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- Both Sun Life and Canada Life are leading Canadian insurers with strong A+ ratings from AM Best. They offer term life insurance with level premiums during the policy term and optional riders such as child term, accidental death, and disability waiver benefits
- Sun Life stands out for customization, offering flexible term lengths, a term-to-permanent conversion option, and broader rider options
- Canada Life Insurance provides a term life insurance policy with a maximum term length of up to 50 years to meet long-term financial obligations
In Canada, there are a number of insurance companies offering term life insurance policies, yet Sun Life and Canada Life remain the key players in the industry. Both companies demonstrate stable financial strength and have a strong product portfolio.
If you are looking for flexible coverage or affordable term life insurance, both Sun Life and Canada Life offer options that may suit your needs. In this guide, we will walk you through an overview of Sun Life and Canada Life, along with their key features and coverage options, to help you decide which insurer may be the better fit for you. Read on to explore all about Sun Life vs Canada Life.
Quick verdict
Choose Sun Life if:
- You want a flexible term length (5-40 years)
- You want access to a wider range of optional riders, such as accidental death benefits, child term rider, or disability waiver
Choose Canada Life if:
- You want to choose a longer-term policy (up to 50 years)
- You want term-to-term conversion
Why Sun Life vs. Canada Life is a common comparison
When Canadians begin researching term life insurance, two companies frequently appear at the top of comparison lists: Sun Life and Canada Life. Both are long-established insurers with a major presence in the Canadian insurance market, offering term life insurance products to individuals and families.
Sun Life and Canada Life are often compared because both companies have built strong reputations over decades of operation and offer flexible term life products with multiple coverage options. For someone who is buying a term life insurance policy in Canada, this creates a natural question: if both insurers appear reliable and offer similar types of coverage, which one is actually the better fit?
That’s where a direct comparison becomes useful. By looking at their plans side by side, including policy features, flexibility, pricing structure, and ideal buyer profiles, it becomes easier to understand how Sun Life and Canada Life differ and which option may align better with your needs.
Sun Life vs. Canada Life at a glance
Here’s a table to give you a quick overview of Sun Life and Canada Life
Company snapshot: Sun Life vs. Canada Life
| Features | Sun Life | Canada Life |
| Founded | 1865 | 1847 |
| Headquarters | Toronto, Ontario | Winnipeg |
| Global presence | Canada, U.S., Asia | Canada, the United States, the United Kingdom, Ireland, Germany, and a few more |
| Core focus | Insurance, wealth and asset management | Insurance, investment, and retirement plans |
| Market position | One of Canada’s largest life insurers, with a market capitalization of around CAD 40–45 billion | One of Canada’s largest life insurers, operating under Great-West Lifeco, which has a market capitalization of approximately CAD 55–57 billion |
| AM Best Rating | A+ | A+ |
| LICAT Ratio | Well above OSFI’s 100% supervisory target | Well above OSFI’s 100% supervisory target |
| Assets under Management (approx.) | Over CAD 1.3-1.4 trillion | Over CAD 460 billion in total assets |
| Publicly traded | Yes (TSX & NYSE) | Indirectly through the parent company, Great-West Lifeco |
About Sun Life term life insurance
Sun Life’s primary term life insurance product is Evolve Term Insurance. The plan offers coverage amounts ranging from $50,000 to $25 million, with term lengths available from 5 to 40 years.
One of the distinguishing features of Evolve Term is its flexibility. Policyholders can increase their coverage at certain life stages without additional medical underwriting and may also have the option to extend the policy’s coverage duration. The plan can also be converted to a permanent life insurance policy until age 75, giving buyers the option to transition to lifelong coverage later.
In addition to Evolve Term, Sun Life also offers two simplified term options: Go Simplified and Go Term. Go Simplified is a no-medical policy that can be purchased online, while Go Term requires applicants to answer only a limited number of health questions during the application process.
These simplified plans typically come with lower coverage limits and higher premiums compared to fully underwritten policies, which makes Evolve Term the more suitable option for individuals seeking higher coverage amounts and greater policy flexibility.
