SSQ Critical Illness Insurance rating and review

SSQ (operating as Beneva, as of January 2023) offers critical illness insurance with features that compete well with the best plans in Canada. Their youth shows in their easier-to-understand digital materials and website. If community involvement and corporate responsibility are important to you, SSQ might be your first choice. The company is run as a mutualist democracy, which you enter into once you purchase the policy, and thus have a small say in how they are run.

Every year in Canada, roughly 63,200 people are diagnosed with a heart attack for the first time. With the heart attack mortality rate of about 12%, that means that every year over 55,000 people live with varying degrees of heart damage, which can impact lifestyle, mobility, and the ability to work.

Critical illness insurance can play a vital role in supporting people’s heart attack recovery by providing financial protection should they undergo this life-threatening health event. Critical illness insurance is a living benefit that can be used at the insured’s discretion, whether it’s to pay for care, treatment, income replacement, or anything else they may need. Keep reading to learn more about who is eligible for heart attack insurance and how it can protect your financial future.

What is a heart attack?

A heart attack, also called myocardial infarction, is when the heart muscle suffers damage due to a lack of blood flow and, consequently, lack of oxygen. Just as a stroke is caused by loss of blood flow to the brain, a heart attack is caused by a lack of blood flow to the heart. The severity of heart attacks varies depending on how long the blood supply is cut off from the vital organ. In worst-case scenarios, it can lead to cardiac arrest and death.

There are several factors that can cause heart attacks. The most common cause is obstructed coronary arteries due to buildup of plaque, cholesterol plaque, or blood clots. Heart attacks can also be caused by a coronary artery spasm, which temporarily restricts the coronary artery, inhibiting blood flow. Symptoms of a heart attack include chest pain or discomfort, shortness of breath, and nausea, among others—though these manifest differently depending on the patient.

While heart attacks are often unexpected, there are certain factors that influence your risk of heart disease—some of which can be mitigated. For instance, smoking, stress, recreational drug use, obesity, high blood pressure, and high cholesterol can all increase your risk of this medical condition. Other uncontrollable factors—such as age, family medical history, and certain autoimmune conditions—can contribute to your risk of a heart attack.

Learn more about whether life insurance covers heart attack. 

What is critical illness insurance?

Critical illness insurance is a type of coverage offered by life insurance companies (typically as an add-on to a life insurance policy, but can also be purchased as a stand-alone policy) that pays out a tax-free lump sum should the insured be diagnosed with a life-threatening illness or suffer a serious health event while the policy is active. Unlike traditional life insurance, critical illness insurance issues a benefit while the insured is alive, providing them and their family with financial support as they manage the financial and health impact of a life-threatening illness. This money can be used to pay medical expenses, cover non-traditional treatment, travel expenses or any other expenses the family sees fit. It should be noted that the critical illness insurance benefit is only paid if the insured is diagnosed with a covered illness, as specified in the policy. The proceeds of the insurance can be used fully at the discretion of the insured.

Does critical illness insurance cover heart attack?

Yes, critical illness policies cover heart attacks. In fact, heart attacks are the second most claimed health event through critical illness coverage (representing 13%), following cancer (63%). If you’ve suffered from a heart attack, it is important to note what insurance companies consider when approving claims. First, a heart attack requires a medical specialist diagnosis, and the insured must have undergone symptoms as well as electrocardiogram (ECG) changes that are consistent with a heart attack.

There are certain exclusions that may apply. For instance, a claim may be denied if a policyholder has ECG changes that point to a pre-existing heart attack, displays other acute coronary syndromes, or has undergone a medical procedure or received another diagnosis that has caused elevated cardiac biomarkers.

How long do I have to wait to file a claim after having a heart attack?

In order to make a claim for heart attack insurance, policyholders must be diagnosed with a heart attack by a physician and wait 30 days after the diagnosis. This waiting period is called a survival period. Some insurance providers do offer shorter survival periods. Typically, the critical illness benefit will be paid within a month of the claim being submitted.

Can I start a critical illness insurance policy after I’ve had a heart attack?

While it is much easier to start a critical illness insurance policy before suffering any major health events, it is still possible to find coverage after a heart attack recovery. In other words, you have options, though you may not qualify for the most competitive rates or highest benefits.

The most common route for those who have recovered from a heart attack is guaranteed critical illness insurance. This type of policy, though inclusive, has some limitations. For example, guaranteed critical illness insurance typically includes a two-year pre-existing condition exclusion. This means that if you’ve suffered from a heart attack in the two-year period before the start of the policy, any heart attack or related health event in the next two years will not be covered.

Can I get critical illness insurance if my family has cardiovascular health concerns?

If your family has a history or signs of heart disease, it is prudent to think about investing in critical illness insurance. Though most life insurance companies take family medical histories into account when evaluating a critical illness insurance application, having an increased risk of heart disease will not necessarily exclude you from coverage. Your coverage limit and premium rates, however, may be impacted.

In cases where family history is a consideration, it is advisable to purchase critical illness insurance sooner rather than later. This will increase your chances of being able to place coverage and improve the premium rates you are offered.

To find out more about insurance for heart attacks and other critical health conditions, head to our critical illness insurance learning centre. To better understand how much critical illness insurance coverage you might need, consult our critical illness insurance calculator.

CLHIA heart attack definition

Heart Attack definition

Heart Attack means a definite diagnosis of the death of heart muscle due to obstruction of blood flow, that results in a rise and fall of biochemical cardiac markers to levels considered diagnostic of myocardial infarction, with at least one of the following:

• Heart attack symptoms
• New electrocardiogram (ECG) changes consistent with a heart attack
• Development of new Q waves during or immediately following an intra-arterial cardiac procedure including, but not limited to, coronary angiography and coronary angioplasty.
• The diagnosis of Heart Attack (acute myocardial infarction) must be made by a specialist.

Exclusions: No benefit will be payable under this covered condition for:

• ECG changes suggestive of a prior myocardial infarction;
• Other acute coronary syndromes, including angina pectoris and unstable angina; or
• Elevated cardiac biomarkers and/or symptoms that are due to medical procedures or diagnoses other than heart attack.

