Buying life insurance is one of the most selfless acts that you can do for your loved ones.
Millions of Canadians opt for life insurance for the financial security of your dependents in case something happens to them.
As a former life insurance advisor with over 80 clients, I’ve seen insurance payouts that keep families afloat when tragedy strikes.
If you are curious about life insurance, unsure about your current plan, or looking for life insurance for the first time, you may want to give PolicyAdvisor.com a try, especially if you live in Ontario, Alberta, and Manitoba, where the website is licensed to sell life insurance products.
It’s a comprehensive digital tool that can help you find the perfect life insurance policy, and much more such as critical illness and disability.
In this PolicyAdvisor.com Review, we will cover what it is, how it works, its strengths and weaknesses, and, hopefully, help you understand it better.
Did you know that about 58.5% Canadians (22 million) own over $4.8 trillion in life insurance? And that over 160 life insurers are operating in the country?
Use: Online Life Insurance Quotes and Purchase
Wealthawesome Score: 4.7/5
- It’s completely free.
- Wide range of products.
- Advisors aren’t pushy (non-commission incentives).
- Easy application process.
- Compare similar products from 20 different companies.
- Only for Ontario, Alberta, and Manitoba residents.
Summary: Comparison tool and search engine for life insurance, critical illness, mortgage insurance, and disability insurance.
Table of Contents
Things to Consider Before Buying Life Insurance
Term Life InsuranceA term life insurance is where you pay a fixed premium for a set number of years, most commonly ten or twenty years. If you pass away within the policy duration, the insurance company will pay an agreed-upon sum to your family (called a death benefit). If you outlive your insurance policy term and don’t renew or extend it, the insurance company gets to keep all your money. Because of this business model, term life insurances are very cost-friendly, though they still depend upon the age you buy the policy in. For example, a typical 10-year term policy that will pay $100,000 upon your death will cost about $16 a year (if you are a non-smoker, $31 if you are). That’s based upon typical term insurance rates in Canada. $16 a month amounts to $1,920 for ten years. Once your term ends, you either forfeit your investment, extend your insurance for another decade (at higher premiums), or roll it into a whole-life insurance policy (if your term-insurance policy allows it).
Whole Life InsuranceAs the name suggests, you typically pay a monthly premium for a whole life insurance policy until your last days (or a predetermined age). Upon your death, the insurance company will pay a set amount to your family. Premiums are significantly higher, but they remain the same for life, and you have limited control over the investments of your premiums (which accumulates tax-free returns to your beneficiary). There are a few things you need to consider:
- Which insurance type is the best fit for you?
- Are you buying life insurance as a protection against unexpected death and family destitution, or as an investment?
- How much can you afford to pay each month in premiums, and can you keep paying them in your low-income retirement days?
- How much will your family need to cover funeral costs, and to pay off your debt once you’ve passed away?
What is PolicyAdvisor.com?
How PolicyAdvisor.com WorksPolicyAdvisor.com replaces the need to run an “apples-to-apples” comparison of multiple life insurance quotes in Canada manually and helps you choose the product that fits the bill for you. If the digital tool the company has created isn’t working for you, you can consult their licensed advisors over a call. First, visit the PolicyAdvisor.com website here. Once you have chosen the right policy (from one of the 17 insurance companies whose products PolicyAdvisor.com offers), you can submit your application with the insurance company through PolicyAdvisor.com’s website. From another perspective, PolicyAdvisor.com is a digital life insurance agent with a significantly larger portfolio of products and companies. Since it’s independent, you can be relatively sure that it won’t push you towards a certain product. It’s licensed to offer insurance brokerage services in Ontario. And the best part is that it’s completely free. PolicyAdvisor.com is paid by insurance companies that you buy the policies from. You never have to pay them anything.
Features & BenefitsIt’s important to understand that PolicyAdvisor.com, by itself, doesn’t offer any products. It’s a search and compare tool that allows you to find the right insurance product for you. So the key features of the website are the different types of insurance policies they offer and their life insurance calculator.
Life InsuranceThe basic/core insurance product that PolicyAdvisor.com helps you search is life insurance. The website clearly states that its primary focus is term policies, but it offers whole life insurance policies as well. Complete a basic profile on PolicyAdvisor.com here, then you are provided with the lowest possible rates you qualify for. The rates will depend upon your age, whether you smoke or not, and the amount you are aiming for as the insurance payout. The process for non-medical, term life insurance is fairly simple. You can apply for the product you like directly from the website; the prices are exactly the same if you apply directly with the insurance provider. Term insurance is perfect for individuals who carry a lot of debt (mortgage, student loan, etc.) and are in the process of paying it off. Premiums are low, and in case you don’t make it, the death benefit will help your family clear up your debt.
Whole Life InsuranceFor whole life insurance, you have a relatively diverse range of policies, and the resulting product can be customized for your particular needs. The PolicyAdvisor.com website also offers you to book/attend a session with their in-house professionals if you need guidance with your whole life insurance policy. Other benefits of the whole life insurance include fixed premiums for life, the option to access the cash value of your particular product (after you surrender your policy), a variety of riders to cover unconventional insurance needs, and tax-free growth. This is especially suited for people who want to cover their funeral and other end-of-life expenses themselves and wish to transfer a sizeable chunk of their inheritance tax-deferred.
Critical Illness InsuranceLong-term critical illnesses have an unholy power of turning your life upside down. Apart from health and lifestyle repercussions, critical illnesses can also be a significant drain on your financial resources. This product is designed specifically for individuals who want financial protection/help in case they are diagnosed with a critical illness. Plans available on PolicyAdvisor.com cover 25 or 26 different illnesses, including cancer, heart attack, stroke, kidney failure, MS, and Alzheimer’s/dementia. Unlike life insurance that’s payable in the event of your death during your insurance period, critical illness insurance is payable when and if you are diagnosed with the disease. You pay monthly premiums, and if the payout is triggered, you get a one-time lump-sum amount. You are not bound to use the money for treatment.
Disability InsuranceInstead of paying off a one-time lump-sum, disability insurance pays the policy-holder monthly dividends, in case they lose their primary source of income due to a disability. The reasons for the disability can be a serious illness, mental illness, serious injury, or hospitalization. It’s usually divided into two categories, short-term (from 6 to 26 weeks) or long-term disability insurance, which generally lasts up to two years, five years, or until you turn 65. Typically, it covers between 60% and 85% of your primary income.
Life Insurance CalculatorIf you haven’t figured out how much insurance you need, there is a calculator on the website to help you. It’s pretty neat and covers basics like your mortgage, children’s education, beneficiary support, etc. Given that the number it comes up with is based on averages, it can give you a baseline to work with. There are several benefits of using PolicyAdvisor.com as your premier insurance policy research tool:
- You don’t need to run the numbers yourself.
- It replaces the time-intensive method of comparing different policies to find the cheapest/right one for you.
- You only get policies/plans from 16 of the best insurance providers.
- As independent insurance providers, their tools and advisors are unbiased.
- It’s free.