Equitable Life Insurance of Canada: A Comprehensive Review for Canadians

For over a century, Equitable Life Insurance Company of Canada has been a steadfast provider of life insurance and financial products to Canadians. As one of the nation’s largest mutual life insurance companies, Equitable Life offers a comprehensive selection of permanent, term, and universal life insurance plans.

In this thorough review, we will delve into Equitable Life’s rich history, robust financial strength, diverse range of products, unique features, transparent pricing, and the advantages and disadvantages of their policies. Continue reading to determine if Equitable Life’s offerings align with your family’s future protection needs.

What is the Equitable Life of Canada?

Founded in 1920 in Waterloo, Ontario, Equitable Life Insurance Company of Canada is one of Canada’s largest federally regulated mutual life insurance companies. Some key facts about the insurer:

• Headquarters: Waterloo, ON
• Company Type: Mutual life insurance company (source: https://www.equitable.ca/en/who-we-are/our-mutuality/)
• Total assets under administration: $6.9 billion (as of December 31, 2022)
• $156 million of Net Income ; $2 billion of premiums and deposits (2022)
• Insurance Products: Life, health, critical illness, disability
• Financial Products: Retirement savings, investments
• $100 million of dividends to participating policyholders (source: https://cdn.equitable.ca/forms/unsecured/insurance/Annual-Report-2022.pdf?v=November-09-2023)

Equitable Life of Canada is a mutual company owned by its participating policyholders rather than shareholders. This structure allows Equitable Life to focus on the long-term interests of policyholders rather than quarterly profits and results.

Equitable Life engages in charitable community initiatives across Canada. The company is a member of Assuris, which protects Canadian policyholders if an insurer fails.

What is the History of Equitable Life Insurance?

Equitable Life Insurance Company of Canada has a long history dating back to 1920. Here are some key events and milestones over the past 100+ years:

• 1920 – Founded as the Ontario Equitable Life and Accident Insurance Company in Waterloo, Ontario, by Sydney Tweed.
• 1936 – Changed name to The Equitable Life Insurance Company of Canada and began selling participating life insurance plans.
• 1957 – Started offering Registered Retirement Savings Plans (RRSPs) to Canadians.
• 1962 – Introduced new insurance for medical care and expenses.
• 1980s – Became the first insurer in Canada to provide reduced insurance rates for non-smokers.
• 1990s to present – Introduction of universal life, critical illness, and group insurance products.
• 2007 – Surpassed $100 billion in life insurance coverage for Canadians.
• 2020 – Celebrated 100th anniversary as a leading Canadian life insurer.

Throughout its history, Equitable Life Insurance has been an innovator serving.

Source : https://www.equitable.ca/en/who-we-are/

What Products Does Equitable Life Insurance Offer?

Equitable Life provides a suite of both risk life insurance and financial products for Canadians:

Risk Life Insurance Offerings

• Term Life Insurance
• Permanent & Participating Whole Life Insurance
• Universal Life Insurance

Financial Offerings

• Critical Illness Insurance
• Disability Insurance
• Group Life & Health Benefits
• Retirement Savings (RRSPs, RIFFs, Annuities)
• Investment Products

Next, let’s take a deeper look at Equitable’s life insurance and financial product offerings for individuals and families.

Term Life Insurance

Term life insurance provides affordable temporary coverage for a specific number of years. It’s ideal for covering temporary needs like mortgages, income replacement, and other debts. The insurer offers three term life options:

10-Year Renewable Term (T10)

• Lowest initial premiums, guaranteed level for 10 years
• Automatically renews every 10 years, with premiums increasing at each renewal
• Coverage expires at age 85
• Convertible to permanent insurance without medical underwriting
• Layering with other term plans provides flexibility

20-Year Renewable Term (T20)

• Level guaranteed premiums for 20 years
• Renews every 20 years with increased premiums until expiry at age 85
• Up to $10 million in coverage
• Convertible to permanent insurance
• Exchangeable to a T20 plan within the first 5 years

Term 30/65

• Level guaranteed premiums for 30 years or to age 65, whichever is later
• Coverage expires at the end of the 30-year term or age 65, does not renew
• Up to $10 million in coverage
• Provides longer cost certainty than T10 or T20