Similarly, there may also be coverage for other cardiovascular conditions. To clarify what is usually covered, the CLHIA has defined the 26 conditions most commonly included in these insurance policies. 

Pregnancy can be an exciting time. The anticipation of welcoming someone new into your family is thrilling for many expectant parents. But, pregnancy can also come with a lot of new financial, physical, and psychological stress. From making space in your home to mentally preparing for a child to choosing a name, there are a lot of things that can cause worry. And while many like to focus on picking out nursery colours and the top-of-the-line stroller, one major cause of stress that they encounter during pregnancy is the financial implications of a child and a growing family.

Raising a child comes with a lot of new expenses, and one of the last things you want to worry about when you’re expecting is who would shoulder those expenses if something were to happen to you early on in your child’s life. One way to alleviate some of that stress is by purchasing a life insurance policy. Life insurance can offer peace of mind, leaving you with the comfort of knowing your future child will have some financial support.

Can I get a life insurance policy if I’m pregnant?

Yes, you can get a life insurance policy when pregnant. While pregnancy, even smooth ones, can cause a lot of strain on the body, it is possible to get life insurance at any time during your pregnancy! That being said, if you have a pregnancy-related complication such as gestational diabetes, the underwriting process can get a bit more complicated. Additionally, if you apply really close to your due date, underwriters may postpone your application until after you give birth.

Any pregnancy has associated health risks before, during, and after birth and can lead to a variety of medical conditions and complications. Thus, the insurance company takes a higher financial risk when approving your application while you are pregnant compared to when you are not. This may be reflected in higher costs and less extensive coverage depending on if the pregnancy has complications. Otherwise, pregnancy is not usually a huge concern for insurance companies. However, it is always best to apply for coverage ASAP—the later you apply for insurance during pregnancy, the more likely there may be health complications that could impede the approval process.

Do you have to declare pregnancy on a life insurance application?

Yes, you must declare a known pregnancy on a life insurance application. In the eyes of an insurance provider, it’s a state of health. Not disclosing a known pregnancy when applying for life insurance would be similar to not disclosing a heart condition, cancer diagnosis, or other health issues.

If a claim is made on your policy and it’s determined that you did not disclose a pregnancy, your beneficiaries (your loved ones) could be denied the life insurance payout. Misrepresenting your health conditions during the underwriting process is considered life insurance fraud. This can result in denied claims or a reduced death benefit to pay for the premiums you should’ve been paying due to your specific health conditions, in this case, pregnancy.

During the application process, you may be asked about your history of pregnancy. Some complications that the insurance company may be concerned about are:

• Miscarriage
• Preeclampsia
• Taxoemia
• Gestational diabetes
• Caesarean section
• Postpartum depression 
• Other more rare complications of pregnancy or childbirth

During the medical exam portion of the application, you may be subject to a blood or urine test, but usually not a pregnancy test. Further, you should still disclose to the examiner that you are pregnant as they may not be aware.

In the rare circumstance that you do not pass medical requirements for life insurance applications due to complications such as gestational diabetes, you still have options! Some insurers have life insurance policies that do not require a medical exam, called no-medical life insurance. No-medical insurance is great for those who are denied coverage from traditional carriers due to medical concerns or those with high-risk lifestyles or occupations. However, the premiums for no-medical policies tend to be higher than traditional life insurance plans.

Learn more about life insurance and diabetes.

How much does weight gain matter for a life insurance application?

Weight gain is expected during pregnancy and insurance providers do take that into consideration when offering coverage. However, similar to when applying for life insurance you’re not pregnant, your weight is a factor when determining rates or coverage restrictions.

Insurance providers consider your Body Mass Index (BMI) and any increased risk factors for conditions that could arise due to a fluctuation in your current weight, regardless of if you’re pregnant or not. But, since weight gain is an expected part of pregnancy, any weight gain that is classified as normal will not negatively impact your coverage or life insurance premium.

If you are considered a high-risk pregnancy due to your weight before conception, the insurance company may consider you high risk as well. Most companies will use your pre-pregnancy weight when determining coverage.

Which trimester should you apply for life insurance?

The earlier the better! The best option is to apply for life insurance before you get pregnant. If you’re already pregnant, you should apply for life insurance in the first trimester of pregnancy.

The further along in your pregnancy you are the more likely it is that you will develop complications. These complications, such as gestational diabetes, are seen by insurance providers as a liability, similar to a pre-existing condition. In addition, if you are considered a high-risk pregnancy, your insurance application may require further underwriting. A high-risk pregnancy may include someone who has been diagnosed with gestational diabetes or pre-eclampsia. Pregnancies at age 45 or older as well as multiple birth pregnancies such as triplets are also considered high risk.

If rates are too expensive later on in your pregnancy, or you are experiencing a high-risk pregnancy with many complications, it’s recommended that you wait at least four to eight weeks after giving birth to apply. By then, it’s likely that you will have lost some weight and the health complications you may have experienced during pregnancy such as high blood pressure will be resolved.

Does your existing life insurance policy change when you have a baby?

Your existing life insurance policy does not change if you become pregnant, so you still have coverage through your existing plan. Insurance providers are well aware that many people who purchase a life insurance policy can and will become pregnant.

If you purchased life insurance coverage prior to becoming pregnant, you don’t have to let your life insurance company know, however, there are some changes you may consider making to your existing policy, such as increased coverage and naming your child as the beneficiary.

Should you name your baby as a life insurance beneficiary in Canada?

Yes, if you choose to do so, you can name your baby as your life insurance beneficiary. Chances are if you’re pregnant and considering life insurance, you want to make sure that your future child has some financial security if something happens to you.

However, the reality is that in Canada you must be the age of majority to receive an insurance payout. If your insurance beneficiary is not yet 18, the money will be held in a trust by a trustee until they become of age. This means they will not directly receive the benefit until they are 18. Additionally, you should wait until the child is actually born before naming them as a beneficiary to avoid future administrative and emotional grief should the child miscarry.

