It's impossible to predict the future, but we can be prepared for the unexpected. Life insurance is an important financial consideration, especially if you have dependents. It helps you leave enough money for your loved ones to make sure they don’t face financial hardship in your absence. 

In this guide to the best life insurance companies in Alberta, we’ve reviewed the latest independent information to give you our top pick. Alongside this research, we have provided other useful information, such as the different types of policies and the cost of life insurance in Alberta. 

So let's dive in.

What are the best life insurance companies in Alberta?

Canada Life, Manulife, Assumption life, Sun Life, and iA Financial are our top five picks in Alberta. However, since life insurance needs are rarely one-size-fits-all, it’s possible another insurer may be more suitable for your personal situation. Speak with one of our advisors so that we can match you with the best provider for your situation. 

Here’s a quick overview of the best life insurance companies in Alberta: 

Types of life insurance in Alberta

Assuming you are able to qualify for traditional life insurance, your two main options will be term life insurance and permanent life insurance. Permanent life insurance is further divided into two sub-categories: whole life insurance and universal life insurance. 

Term Life Insurance

Term life insurance covers you for a set period, known as the ‘term’. Most term life plans last for 10 to 30 years, but shorter or longer terms are also available. Once the term of your policy expires, coverage ends automatically, unless you renew it. Depending on your plan, you may not have to undergo a new medical exam at renewal. But a new medical exam or not, your new premium will likely be considerably higher. 

When purchasing a term life policy, you have two main decisions to make: how much coverage to buy and how long the policy should last. Pick a coverage amount that covers all your major financial obligations while the policy term should be long enough to cover your biggest financial responsibility, which for most people is their mortgage. 

Whole life insurance

Whole life insurance covers you for your entire life. It also includes an investment component, referred as the ‘cash value’.  

The cash value earns a guaranteed interest rate, which means it increases at a predictable pace, regardless of how the market performs. You can access the cash value via a policy loan or a direct withdrawal at any time. In the event of your death, your beneficiary usually receives the death benefit — not the unused cash value. 

Universal life insurance

Universal life shares many similarities with whole life insurance. Just like the latter, it provides coverage that has no expiry date and builds cash value. 

However, universal life offers more flexibility and less predictability than whole life. For instance, you can adjust the premium payments, within limits, as your circumstances change. And the cash value earns interest rate based on the current market rate, instead of growing at a fixed rate. 

How much does life insurance cost in Alberta?

In Alberta, the monthly cost of life insurance typically ranges from $15 to $100, depending of factors such as age, smoking status, medical history, type of policy, coverage amount, occupation, and more. 

What impacts your Alberta life insurance quote?

Life insurance companies look at several factors when calculating the cost of your policy. This includes not only personal factors, such as your age, gender, and health, but also practical information, such as the type of policy you want. 

Your age

Your age is a primary consideration for insurers when determining your premium. Generally, older applicants receive higher premiums. This is because the likelihood of the insurer needing to pay a claim increases with age. 

Your health

Before writing you a policy, the insurance provider may ask you to take a medical exam. If you have a history of health conditions such as hypertension, diabetes, or heart disease, your price quote may be higher than for someone with no pre-existing illnesses. 

Along with personal medical history, your insurer may look at your family history. If certain health conditions and illnesses, like breast cancer or Alzheimer’s disease tend run in your family, you may have to more for coverage. 

Lifestyle

Lifestyle factors, like excessive drinking or smoking, could push up your premium rate. Dangerous hobbies, such as skydiving or rock climbing, may also result in higher premiums. 

Policy type and coverage amount

Term life insurance is much more affordable than whole life or universal life insurance. Obviously, the amount of coverage you choose also impacts the cost of your monthly premium. As a general rule, the greater the death benefit, the higher the price of the policy. 

How much life insurance do I need in Alberta?

The amount of life insurance you need depends on your personal circumstances, such as your dependents, savings, and debts. A common rule of thumb is to have coverage that’s 10 times your annual salary. However, your personal needs could be higher or lower.

Ideally, your policy should be large enough to cover all your financial obligations after you’re gone. The following two-step approach offers a quick way to calculate the amount of life insurance you need: 

Step 1 – Calculate your total financial obligations by adding the following items: 

• Multiply the yearly salary by the number of years your family would need support. For example, if you make $70,000 a year and believe your loved would need support for the next 15 years should you die today, multiply $70,000 by 15. 
• The balance on your mortgage.
• The cost of education for each of your children.
• Any other debts apart from mortgage.

Step 2: Once you’ve determined your total financial obligations, subtract things like your savings, existing education funds, and other liquid assets plans from it. The remainder you’re left with is the amount of life insurance cover you need.  

How do I get life insurance in Alberta?

Getting life insurance in Alberta is easy and uncomplicated. First, figure out the type of policy you want and the amount of coverage you need and then compare quotes from multiple companies. Alternately, you can work with an independent life insurance broker, like Dundas Life, who will do all the legwork for you. They will provide personalized quotes from various insurers across Alberta, allowing you to pick the best option for your needs. 

Conclusion

Canada Life, Manulife, Assumption life, Sun Life, and iA Financial are among our top picks for the best life insurance companies in Alberta.

It’s possible that some other provider may fit your situation better. For this reason, we recommend getting a quote from three to five insurers.

At Dundas Life, we provide you with free, no-obligation price quotes from top insurance providers to help you make an informed decision. Schedule your free consultation today.

FAQs

Is getting life insurance in Alberta worth it?

If you’re the household’s main earner, life insurance can provide your dependents financial security in the event of your death. Even if you have no dependents, life insurance can be worth looking at in certain situations.

For instance, life insurance can help you prepay your funeral expenses or make a meaningful contribution to your favorite charity. 

How do life insurance policies work in Alberta?

Life insurance is a legally-binding contract between you and the insurance carrier. The insurer agrees to pay your beneficiary a cash benefit upon your death if it occurs during the policy term, as long you as you pay premiums on time.

Some life insurance policies also accumulate cash value, which you can access during your lifetime at any time and for any purpose. 

Does life insurance cover suicide in Alberta?

Yes, life insurance covers suicide after an initial qualifying period. Most life insurance policies (if not all) come with a suicidal clause. The clause states that the insurer will not pay the death benefit if the insured commits suicide during an initial qualifying period.

The qualifying period is usually two years, but some policies may cover suicide after one year. 

Can I get life insurance if I work in a high-risk occupation in Alberta?

Life insurance evaluate high-risk applicants on case-by-case basis. Having said that, in most cases, you can qualify for traditional life insurance if your job happens to involve high risk activities or be dangerous. But buyers beware — you’ll likely pay higher premiums.