Key Features of Equitable Term Plans:

• Available as single-life, multi-life or joint first-to-die
• Preferred underwriting for better health
• Conversion to permanent plans without medical evidence
• Riders including term, critical illness, disability waiver

Permanent Life Insurance

Permanent life insurance provides lifelong protection and builds cash value over time. The company focuses on whole life plans through their Equimax product line:

Equimax Whole Life

Equimax provides traditional whole life benefits, including:

• Guaranteed level premiums, cash values and death benefit
• Paid-up additions purchased by dividends
• Cash value growth on a tax-advantaged basis
• Access to cash values via withdrawals or policy loans

Two plan options are available:

Equimax Estate Builder

• Designed for higher long-term value
• Ideal for estate planning and wealth transfer
• Premium payment options: life pay, 20 pay, 10 pay

Equimax Wealth Accumulator

• Higher early cash surrender values in the first 20 years
• Excellent for business planning (buy-sell, key person)
• Premium payment options: life pay, 20 pay

Key Features of Equimax:

• Available as single life, joint first-to-die or joint last-to-die
• Wide range of dividend options: cash payments, premium reductions, paid-up additions
• Special joint plan options if there is a breakdown of the insured relationship
• Riders including term insurance, disability waiver, children’s protection

Universal Life Insurance

Universal life insurance combines permanent life insurance with an investment component. Premiums are flexible and can be allocated among a selection of investment accounts. The insurer offers two universal life plans:

Equitable GenerationsTM

• Offers a variety of investment options, including managed funds, market indexes and guaranteed interest
• The lower-cost version with Bonus offers improved early values
• Bonus credits additional account value and is guaranteed on the Bonus version

Equation Generation IV

• More traditional universal life plan with fewer investment options
• Unique “shuttle account” to maintain tax-exempt policy status
• Level cost of insurance available
• Lower fees version with slightly lower account bonuses

Key Features of Equitable Universal Life:

• Flexible premiums allocated to investment accounts
• Choice of level protector or account value protector death benefit
• Available as single life, joint first-to-die or joint last-to-die
• Wide selection of riders, including term insurance, critical illness, disability waiver
• Built-in Living Benefit allows access to funds in the event of disability

Critical Illness Insurance

Critical illness insurance provides a lump-sum benefit if the insured is diagnosed with a serious covered illness. Funds can be used to pay for treatment, home modifications, replace lost income, or other purposes. EquiLiving Critical Illness plan provides comprehensive critical illness protection.

EquiLiving Critical Illness Insurance

• Covers 26 critical conditions, including cancer, heart attack, stroke
• Early detection benefits for conditions like early-stage cancer
• Multiple plan types and payment period options
• Up to $2 million in benefit amount available
• Return of premium options: on death, at surrender/expiry
• Includes built-in benefits like disability waiver
• 5 additional childhood illnesses are covered for children

Key EquiLiving Features:

• Optional riders include term life insurance.
• Coverage is available to ages 75 or 100
• 10-year renewable term coverage to age 75
• Level premium coverage for life or 20-pay premium periods

Disability Insurance

Equitable Life’s disability insurance provides partial income replacement benefits if injury or illness prevents you from working. Various plan options are available with monthly payout percentages from 50% to 75% of gross income.

Benefits can continue for two years, five years, or to age 65, depending on the plan chosen. Coverage up to $15,000 monthly benefit available. You must be under the age of 60 to apply.

Group Benefits Solutions

Equitable Life provides group life, health and dental benefits plans for businesses to offer employee coverage. Services include:

• Group life insurance for employees and dependents
• Extended health & dental insurance
• Disability insurance
• Business travel medical insurance

Plans are customizable based on the company’s needs and budget. The company handles administration and claims processing for group plans.

Retirement Savings and Income Products

To help Canadians save for retirement, the insurer offers registered products like RRSPs and Registered Retirement Income Funds (RRIFs).

Their retirement savings plans provide tax-deferral benefits to accumulate funds. Income annuity products can provide guaranteed retirement income from your savings.

