Empire Life Insurance Review in Canada: A Deep Dive for Canadians

Empire Life Insurance is one of Canada’s oldest and most established life insurance companies. Offering policies since 1923, Empire Life has built a reputation for reliable service and competitive rates.

In this comprehensive review, we’ll provide an in-depth assessment of Empire Life Insurance to help Canadians decide if their policies are the right solution.

What is Empire Life Insurance?

Empire Life is a privately owned insurance company headquartered in Kingston, Ontario. They provide individual and family life insurance and health insurance policies to over 450,000 customers across Canada.

Here are some critical facts about Empire Life:

• Financial Strength Rating: A (Excellent) from A.M. Best (1)
• Total Assets: $15 billion
• 2020 Life Insurance Claims Paid in Canada: 99.6% (2)
• Products Offered: Term, permanent, critical illness, disability

With close to 100 years of operating in Canada and consistently high claims payout rates, Empire Life has built a reputation as a reliable and stable insurer.

What are the Pros of Empire Life Insurance?

There are many advantages that make Empire Life Insurance policies a strong option for coverage in Canada:

Long-standing Canadian company with proven financial strength

As one of Canada’s oldest homegrown insurers, Empire Life has demonstrated resilience and financial stability across multiple decades. An ‘A’ rating from A.M. Best confirms their excellent financial strength to fulfill claims.

Canadians can trust Empire Life to be there when they need it most. Their long history in Canada shows they are in it for the long haul.

Competitive rates, especially for smokers

Empire Life Insurance offers some of the most competitive rates in Canada on coverage for non-smokers. But where they really shine is providing affordable preferred rates for smokers.

For smokers who buy over $1 million in coverage and meet Empire Life’s preferred criteria, their rates are among the cheapest in Canada. Preferred smokers enjoy lower premiums vs. Empire’s standard smoker rates.

Here are some sample preferred monthly smoker rates from Empire Life vs. competitors:

To qualify for Empire Life’s preferred non-smoker rates, applicants must:

• Have cholesterol under 280 mg/dL
• Have blood pressure under 145/90 mmHg
• Have no major chronic health conditions
• Have a family history clear of early-onset disease
• Work in a relatively safe occupation

The preferred criteria provide big savings for healthier smokers in Canada.

Wide range of term lengths

Empire Life Insurance offers one of the most flexible selections of term lengths in Canada. Canadians can choose policies from 10 to 30 years in 5-year increments.

Term options include:

• 10-year term
• 20-year term
• 25-year term
• 30-year term

The longer durations allow Canadians to match their coverage to financial needs like mortgages, loan repayment, and income replacement.

Opportunity to renew term policies until age 100

A unique advantage of Empire Life Insurance is the ability to renew term policies until the age of 100 in Canada. This provides longer protection than many other top insurers.

Renewability gives Canadians ongoing coverage as they get older when new policies often become unaffordable.

Range of permanent and “term-to-100” options

In addition to term policies, Empire Life offers permanent life insurance options for lifelong protection in Canada. Canadians can choose between:

• Whole life
• Participating whole life
• Term-to-100

The term-to-100 policy starts out as term coverage and then converts to permanent whole life with guaranteed premiums around age 100. This balances affordability with lifelong protection.

Optimax Wealth is Empire Life’s flagship permanent policy known for strong dividend growth and early cash value accumulation in as little as 20 years.

Tax-free critical illness insurance

Canadians can enhance their Empire Life Insurance coverage with critical illness insurance – either as a base policy or an add-on rider.

This pays out a tax-free lump sum of up to $2 million upon diagnosis of a covered illness or condition. The payout can help cover costs that go beyond medical treatment.

Streamlined underwriting and accelerated decision-making

Empire Life prides itself on faster-than-average underwriting and decision-making on applications.

Many clients experience approval in just days. This gets Canadians covered more quickly than drawn-out delays with other insurers.

Accelerated underwriting is powered by Empire Life’s proprietary BASILICA system and innovative use of data. About 75% of their new business is processed electronically for fast decisions.