Key features of Sun Life term life insurance
Here are the core features of Sun Life term insurance:
- Guaranteed renewability
- Level and guaranteed premiums during the selected term
- Automatic renewals without any medical evidence
- Renewability available till 85 years of age
- Conversion to permanent life insurance
- Term policies can be converted to permanent policies (available for select plans) typically before the policy anniversary nearest age 75
- No additional evidence is required for conversion
- Flexible term length options
- For Sun Evolve 5-40 is available
- The flexible term length aids diverse coverage needs
- Optional benefits and riders included
- Accidental death benefit rider
- Child term rider
- Disability waiver rider
- Owner waiver disability rider
- Guaranteed insurability benefit rider
- Business value protection rider
- Renewal protection rider
- Partner protection rider
- Coverage options
- Flexible coverage options from $50,000 to $25 million to suit diverse family needs
- Available coverage structures: single life, joint first-to-die, and multiple life
6. Living benefit access
- May provide up to 50% of the basic insurance amount (maximum $250,000) if diagnosed with a terminal illness
- Offered on a discretionary, compassionate basis
Pros and cons of Sun Life term life insurance
| Pros | Cons |
| Multiple rider options are available | Underwriting can be strict for serious health conditions |
| Option to convert the coverage type and term length | |
| Flexible term length available (5-40 years) | |
| Renewable up to age 85 without any medical evidence |
About Canada Life term life insurance
Canada Life’s main term life insurance product is My Term™ Life Insurance. The plan is available in two coverage structures: single-life and joint first-to-die, making it suitable for both individuals and couples looking for shared protection.
The policy is available to applicants starting at age 15, with coverage beginning at $100,000. There is no strict maximum base coverage limit, although applications requesting more than $25 million in coverage typically require special underwriting and quoting.
Key features of Canada Life term life insurance
Here are the core features of the Canada Life term insurance policy:
- Guaranteed renewability
- Automatic renewals when the term is up
- No medical evidence required for renewals
- Renewable until the policy anniversary nearest age 85
- Convertible
- Option to convert term policy to a permanent policy up to 70 years of age
- No additional underwriting is required
- Term policies may also be exchanged for a longer term, provided the new term is typically at least 10 years longer than the existing one
- The term-to-term conversion can only be requested after the first policy anniversary
- Longer term lengths
- 5-50 term length is available
- Optional benefits and riders
- Accidental death benefit rider
- Child term rider
- Disability waiver rider
- Guaranteed insurability benefit rider
- Business value protection rider
- Coverage options
- Available coverage structures: single life and joint first-to-die
- Joint first-to-die coverage insures 2 lives on a joint coverage
Pros and cons of Canada Life term life
| Pros | Cons |
| Offers single-life and joint-first-to-die coverage options | The minimum coverage for a term policy starts at $100,000 |
| Provides longer-term lengths from 5 to 50 years | |
| Offers affordable term life insurance policies |
Sun Life vs. Canada Life comparison
Wondering whether to choose Sun Life or Canada Life term insurance? Here’s a table illustrating the difference between the two based on features such as term products offered, flexibility, renewability, availability of riders, coverage options, and more.
| Features | Sun Life term insurance | Canada Life term insurance |
| Term policies offered | Evolve Term Insurance | My Term™ Life Insurance |
| Term length flexibility | 5 to 40 years | 5 to 50 years |
| Minimum issue age | 0(Single), 18 years(Joint-first-to-die) | 15 years |
| Renewability | Renewable, up to 85 years of age | Automatic renewals without medical underwriting, up to 85 years |
| Riders |
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| Conversion | Convertible to permanent policy, up to 75 years of age | 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, joint first-to-die, and multiple coverage options | Single-life, joint first-to-die |
| Maximum term coverage limit | $25 million | No limit on My Term™ Life Insurance (special quote is required if the coverage exceeds $25 million) |
| No medical policy | Yes, available with Sun Life Go Simplified | Limited options |
Our Ratings
Who should choose Sun Life?
Sun Life may be a better fit for buyers who value flexibility and rider customization within their term policy. Its plans are designed for people who want more control over how their coverage evolves over time, rather than simply choosing the lowest premium.