Segregated fund policies are also available for estate planning and leaving an inheritance to beneficiaries.

Investment Products

The company has a suite of investment solutions to build savings:

• Guaranteed Investment Accounts – Offer guaranteed interest rates and stable returns. Includes Daily Interest Accounts, Guaranteed Deposit Accounts, and Term Deposit Accounts.
• Segregated Funds – Professionally managed investment funds with maturity and death benefit guarantees.

By offering both insurance and investment products, the company can develop comprehensive financial plans tailored to Canadians’ needs.

What are the Features of Equitable Life Insurance Policy?

Equitable Life insurance policies come with many useful features and advantages:

Critical Illness Insurance Bundling

Many life insurance plans allow bundling critical illness insurance from Equitable Life as an additional benefit. This provides comprehensive protection in one policy.

Joint/Multi-Life Premium Discounts

Insuring two lives under one policy saves on premiums through joint policy discounts. Multi-life coverage is also available.

Preferred Underwriting Discounts

For healthy individuals, applying for preferred no-medical underwriting rates on coverage over $500,000 can lead to discounted premiums.

Policy Conversion Options

The company offers flexibility to convert term policies to permanent coverage down the road. This allows you to get longer protection as needed.

Laddering Multiple Term Policies

Ability to combine different term policy lengths together in a strategy known as laddering. Useful for gradually reducing coverage as needs decline.

Participating Policy Dividends

Eligible policyholders can share in the company’s profits through dividend payments on participating policies to enhance their benefits.

Useful Optional Riders

Riders for accelerated death benefits, accidental death, children’s term insurance, disability waiver, and more allow benefits customization.

Online Account Management

The handy online portal provides 24/7 access to your policy information and account details through a client website.

Digital Policy Docs & eDelivery

Paperless delivery and access to digital policy documents are available for convenience.

How Much Does Equitable Life Insurance Cost?

The insurer aims to provide competitive pricing across its range of term, permanent and critical illness coverages. Here are some sample monthly premiums to give an idea of costs for healthy, non-smoking applicants:

$500,000 Term Life Insurance Rates:

$250,000 Critical Illness Insurance Rates:

Permanent Life Insurance premiums will depend on factors like age, coverage amount, and riders selected. Overall, Equitable Life’s pricing is quite competitive, especially for longer-duration term policies, permanent coverage, and when bundling critical illness benefits.

For smokers and individuals with health conditions, other insurers may offer lower rates. But for healthy applicants seeking permanent, whole life or bundled policies, Equitable Life’s prices are attractive. Comparing quotes across insurers is the best way to find top value tailored to your situation.

How Financially Strong is Equitable Life Insurance?

As a mutual company, Equitable Life of Canada does not have an AM Best financial strength rating. However, the company maintains excellent financial health:

• 2021 Net Income: $192 million
• Participating Policyholders’ Equity: $1.34 billion (as of December 31, 2021)
• Solvency Ratio: 150% (Q4 2021), among the highest in Canada

In September 2020, DBRS Morningstar affirmed an “A” rating for Equitable Life’s financial strength. This indicates great stability even amid economic uncertainty.

Equitable Life of Canada has paid out dividends to eligible participating policyholders every year since 1936. With over 100 years of history, the company has a strong track record of fulfilling obligations to policyholders.

What Are the Pros of Equitable Life Insurance?

Choosing Equitable Life Insurance of Canada for your coverage provides many great benefits:

Strong Reputation as a Leading Mutual Company

With over 100 years in business, Equitable Life has a strong reputation as one of Canada’s top mutual life insurance providers. Its mutual structure also adds stability.

Competitively Priced Permanent Life Insurance

Their whole life participating policies offer attractive pricing, making them a cost-effective option for permanent protection.

Ability to Bundle Critical Illness Insurance

Bundling critical illness and life insurance into one policy provides comprehensive coverage at a discount compared to buying separately.

Flexible Laddering Term Life Insurance

The ability to combine different term lengths allows policy customization to meet needs as they evolve over your lifetime.

Joint Life Policy Discounts

Insuring two lives together nets savings compared to two separate individual policies. Discounts for multi-life coverage too.

