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Term life insurance is often described as simpler and cheaper than whole life insurance. Which is because a term life policy is set for a predefined period, such as 10, 20, or 30 years. Should you pass away during this period, your family will receive the death benefit amount.
For this reason, term life insurance is often a great option for young Canadian families on a budget. With the right kind of plan, you can adequately secure your family’s future against life’s what-ifs.
If you are looking for an affordable term life plan, you may want to take a closer look at National Bank of Canada. Since they specialize in term life insurance, you may be able to get a good deal. Continue reading our National Bank life review to learn more about this insurer and their life insurance products.
Who is National Bank Life Insurance?
Founded in 1979, National Bank is the sixth-largest commercial bank in Canada. They sell life insurance products through National Bank Life Insurance Company. You can apply for their life insurance products online or through an insurance advisor.
National Bank Financial Facts & Information
The Facts
Founded in 1979
Headquartered at 800 Saint-Jacques Street West, Montreal, Quebec
Financial Information
~$200 billion in Financial Assets
~$40 billion in annual insurance premiums
AM Best Financial Strength Rating is not available.
National Bank Insurance Reviews
Want to know what kind of online reviews National Bank has?
Unfortunately, we could not find any reviews regarding their life insurance products on Google and Insureye. So, we cannot comment on their customer service.
Products and Features
National Bank has a rather thin product line, selling only term life insurance.
Term Life Insurance
With term life insurance, you receive coverage for a predefined period, like 10, 20, or 30 years. If you die during this period, your family receives the death benefit amount. Most providers let you renew the coverage up to a certain age. Some also allow you to convert it into a permanent life insurance plan.
National Bank offers a choice of two terms for term life insurance — 10 and 20 years.
Features
- Coverage is available for amounts from $25,000 to $1,000,000
- The 10-year term life plan is available for people aged 18-60. The eligibility age for the 20-year term policy is 18-50
- Available for Canadian citizens or those holding a permanent resident card. Plus, the applicant must have lived in Canada for over 6 months over the past 12 months
- You may have to undergo a medical examination
- Certain exclusions and conditions apply. For example, if the insured dies by suicide within the first two policy years, National Bank will not pay a death benefit. If you lied or withheld information on your application, the policy could be canceled
- Simplified application process for coverage amounts up to $750,000
- Includes critical illness and accidental death benefits
National Bank’s term life plans include two extra benefits:
- Critical illness benefit - Both 10- and 20-year term plans offered by National Bank have built-in critical illness benefit, which helps minimize the financial burden of a critical illness. In the event of a critical illness diagnosis, you will receive a lump-sum payment. The cash benefit is equivalent to 10% of your policy amount or $30,000, whichever is less. Health conditions covered are heart attack, stroke, and cancer.
- Accidental death benefit – If you die because of injuries sustained in a covered accident, your beneficiary will receive twice the policy amount. Let’s say you have $100,000 in coverage and die in an accident. In this case, National Bank will pay your family $200,000
Why We Like National Bank Life Insurance
Critical illness benefit included with term life insurance
Did you know that people are living longer? While that is encouraging news, it also means that we have a greater chance of developing and surviving a severe illness. However, a critical illness impacts our lives in more ways than one. For instance, for many people, it can cause financial hardships. This is where critical illness benefit can come in handy. This benefit pays a lump sum if you become seriously ill, allowing you to focus on what is most important — your recovery.
Critical illness benefit is built into National Bank’s term life plans. If you are diagnosed with a critical illness, you will receive 10% of the policy amount, up to a maximum of $30,000.
Coverage in the event of accidental death
If you die due to a covered accident, the amount payable will be automatically doubled.
Online quotes
National Bank has a simple and sleek online quoting tool, making it easier to compare its rates with other providers.
Online application
National Bank is one of the few Canadian insurers that allow you to complete the insurance application online.
What We Did Not Like About National Bank Life Insurance
No permanent life insurance
National Bank does not sell permanent life insurance. These policies provide coverage for your entire lifetime and often include a savings component. Permanent life policies are usually either whole life or universal life. Both policies build cash value, but universal life offers more flexibility, letting you invest the money based on your long-term goals.
If you are looking for permanent life insurance, we are afraid you will have to look elsewhere.
No conversion options
Since National Bank does not offer permanent life insurance, you cannot convert a term life plan into a permanent life policy.
The maximum coverage you can get is only $1 million
If you need more protection, National Bank life insurance is not for you.
The longest term available is 20 years
By contrast, many Canadian life insurance companies offer term life insurance for 30 or 35 years.
Limited critical illness benefit
As we mentioned before, a critical illness benefit is included with term life insurance. However, the coverage is capped at $30,000. This might not be sufficient for many people. If you think you need more critical illness coverage, you may be better off buying a separate plan from another provider.
Does not offer many riders
Life insurance riders are extra benefits that you can add to your base policy to customize it as per your needs. National Bank, however, does not offer many riders. While the critical illness benefit and accidental death benefit add-ons are bundled into its term life plans, we could not find other riders on its website.
Conclusion – Is National Bank Life Insurance Right for You?
National Bank sells only 10-year and 20-year term life plans, with the maximum coverage capped at $1 million. The best part about its term plans is they include a small critical illness benefit. If you are looking for term life insurance of $1 million or less, National Bank could be a good option. However, if you need more protection or a term length of more than 20 years, you need to look elsewhere. The same goes for those interested in buying permanent life insurance.
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