You can choose to either set up a trust for your child knowing they won’t have access until they are 18, or you can name a partner, family member, or friend as the beneficiary. It is most beneficial to your child to name the person who would be caring for your child as the beneficiary as the money can be used to pay for their care. But this is a personal choice, and it’s best to chat with an advisor to determine who you think would be the best beneficiary of your life insurance policy.

Learn more about life insurance beneficiaries.

How do I get the lowest life insurance rates if I’m pregnant?

To get the lowest life insurance rates during pregnancy, apply as soon as possible. While it’s best to get life insurance before becoming pregnant, that’s not always possible or easy for many Canadians. So, apply early in your pregnancy to ensure lower rates. Every insurance provider will have different stipulations and coverage when it comes to providing life insurance to someone who is pregnant, so it’s best to talk with an advisor to find a policy that fits your needs. The team at PolicyAdvisor is happy to help you find the best insurance option for your growing family.

Life insurance riders to consider if you’re pregnant

Life insurance riders are additional benefits and coverage that you can add to a life insurance policy. Since we all have unique needs and expectations, a rider can help to personalize your life insurance policy to fit you and your growing family. Riders are also a more affordable way to add additional types of coverage without purchasing a separate policy to include things such as disability insurance and critical illness insurance.

If you’re getting life insurance while you’re pregnant, you may want to consider adding some of the following riders to your life insurance policy:

• A child term rider is term life insurance for a child’s life. This can help cover the costs of a funeral or burial if something were to happen to your child.
• A spousal rider is additional coverage that will cover the life of your spouse. This is a good option if your spouse is unable to secure their own life insurance policy due to ineligibility or affordability.
• A hospitalization income rider will provide a daily cash payout if you end up hospitalized for a long period of time in order to help cover some of the costs.
• A children’s critical illness insurance rider will provide a lump sum payment if your child is diagnosed with a critical illness such as cancer.

To learn more about life insurance riders reach out to one of our policy advisors to customize a life insurance policy that’s perfect for your family.

Final Thoughts

Pregnancy and preparing for a new child is an exciting and somewhat stressful time. Let our team at PolicyAdvisor help reduce some of that stress by setting your family up with an affordable life insurance policy from one of the 20+ providers we work with. Book a call with one of our advisors today!

In their sixties, most Canadian seniors have their eyes towards retirement and are wrapping up their remaining working years. As a 60-year-old or older, in all likelihood their mortgage payments are coming to a close, the children have left the family home or are having children of their own, and it’s time to settle into the life they’ve so meticulously built for themselves and their family. Regardless of your situation, and whether you are adding on to or augmenting your existing policies, or shopping for life insurance for the first time, it’s good to know the basics and get a feel for how much on average term life insurance costs for a 60-year-old or older.

Assuming this is a typical Canadian family situation, it’s possible they would be through the riskiest financial period of their lives and might have a limited need for life insurance in their sixties. But, many Canadians are not typical and their unique lives and needs might still require significant financial protection depending on their circumstances.

Do I need life insurance as a senior in my 60s?

As we started off saying, your life insurance needs may not be that grand at 60 years of age or over. You may only have a few years of mortgage payments left, no dependents, and enough retirement savings to carry you through the rest of your years. However, not all Canadians fit into this idyllic scenario.

If you’re a Canadian senior over the age of 60 and still counting on your income to pay down a mortgage, supporting a partner of any age, and planning on contributing to the education costs of your children or grandchildren, you may still be in need of life insurance in your sixties. In another instance, if you traditionally counted on group benefits to satisfy your life insurance needs, you’ll soon lose that life insurance benefit from work if you plan on retiring. 

And, if you have already purchased life insurance earlier in life and are still paying those premiums, your needs may have evolved now that you are in your sixties. Whether that means replacing a policy that has become significantly more expensive at renewal, or adding to or replacing an inadequate policy that no longer suits your situation – there is no shortage of scenarios where a 60-year old senior needs life insurance.

Our life insurance needs calculator can shed more light on your specific insurance requirements.

Can a 60-year-old get life insurance?

Of course! Barring any extreme health scares or conditions, it’s completely possible to obtain life insurance including the traditionally underwritten type of life insurance in your sixties. It’s true, you won’t get the same life insurance rates as when you were a whippersnapper in your 20s and 30s, but a 60-year old and over in good health can still secure a reasonable life insurance rate. This is something you may want to take advantage of before your family doctor starts adding preventive medical care as you hit the slippery side of 60 and over. While taking a daily pill for creeping cholesterol or heart concerns is by no means a medical emergency at this age, it can still affect your ability to get your life insured at a reasonable rate.

Most Canadian life insurance companies will however no longer give you a free pass in your 60s. Applying for traditional life insurance policies will most likely require a medical exam, so insurance companies can better assess your health risks. The bad part: no one likes needles. The good part: once you clear the medical, your life insurance rates will be lower than a no-medical policy (which we’ll explain further below).

What if I can’t get life insurance due to a medical condition?

If you happen to develop any health concerns while covered under a previous policy, you may want to investigate if there are options available within your existing coverage, or even asking a life insurance broker to guide you through more appropriate plans you may want to purchase.

Many life insurance companies in Canada now offer alternative no-medical life insurance options for seniors (and other age groups) that are unfortunately living through a health condition. You just need to have a knowledgeable life insurance broker with access to a broad range of no-medical life insurance products that suit your unique medical needs. Luckily, we know exactly where you can find the best life insurance broker – better still, the best online life insurance broker.

What is the best life insurance for a senior at 60 years old or older?

A 60-year old in good health has access to different types of life insurance products for seniors. The best life insurance for a 60-year old depends on each person’s individual needs. As a 60-year old, if you wanted coverage for temporary needs, such as covering last few years of your mortgage or had a budget to work within, then term life insurance is the best life insurance policy for seniors. But, if you wanted life insurance for permanent needs – such as allow for efficient transfer of assets to your children or use life insurance to help pay for funeral expenses – then go for whole life insurance for seniors.

How much does term life insurance cost for a 60-year-old?