Choose Sun Life if:
- You want exact term length: If you are trying to match policy term to your needs, such as a mortgage, loan schedule, or business obligation, Sun Life’s flexible term lengths (5-40 years through Evolve) can allow better planning
- You want the option to exchange your term length: If you are unsure of the term length, Sun Life’s term exchange feature allows certain policies to be exchanged to 20- or 30-year terms. This is available within the first five years without new medical evidence
- You prefer wider rider options: Families or business owners prioritizing multiple riders, like critical illness, child protection rider, business value protection rider, partner protection rider, etc
Who should choose Canada Life?
Canada Life may appeal to buyers who prefer straightforward, long-term coverage with fewer structural changes over time. It’s My Term™ Life Insurance is designed around stable protection rather than extensive customization.
However, compared with some competitors, the product structure tends to be simpler and less flexible, which may or may not suit buyers depending on their planning needs.
Choose Canada Life if:
- You want longer term lengths: Canada Life offers term lengths that can extend up to 50 years, which can appeal to buyers seeking coverage that lasts well into later life stages without needing multiple renewals
- You value a straightforward conversion pathway: Canada Life policies allow conversion to permanent life insurance before age 70 without additional medical exams, making it relatively easy to transition to lifelong coverage later
- You need very large coverage amounts: Canada Life allows very high coverage limits, with special underwriting available for policies exceeding $25 million, which may be useful for high-net-worth individuals or certain business planning needs
Final Verdict: Sun Life or Canada Life
Listed below are ratings based on different ratings for Sun Life and Canada Life term insurance:
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Best overall: Sun Life
Sun Life, with an overall rating of 4.7, is slightly better than Canada Life. Sun Life’s term life insurance plan offers comprehensive coverage options and broader rider options, making it the best overall.
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Best for riders: Sun Life
While both Sun Life and Canada Life have multiple rider options, Sun Life has a slight edge. Sun Life has a greater number of rider options.
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Best for flexibility: Sun Life
Sun Life offers flexible term length (5-40 years), term-exchange options, multi-life coverage, and broader riders.
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Best for high coverage needs: Canada Life
Canada Life’s My Term™ Life Insurance has no maximum base coverage limit. This means you can choose a high coverage (subject to underwriting), depending on your evolving term insurance needs.
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Best for price: Canada Life
Both Canada Life and Sun Life offer competitive pricing, but Canada Life has an affordable term life insurance solution to match your budget needs.
Frequently asked questions
Is Sun Life a good insurance company in Canada?
Yes, Sun Life is a reputable insurance company in Canada. It earns A+ ratings from AM. Best and AA from DBRS. Sun Life’s Evolve term is a flexible term life insurance policy that can be adapted as per your evolving term insurance needs. It is also renewable and convertible.
Sun Life vs Canada Life term insurance: Which is better?
Sun Life and Canada Life are leading names when it comes to term life insurance policies. To choose which one is better for you, you must look for factors that will help you decide, such as coverage requirements, price, flexibility, conversion options, and riders’ availability. Sun Life has an edge over Canada Life as its Evolve term offers multiple term lengths (5-40 years), broader rider options, and greater flexibility.
What are the term life insurance options available with Canada Life?
Canada Life has only one term life insurance policy, which is My Term™ Life Insurance. It is available in two coverage options: single life and joint-first-to-die. The My Term™ Life Insurance can be issued at a minimum coverage of $100,000. There is no maximum base coverage amount limit.
What is the difference between joint first‑to‑die and joint last‑to‑die?
Joint first-to-die pays the death benefit after the first insured person passes away and is often used for income protection or mortgage coverage. Joint last-to-die pays the benefit only after both insured individuals have passed away and is typically used for estate planning purposes.
Sun Life and Canada Life are two major insurers offering term life insurance in Canada, but their policies differ in term structure, coverage limits, rider availability, and conversion options. Sun Life emphasizes flexible term structures and customizable riders, while Canada Life’s My Term™ allows longer term durations of up to 50 years. Understanding these differences can help you choose the policy that better aligns with your long-term protection goals.
