Which insurance company is the best for you?

There are many factors to consider when choosing the right insurance company. Price is obviously high on the list, but there is more to it than simply selecting the company with the lowest premiums. Other important factors to keep in mind when selecting a life insurance company:

Product offering

Does the company offer a broad range of policies? Many insurance companies focus on certain niche products, such as Long Term Care, while others have a mandate to have a complete and competitive product lineup. If you are working with an independent broker, it may be in your best interest to insure yourself with multiple companies.

Financial stability

Life insurance is a long-term commitment, therefore you want to make sure the company is on solid footing. You can verify the insurance company’s financial stability by gathering information from rating services, such as AM Best (www.ambest.com). It becomes of increased importance if the policy exceeds $200,000, the maximum death benefit amount covered by Assuris (formerly Compcorp). Assuris protects Canadian life insurance policyholders against loss of benefits due to financial failure of a member company.

Claims

What kind of claims service does the company offer? How have existing clients been treated during the claims process? You may want to check with a national claims database to see if there are any outstanding customer complaints on the company.

Do they provide service across Canada?

Some insurance companies only operate in certain regions of the country, and this could make ongoing service difficult if, in the future, you move to an area where the insurance company does not do business.

Where is the insurance company in its business cycle?

Some life insurance companies go through phases where they are actively pursuing new business, which may be reflected in the company’s premiums and the degree to which they are accepting new business. This is where an experienced independent broker, who is in tune with the marketplace, can save you a small fortune over the life of your policy. Insurance companies often have differing guidelines on their acceptance protocol for different illnesses. If you catch a company at the right stage of their business cycle, it can mean the difference between qualifying or being declined for insurance.

Does the company employ a captive or independent sales force?

Some insurance companies have an in-house sales force which means their agents are only allowed to represent the company's products. This often skews the agent’s advice, as he/she cannot offer an unbiased opinion. Insurance companies who use the independent brokerage channel create a level playing field and provide less biased advice for the consumer, allowing their sales force to work in the client’s best interest.

Posted by Chantal Marr.

Chantal Marr is a member of the Independent Financial Brokers of Canada.
Much of her success stems from her ability to listen to her clients' needs.
Read Chantal's background.

16 Comments

Before you choose your insurance company 12/14/2007 at 5:44 am

[...] new articles in the life insurance tips section on this theme. The first one gives the low down on which insurance company is the best for you, and the second one tells you why not buy a Primerica policy. Lorne S. Marr Insurance Services [...]
Lori 01/25/2010 at 4:03 pm

Can you provide a list of Life Insurance companies that DO NOT require medical information.

(I have answred YES before to some of the questions, and always get denied, even though the medical issues were over ten years ago, and are no longer relevant)

Thanks
LSM Insurance 01/25/2010 at 4:31 pm

Thanks for the note. The only type of plans that require no medical details are Guranteed Issue plans. The cost on these plans are very high and the death benefit is limited in teh first 2 years. BMO, Manulife and The Edge all offer Guaranteed Issue plans.

Simplified issue plan also have no medical tests but usually 3 to 12 health questions. The face amounts are higher and the premiums are lower.
monique 04/27/2010 at 10:34 pm

I’m looking for a life insurance for me and my husband , i am 41 and hubby is 54 ,we would like also a insurance that covers if we get hurt or accident to help us paid our bills or it incease if we die in a accident , not sure what one is good
thanks
Monique
LSM Insurance 04/28/2010 at 8:18 am

Hi Monique,

Thanks for the note.

We would be happy to assist – I will send you a separate email now.
Mitch 07/04/2010 at 7:11 pm

At present, Summer 2010, I am finding Manulife to be going through one of these cycles where it doesn’t want so much business. Even thought it has reduced term insurance rates, for other products, like permanent life insurance, it is really putting clients through a lot of underwriting to offer them insurance. This might be because Manulife has a huge debt to repay, and wants to retain capital instead of setting aside reserves every time someone buys a permanent life insurance policy.
Carole 02/17/2011 at 7:44 pm

I recently bought a house and because I have no benefits at work, I have applied for disability insurance on my mortgage.
Today my application was denied based on the fact that I was treated for depression in 2006 because of a personal crisis. Since that time ,I have been on a very low maintenance dosage. After speaking to my physician about stopping the medication, she stated that once you are this type of medication , you often have to stay on it as it is difficult to quit totally. I did quit the medication in December 2010 and I have been without any symptoms.
I would really like to qualify for disability insurance on my mortgage. Do you know of any insurance companies that would be more likely to approve my application?

Thanks, Carole.
LSM Insurance 02/17/2011 at 8:01 pm

Thanks Carole. We’ll do our best to help and we’ll send an email now to verify a few more details.

Crystal 09/06/2011 at 11:14 am

Hi there, I am looking for a life insurance policy to best serve the needs of my partner and I. I am a 28 year old female, non-smoker, healthy, she is a 26 year old female, non-smoker, healthy. We recently purchased a home. We are looking for something that would cover us if we get in an accident to help pay the bills, or in case of death something that wouldn’t leave a financial burden on the other. Thank you!
LSM Insurance 09/06/2011 at 11:40 am

Thanks for the note Crystal. The premiums will depend on the type of plan and the amount of coverage. We will send you a separate email now.
Crystle 09/14/2011 at 7:21 pm

I was wondering what my options were for a life insurance policy, I’m 28, a smoker but very healthy…
I have one daughter and another on the way and want to make sure that they are well taken care of if anything happens to me.
LSM Insurance 09/14/2011 at 11:59 pm

Thanks for the note Crystle.

We are happy to help the first step is determine how much life insurance you need. You can check out the link link to lsminsurance.ca

The premiums will depend on the amount of coverage and type of plan. We will send you an email now.
Christina 08/09/2012 at 4:56 pm

Hello: I am trying to choose life insurance for myself and my husband both 40 years. We want something that goes to 100 years old not ends at 75 or 80 so our son with special needs will still receive somthing. our combined budget is lets say $250-$300/month with rates that won’t increase. We were also hoping for either Critical illness as well included in that budget or a plan that alows for some to be cashed out in case of a terminal illness. We are looking for about $50,000-$100,000 for myself and $100,000-$200,000 for my husband. We are in good health now no meds or diagnosis of any kind however he smokes.

Any help would be appreciated I am so overwhelmed that I have been dealing with this off and on for almost 5 years but we are about to turn 40 and we need to committ.
LSM Insurance 08/09/2012 at 7:32 pm

Thanks for the note Christina.

We are happy to help out and will do our best to find something that fits your needs and budget. We will send you a separate email now.
Steve V 12/31/2012 at 3:04 pm

“Some insurance companies have an in-house sales force which means their agents are only allowed to represent the company’s products. This often skews the agent’s advice, as he/she cannot offer an unbiased opinion. Insurance companies who use the independent brokerage channel create a level playing field and provide less biased advice for the consumer, allowing their sales force to work in the client’s best interest.”

There’s a problem inherent in blanket statements. Brokers are also wooed by insurance companies by commission premiums, leads, travel and award incentives, et cetera. Being a broker does not necessarily put you in a better position to act in the best interests of the client. It’s an old argument, but one that it is better to share both sides of.
syed 01/03/2013 at 9:32 pm

Thanks Steve for your comment. As independent brokers, we pride ourselves on being able to provide a wide selection of products from various carriers. That said, we still do value and appreciate your point of view on the subject. Thanks for sharing.

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