Canadian Tire Term Life Insurance: Not as Good as it May Sound on TV


When most people think of Canadian Tire, they’re thinking power tools and patio furniture, not life insurance.

Still, the home hardware company has offered a term life insurance plan, underwritten by Canada Life, since 2005. Two months ago, in March 2009, they tweaked the details of the plan and began rolling out a new marketing campaign, complete with TV commercials.

However, underneath the increased publicity, the plan isn’t all it’s cracked up to be, when compared with an individual term life policy. But before we evaluate why an individual policy may be better for you, let’s take a closer look at the Canadian Tire Term Life Insurance Plan.

It does give you the convenience of applying online, by phone or by mail, but requires a seven question health form in order to qualify. If you happen to answer yes to any one of those seven questions, you will be asked to give more medical details and a nurse may or may not pay you a visit. The face value of the plan is a benefit of $250,000, with premiums increasing after the first five years. There’s an additional terminal illness benefit of up to $50,000, but this benefit is not the same as what is offered by a critical illness policy through an individual broker. The Canadian Tire policy may seem fine at first, but when compared against Canada Life’s individual term life policy, you really begin to notice a significant difference in price.

 

40, Male, Non-smoker

  • Canadian Tire Plan: $42.00 a month

  • Canada Life  Individual Term 10: $22.05 a month

  • Canada Life Individual Term 20: $36.68 a month

40, Male, Smoker

  • Canadian Tire Plan: $88.88 month

  • Canada Life Individual Term 10: $43.65 a month

  • Canada Life Individual Term 20: $87.30 a month

Beyond just cheaper rates, an individual policy has a host of benefits that the Canadian Tire term life plan just doesn’t. An individual policy also offers more flexibility and customization for you – the insured. Unlike an individual policy, with the Canadian Tire Plan there are no longer terms exceeding five years and the maximum benefit is limited to only $250,000. The Canadian Tire Plan will also charge you PST because it is classified as a group plan, while individual term life policies are not.

You also won’t be able to customize the Canadian Tire plan to your needs by converting it into a permanent plan, adding a rider to the plan for additional benefits, or combining it with another policy. You don’t have room to grow with the Canadian Tire Term Life Plan and perhaps even more important, you don’t get the customized and personal advice of a broker to lead you to the best decision for your situation. It’s for all these reasons that you’ll probably be much better off with an individual policy, rather than the Term Life offering from Canadian Tire.

If you would like me to design a plan for your particular situation please contact me at 1.866.899.4849 or visit our Instant Quote page.

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  • Jocve
    July 27, 2013 at 4:36 am

    Can I get a quote on $15,000 WL coverage. I have $15,000 with Manulife already

    • LSM Insurance
      July 27, 2013 at 12:45 pm

      Thanks for the note. Canada Tire does not offer Whole Life coverage. We would be happy to help with a quote and will be in touch by email. Regards, LSM Insurance.

  • Wayne
    June 28, 2013 at 2:11 am

    Is this plan available as Term 30.

    • LSM Insurance
      June 28, 2013 at 1:34 pm

      To the best of our knowledge Canadian Tire does not offer a Term 30 policy? Thanks

  • Juan Hoy
    May 28, 2013 at 2:22 pm

    Can I buy this plan through my broker. He has handling my families insurance for years. TY V Much.

    • LSM Insurance
      May 28, 2013 at 3:36 pm

      Thanks Juan – This plan is only available direct through Canadian Tire.

  • Jason C
    May 25, 2013 at 6:35 am

    How much would it would be to insure my wife for $750,000 of coverage?

    • LSM Insurance
      May 25, 2013 at 12:03 pm

      Thanks – this would be above the maximum benefit amount.

      You could like at $250,000 with Canadian Tire and the balance with an outside carrier or just a separate life insurance policy for $750,000.

      The premiums will depend on your wife’s age, smoking status and type of plan – Term or Permanent Insurance.

  • Jiml
    May 17, 2013 at 1:52 pm

    How much will my policy be at renewal and when foes it renew

    • LSM Insurance
      May 18, 2013 at 6:58 am

      The renewal date would ne stated on your policy and the renewal amount should be there as well. You could also check with Canadian Tire.

  • LSM Insurance
    January 26, 2011 at 1:51 pm

    Thanks for note Brian. We are happy to help and will be in touch soon. Regards,

  • Brian C
    January 26, 2011 at 12:42 pm

    I’m 52 years old, a non-smoker, non drinker and looking for maybe something for both myself and my wife (who is 53 a smoker and sometimes drinker). We are both in generally good health.

    Thank-you
    Brian C

  • LSM Insurance
    February 26, 2010 at 2:48 pm

    Thanks for the note. We are happy to help out. You may want to look at Permanent / Term combination or just a smaller amount of Permanent coverage. I will you a separate email now.

  • Carole McDowell
    February 26, 2010 at 2:22 pm

    My husband is 67 in excellent health, very active. His life insurance provider London Life is increasing his premium by 100.00 per month until he’s 75 then nothing (even though his life expectancy is probably around 90. What can we do to reduce rates for someone his age, we are currently paying 110.00 per month? We are finding it difficult due to certain circumstances with his pension being reduced to make ends meet and looking to cut costs. We do feel insurance is a necessity.

  • LSM Insurance
    August 23, 2009 at 12:57 pm

    Hi Jim,

    Thanks for the note. A new plan would cost you more because your 9 years older.

    $150,000 Term 10 coverage at standard rates for age nearest 55 male non smoker is:

    Unity Life $47.48 a month
    BMO $47.93 a month
    Wawanessa Life $48.24

    At preferred rates BMO would be $35.28 a month. The article below highlights the difference between preferred and standard rates.

    http://lsminsurance.ca/life-insurance-canada/2009/08/understanding-preferred

    Regards … Lorne

  • Jim
    August 22, 2009 at 8:49 pm

    I am currently covered with TD term ins for 150,000 for 33.00 per month, that is due to increased sometime next year. I’ve had this fix monthly rate for 9 years now. Do you have anything that compares to this plan with a low payment. I am 55 and do not smoke or drink, healthy