Life insurance is not the most pleasant topic. Most Canadians want to get their life insurance as quickly and cheaply as possible.
I used to work at a life insurance agency and once had over 80 clients that I advised. Around 70% of Canadians have life insurance coverage through work or personal purchases.
I’m a big believer in term life insurance, so I took a look at one of the top online providers in Canada; PolicyMe.
In this PolicyMe review, I will explain how its term life insurance policies work, and you can decide if it’s a good fit for your needs.
Online Life Insurance Broker
PolicyMe is a life insurance company with excellent term life insurance rates.
- Lowest rates in Canada – on average, roughly 10% – 20% lower.
- Offers a fully underwritten term life policy that is fast and easy
- Many applicants don’t require a medical
- Can apply entirely online in about 15 minutes
- Offers a 30-day money-back guarantee
- Provides friendly and helpful customer care
- All applicants receive a decision instantly
- People with complicated situations or pre-existing medical conditions may not qualify for instant approvals
- Only sells term life insurance – no options for whole life or universal
What Is PolicyMe?
PolicyMe is an online life insurance company that allows Canadians to buy term life insurance online at the most affordable price.
PolicyMe has already helped over 50,000 Canadians with their life insurance checkup in the three years it has operated.
Besides its auto quote generation system, PolicyMe offers life insurance guidance with its licensed advisors. You need to schedule a phone call beforehand for a specific time slot and duration to talk to them.
PolicyMe is a privately held entity financed and backed by two investors:
- HCS Capital Partners (a Miami-based venture capital firm)
- Westdale Properties (a Toronto-based real estate and management company)
How Does PolicyMe Work?
PolicyMe uses a questionnaire to evaluate the financial and personal circumstances of applicants. They cover all causes of death (except suicide in the first two years) and any costs associated with the underwriting process.
PolicyMe Product Details
Coverage Amount: $100,000 to $5,000,000
Term Length: 10, 15, 20, 25, or 30 years
Age: 18 – 75
It is important to mention here that PolicyMe primarily deals with term life insurance plans. This type of life insurance involves a predetermined period of protection (the term length options above) in case of the policyholder’s death.
PolicyMe has focused on term life insurance because the majority of policyholders prefer it over permanent life insurance. I strongly agree with this, as whole life insurance is often expensive and unnecessary.
People go with term life insurance because it involves lower premium rates with payouts that effectively help the family when they need financial assistance.
Related Reading: Best term life insurance companies in Canada
PolicyMe Rates vs. Competitor Rates
The following table shows you an example of how PolicyMe’s rates compare against other life insurance providers:
Is PolicyMe Safe and Legit?
PolicyMe has been around since 2018. During this duration, no legal complaints have been filed against it. PolicyMe has fully-underwritten term life policies.
An important note is that Canadian Premier Life Insurance Company, a reputable Canadian corporation, issues PolicyMe’s policies.
It also garners a 4.6 rating based on the reviews on Google by Canadians. The fact that it works with leading insurance companies also puts a seal on the company’s authenticity and legitimacy.
PolicyMe Couples Discount
PolicyMe has a neat feature where you can save 10% off your term life insurance if you apply together as a couple. It’s called the PolicyMe Joint Application.
How the Discount works
Each person completes a life insurance application online here. It only takes about 20 minutes to fill out. Once approved, you can activate each policy and save 10% on each policy. It’s as simple as that.
If either partner passes away during the term, the coverage amount is paid out to their beneficiary. If both people pass away during the term, both coverage amounts are paid out to your respective beneficiaries, and the policies are no longer active.
Why Should You Buy from PolicyMe?
- They offer very cheap rates in Canada. Their rates are on average 10% to 20% lower than their competitors.
- Their application process is fast and relatively straightforward. Whereas traditional insurers’ application process can take weeks because of their confusing paperwork and lengthy medical exams, you can complete PolicyMe’s online application in just a matter of minutes.
- They use an automated and data-driven underwriting process to provide instant decisions.
- They offer a 30-day money-back guarantee for individuals who are not delighted with their policy. Beyond that, you can cancel your policy anytime without penalty.
- You can rely on their expert and exceptional customer service via phone and live chat during business hours.
Why Might You Not Buy from PolicyMe?
- You might not qualify for instant approval if your situation is complicated or you have a pre-existing medical condition. Note that PolicyMe will still process your application as quickly as possible.
- They only offer term life insurance.
- They do not offer in-person meetings, so you must schedule a Zoom meeting or phone call instead.
How to Apply for a PolicyMe Life Insurance Coverage?
Getting a comparison chart of life insurance quotes through PolicyMe is pretty simple. Here is an overview of what you need to go through:
Step 1: Click on Get My Rate tab.
Visit PolicyMe’s official website. Click on the Get My Rate tab. The site will then show you the above page. Choose Ready to apply.
