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- Both Canada Life and Manulife are backed by strong financial ratings and offer term life insurance plans with level premiums
- Manulife term life insurance stands out for its Vitality rewards program linked with term plans
- Canada Life offers higher coverage limits; however, special underwriting is required for coverage extending beyond $25 million
- Choose between Canada Life and Manulife term life insurance plans based on flexibility, rider availability, coverage amount, wellness program, and more
When it comes to buying term life insurance in Canada, the two names that often come to mind are Canada Life and Manulife. Both are trusted insurers in Canada with millions of policyholders and extensive product offerings.
Both offer term life insurance policies with distinct features that may look similar. However, when you take a closer look at their term life insurance policies, you will understand the real differences. In this guide, we explain Canada Life vs. Manulife term life insurance and help you pick a suitable option based on your needs.
Manulife has an edge over Canada Life, given its special wellness-linked Vitality program. It also has more rider options, family term plans, and multiple coverage options.
Canada Life offers longer term lengths and better pricing. It also allows the option for term-to-term conversion.
Quick verdict
Choose Manulife if:
- You want wellness-linked rewards
- You are looking to insure multiple members of your family under one policy
- You want term coverage integrated with wellness tracking
Choose Canada Life if:
- You want a higher coverage limit
- You want term-to-term conversion
Why Manulife vs. Canada Life is a common comparison
When exploring term life insurance options in Canada, many find themselves comparing Canada Life and Manulife. Both companies are among the largest life insurers in the country and offer term life policies designed to help individuals and families protect their financial responsibilities.
The basic concept of term insurance remains the same for both Canada Life and Manulife, yet the structure and features will differ. Coverage limits, available term lengths, optional riders, and underwriting practices can vary from one company to another. These differences can influence how flexible a policy is and how well it aligns with a policyholder’s long-term financial plans.
The comparison below examines how Canada Life and Manulife structure their term life insurance offerings and who is it best suited for.
Manulife vs. Canada Life at a glance
Here’s a table to give you a quick overview of Canada Life and Manulife:
Company snapshot: Manulife vs. Canada Life
| Features | Manulife | Canada Life |
| Founded | 1887 | 1847 |
| Headquarters | Toronto, Ontario | Toronto, Ontario |
| Total assets (insurer) | $1.3T | $461.2B |
| AM Best rating | A+ | A+ |
| LICAT Ratio | 137% | 130% |
About Manulife term life insurance
Manulife offers a range of term life insurance options designed to meet different protection needs. Here is a detailed overview of Manulife term insurance plans:
- Manulife Family Term: This plan is an affordable and flexible solution to your term insurance needs. The Manulife Family Term lets you choose between $100,000 and $20 million in coverage, depending on your coverage needs. With this term life policy, you can also get advance cash if diagnosed with a terminal illness. The available coverage options are single life or multi-life coverage
- Family Term with Vitality Plus: It is like other term life plans offered by Manulife, but with the added benefits of Manulife Vitality, which rewards you for maintaining a healthy lifestyle. With this plan, you pay level premiums for 10 or 20 years, to age 65, or for life, and choose coverage between $250,000 and $25 million. The plan also includes coverage for bereavement counselling costs up to $1,000
In addition to these, Manulife also offers CoverMe® Term 10 Life Insurance, CoverMe® Term 20 Life Insurance, and CoverMe Easy Issue. These plans are easily available on online platforms but are comparatively higher priced. Overall, for a flexible and affordable term life insurance plan, Manulife Family Term is an ideal plan.