As we’ve written before, insurance premiums are based on many factors such as your age, gender, smoking status, lifestyle, and overall health. With everything equal – we’ve calculated the numbers from 16 of the best Canadian life insurance companies to determine the average cost of life insurance on a 20-year term life insurance policy, divided by smoking status and gender.

For the average male non-smoker, $250,000 of term life insurance coverage starts at just over $226 per month at age sixty and rises from there with age. Smoking raises the average 20 year term life insurance premium to $471 and keeps that trend going up to age 69.

Life Insurance Premiums – Male, 20-Year Term Life Insurance

*Representative values, based on regular health

The story is similar for women in their sixties; average term life insurance costs are lower than men’s at this age ($151), and smoking continues to almost double premiums.

Life Insurance Premiums – Female, 20-Year Term Life Insurance

*Representative values, based on regular health

These are average costs of a 20 year term life insurance and are based on representative data; the numbers will change depending on factors like health and medical exam results, smoking status (not just cigarettes), family medical history,  and more.

How much life insurance do I need as a 60-year-old?

When searching for insurance as a 60 year old, you may want a higher benefit amount or a shorter term depending on your financial situation, life insurance coverage needs, and all the other things that accompany life as a senior in Canada.

Only you know how much coverage you need and can afford, but the numbers above give a holistic view of what the average term life insurance policy will cost for a 60-year old.

You now have an idea of what term life insurance might cost as you approach retirement age – but everyone’s situation is different. If you have 5 minutes, you can figure out your needs and get instant, custom term life insurance quotes with PolicyAdvisor’s online term life insurance quoting tool. 

How do I buy the best life insurance in my 60s?

First things first – find a trusted insurance broker like we mentioned above. They have experience helping seniors, especially those  60 years old and older, get the right life insurance coverage for this stage of their lives.

And if you still need help with your coverage needs, our licensed insurance brokers are always here to chat.

Taking the initial steps to get life insurance coverage is hard work. Whether you are applying online or going through the arduous process of choosing a broker and provider, it can be incredibly frustrating when you finally apply for a policy and your life insurance application is declined.

There are several reasons why your application can be declined. You have control over what affects some of those reasons; with others, you quite simply do not.

So why might you be declined for life insurance, and what can you do if that happens? Read on to find out your next steps if you find yourself in these aggravating circumstances.

Why was my life insurance application declined?

We have explained in detail the various factors that determine the price of your life insurance policy. Answers you provide to your insurance company help them assess the cost and risk of insuring your life. Sometimes when they are done with their calculations, they establish the risk is too great for themselves to insure you for the policy you applied for, and deny your life insurance application.

There may have been a specific health or medical condition (such as obesity, cancer, diabetes or another chronic illness), medical testing or lab results, lifestyle choices (such as risky behaviours like sky diving and extreme sports), criminal records, driving behavior, dangerous occupations, even age, or income, and much more that triggered the decline of your life insurance application.

What are my options if my life insurance application is declined?

Don’t freak out – while many Canadians are quickly approved for life insurance, you are not alone if you received a life insurance denial letter. While it’s normal to feel angry, resentful, or upset if this happens to you – realize there are always options available. Step back, assess your situation, and take the following steps.

Gather all the information you can. Reach out to the insurer or your advisor and ask for information on why you were declined. This isn’t a topic where you have to be in the dark. The insurance company can provide more detailed information upon your request on whether the decline was due to exam results, medical history, driving record, or some other reason. 

If the decline was due to a health reason, insurance companies will typically have your exam results delivered to your family doctor detailing the medical issues behind their decision. From there, you can check with your physician to confirm the findings and any diagnosis.

Ask to reassess. At that stage, you should double-check that all the medical information shared with the insurance company was up to date and correct. If you find an error, you can always request the company reassess your application with all the correct medical data.

Ask them if they can issue with exclusions. In rare cases, insurance companies may reconsider a declined application if you agree to some exclusions based on your test results or medical history. For example, let’s say your insurance application was declined due to a heart condition. An insurance company may still grant you coverage, but exclude a death benefit if you pass away due to any complications of the heart that your condition may affect. Again, we stress this a very rare instance, but in your insurance buying journey, there is no harm in asking at this point.

If you’ve been declined, it will stay on your record for up to 7 years. Yes, that’s right – your record. Much like applying for credit, North American insurance companies share limited information regarding insurability of an applicant through a regulated body called the Medical Information Bureau (MIB). They do this to enhance transparency and consistency of information between the companies. In rare cases, the information the MIB provides prevents the more unscrupulous applicants from holding too many policies simultaneously or providing false information to get insured by one company after getting declined by another.

While this MIB may sound like another MIB …

At the end of the day, their work and purpose ensure that insurance seekers are treated fairly throughout the whole process.

Thus, presenting false information on an additional life insurance application is not in your best interests. First thing’s first, it will flag your record for added future scrutiny. Secondly, if you lie on an application and a claim is declined at death because of it, you end up not covering anyone or anything you wanted to in the first place.

There’s no getting around it, we Canadians love our bargains. In this inflating economy, we do our best to get the best deal we can! Whether it’s groceries, mechanics, or furniture, the promise of saving some cash is priority number one for many of us — insurance is no different. People want the cheapest life insurance policy that still has the most coverage. But finding an “affordable” life insurance policy will differ depending on each person’s unique circumstances.

What is the cheapest life insurance policy?

In general, the cheapest life insurance is term life insurance. With term life insurance policies, you are only covered for a specific amount of time. This differs from other types of life insurance like a permanent policy (whole life or universal life insurance policy), where you are covered for your entire life.

The shorter the length of time you’re covered for, the cheaper your premiums will be. This is why policies that only last a year seem so affordable. But, buyer beware! With 1-year term policies, your premiums will increase every year when you renew. If you buy a 5 or 10-year term life insurance policy, your rates or locked in for that term.

What is the most expensive life insurance policy?