Dedicated advisor team – no commissions

Empire Life’s licensed advisors work directly for the company as salaried employees – not third-party brokers. This reduces potential conflicts around commissions influencing recommendations.

Since Empire Life advisors earn the same regardless of the policy you buy, Canadians get objective and transparent guidance aligned to their unique needs.

What are the Cons of Empire Life Insurance?

While Empire Life Insurance policies offer many advantages, there are some limitations to keep in mind:

No universal life insurance option

If you are set on universal life insurance for its flexible premiums and death benefits, Empire Life doesn’t offer this type of policy. Their focus is on competitively priced term and permanent life products.

Online quotes are not available; phone guidance is required

Unlike some direct insurers, Empire Life does not show online quotes. Canadians need to speak with an advisor to receive accurate pricing.

However, their advisors have fast access to rates and can provide quotes promptly over the phone.

Premium rates in the middle of the pack

Empire Life Insurance’s standard (non-preferred) premium rates for healthy non-smokers tend to be in the middle compared to competitors – not the absolute lowest, but not high either. See the sample tables below for reference.

Their value proposition is strongly preferred smoker rates and long-standing financial stability as a Canadian insurer.

Here are some sample standard monthly rates for healthy non-smokers:

And for smokers:

What Products does Empire Life Insurance offer?

Empire Life offers a comprehensive suite of life and health insurance solutions, including term life insurance, permanent life insurance, permanent participating life insurance, and critical illness insurance. Their products are designed to provide flexible protection for individuals, families, and businesses across various life stages and needs.

Term Life Insurance

Term life insurance provides affordable and temporary coverage for a specific period, such as 10, 20, or 30 years. It is suitable for covering short-term obligations like mortgages, debts, or income replacement. Empire Life offers six term life insurance options:

Solution ART:

• Annually renewable term life insurance
• Guaranteed premium rates that increase annually
• The last premium increase occurs at the renewal age of 85
• Ideal for those seeking affordable short-term coverage

Solution 10:

• 10 years of renewable and convertible term coverage
• Guaranteed level premiums for the initial term
• Suitable for short-term needs like mortgages, debts, or business planning
• Key features: Renewability to age 100, convertibility to permanent insurance

Solution 15:

• 15 years of renewable and convertible term coverage
• Guaranteed level premiums for the initial term
• Cost-effective protection for specific shorter-term situations
• Key features: Renewability to age 100, convertibility to permanent insurance

Solution 20:

• 20 years of renewable term coverage
• Guaranteed level premiums for the initial term
• Suitable for longer-term needs like family income replacement or mortgage protection
• Key features: Renewability to age 100, convertibility to permanent insurance

Solution 25:

• 25-year term coverage
• Designed to match the duration of most new residential mortgages
• Guaranteed level premiums for the initial 25 years
• Key features: Renewability to age 100, convertibility to permanent insurance

Solution 30:

• 30-year term coverage
• Empire Life’s longest initial guaranteed premium period
• Appropriate for long-term needs like family protection and mortgage payments
• Key features: Renewability to age 100, convertibility to permanent insurance

All Solution Series term plans offer coverage amounts from $25,000 to $10 million and can be enhanced with riders for additional protection.

Permanent Life Insurance

Permanent life insurance provides lifelong coverage and can include a cash value component. It is suitable for long-term needs such as estate planning and final expenses. Empire Life offers three following permanent life insurance options:

Solution 100:

• Permanent non-participating whole life coverage to age 100
• Guaranteed level premiums for life
• Cash value accumulation and paid-up values starting in year 10
• Key features: Lifetime protection, guaranteed cash values

Term-to-100:

• Empire’s most affordable permanent coverage
• Lifetime protection with guaranteed level premiums to age 100
• Available with 20 Pay or Life Pay premium options
• Key features: Guaranteed premiums and coverage for life

Guaranteed Life Protect™:

• Guaranteed issue permanent life insurance with no medical questions
• Coverage for life with premiums payable to age 95
• Guaranteed cash values starting at year 5 and reduced paid-up values from year 8
• Key features: Simplified issue, guaranteed acceptance, lifetime coverage

