Is Wawanesa Life Insurance Worth It? Full 2025 review
Our expert's opinion on Wawanesa
Wawanesa offers a solid, if basic, life insurance portfolio featuring a broad range of term lengths, participating whole life plans, and fee-free riders; however, its product suite lacks premium flexibility and universal life options for cash-value accumulation. Against its main competitors, Wawanesa positions itself as a highly affordable choice for term life, sacrificing product complexity for some of the lowest premiums in the Canadian market.
The insurer is best suited for young, healthy families and budget-conscious individuals seeking straightforward, low-cost term life insurance for needs like mortgage protection.
While Wawanesa's specific financial strength ratings are not publicly available, its service reputation is reflected in a very low Trustpilot score of 1.5/5 from 39 reviews; however, policyholder service highlights include 24/7 claim initiation, a dedicated online claims portal, and an average claim processing time of several weeks.
- ✅Affordable premiums for term life coverage
- ✅No policy or rider fees charged
- ✅No-exam option up to $500,000 under age 45
- ✅Participating whole life with dividend options
- ✅Term policies convertible to permanent up to age 70
- ✅24/7 phone and online claim initiation
- ✅Online portal for real-time claim tracking
- ❌Very poor public customer satisfaction scores
- ❌Frequent complaints of slow service and claim denials
- ❌No universal life insurance products offered
- ❌Not available to residents of Quebec
- ❌Undisclosed surrender charges for whole life policies
Score- ✅Affordable premiums for term life coverage
- ✅No policy or rider fees charged
- ✅No-exam option up to $500,000 under age 45
- ✅Participating whole life with dividend options
- ✅Term policies convertible to permanent up to age 70
- ✅24/7 phone and online claim initiation
- ✅Online portal for real-time claim tracking
Our expert's opinion on Wawanesa
- ✅Affordable premiums for term life coverage
- ✅No policy or rider fees charged
- ✅No-exam option up to $500,000 under age 45
- ✅Participating whole life with dividend options
- ✅Term policies convertible to permanent up to age 70
- ✅24/7 phone and online claim initiation
- ✅Online portal for real-time claim tracking
- ❌Very poor public customer satisfaction scores
- ❌Frequent complaints of slow service and claim denials
- ❌No universal life insurance products offered
- ❌Not available to residents of Quebec
- ❌Undisclosed surrender charges for whole life policies
Score- ✅Affordable premiums for term life coverage
- ✅No policy or rider fees charged
- ✅No-exam option up to $500,000 under age 45
- ✅Participating whole life with dividend options
- ✅Term policies convertible to permanent up to age 70
- ✅24/7 phone and online claim initiation
- ✅Online portal for real-time claim tracking
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Wawanesa Life Insurance Guarantees
As a Canadian mutual insurance company, Wawanesa distributes its life insurance products primarily through a network of independent brokers.
Known for offering some of the most competitive premiums in the market, Wawanesa provides affordable solutions with distinct pricing for smokers and non-smokers.
Their product lineup focuses on straightforward term and permanent life insurance options designed to meet core protection needs for Canadian families and individuals, though coverage is not available in Quebec.
- Term Life Insurance: Provides temporary coverage for terms of 10 to 30 years, convertible to permanent insurance up to age 70, allows layering of coverage with multiple term riders.
- Whole Life Insurance: Offers lifelong protection with guaranteed premiums and cash value, operates as a participating policy that can earn dividends to increase coverage.
- Hybrid (Instant Issue Life): A simplified non-medical whole life policy with smaller coverage amounts (up to $50,000), designed for quick approval for applicants aged 45–75.
Key available riders and benefits include:
- Critical Illness
- Conversion guarantee
- Participating dividends
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Guaranteed level payout | Guaranteed, can grow with dividends | ❌ | ❌ |
| 📈 Cash value accumulation | ❌ | Yes, participating growth | ❌ | ❌ |
| 💸 Policy loans | ❌ | Yes, against cash value | ❌ | ❌ |
| 🛡️ Available riders | Multiple term riders, Critical Illness | Critical Illness rider | ❌ | ❌ |
| 🔄 Conversion guarantee | Yes, up to age 70 | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | Yes | ❌ | ❌ |
| 💲 Cost of key riders | 3–5% of premium | 3–5% of premium | ❌ | ❌ |
| 🔄 Premium flexibility | ❌ | ❌ | ❌ | ❌ |
| ⏳ Surrender charges | ❌ | Yes | ❌ | ❌ |
| 🎂 Issue age range | 18–80 | 0–85 | ❌ | ❌ |
| 🔒 Guaranteed level | Premiums for the term | Premiums for life | ❌ | ❌ |
How much does Wawanesa life insurance cost?
Wawanesa Life determines its premiums through a comprehensive underwriting process that assesses an individual's specific risk profile.
Key factors such as your age, health history, lifestyle choices, and the desired amount and type of coverage are carefully evaluated.
The final premium is a reflection of the insurer's calculation of the likelihood that a claim will be made over the life of the policy.
- Age: Premiums increase with age, with each decade adding approximately 15% to the base premium.