The most expensive type of policy, in general, would be a permanent life insurance policy. Permanent insurance not only covers you for longer, but it also has the living benefit of a cash value component.  This life insurance plan builds a cash value as the years go by that you can use as a loan or borrow against. These policies also generate policy dividends that you can choose to reinvest in the policy or take for yourself as cash (sometimes known as the “savings component” of the policy). Because of these investment components, permanent insurance isn’t always the cheapest option.

Additionally, in general, permanent insurance has lower coverage amounts. People usually use the tax-free death benefit for things like funeral costs and estate planning, rather than covering their bigger outstanding debts like their mortgage.

Other types of policies can be expensive as well. For example, those who cannot get approved for traditional life insurance may opt for a simplified issue life insurance or no-medical life insurance policy. With these policies, the underwriting process is minimal, and usually no medical exams are required. Because there is little underwriting, the insurance companies don’t truly know the risk that they would have to pay out death benefits—so they set the price high, just to be on the safe side.

How do insurance companies decide the price of life insurance?

The cost of insurance is determined by two types of factors – your personal history and health (which affect your life expectancy), and the details of your insurance policy. For your personal history, they will look at a wide range of details such as your:

• Age
• Smoking status
• Health status
• Mental health
• Family health history
• Occupation
• Gender
• Lifestyle choices

During the application process, you will decide on your basic policy details, which also affect the price. Factors that affect the price include:

• Term length
• Death benefit amount
• Type of insurance
• Cost and return expectations (for permanent insurance)

You can also choose to add life insurance riders to your term plans or permanent coverage, which add additional coverage but also come with additional costs. Some of these life insurance riders may include:

• Accidental death rider
• Child term rider
• Critical Illness rider
• Guaranteed Insurability rider

With these additional riders have usually minimal costs, you may find better value for your coverage when you buy separate policies.

How to find the cheapest life insurance

When you buy life insurance, the insurance company calculates the chances that they will have to pay your death benefit and when. The best life insurance companies in Canada use complex calculations to determine the cost of life insurance in this scenario. If you’re older, in poor health, and participate in risky activities, your life insurance rates will be higher because the chances of your death within the term would be higher than a young, healthy person who doesn’t smoke or skydive.

While showing all the math here will be tough, this article suggests six ways to help you find the cheapest life insurance policy that still meets your family’s financial protection needs.

1. Evaluate your premiums with a broker

We’re all unique, which is why life insurance policies never come with a single shelf price. Actuarial tables and other processes weigh our age, health conditions, hobbies, careers, stress levels, and more to determine how much we need to pay for life insurance.

An experienced life insurance broker can put their experience and access to multiple insurance products to good use to help find the best rates for your specific situation. Over time, they understand how insurers price their life insurance quotes and what your situation can mean to different providers. Basically, they shop around for you to make sure you’re getting the best form of life insurance for your needs.

Even if you already have a life insurance policy, speaking with a broker lets you check whether there are cheaper life insurance alternatives available. Age is a big factor in determining your life insurance premiums. But, there may be cheaper options, especially if you have recently made a big improvement in your health like giving up smoking (more on that later) or losing weight.

2. Consider an entirely new policy instead of renewing

When you renew your insurance policy when the term ends, you’ll likely renew it at a significantly higher premium. You may think that this is solely due to your older age. However, most term policies are guaranteed renewable at disproportionately higher prices to account for uncertainty about the changes in your health or lifestyle during the time you already had the policy.

By shopping around and working with a broker and using online tools to compare quotes, you can find insurers with substantially lower rates for your circumstances and needs and apply for a cheaper life insurance policy instead of renewing your current coverage.

3. Replace creditor or mortgage insurance with individual term life coverage

You may have bought mortgage insurance from your lender when you first bought your home. Mortgage insurance is often sold by banks to help your dependents pay off the mortgage on your home in case you pass away during the mortgage term. It’s commonly an alternative to life insurance because both products let your family feel financially stable if you die during the policy’s active period.

While there are plenty of pros and cons to purchasing mortgage insurance over other life insurance products, one key downside is that it’s typically more expensive than individual term life coverage. The higher price tag for mortgage insurance is due to the lack of any individual medical assessment required to qualify for it. Term life insurance is fully medically underwritten when you apply, and this typically results in the cheapest life insurance premium.

Learn more about mortgage life insurance.

4. Choose term life coverage over a permanent life insurance policy

Insurance is about offsetting risk. You buy insurance to ensure the financial stability of your family in the future. You buy term life insurance for needs that are short-term; whole life insurance (or universal life policies) is for permanent needs that do not disappear over time.

Permanent policies provide a guaranteed payout when you die, regardless of when that may be. With a term life policy, your survivors only receive a death benefit if you pass away within the set term you choose. This difference means term life policies are cheaper than their universal or whole life counterparts because the payout isn’t guaranteed for life.

You may only need life insurance for temporary financial burdens, like your children’s education or covering your remaining mortgage payments. In these cases, term life insurance products could be a cheaper alternative that provides the same benefit.

5. Get a medically underwritten policy instead of non-medical coverage

Life insurance policies that don’t require a life insurance medical exam can typically cost more than fully underwritten coverage. Without the usual medical questionnaire, the underwriters have less medical history to work with; therefore there’s a considerable risk to the insurer with non-medical life insurance. To compensate for the higher risk, the insurance company charges a higher premium.

These non-medically underwritten policies are generally for individuals with chronic or pre-existing health conditions.

But, if you consider yourself to have average or excellent health, purchasing a medically underwritten policy can save you a significant amount of money on your premium. The life insurance medical examination not only confirms your provided health details but also ensures there aren’t any unknown health issues.

Many of the biggest life insurance companies can offer up to $3 million in coverage without requiring a medical exam. Even if you have some pre-existing health conditions or an adverse family medical history, it is worth speaking with the best life insurance brokers to confirm if there are options for medically underwritten coverage that can save you hundreds of dollars in premiums versus non-medical options.

6. Switch to non-smoker rates if you’ve quit smoking for at least one year

Smoking is a personal choice that comes with certain health risks. By now, every smoker already knows the ample health benefits of quitting smoking. There are benefits for your wallet too – not only because you spend less on cigarettes or vape juice.