Permanent Participating Life Insurance

Permanent participating life insurance provides lifelong coverage with a cash value component and the opportunity to receive dividends. It is ideal for estate planning, wealth accumulation, and leaving a legacy. Empire Life offers two participating life insurance options:

EstateMax:

• Participating life insurance focused on estate planning and preservation
• Lifetime guaranteed premiums available in 10 Pay, 20 Pay, and Life Pay options
• Long-term cash value growth and tax-advantaged dividends
• Key features: Customizable coverage, dividend options, guaranteed cash values

Optimax Wealth:

• Participating life insurance designed for faster cash value accumulation
• Ideal for building tax-advantaged wealth accessible for lifetime needs
• 8 Pay, 10 Pay, 20 Pay, and Life Pay premium schedules available
• Key features: Early cash value growth, dividend options, wealth accumulation

Dividends from participating policies can be used to purchase additional coverage, reduce premiums, or be paid out in cash. Dividend scales for EstateMax and Optimax Wealth are guaranteed to never be negative.

Critical Illness Insurance:

Critical illness insurance provides a lump-sum benefit if the insured is diagnosed with a covered critical illness, helping to ease the financial burden during recovery. Empire Life offers two critical illness insurance options:

CI Protect:

• Covers 4 common critical illnesses: cancer, heart attack, stroke, coronary artery bypass surgery
• Available as a stand-alone 10-year or 20-year term plan or as a rider on a life policy
• Key features: Affordable protection, convertible to age 75

CI Protect Plus:

• Comprehensive critical illness protection covering over 25 conditions
• Available as a rider on a life insurance policy
• Includes Early Diagnosis and AdvanceCare benefits for less severe illnesses
• Key features: Extensive coverage, early payment for non-life-threatening illnesses

Critical illness plans provide a tax-free lump sum of up to $2 million, allowing flexibility to cover medical expenses, replace lost income, or address any other financial needs. Guaranteed premium rates are available to age 75.

What are the Additional Products from Empire Life Insurance?

In addition to the core life and health insurance offerings, Empire Life provides:

Group Benefits:

Comprehensive employee benefit plans for businesses of all sizes, including:

• Life Insurance
• Accidental Death & Dismemberment (AD&D)
• Short and Long-Term Disability
• Extended Health Care (drug coverage, paramedical services, etc.)
• Dental Care
• Critical Illness Insurance

Empire’s group benefits can be fully insured or administered as an ASO/self-insured arrangement. They also offer optional Employee Assistance Programs, Second Opinion Services, and Full Wellness Solutions to promote healthier, more productive workplaces.

Investments:

• Segregated Funds:
  • Individual variable insurance contracts that allow clients to invest in professionally managed portfolios with insurance benefits
  • Death benefit and maturity guarantees (75% and 100%) to protect investments
  • Wide range of funds across asset classes and risk profiles
  • Option of resetting the death benefit guarantee to lock in market gains
  • Potential creditor protection through the insurance structure
• Guaranteed Investment Funds (GIFs):
  • Flexible savings plans with competitive guaranteed interest rates for specific terms
  • Variety of term lengths (1-5 years) and compound interest options
  • Often used for conservative investing or laddering strategies
• Mutual Funds:
  • Offered through Empire Life Investments Inc.
  • Comprehensive suite of funds across all major asset classes, geographies, sectors, and styles
  • Active, passive and smart beta strategies are available
  • Focus on downside risk protection and long-term capital appreciation
  • Multiple series options with different fee structures
  • Sold by licensed mutual fund dealers and financial advisors

Retirement and Savings:

• Registered Retirement Savings Plans (RRSPs):
  • Tax-deferred savings vehicles to help Canadians build retirement assets
  • Choice of guaranteed investments (GICs) or market-based segregated and mutual funds
  • Both individual plans and group RRSPs for businesses
  • Spousal RRSP options to split income in retirement
• Retirement Income Options:
  • Registered Retirement Income Funds (RRIFs) & Life Income Funds (LIFs)
  • Provide an income stream from the accumulated RRSP savings
  • Different income payment options are available
  • Mandatory minimum yearly withdrawals for RRIFs
  • Maximum withdrawal limits for LIFs
• Payout Annuities:
  • Provide guaranteed income payments for life or a set period of time
  • Convert savings into a reliable income stream for retirement
  • Option of single life, joint life or term certain annuities
  • It can help cover fixed expenses and mitigate longevity risk
  • Prescribed annuities provide level after-tax income

Empire Life aims to be a one-stop financial services provider for Canadians and business owners. By offering this broad range of insurance, investment and retirement solutions, they strive to meet the changing needs of clients throughout their lifetime. Their products are distributed primarily through a nationwide network of financial advisors, planners and employee benefits brokers.

