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Canada Life Assurance Company

SUMMARY

Canada Life is Canada’s oldest life insurance company and one of the largest insurers in the world, offering insurance products domestically and worldwide. They offer term life insurance, whole life, universal life, critical illness, creditor insurance, and other financial products. Because of their long history and expansive client list, they take one of the top spots as Canada’s most financially stable insurance company.

By Jiten Puri
CEO & Founder, Insurance Advisor, LLQP
8 min read
IN THIS ARTICLE

The Canada Life Assurance Company – founded in 1847 in Hamilton, Ontario – is Canada’s oldest domestic life insurance company as well as one of the largest life insurers in the world. The company was acquired by Great-West Life in 2003 following a bidding war with Manulife. After years operating under different affiliates such as Great-West Life, London Life, and its namesake – Canada Life, the three brands came under the Canada Life insurance brand umbrella as of January 2020.

Today, Canada Life is one of the largest global life insurance companies providing insurance and wealth management products and services in Canada, the United Kingdom, Isle of Man, and Germany, and in Ireland through Irish Life. In Canada, the company has more than 13 million client relationships and also provides 30,000 employers with benefit plans.

The company commits at least 1% of its pre-tax profit to their communities and charities through Imagine Canada’s Caring Company initiative and sets the standard for corporate philanthropy in Canada.

With $219 billion in assets and a financial strength rating of A+ from A.M. Best, Canada Life is one of the most stable life insurers in the country. The company’s strong capitalization and diverse insurance offerings make it a provider of choice to millions of Canadian life insurance consumers and businesses alike.

Product

Canada Life Insurance

AM BEST RATING

A+

POLICYADVISOR RATING

Best for financial strength

Address

The Canada Life Assurance Company
330 University Avenue
Toronto, Ontario M5G 1R8 Canada

Phone Numbers

British Columbia: 1-800-663-0413
Prairies: 1-888-578-8083
Ontario: 1-877-594-1100
Eastern Canada: 1-800-361-0860

Website

Canada Life | Canada Life Wikipedia Page

Financial Ratings

Based on 2019 financial reports.

Total premiums and deposits: $36.4 Billion
Assets under administration: $219.7 Billion

LICAT ratio: 133%
DBRS Limited Financial Strength Rating: AA (high), Stable (for parent company Great-West Lifeco)

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Term life insurance is an insurance policy that lasts for a specific period of time. Your beneficiaries are entitled to receive a tax-free death benefit if you die within the term of the policy. Once that term expires, you can cancel your policy. However, many insurance providers will automatically renew your policy or have options to convert your coverage into permanent insurance.

Canada Life Assurance offers 4 different term life insurance options, as part of its “Simply Preferred” series.

Term 10

  • 10-year term life insurance coverage with level premiums
  • Policy renews automatically without proof of insurability
  • Available for issue until age 75
  • Convertible before the age of 70 into Canada Life’s permanent products
  • Joint-first-to-die coverage available
  • Coverage ends at the policy anniversary nearest the insured’s age of 85, or in the case of joint coverage when the oldest insured person’s policy anniversary nearest age 85

Term 20

  • 20-year term life insurance coverage with level premiums
  • Policy renews automatically without proof of insurability. A new premium is determined reflecting the life insured’s advancement in age and is locked in for another 20 years
  • Available for issue until age 65
  • Convertible before the age of 70 into Canada Life’s permanent products
  • Coverage ends at the policy anniversary nearest the insured’s age of 85, or in the case of joint coverage when the oldest insured person’s policy anniversary nearest age 85
  • Currently, Canada Life is offering 4 free months of coverage on their Term 20 plans (until Dec 1, 2020).

Term 30

  • 30-year term life insurance coverage with level premiums
  • Policy renews automatically without proof of insurability. Available for issue until age 65
  • Convertible before the age of 70 into Canada Life’s permanent products
  • Coverage ends at the policy anniversary nearest the insured’s age of 85, or in the case of joint coverage when the oldest insured person’s policy anniversary nearest age 85
  • Currently, Canada Life is offering 4 free months of coverage on their Term 30 plans (until Dec 1, 2020).

Term to Age 65

  • Term life insurance coverage till the age of 65 with level premiums
  • Policy is not renewable
  • Convertible before the age of 60 into Canada Life’s permanent products

For more information and an in-depth look at their coverage, read our Canada Life Term Life Insurance Review.