Those who go tobacco-free for at least one year are eligible to switch to non-smoker rates on their life insurance policy. When you declare you’re “Tobacco-free” on your life insurance application, it means you no longer smoke cigarettes or cigars or use chewing tobacco, nicotine patches, e-cigarettes, vapes, or gum. It also typically means you can qualify for cheap life insurance rates. This could equate to significant savings – especially as you grow older. Smoker rates can be dramatically higher for older smokers.

Learn more about life insurance for smokers.

What to look out for when buying life insurance

We know you’re looking for the best deal possible—if cost is your concern, then the cheaper the better! But, when you’re cutting life insurance costs, you have to remember the point of life insurance: to protect your family’s financial future. Sometimes cutting too many costs now will prevent your family from maintaining their standard of living in the future.

When you’re applying for life insurance, you should make sure your coverage amounts will take care of the following financial obligations:

• Funeral expenses
• Credit card debts
• Student loan debts
• Mortgage
• Education costs
• Other life expenses that you’ll want to cover for your family (childcare, groceries, vacations)

When shopping for the lowest life insurance rates, always keep your future financial obligations in mind. The cheapest life insurance company, may not always be the best for you in the long run. That being said, life insurance companies often have promotions for their term life insurance products to make sure your premiums don’t also become a financial burden.

Frequently Asked Questions

What Is the cheapest life insurance?

The cheapest life insurance is term life insurance. The shorter the term, the cheaper the policy. But the cost is also dependent on other factors as well, such as your personal health history, family history of medical conditions, your coverage amount, and more.

What is the most basic life insurance?

Term insurance is the most basic form of life insurance. The insurance company agrees to pay your family a death benefit if you die within a specified amount of time (a term). With some insurance providers, you can select terms for as short as 1 year and usually a maximum of up to 35 years. If you are young and healthy, the average cost of basic life insurance is under $200 a year (Please note: rates for life insurance will depend on a variety of factors, such as the ones mentioned above).

What is the minimum death benefit?

For many companies, term policies have a minimum death benefit of $50,000. For whole life insurance, insurers may offer as little as $10,000 so you can cover basic funeral costs. Some companies may have a minimum threshold on premiums paid as well. That being said, you want to make sure that your life insurance covers all the financial responsibilities that you’ll leave behind for your family.

What is a 1-year life insurance policy?

A 1-year life insurance policy is a term life insurance product. If you die within that year, the insurance company will pay your beneficiaries a death benefit. Technically, this is the cheapest policy that you can get in the short term, but it only covers you for a year—plus the cost for you will go up every year because you’re another year older. We would recommend going with a 5-year + policy that locks in your rate for longer.

Apply for cheap life insurance

Although there’s no one cheapest life insurance policy, there are ways to reduce your monthly premiums. Speak to one of our experienced advisors today to see if there’s a cheaper alternative for you that doesn’t sacrifice your family’s future financial safety. We work with a wide variety of life insurance providers (over 30, in fact!), so our advisors can help you shop for the most affordable type of life insurance with the best premium payments on the market. Whether you’re looking for term coverage, permanent life policies, or other types of coverage like critical illness, disability, or travel, our team can help!

With PolicyAdvisor, you can get online quotes for affordable term life insurance coverage, instantly and for free! Plus our online application process saves you time (which really means saving you money, right?).

This may seem obvious, but if you wish to purchase insurance, you need to first get an insurance quote. But what are insurance quotes? And what types of insurance can you get quotes for?

An insurance quote is an estimate made by an insurance company of the amount of money an individual needs to pay in premiums to purchase their insurance policy. The quote depends upon the information you provide to the insurance provider. For instance, if you need to buy life insurance, you may have to provide information about your health and medical history. You can get quotes for many types of insurance, such as life insurance, critical illness insurance, disability insurance, home insurance, auto insurance, health insurance, and many more.

How do you get an insurance quote?

You can receive an insurance quote through an insurance agent, a broker, or an online brokerage like PolicyAdvisor.

Getting quotes through an insurance agent

An insurance agent works at one particular insurance company. The agent generally provides information about different types of insurance plans available at that one specific company. Based on the information you provide, they may suggest the best insurance policy that meets your requirements from their limited pool of available plans and provide you quotes based on the policies which that company offers.

Getting quotes through an insurance broker

An insurance broker can help you find insurance quotes from multiple insurance providers (typically 2 or 3) and can present you with policy options dependent on your needs. While working with a traditional broker gives you more choice than finding quotes directly from a provider, you are still limited by the number of companies your chosen broker works with.

Getting quotes through an online broker

An online or digital insurance broker can save you time and money by presenting you with the most insurance quotes when searching for coverage. Brokers like PolicyAdvisor have access to policies from over 20 Canadian insurance providers and have tools that can help you narrow down your choices to the one that is best for you. And the best part? You can book some time with them instantly.

How do you choose between insurance quotes?

These are some of the factors that one should take into consideration while choosing an insurance quote:

• Coverage Amount: This is the maximum amount that one can claim on their insurance policy. The concept differs between different types of policies, but generally, this is how much coverage one has.
• Coverage Term: For life and living benefit insurance, this is how many years you are covered for; for other types of insurance like home and auto, your coverage renews every year.
• Price: This may seem self-explanatory, but most Canadians compare their insurance quotes by price.
• Company Reviews: There are many online reviews for insurance companies, which you can use to compare different providers. For instance, PolicyAdvisor provides reviews for term life, whole life, and critical illness insurance.

Types of Insurance Quotes

As mentioned, there are many types of insurance available in Canada. Comparing and contrasting plans helps you make an informed decision.

Life insurance

Life insurance is an agreement between you and a life insurance provider, where if you die, they will pay a lump sum of tax-free money to someone you choose – also known as your beneficiary. In exchange, you agree to periodically pay your insurance provider a premium: a small amount of money over the lifetime of your policy.

In Canada, life insurance is broadly divided into two categories. They are term life insurance and permanent life insurance (which can be further divided into many other categories of life insurance).

When searching for life insurance quotes, one must first determine what kind of life insurance they need.