How to Buy Life Insurance from Empire Life Insurance in Canada

Applying for life insurance through Empire Life involves just a few key steps:

Getting a Quote – Speak with an advisor to receive a personalized premium quote based on your age, smoking status, health, lifestyle, and desired coverage amount.

Completing the Application—Complete a detailed application providing your medical history, family health background, finances, and other personal details. This can be done electronically or on paper.

Underwriting Review—Empire Life underwriters will evaluate your application using BASILICA to determine any risk factors and make an approval decision, often within days.

Issuing the Policy—Once approved, Empire Life will issue your personalized policy documents, and coverage will take effect after you pay your first premium.

To start the quoting and application process, visit Lifebuzz’s website at www.lifebuzz.ca.

Tips for Buying the Best Empire Life Insurance Policy in Canada

Follow these tips when purchasing Empire Life insurance to find the optimal policy:

Compare Quotes from Multiple Providers

Always compare Empire Life to other top insurers before deciding. An advisor can quickly source the best rates across the market for your situation.

Consider Term-to-100 for Lifelong Coverage

Empire Life’s unique term-to-100 policy balances long-term savings with affordable term rates in the early years. It’s worth exploring if you want permanent coverage.

Add Critical Illness Insurance for Enhanced Protection

For only a slight increase in premiums, critical illness insurance can provide needed cash benefits during health crises.

Bundle Policies to Save on Fees

Ask about bundling your life and critical illness insurance to save on policy fees. Empire Life makes it easy to combine coverage.

Focus on Preferred Smoker Criteria for Lower Rates

If you are a smoker, improving health markers to meet Empire Life’s preferred criteria can significantly reduce premiums.

Work With an Independent Advisor

An independent advisor who can objectively compare all providers will ensure you get the best rates for your situation, whether or not Empire Life is the right fit.

Is Empire Life Insurance Right for You?

Empire Life is undoubtedly one of Canada’s top life insurance companies, with a rock-solid reputation. For Canadians seeking reliable protection backed by financial strength, Empire Life is a leader compared to other insurance companies: Sun Life, Beneva Insurance, SSQ Insurance, Assumption Life Insurance, Industrial Alliance Life Insurance, …

Their competitive preferred smoker rates, unique term-to-100 option, and ability to renew term policies until age 100 give added flexibility for coverage.

Overall, Empire Life is an excellent choice for many types of Canadian life insurance buyers:

For Smokers – Empire Life’s preferred smoker rates provide significant savings versus standard industry rates. A minimum of $1 million in coverage is required.

For Families – Renewable terms with lifetime coverage work well for income replacement and mortgage protection as family needs evolve.

For Small Business Owners, Affordable 10—or 20-year guaranteed terms are ideal for buy-sell agreements and succession planning.

For Estate Planning – Permanent cash value policies help fund tax-efficient wealth transfers to beneficiaries.

Before choosing Empire Life, explore all your options and compare rates across providers. An advisor can help identify the most suitable and affordable policy.

Frequently Asked Questions about Empire Life Insurance

Article Sources:

For a deeper look at our dedication to accuracy, transparency, and independence, please refer to the Lifebuzz.ca Editorial Policy. We take great pride in being Canada’s most trusted life insurance news source:

1. Empire Life Insurance Review – Updated 2024 – https://www.policyadvisor.com/
2. Empire Life Life Insurance Review: Best for Smokers & Short-Term Cash Value – https://www.policyme.com/
3. Empire Life Insurance Reviews 2024 – https://www.dundaslife.com/