Step 2: Get an instant life insurance quote.
This step usually takes five minutes to complete. You must enter your birthday, sex, and smoking status to receive life insurance quotes based on your selected coverage amount and term length.
If you’re wondering how much coverage you need, you must answer a few additional questions about your personal and financial situation to receive a personalized coverage recommendation from PolicyMe.
Unlike most online brokers, PolicyMe doesn’t require scheduling a phone call or meeting before providing you with a life insurance quote. Instead, you can instantly get a no-obligation quote in most cases.
In addition, PolicyMe only recommends the exact amount of coverage you need. Their experts are non-commissioned, so they will never pressure you to buy what you need. If you don’t need any coverage, they will tell you about it, too.
Step 3: Complete your life insurance application.
Click on Start My Application button. It will take you to a series of questions about your financial status, personal situation, lifestyle, family history, medical history, and other important details.
The application normally takes around 15 minutes to complete. Still, it may take longer, depending on whether you have medical or lifestyle factors that may affect your life insurance premium.
The application is done entirely online, with no commitment to purchase (no payment details are required at this stage).
Step 4: Receive your decision immediately.
After assessing your information, PolicyMe will let you know instantly whether or not you’ve been approved on the spot or if they will need additional information from you.
If you have been approved, all you need to do is sign off on your application, verify your identity, and add your payment details. Afterwards, your coverage will then begin.
On the other hand, if they request additional information, you might need to complete a medical exam or submit additional driving or medical records.
Once you complete those requirements, they will then let you know whether your application has been approved.
Most healthy individuals will qualify for instant approval without needing an in-person medical exam.
Does PolicyMe Offer Good Customer Service?
When it comes to a life insurance policy you’ll be paying into every month, it helps to have access to a good customer support system to answer any questions or problems you might experience.
Unlike traditional life insurance companies, PolicyMe has no physical office where you can speak with an agent face-to-face. Instead, all of your correspondence will be handled over the phone or with online chats.
Although all customer service is handled virtually, PolicyMe excels in customer support and values its customers. Most questions and concerns can be easily handled over the phone.
However, if you ever need a face-to-face chat, you can request a personal Zoom call with your PolicyMe agent.
Before signing up for any life insurance policy, you should know how it works and your options. Otherwise, you could easily end up purchasing the wrong policy. Life insurance policies can be difficult to change once you’ve enrolled, so it helps to be informed upfront.
The first decision you’ll need to make is what type of life insurance policy you want. You’ll be able to choose between two options, each of which is very different from the other:
- Term life insurance
- Permanent life insurance (or “whole life insurance”)
After deciding what type of policy you want, you’ll be able to create an individualized plan that meets you and your family’s needs.
Note: PolicyMe only offers term life insurance policies at this time. It’s still a good idea to know your options, though.
Let’s start by breaking down these two types of life insurance so you can decide which one best suits your needs.
By far, term life insurance policies are the most popular life insurance plans on the market. They’re generally more affordable, more straightforward, and come with set policy terms.
When you sign up for a term life insurance policy through PolicyMe, you’ll be asked to clarify the duration of your policy. Term life insurance policies are typically offered for 5, 10, 15, or 20-year terms (hence the word “term”).
The term defines how long your policy will cover you. Once the term expires, you’ll be given a choice to renew your existing policy, cancel your policy, or switch to a new policy offered by another provider.
After defining the length of coverage you need, you’ll be asked to define how much you want your policy to pay out in the event of your death. This could be determined by a number of factors that depend on your personal finances and how much you want to leave behind for your beneficiary.
Here are some of the basic pros and cons of a term life insurance policy:
- Much more affordable monthly premiums than whole life insurance.
- Customize the duration of the insurance policy to meet your needs.
- Your beneficiary receives a pre-defined lump sum if you pass away.
- Separate your insurance from your investments
- Term life insurance policies don’t have a cash value.
- You can’t withdraw money from your term life policy.
- You can’t use your term life insurance policy as collateral for a loan.
Permanent Life Insurance
Permanent life insurance is a lifelong commitment, so you definitely want to understand your policy thoroughly before enrolling. This is one of the main reasons why PolicyMe doesn’t offer permanent life insurance policies at this time.
You won’t be able to increase or decrease your whole life policy once you sign up, either. This means that it’s very important to figure out your finances and future plans so that you can work them into your policy accordingly.
One of the main advantages of a whole life insurance policy is that you don’t have to worry about renewing your policy or signing up for a new one. You’ll be locked into the same monthly rate from the day you begin until the day you die.
Another key feature of a permanent life insurance policy is that it’s an investment. Once you pay into your policy long enough (typically at least 10 years), your policy will accrue a cash value.
The cash value of your life insurance policy can be withdrawn, borrowed against, or used to pay your monthly premium.
Personally, I don’t recommend withdrawing money from your life insurance policy, but it’s nice to have the option available for emergencies.