Key features of Manulife term life insurance
Manulife’s term life insurance policies come with the following features:
1. Multiple term length: The policy offers a variety of term options, including Term 10 (T10), Term 20 (T20), and Term 65 (coverage up to age 65). This range allows policyholders to select coverage that aligns with both temporary and lifelong financial protection needs
2. Level and guaranteed premiums: Premiums remain level throughout the selected term, providing stability in insurance costs. This predictability helps policyholders plan their finances more effectively without worrying about unexpected premium increases
3. Convertibility: The policy includes an option to convert term coverage into permanent life insurance, typically without requiring additional medical evidence. This provides flexibility for those who want to transition to lifelong coverage in the future
4. Coverage options: Multiple coverage structures are available to cover multiple individuals under one policy. These choices make the policy suitable for individuals, couples, and families with varying insurance needs
5. Riders: A range of optional riders is available to enhance coverage, including accidental death benefit, premium waiver benefit, guaranteed insurability option, business value protection benefit, child term benefit, and disability protection rider. These add-ons allow for more customized and comprehensive protection
Pros and cons of Manulife term life insurance
| Pros | Cons |
| High coverage limits, up to $25 million | Vitality benefits are not available on all plans |
| Terminal illness benefit available with Manulife Family Term | Higher coverage limits require stricter underwriting |
| Term 10, Term 20, and Term 65 are available | |
| Manulife Vitality rewards program is available | |
| Convertible to permanent life insurance |
About Canada term life insurance
Canada Life’s primary term life insurance product is My Term™ Life Insurance, designed to offer flexibility in both coverage structure and policy duration. The My Term™ Life Insurance plan is available in 5 to 50 year term lengths with coverage options including single-life and joint-first-to-die coverage.
Another distinguishing feature of My Term™ Life Insurance is its broad coverage range. Policies start at $100,000, and while there is no strict upper limit on the maximum coverage amount, applications requesting more than $25 million typically require additional underwriting review.
Canada Life term life insurance also offers flexibility, and the coverage can be automatically renewed at the end of the term without requiring new medical evidence. In addition, the policy offers conversion options, allowing it to be converted to permanent life insurance or longer term lengths, as the need evolves.
Key features of Canada Life term insurance
Canada Life’s My Term™ Life Insurance comes with the following features:
1. Guaranteed renewability: The policy offers automatic annual renewals without requiring medical evidence, ensuring continued coverage regardless of changes in health. Premiums are guaranteed for each renewal period, but increase annually as the insured ages
2. Convertibility: Policyholders can convert their term policy into any permanent life insurance product available at the time of conversion, without medical underwriting. In addition, term-to-term conversion is available, provided the new term is at least 10 years longer than the original term length, offering added flexibility
3. Term lengths: The plan provides a wide range of term lengths, from 5 to 50 years. This flexibility allows policyholders to align coverage with both short-term financial needs, such as debt protection, and long-term goals like mortgage or income protection
4. Optional benefits and riders: A variety of riders can be added to enhance coverage, including waiver of premium, accidental death benefit, guaranteed insurability rider, business growth protection rider, and a child’s term life insurance rider. These options allow for more tailored and comprehensive protection
5. Flexible coverage: The policy offers flexible coverage structures, including single-life and joint-first-to-die options. Single-life coverage protects one individual, while joint-first-to-die cover two lives under one policy, making it suitable for both individual and family insurance needs
Pros and cons of Canada Life term life insurance
| Pros | Cons |
| Longer term lengths available (5 to 50 years) | Renewal premiums increase after the end of the policy term |
| Single-life and joint first-to-die options (up to 2 insureds) | Requires a minimum coverage amount of $100,000 |
| Wide range of riders, including business-focused benefits (available for joint first-to-die policies) | |
| Convertible to a permanent policy up to 70 years of age |
Manulife vs. Canada Life comparison
| Features | Manulife term life insurance | Canada Life term life insurance |
| Term policies offered | Multiple-term plan available | Single-term plan |
| Term length flexibility | Structured term tiers only; T10, T20, T65, and T100 | Flexible term length to choose from; 5 to 50 years available |
| Renewability |
|
Automatic renewals without medical underwriting, up to 85 years |
| Riders |
|
|
| Conversion | Conversion allowed on select plans only | Can be converted to a term that is 10 or more years longer than your existing term or to a permanent policy before the age of 70 |
| Coverage option | Single-life, joint-first-to-die, and joint-last-to-die options available | Single life, joint first-to-die |
| Maximum term coverage limit | Up to $20M (Family Term) / $25M (Family Term with Vitality Plus) | No maximum limit on My Term™ Life Insurance |
| No medical policy | CoverMe Easy Issue available | Not available |
| Wellness rewards program | Available only on Family Term with Vitality Plus | Not available |
Our Ratings
Who should choose Manulife?
