
| 4 | 40% | $60,000 returned on $100,000 accumulated value. Any gain is taxable. |
| 5 | 20% | $80,000 returned on $100,000 accumulated value. Any gain is taxable. |
| 6+ | 0% | $100,000 returned on $100,000 accumulated value. Any gain is taxable. |
Impact of Declining Surrender Charges: A Comparison
A direct comparison of surrendering in year 1 versus year 5 illustrates the impact of the declining charge schedule. Assuming an accumulated cash value of $100,000 in both scenarios, surrendering in year 1 results in a 100% charge, meaning the capital returned is $0. In contrast, surrendering in year 5 results in a 20% charge, meaning the capital returned is $80,000.
The Exclusions and Limitations of Industrial Alliance Life Insurance
The following list outlines common exclusions and limitations applicable to Industrial Alliance life insurance policies:
- Suicide first two years: A death benefit is not paid if death is due to suicide within the first two policy years.
- Private aviation: Flying private aircraft may result in higher premiums, coverage exclusions, or a declined application.
- Extreme sports: High-risk activities like hang-gliding can lead to coverage limitations or specific policy exclusions.
- Criminal acts: No benefit is paid if death occurs as a direct result of committing a criminal offense.
- Pre-existing conditions: Severe medical conditions diagnosed prior to application may lead to a denial of coverage.
- Assistance services: Benefits like psychological support, legal advice, or repatriation are not included with the policy.
How to Contact Industrial Alliance?
| Detail | Information |
|---|---|
| Address | 1080 Grande Allée West, PO Box 1907, Station Terminus, Quebec City, QC G1K 7M3 |
| Phone | 1-844-442-4636 (Toll-free for individual insurance inquiries) |
| Inquiries are handled through the secure online contact form or the Client Space message centre. | |
| Website | https://ia.ca/life-insurance |
| Responsiveness / Hours | Customer service is available by phone Monday to Friday, from 8 a.m. to 8 p.m. (ET). |
| Live chat | A live chat feature is not publicly available for general inquiries. |
| Social media | Facebook: iaFinancialGroup, X (Twitter): @ia_Financial |
FAQ
Is the payout from an Industrial Alliance life insurance policy taxable in Canada?
In Canada, the death benefit from a life insurance policy is generally paid to the beneficiaries completely tax-free. This provides a clear, lump-sum payment that can be used for any purpose without being considered taxable income. However, if the policy has a cash value component and it is surrendered before death, any investment gains may be subject to taxation.
Do I need to take a medical exam to get life insurance with Industrial Alliance?
Whether a medical exam is required depends on your age, health, and the amount of coverage you are applying for. For many applicants seeking coverage under $500,000, a simple declaration of insurability may be sufficient, as Industrial Alliance uses predictive analytics to assess risk. For higher coverage amounts, older applicants, or certain health histories, additional requirements like a phone interview, vital signs measurement, blood profile, or a statement from your doctor may be necessary.
How much life insurance coverage can I apply for with Industrial Alliance?
The maximum amount of coverage you can obtain is determined by financial underwriting guidelines. For personal insurance, this is typically based on a multiple of your annual income, which varies by age. For instance, younger applicants may qualify for a higher multiple than those nearing retirement. For individuals without an income, or for business purposes like covering a loan, the calculation is based on other factors such as spousal income or the value of the business.
Can I still get coverage if I have a pre-existing medical condition?
It is possible to obtain coverage with a pre-existing medical condition, but the final decision depends on the specific condition, its severity, and how well it is managed. During the underwriting process, Industrial Alliance will review your medical history. Depending on the risk assessed, the outcome could be approval at standard rates, an approval with an extra premium, a postponement of the decision, or a decline of the application for more severe conditions.
How long does it typically take for a beneficiary to receive the payout?
Industrial Alliance does not publish specific timelines for claim payouts, as the duration can vary based on the complexity of the claim. Generally, once the insurer receives all required documentation, including the death certificate and completed claim forms, the process can take several weeks. Simple and straightforward claims are often processed more quickly, while those requiring further investigation may take longer to complete.
Who can I name as a beneficiary and is it possible to change it later?
You can name any person, trust, or organization as the beneficiary of your life insurance policy. It is also possible to name multiple beneficiaries and specify the percentage of the benefit each should receive. You can change your beneficiary designation at any time by completing the required forms, which are accessible through the secure online Client Space or by contacting your advisor directly.
Is the payout from an Industrial Alliance life insurance policy taxable in Canada?
In Canada, the death benefit from a life insurance policy is generally paid to the beneficiaries completely tax-free. This provides a clear, lump-sum payment that can be used for any purpose without being considered taxable income. However, if the policy has a cash value component and it is surrendered before death, any investment gains may be subject to taxation.
Do I need to take a medical exam to get life insurance with Industrial Alliance?
Whether a medical exam is required depends on your age, health, and the amount of coverage you are applying for. For many applicants seeking coverage under $500,000, a simple declaration of insurability may be sufficient, as Industrial Alliance uses predictive analytics to assess risk. For higher coverage amounts, older applicants, or certain health histories, additional requirements like a phone interview, vital signs measurement, blood profile, or a statement from your doctor may be necessary.
How much life insurance coverage can I apply for with Industrial Alliance?
The maximum amount of coverage you can obtain is determined by financial underwriting guidelines. For personal insurance, this is typically based on a multiple of your annual income, which varies by age. For instance, younger applicants may qualify for a higher multiple than those nearing retirement. For individuals without an income, or for business purposes like covering a loan, the calculation is based on other factors such as spousal income or the value of the business.
Can I still get coverage if I have a pre-existing medical condition?
It is possible to obtain coverage with a pre-existing medical condition, but the final decision depends on the specific condition, its severity, and how well it is managed. During the underwriting process, Industrial Alliance will review your medical history. Depending on the risk assessed, the outcome could be approval at standard rates, an approval with an extra premium, a postponement of the decision, or a decline of the application for more severe conditions.
How long does it typically take for a beneficiary to receive the payout?
Industrial Alliance does not publish specific timelines for claim payouts, as the duration can vary based on the complexity of the claim. Generally, once the insurer receives all required documentation, including the death certificate and completed claim forms, the process can take several weeks. Simple and straightforward claims are often processed more quickly, while those requiring further investigation may take longer to complete.
Who can I name as a beneficiary and is it possible to change it later?
You can name any person, trust, or organization as the beneficiary of your life insurance policy. It is also possible to name multiple beneficiaries and specify the percentage of the benefit each should receive. You can change your beneficiary designation at any time by completing the required forms, which are accessible through the secure online Client Space or by contacting your advisor directly.
On the same topic