Using your cash value as collateral for a loan can also be very useful in certain situations. Your insurer will typically loan you the money at a lower percentage than standard banks since you have verified collateral.
Here’s a quick table outlining some of the pros and cons of enrolling in a permanent life insurance policy:
- You’re locked into the same rate for life.
- Your life insurance policy will accrue a cash value over time.
- Once your policy has a cash value, you can withdraw money from it.
- If your policy has a cash value, you can use it as collateral to receive a loan.
- You’re generally locked into the same policy for life and can’t increase or decrease it.
- Cancelling your permanent life insurance policy before you’ve accrued cash value will leave you with nothing to show for it.
- Permanent life insurance policies generally cost much more than term life insurance policies.
- Combining investments with insurance can be confusing for many people.
Term Life Insurance vs. Permanent Life Insurance: What’s Better?
Now that you’ve had a chance to compare the two types of life insurance policies, you’re probably wondering which one is better.
Unfortunately, I can’t give you a specific answer, as this depends strongly on your unique situation. Here are some points to think about, though:
- Term life insurance is the cheapest, making it a great option for young people who want affordable coverage in an emergency.
- You’re only required to pay term life insurance for a short period of time. This makes it a good option for those who are temporarily working in a dangerous career field.
- Enrolling in a permanent life insurance policy at a young age means it will accrue cash value earlier in your life, which can be leveraged for investments.
- Some permanent life insurance policies allow you to invest your policy’s cash value into stocks and ETFs, which can help your cash value grow as it sits.
Overall, most people only need term life insurance, but there are some cases where permanent life insurance might make sense.
Tips to Save Money On Your Life Insurance Policy
While we’re on the subject of applying for policies, it’s a good time to go over some easy ways that you can save money on your life insurance policy.
Whether you enroll with PolicyMe or another provider, these tips can help you get the best coverage at the lowest monthly premium.
1. Compare Quotes
You should always compare quotes, as you can save a lot of money with one provider compared to another. PolicyMe has incredibly low rates compared to some of the other policies I’ve seen.
However, if their customers never took the time to get a quote from PolicyMe after receiving a quote from another company, they would have never been able to save as much as they’re saving.
2. Calculate Your Finances & Figure Out Your Policy Needs
Before you purchase any policy, I recommend that you take the time to sit down and look at your personal finances. Figure out how much your beneficiary will need to cover costs like rent, home mortgage, funeral costs, and other post-mortem expenses.
3. Stay On Top Of Your Health & Fitness
The healthier you are, the lower your insurance policy will be. Insurance premiums typically go up for individuals who:
- Consume alcohol frequently
- Are overweight
- Frequently visit the doctor with health concerns
- Take prescription medications with potentially dangerous side effects
Before applying for life insurance, it’s a good idea to cut out smoking, as it will be much more expensive for smokers.
4. Avoid Dangerous Occupations & Activities
Many people purchase life insurance because they’re working a dangerous job. However, if this isn’t the case, then you can save on your policy by proving that your current line of work (and weekend hobbies) aren’t immediately life-threatening.
5. Purchase Term Life Insurance To Save On Monthly Premiums
Term life insurance policies are always cheaper than whole-life policies. If you’re unsure of your future needs and don’t want to invest a lot of money upfront, a 5 or 10-year term policy can be a great way to get cheap, basic coverage.
Here are some answers to some of the most commonly asked questions I’ve received about life insurance and PolicyMe.
What Makes PolicyMe Cheaper Than Competing Life Insurance Companies?
PolicyMe doesn’t work with human underwriters, which means that their payroll costs are significantly less than traditional insurance agencies.
Instead, they use data-driven analytics to determine your policy and eligibility. This means that they can pass their savings on to their customers.
How Much Does PolicyMe Life Insurance Cost?
Term life insurance policies through PolicyMe can be as cheap as $15 per month or as expensive as $200 per month. It all depends on the length of your term, your risk level, and how much coverage you need.
Most policyholders list their spouses or children as beneficiaries to receive their life insurance payout. However, you can technically list anybody, including friends, siblings, or even a charity of your choice.
It’s never too early to start thinking about the future. Most policyholders wait until they’re married or have children. You can apply before and list another individual as a revocable beneficiary.
This allows you to swap them out for your spouse or children that may come into your life later.
If you have a permanent life insurance policy that has accrued a cash value, then you may be able to withdraw cash from your policy or use it as collateral to receive a loan from your insurer.
Because most Canadians don’t review their life insurance plans annually, they continue with potentially poor rates.
However, having the right life insurance package can give you peace of mind and ward off any fears you might have about your family’s well-being after your passing.
If you wish to save money by buying life insurance online at very competitive rates, you will like the free and easy-to-understand term life insurance quotes from PolicyMe.
Check out my list of the best life insurance companies in Canada to learn more options.