Term Life Insurance

Term life insurance is a type of life insurance product that covers you for a specified length of time, called a term, and pays a set amount to your beneficiaries if you die within the term. There are different term lengths (such as 10, 20, 25,30 years or up to age 65) available.

Term life insurance quotes are generally less expensive than permanent life insurance quotes.

Permanent or Whole Life Insurance

Permanent life insurance (or whole life insurance) represents a category of life insurance products that provide lifetime insurance coverage. In other words, permanent insurance offers coverage until the policyholder passes away.

As the name suggests, permanent life insurance is best suited to protect ‘permanent’ or ‘lifelong’ needs such as estate tax liabilities, care for a disabled child or dependent, liquidity for closely-held businesses and even funeral expenses

Whole life insurance quotes are more expensive than term life insurance quotes but usually less expensive than universal life insurance quotes.

Universal Life Insurance

Universal life insurance is similar to 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 so it can be considered a way to save for retirement or provide you with other options for the value it accrues.

Universal life insurance quotes are generally the most expensive type of insurance quote because of this investment component.

Who needs quotes for life insurance?

Those with dependents need life insurance quotes. If you’re the sole bread-winner in your family or your dependents partly rely on your income, getting life insurance quotes and enacting a policy can help protect those you leave behind from significant financial obligations.

Those with outstanding loans or debts also need life insurance quotes. In a situation where you’ve taken a loan with a co-signer, getting life insurance quotes and enacting a policy can prevent that co-signer from taking on the responsibility of your outstanding financial obligations.

What affects quotes for life insurance?

Life insurance quotes depend upon an individual’s age, medical history, general health, vital statistics, smoking status, family history of illness, and more. All of these factors will affect the price of your quoted life insurance premium.

Critical Illness Insurance

Critical illness insurance can help protect an individual diagnosed with a serious medical condition by providing a lump-sum, tax-free payment to help them financially while they take the time to recover.

Who needs quotes for critical illness insurance?

Many Canadians can benefit from the protection critical illness insurance provides. If one worries about their quality-of-life after a health scare, how sickness could affect their family’s financial well-being, or having to work through an illness thus delaying or hampering their recovery, then they should consider getting a critical illness insurance quote.

What affects quotes for critical illness insurance?

Factors like age, health, medical illness history, and more will affect the quote for critical illness insurance premiums an individual receives from an insurance company.

Disability Insurance

Private disability insurance is for individuals who are not able to earn an income due to an injury or disability. Those who contract life-altering diseases can also benefit from the protection disability insurance provides.

Who needs quotes for disability insurance?

Professionals who rely on (or have dependents that rely on) their income should consider getting disability insurance. While many have some disability coverage in their workplace benefits, an individually owned policy can safeguard against events like switching workplaces.

What affects quotes for disability insurance?

Quotes can change based on age, health status and history, physical condition, occupation, the benefit period, and one’s current income. Some hazardous professions do not qualify for individually owned disability insurance.

Home Insurance

Home insurance protects you from the financial costs of repairing your home due to damage, fire, and other disasters and occurrences. Home contents insurance also safeguards you against the financial cost of replacing stolen items in your home.

Who needs home insurance quotes?

Home insurance is essential for every homeowner and is generally required by law. Those who rent their homes can still get quotes for tenant’s insurance to protect themselves against damage or theft of their property inside the home.

What affects home insurance quotes?

Home insurance quotes vary depending upon one’s location. For instance, the risk of flooding or other natural disasters in a particular area will influence quotes. Other factors like a home’s age, size, the type of heating used, building materials, and more can affect the price of quotes.

Auto Insurance

Auto insurance enables an individual to safeguard themselves from the financial impacts of car accidents, damage, or theft. Auto insurance is mandatory in Canada.

What affects auto/car insurance quotes?

The price of a car insurance quote is affected by driving history, location, age of the vehicle, vehicle model, the number of drivers, whether you own winter tires, and other factors. 

Disability insurance can protect you and your family from major loss of income if you’re injured or become ill and can no longer work. This insurance provides a monthly payout upon becoming disabled to replace some of the income you lose when you can’t work due to an illness or disability.

Coverage is categorized based on the length of the benefit period, called short-term disability insurance (STD) and long-term disability insurance (LTD). 

In this article, we focus just on short-term disability insurance. We explain what it is, how it works, and what it covers. We further detail how it may differ from critical illness insurance and the differences between employer disability insurance and individual disability insurance.

What is short-term disability insurance?

Short-term disability insurance provides income replacement if you’re unable to work for a short period of time. The benefit payments can begin as soon as you use up your sick leave, sometimes as early as 1-14 days after a claim is submitted, with coverage lasting typically between 6-26 weeks – although coverage can also go as long as 52 weeks. It’s commonly used for temporary health issues, like minor accidents, sports injuries and back problems that may prevent you from working for a few weeks or months. The benefit payments from STD insurance can cover most of your lost income, so while you recover you don’t have to worry about meeting your basic financial needs. 

You can get short-term disability insurance from three places: 

• Federal programs: Employment Insurance (EI) usually accommodate Canadians who can’t earn an income due to a lay-off or shortage of work. However, EI also has specific qualifications in order to receive benefit payments. EI Sickness Benefits are also available for those who are injured or ill. This is paid out for a maximum of 15 weeks for 55% of your earnings with a max of $595 per week. For Canadians who cannot work on a regular basis due to disability, CPP Disability Benefits can help. This coverage pays out just over $1,413 a month max but is only available if the individual is completely unable to obtain gainful employment and has made adequate contributions to the CPP.
• Your employer: You may be eligible for short-term disability insurance through your work’s group insurance plan. This plan usually covers 50-100%% of your income and costs only a few dollars off your paycheck, although sometimes your employer may pay for the cost entirely. 
• Individual plans: These are purchased on your own from a private insurance company, such as the ones we work with at PolicyAdvisor. Coverage goes with you anywhere and you decide how much you’re covered for, for how long, and how much you pay in premiums. 