Manulife term life insurance is a good choice for those looking beyond the basics of what a term life insurance policy can offer. It appeals to those who want more than basic term life coverage and are interested in plans that combine protection with additional lifestyle or family-oriented features. Choose Manulife if:
- You are interested in wellness-linked benefits: Some term life insurance plans offered by Manulife integrate the Vitality program, which rewards healthy lifestyle choices. Manulife’s Family Term with Vitality Plus gives access to the Vitality program, which may be included without an additional cost
- You want to insure multiple people under one policy: Manulife’s Family Term policy allows coverage for more than one life within a single plan and may also include additional support benefits, such as terminal illness assistance and bereavement counselling
- You want coverage aligned with life goals: Manulife has T65, which provides financial protection up to the age of 65, aligning with retirement planning or long-term goals
- You are looking for living benefits: Manulife term insurance plan offers living benefits, which means that if you are diagnosed with a terminal illness, you may get up to 50% of the policy’s value
Who should choose Canada Life?
Canada Life may appeal to individuals who want a term plan that is straightforward and is available at a longer term length. Choose Canada Lie if:
- You want longer term length options: Canada Life offers term durations ranging from 5 to 50 years through its My Term™ policy, allowing policyholders to select coverage that aligns with both short-term and long-term financial obligations
- You want riders’ availability: Canada Life also lets you choose from multiple riders available, such as accidental death benefit rider, child term rider, disability waiver rider, guaranteed insurability benefit rider, and business value protection rider
- You want straightforward conversion options: Canada Life’s term life insurance plan can be converted to a permanent life insurance policy or to another term that is at least 10 years longer than the term length of the original policy
Final Verdict: Manulife or Canada Life
Best overall: Manulife
Manulife, with an overall rating of 4.7, is slightly better than Canada Life. Manulife’s term life insurance plan offers comprehensive coverage options along with the added benefit of a wellness-benefit program.
Best for riders: Manulife
Both Canada Life and Manulife have good options when it comes to riders’ availability; Manulife has a slight edge. This is mainly because it also has riders for disability.
Best for high coverage needs: Canada Life
Canada Life’s My Term™ Life Insurance comes without any limit on the maximum coverage amount. This lets you choose a higher coverage as per your needs.
Best for wellness benefits: Manulife
Manulife has a special Vitality program that rewards policy owners for maintaining a healthy lifestyle. Canada Life does not have any such program.
Best for price: Canada Life
Canada Life and Manulife are almost at par when it comes to pricing. But, if given a pick, Canada Life has an affordable term life insurance solution for the initial term.
Frequently asked questions
Which is better: Canada Life or Manulife term life insurance?
Manulife ranks slightly higher overall due to its Vitality rewards program and multiple plan options. With the Manulife term life plan, you will earn rewards for leading a healthy lifestyle. Canada Life is also a good option for its longer term lengths and term-to-conversion feature.
What is Manulife Vitality, and is it available with all plans?
Manulife Vitality is a wellness rewards program available with select policies; it rewards healthy lifestyle habits through discounts and rewards. It can help you earn rewards and save on premiums if the Vitality program is tied to your chosen plan.
What are the term life plans available with Manulife?
With Manulife, you have the option to choose from different term life plans, including Manulife Family Term, Family Term with Vitality Plus, CoverMe Term Life, and CoverMe Easy Issue.
What are the different riders available with Canada Life term life insurance plans?
With Canada Life’s term life insurance plan, you can include riders like waiver of premium benefit, accidental death benefit, guaranteed insurability rider, business growth protection rider, and child’s term life insurance rider to enhance your plan benefits.
Confused between Canada Life and Manulife term life insurance? This guide breaks down coverage limits, term flexibility, renewability, riders, wellness rewards, and more. Find out which insurer offers better value based on your financial goals and protection needs in Canada
Confused between Canada Life and Manulife term life insurance? This guide breaks down coverage limits, term flexibility, renewability, riders, wellness rewards, and more. Find out which insurer offers better value based on your financial goals and protection needs in Canada.