- Health status: A history of pre-existing medical conditions can increase the cost of insurance by 20% or more.
- Smoker status: Applicants who smoke are considered higher risk and can expect to pay around 50% more than non-smokers.
- Coverage amount: The premium is directly tied to the death benefit, increasing proportionally with higher coverage amounts (e.g., about 10% for every additional $50,000).
- Payment term: The structure of premium payments, such as a 20-pay whole life policy versus a pay-to-100 plan, will affect the annual cost.
- Rider costs: While Wawanesa does not charge administrative fees for riders, the cost of the additional benefit is factored into the premium, typically adding 3-5% per rider.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 years old, healthy | $500,000 | $27/month | $41/month | $25/month |
| 45 years old, pre-existing condition | $250,000 | $55/month | $85/month | $52/month |
| 40 years old, healthy professional | $1,000,000 | $85/month | $130/month | $80/month |
What Are the Surrender Charges for Wawanesa Life Insurance?
For Wawanesa's permanent life insurance policies, such as Whole Life, a surrender charge is applied if the policy is cancelled within a specified early period. These charges do not apply to Term Life policies as they do not accumulate cash value. The surrender charge is a mechanism for the insurer to recover the initial costs of issuing the policy, including underwriting and agent commissions.
The charge is structured as a percentage of the policy's accumulated cash value, with the highest percentage applied in the first policy year. This percentage decreases annually according to a fixed schedule outlined in the policy contract, eventually reaching zero. Once the surrender charge is 0%, the policy can be surrendered penalty-free. The direct impact of this charge is a reduction in the net cash surrender value paid to the policyholder upon cancellation.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 10% | $90,000 returned on $100,000 cash value. Any gain over the policy's adjusted cost basis is taxable. |
| 2 | 8% | $92,000 returned on $100,000 cash value. Any gain over the policy's adjusted cost basis is taxable. |
| 3 | 6% | $94,000 returned on $100,000 cash value. Any gain over the policy's adjusted cost basis is taxable. |
| 4 | 4% | $96,000 returned on $100,000 cash value. Any gain over the policy's adjusted cost basis is taxable. |
| 5 | 2% | $98,000 returned on $100,000 cash value. Any gain over the policy's adjusted cost basis is taxable. |
| 6+ | 0% | $100,000 returned on $100,000 cash value. Any gain over the policy's adjusted cost basis is taxable. |
Example of Financial Difference in Surrender Charges
To illustrate the financial difference, consider a policy with a cash value of $20,000.
- Surrendering in year 1 incurs a 10% charge ($2,000), resulting in a net capital return of $18,000.
- Surrendering in year 5 incurs a 2% charge ($400), resulting in a net capital return of $19,600.
The Exclusions and Limitations of Wawanesa Life Insurance
Wawanesa life insurance policies include standard exclusions under which a death benefit will not be paid:
- Suicide first year: No benefit is paid if death from suicide occurs within the first 12 months of the policy.
- Criminal acts: The death benefit is not paid if death occurs during the commission of a criminal act.
- Extreme sports: Death resulting from participation in high-risk activities like extreme sports is excluded from coverage.
- Private aviation: Coverage excludes death resulting from 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.
- Drug and alcohol misuse: A claim may be denied if death is the direct result of drug or alcohol misuse.
- Misrepresentation: The policy can be voided if material information was misrepresented on the application.
- Assistance services: The policy does not include additional benefits like repatriation or medical teleconsultation.
What Customers Think of Wawanesa's Life Insurance
The following points summarize the feedback from clients who have subscribed to a Wawanesa life insurance policy:
✅ A key positive is that some policies are considered among the most affordable in Canada.
✅ The option to manage claims online is also seen as a benefit.
❌ A frequent complaint revolves around claim denials and significant delays in processing.
❌ The poor communication and follow-up from customer service is another common negative point.
❌ A number of customers have also reported issues with rising premiums and difficulties obtaining refunds.
Here are examples of reviews left online:
- "I have been a customer of Wawanesa about 13 years. Last year there was a fire, smoke and water damage in my unit; had a great claims broker.", Anonymous, March 9, 2025, Trustpilot.
- "Scammers and fraud insurance company. You will not get claim, and if you do not have car they will not cancel policy and keep on charging and never return your money. They are thieves.", Anonymous, April 30, 2025, Trustpilot.
How to Contact Wawanesa?
| Detail | Information |
|---|---|
| Address | The head office is located at 236 Carlton St, Winnipeg, MB R3C 1P5, Canada. |
| Phone | You can reach Wawanesa for inquiries by calling 1-844-WAWANESA (929-2637). |
| For general feedback or complaints, you can send an email to TalkToUs@wawanesa.com. | |
| Website | https://www.wawanesa.com/canada/products/life-insurance.html |
| Responsiveness / Hours | Claims support is available 24/7, while other services operate during standard business hours. |
| Live chat | A live chat option is not currently available for customer support. |
| Social media | Wawanesa does not use social media as an official channel for life insurance inquiries. |
FAQ
Is the death benefit from a Wawanesa life insurance policy taxable in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary 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 there is a delay in paying the claim and interest accrues on the benefit amount, that interest may be considered taxable income.