Strong Participating Whole Life Dividends

Eligible policyholders can share in financial upside through annual dividend payments from Equitable.

Excellent Customer Service

Knowledgeable advisors and customer support teams help guide you in choosing the right insurance solutions.

Riders to Customize Benefits

Useful riders for accelerated death benefits, disability waivers, children’s insurance, and more allow for benefit enhancements.

For permanent protection, critical illness coverage, and participating whole life insurance, Equitable offers many advantages to Canadians seeking security.

What Are the Cons of Equitable Life Insurance?

However, there are some downsides with Equitable to note:

Limited Term Life Insurance Options

Equitable Life only offers three term life insurance plans – 10, 20, and 30 years. Other insurers have more flexibility in term lengths.

No Option to Purchase Policies Online

Buying Equitable insurance requires working with an advisor. No option to get DIY quotes and purchase policies online.

Permanent Insurance Costs More Than Term

Permanent protection costs significantly more than temporary term insurance in monthly premiums.

Mid-Range Pricing on Term Life Plans

While permanent policy rates are competitive, Equitable Life’s term life pricing is relatively average – not the cheapest, but not the most expensive.

Critical Illness Insurance Only Added By Rider

Standalone critical illness coverage is not available. Must be added to a life insurance policy as a rider.

If you desire a wide range of term lengths, lowest term pricing, standalone critical illness insurance, or online policy purchase, Equitable Life may not be the best fit for you.

Is Equitable Life Insurance a Good Choice for You?

Equitable Life Insurance is a great choice for many reasons:

Seeking Permanent Life Insurance – For lifelong protection, Equitable Life’s participating whole life insurance products offer value. Dividend potential also makes their permanent policies attractive.

Combining Critical Illness Coverage – If you want critical illness insurance, bundling it with your life policy with Equitable Life can save you money compared to buying it separately.

Insuring Multiple Lives – Joint coverage on a couple or family? Equitable Life’s multi-life discounts can provide savings versus individual policies.

Longer-Duration Term Insurance – Need a 20 or 30-year term policy? Equitable Life’s competitive longer-term rates make them an appealing option.

Looking for Dividend Potential – If participating in profits via dividends from a mutual company sounds appealing, Equitable Life permanent policies allow this.

Expert Guidance Desired – Advisor support in understanding options and choosing coverage is provided by Equitable Life’s knowledgeable professionals.

However, if you want extensive term length choices, pure DIY online quoting, or the lowest premiums regardless of health, then other insurers may suit you better.

The best way to decide if Equitable Life fits your needs is to compare personalized quotes from them and other top Canadian insurers. Get a side-by-side comparison of rates tailored specifically to you.

How Can I Get Quotes for Equitable Life Insurance?

To find the most affordable life insurance for your situation, we recommend getting quotes from over 15 top Canadian life insurance companies. For example:

• Manulife insurance
• Canada life insurance
• Sun Life insurance
• RBC Insurance
• BMO insurance
• Wawanesa life insurance
• Canada Protection Plan life insurance
• SSQ life insurance
• Assumption life insurance

This allows you to see all your options in one place and select the policy with the perfect blend of pricing, features and benefits for your family.

In summary, Equitable Life of Canada is great if you:

• Want permanent life insurance or participating whole life policies
• Seek to bundle critical illness insurance with life coverage
• Are insuring multiple lives like couples or families
• Desire dividends and upside from a mutual company
• Need longer-duration term insurance of 20 or 30 years
• Prefer working with an advisor to DIY online quotes

Thanks to competitive pricing on many of its offerings, Equitable Life can provide tremendous value for the right individuals and situations.

However, if you want short-term life insurance, pure online policy purchase, or have health issues, you may find better value with other insurers.

FAQs about Equitable Life Insurance in Canada

Article Sources:

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1. Who We Are – https://www.equitable.ca/
2. Equitable Life of Canada Life Insurance Review 2024 – https://www.dundaslife.com/
3. Equitable Life Insurance Review – Updated 2024 – https://www.policyadvisor.com/
4. Is Equitable Life Insurance Good? Review (2024) – https://hellosafe.ca/
5. The Equitable Life Assurance Society – wikipedia