At PolicyAdvisor, we are happy to assist anyone looking to set up individual plans who do not qualify for an employer or federal short-term disability insurance. However, if you are eligible for employer benefits, they are usually the most cost-effective option for short-term disability—for long-term disability, it’s another story.

How does short-term disability insurance work?

Short-term disability insurance acts as income replacement for the time after you use your sick days and before any long-term disability insurance kicks in (if you have that in place). If you find that you are unable to work due to a disability, you may be able to take sick/leave days. When those sick/leave days are up or if you don’t have these types of days allotted to you through your work, you can file a claim through your short-term disability plan to make up for some of your lost income. In the claims process, the insurance company will usually require medical records and reports detailing your condition and disabilities due to the accident or illness. After you file a claim, benefit payments can begin almost immediately. The waiting period for benefit payments can sometimes be 1-14 days after filing in some cases. It’s important to note that the payment periods for an STD policy’s benefits may differ from your usual job payment schedule—benefit payments are usually monthly, not bi-weekly. 

Coverage periods usually range from 6-26 weeks, although some policies allow for benefit periods of up to 52 weeks. Again, coverage varies between plans. If you can’t return to work after this period, you might need to transition to long-term disability benefits. The significant distinction between short- and long-term disability insurance is that a short-term policy usually considers a benefit period in weeks while a long-term disability policy counts a benefit period in years. 

Regardless of whether it’s an individual or company policy, knowing what accidents, illnesses, and injuries your plan covers is essential. Every plan and insurer has different scopes. For example, disabilities resulting from mental health issues or pregnancy might not qualify for every insurance plan.

How is an individual policy different from a work short-term disability plan?

The most obvious difference between an individual and an employer’s short-term disability plan is who pays. If you purchase an individual plan from an insurer, you pay for it out of pocket. If you have a work plan, it may be your employer paying for it as part of your benefits package. Or, your work coverage might be a pooled effort between employees and taken off of your regular paycheck. Pooled plans may be offered by your union or through other agreements. Sometimes, you may have the option to upgrade your coverage in exchange for an additional deduction from your paycheque. 

That being said, employer plans are cheap! Many short-term disability policies are offered through discounted group benefit plans, meaning that employees pay little to nothing in premiums—the premiums are usually deducted right off their paycheck. In general, however, the cost of an STD insurance policy is highly dependent on your salary. Because disability insurance pays out a portion (between 50% and 100%) of your income, premiums costs vary significantly.

If you are self-employed and don’t qualify for group or work short-term disability, then an individual plan is your best bet. While individual plans can be pricier compared to their group counterparts, you can customize your individual plan with one of the carriers we work with at PolicyAdvisor to fit your budget. For example, if you set your waiting period to 90-120 days, your premiums will be cheaper— but you will be responsible for replacing your income in that time before coverage kicks in.

Is critical illness insurance the same as short-term disability insurance?

Critical illness insurance is an agreement with a life insurance company where they pay you a tax-free lump sum in the event you contract a life-threatening condition or illness. Critical illness insurance and short-term disability insurance cover many of the same situations. For example, if a stroke hospitalizes you and prevents you from working, both benefits might kick in. However, a disability benefit is a monthly or biweekly payment to compensate for the loss of income, and critical illness insurance is a one-time lump sum payment.

Overall, disability insurance is meant to cover daily expenses and bills when you can’t work. Critical illness benefits fulfill the same need, but recipients also use the money to pay for costs such as private hospital rooms, medical expenses, and other recovery needs.

What does short-term disability usually cover?

Short-term disability insurance covers incidents when you can’t work due to injury, accident, or hospitalization. It doesn’t cover work-related or on-the-job injuries, as workers’ compensation usually handles this. The most common claims are for mental illness, musculoskeletal issues, injury, or poisoning

Examples of short-term disabilities that qualify for coverage

Suppose you get into a car accident while on a weekend getaway. You might end up in the hospital and require time off from your job as a construction worker. You might further need four months of at-home recovery to feel well enough to be back moving heavy materials on-site. During this time off, you won’t be able to receive your usual salary because you aren’t fit to work. Short-term disability insurance would instead step in to provide enough income to support your day-to-day needs. 

Another example is if you faced a heart attack or stroke. Such an incident could trigger your short-term disability insurance and critical illness benefits. Again, your short-term disability plan could provide some or most of the pay you’re missing out on by not being able to work. If your recovery takes longer than your short-term benefit period, your long-term disability insurance may provide further coverage. 

Does anxiety or mental health issues qualify for short-term disability?

While disabilities caused by mental health disorders are one of the top reasons for a disability claim, qualifications for anxiety or mental health issues depend on the insurer and the plan. With mental health issues becoming more diagnosed and recognized on the same level as a physical illness or injury, more insurers are including it in their short-term disability plans. However, not every policy guarantees mental health coverage — some might only cover physical injuries or require additional premiums to be included in the scope for mental health coverage or may exclude specific mental illnesses depending on the individual’s mental health history. 

Whether mental health issues qualify may also depend on the severity. For example, if a panic attack hospitalizes you and you’re unable to work, it may better justify a short-term policy’s payout. In contrast, a stress leave may create a grey area to qualify for short-term disability insurers.

Is it worth getting short-term disability insurance?

Whether you should purchase short-term disability insurance depends on you and your family’s needs. First, figure out how much income you’ll need to replace if you face an unfortunate circumstance that leaves you unable to work. Could employment insurance payouts cover this amount? Or do you need additional coverage?

Further, your employer may sponsor short-term disability coverage. This might be a cheap option for you to cover some of your income, but it might not provide enough to fit your family’s needs. This might mean purchasing additional policies or upgrading your work plan. 

It’s beneficial to work with an insurance advisor to determine what your short-term disability needs are and how much a short term disablity insurance policy costs. A member of the PolicyAdvisor can review your employer-provided plan and make sure you have a short-term disability policy that matches your needs. Schedule a call with one of our experts today and ensure your family is protected if you ever face an illness, accident, or injury. 

Who sells disability insurance?

Many insurance companies also sell disability insurance products, and there’s one quick, simple marketplace that lets you compare them all.