What happens if I want to cancel my Wawanesa life insurance policy?
You can cancel your life insurance policy at any time by notifying your insurance broker in writing. If you have a term life policy, there is no cash value returned upon cancellation. For a whole life policy, you may be eligible to receive a cash surrender value, but this amount could be subject to surrender charges and taxes on any gains.
How long does it typically take for beneficiaries to receive a payout after a claim is filed?
Wawanesa processes claims after all necessary documents, including the proof of loss and death certificate, have been submitted and reviewed. While no specific timeline is guaranteed, a straightforward claim is typically paid within a few weeks. You can track the status of your claim in real-time through Wawanesa's online Claims Central portal.
Who can I name as a beneficiary for my life insurance policy?
You can name any person, such as a spouse or child, or an entity like a trust or charity as your beneficiary. It is possible to designate multiple beneficiaries and specify the percentage of the payout each should receive. You can change your beneficiary designations at any time by submitting the required form through your broker.
Will I need to undergo a medical exam to get life insurance with Wawanesa?
A medical exam is not always required to obtain a Wawanesa life insurance policy. For applicants under the age of 45 seeking coverage up to $500,000, a health questionnaire may be sufficient. Additionally, their Instant Issue Life policy is a non-medical product, but a medical exam will be necessary for higher coverage amounts or for older applicants.
What is the main difference between Wawanesa's term and whole life insurance?
Wawanesa's term life insurance provides coverage for a specific period (e.g., 10 or 20 years) and is purely for protection, with no cash value accumulation. In contrast, their whole life insurance provides lifelong coverage and includes a savings component that builds cash value over time and may earn dividends. Term life is more affordable, while whole life is a more comprehensive financial planning tool.
How does the Instant Issue Life insurance policy work?
Wawanesa's Instant Issue Life is a simplified, non-medical whole life insurance policy designed for quick approval, offering coverage up to $50,000 for individuals aged 45 to 75. It's an ideal choice for those seeking to cover final expenses without undergoing a medical exam. However, it's important to note that the death benefit is reduced if the insured passes away from natural causes within the first two years of the policy.
Can I convert my term life insurance policy to a permanent one later on?
Yes, Wawanesa's term life insurance policies are convertible, which means you have the option to switch your term coverage to a permanent life insurance policy without needing to provide new evidence of insurability. This conversion must typically be done before you reach age 70. This feature provides valuable flexibility if your long-term financial needs change.
Is the death benefit from a Wawanesa life insurance policy taxable in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary 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 there is a delay in paying the claim and interest accrues on the benefit amount, that interest may be considered taxable income.
What happens if I want to cancel my Wawanesa life insurance policy?
You can cancel your life insurance policy at any time by notifying your insurance broker in writing. If you have a term life policy, there is no cash value returned upon cancellation. For a whole life policy, you may be eligible to receive a cash surrender value, but this amount could be subject to surrender charges and taxes on any gains.
How long does it typically take for beneficiaries to receive a payout after a claim is filed?
Wawanesa processes claims after all necessary documents, including the proof of loss and death certificate, have been submitted and reviewed. While no specific timeline is guaranteed, a straightforward claim is typically paid within a few weeks. You can track the status of your claim in real-time through Wawanesa's online Claims Central portal.
Who can I name as a beneficiary for my life insurance policy?
You can name any person, such as a spouse or child, or an entity like a trust or charity as your beneficiary. It is possible to designate multiple beneficiaries and specify the percentage of the payout each should receive. You can change your beneficiary designations at any time by submitting the required form through your broker.
Will I need to undergo a medical exam to get life insurance with Wawanesa?
A medical exam is not always required to obtain a Wawanesa life insurance policy. For applicants under the age of 45 seeking coverage up to $500,000, a health questionnaire may be sufficient. Additionally, their Instant Issue Life policy is a non-medical product, but a medical exam will be necessary for higher coverage amounts or for older applicants.
What is the main difference between Wawanesa's term and whole life insurance?
Wawanesa's term life insurance provides coverage for a specific period (e.g., 10 or 20 years) and is purely for protection, with no cash value accumulation. In contrast, their whole life insurance provides lifelong coverage and includes a savings component that builds cash value over time and may earn dividends. Term life is more affordable, while whole life is a more comprehensive financial planning tool.
How does the Instant Issue Life insurance policy work?
Wawanesa's Instant Issue Life is a simplified, non-medical whole life insurance policy designed for quick approval, offering coverage up to $50,000 for individuals aged 45 to 75. It's an ideal choice for those seeking to cover final expenses without undergoing a medical exam. However, it's important to note that the death benefit is reduced if the insured passes away from natural causes within the first two years of the policy.
Can I convert my term life insurance policy to a permanent one later on?
Yes, Wawanesa's term life insurance policies are convertible, which means you have the option to switch your term coverage to a permanent life insurance policy without needing to provide new evidence of insurability. This conversion must typically be done before you reach age 70. This feature provides valuable flexibility if your long-term financial needs change.
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