Permanent Life Insurance

Permanent life insurance provides you with coverage from the day the policy is settled until the day you die. As long as you pay premiums into the policy, the coverage never expires.

Canada Life Assurance offers 2 types of permanent coverage; whole life and universal life insurance.

Whole Life Insurance

Canada Life’s offers 2 different participating whole life insurance policies.

  • Wealth Achiever Plus – These policies are focused on early cash values, and thus have a higher minimum coverage amount of $100,000.
  • Estate Achiever Plus – These policies are focused on long-term policy value growth, and minimum coverage starts at $25,000.

Both policy options allow limited payment periods of 10 or 20 years, or until age 100.

Universal Life Insurance

Universal life insurance is like whole life insurance, except there is a self-directed long term investment component: your insurer gives you options for investing the cash value of your policy.

Canada Life provides 3 universal life options:

  • Annually Increasing Pay to 85 cost of insurance (COI) – Lifelong coverage, where you pay premiums until age 85, no guaranteed cash value, and the cost of insurance premiums increases every year.
  • Level COI – Lifelong coverage, where you pay premiums until age 100, no guaranteed cash value, and the cost insurance premiums stays level.
  • Limited Pay COI – Lifelong coverage, where you pay premiums for a set amount of time (10, 15, or 20 years), and there is guaranteed cash value (after year 5 of the policy).

Critical Illness Insurance

Critical illness insurance is a living benefit insurance policy that pays out a tax-free lump sum if you develop a specified illness, health event, or undergo treatment while under its coverage, after a minimum of 30 days from when you are first diagnosed (90 days for cancer). This coverage is available for a period of time also known as term length, and you determine it when purchasing the policy.

Canada Life’s LifeAdvance critical illness product offers coverage for loss of independent existence as an optional rider.  The product also offers partial payouts for 8 different conditions. The payout is typically 15% of the policy coverage up to a maximum of $50,000.

Canada Life’s maximum coverage for critical illness insurance is $2.5 million. It covers 24 critical illnesses, plus the option to add one more.

The survival period (how long you must survive with the illness before you can collect your benefit) is 0 days for most conditions.

Canada Life offers critical illness insurance for 10- and 20-year terms or coverage up to 75 or 100 years of age.

They also offer limited pay options for the Living Advance suite of critical illness products, including pay in 10, 15, or 20 years.

For more information and an in-depth look at their critical illness coverage, read our Canada Life Critical Illness Insurance Review.

Disability Insurance

Disability insurance (or income protection insurance) is a policy that offers you protection against loss of income. It replaces a substantial portion of your paycheque if you become disabled until you return to good health and resume work (or the end of your coverage period).

Canada Life Assurance offers several options for those seeking disability coverage.

  • Lifestyle Protection Plan – available for Canadians aged 18-60 to apply, it offers income replacement from $3,000-$25,000 depending on one’s age and occupation. Benefit periods can be 2, 5 or, 10 years, or until age 65.
  • Independence Plan – available for Canadians aged 18-60 to apply, it offers a maximum income replacement of $3,000, and benefit periods of 1, 2, or 5 years, or until age 65.

Creditor Insurance

Creditor Insurance is a unique coverage product from the Canada Life Assurance Company. It provides a benefit amount that matches large debts like a mortgage, loans, lines of credit, or credit card balances, and pays out in the event of a critical illness, job loss, disability, or death.

However, these products cannot be purchased directly from Canada Life for your existing credit. Instead, they offer it in conjunction with major financial institutions (like Scotiabank, CIBC, and Walmart) when you take out a loan, credit card, or line of credit

Investment Products and Other Financial Products

Besides insurance, Canada Life offers many investment solutions and financial products. These include:

  • Segregated Funds
  • Mutual Funds
  • Goals-based investing with their Constellations program
  • Retirement income solutions through their investment products

Canada Life also offers competitive mortgage loans:

  • Variable rate mortgages (5 year terms)
  • Fixed rate mortgages (Flexible terms up to 5 years)
  • Lock and roll mortgages (where interest rates and payments change every 6 months within a 5 year term)
  • Adjustable-rate mortgages (where interest rates and payments change monthly within a 5 year term)

The information and views provided herein is for general informational purposes only and should not be considered legal or financial advice.

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By Jiten Puri
CEO & Founder, Insurance Advisor, LLQP

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