Securing life insurance is one of the most important financial decisions you can make to protect your family. With so many options from various life insurance companies in Canada, it can be hard to know where to start.
In this review, we’ll be taking a look at National Bank Life Insurance. As one of Canada’s largest banks offering term life insurance, they provide an affordable option tailored towards the needs of young Canadian families
What is National Bank Insurance?
The National Bank of Canada is the 6th largest commercial bank in the country, founded in 1979 with over 20,000 employees. They provide a range of financial products and services to individuals and businesses. (Source)
National Bank Insurance offer Canadians competitive life insurance options. Five quick facts:
- Specialize in term life insurance
- Headquarters in Montreal, Quebec
- Part of the National Bank of Canada’s offerings
- Sell their policies through both advisors and directly to consumers online.
- Available to Canadian citizens/permanent residents
Now that we’ve covered the basics, let’s look at the products that the insurer provides.
What Products Does National Bank Life Insurance Offer?
The only type of life insurance policy sold by National Bank is term life insurance. This provides affordable coverage for a set period of time.
National Bank’s term life insurance offers 10-year term and 20-year term policies. The coverage amounts range from the minimum of $25,000 to the maximum of $1 million.
Now, let’s explore the key features and benefits of their term life insurance offering.
Key Features of National Bank Term Life Insurance
National Bank Life Insurance policies come with seven advantageous features:
Available For Ages 18-60 (10 Years) or 18-50 (20 Years)
National Bank offers life insurance, which is well-suited for younger Canadians who need affordable coverage. The 10-year term is available for ages 18-60, while the 20-year term is for ages 18-50 at the time of enrollment. This makes it easy to get protected during your early earning years when expenses like mortgages and raising kids pile up.
Coverage up to $1 Million
The company offers term life insurance coverage ranging from $25,000 to $1 million. This maximum coverage amount is higher than that of some competitors. Having higher coverage gives you the flexibility to protect your family and any debts you may have.
Guaranteed Renewability
Your National Bank term life policy is guaranteed renewable up to the expiry age of 75. This means you can renew the policy for additional terms as long as you pay your premiums on time.
This ensures you won’t lose your insurability as you age. The insurer cannot single you out to reject renewing your coverage.
Simplified Underwriting
For policy amounts under $750,000, the company uses simplified underwriting. This streamlines the application process by avoiding full medical exams.
Simplified underwriting provides quicker decisions and makes it easier to get approved if you have minor health conditions.
Critical Illness Benefit Included
Having a critical illness benefit bundled with term life insurance is a major advantage of National Bank’s offering.
This provides a lump sum payment if diagnosed with cancer, heart attack, or stroke during the term. Their policies pay 10% of the coverage amount, up to a maximum of $30,000.
Access to these funds can help cover treatment expenses or lost income during recovery.
Accidental Death Benefit
National Bank also includes an accidental death benefit with its term life insurance. If death occurs due to a covered accident, this doubles the payout amount.
For example, if you have a $500,000 policy and die from an accident, the beneficiary would receive $1 million. This protects your family financially in case of an unexpected tragedy.
Online Application and Claims Portal
Applying for coverage and managing your policy at National Bank can be done digitally through their online portal. You can get quotes, apply, and submit claims without any paperwork.
This convenient online access makes the process much simpler compared to insurers requiring traditional applications and claims by mail.
Now that we’ve reviewed the key advantages, let’s examine some potential downsides to weigh.
Drawbacks of National Bank Life Insurance
While National Bank Life Insurance has some upside, there are also six limitations to be aware of:
Only Term Life Insurance Offered
National Bank does not sell any type of permanent life insurance coverage. There is no ability to convert to a permanent life insurance policy down the road. This means if whole life insurance or universal life insurance better matches your needs, National Bank would not be an option.
Less Flexible Term Length Options
The longest term length that they offer is 20 years. Some other insurers provide terms up to 30 or even 35 years. The longer the term, the longer your premiums remain locked in. If you prefer to have coverage for decades without renewal, you’ll need to look elsewhere.
Capped Critical Illness Benefit
While it’s excellent that National Bank includes critical illness coverage with their term life insurance, the total benefit is capped at $30,000. For some individuals, this amount may be insufficient, given the high costs of treating a critical illness. Purchasing a separate critical illness policy with a higher benefit may be wise.
Limited Riders/Customizations
Unlike some competitors, National Bank offers very few riders or options to customize your term life insurance coverage. The only add-ons automatically included are the critical illness and accidental death benefits.
If you want to tailor your policy with other riders like disability or waiver of premium, National Bank likely won’t meet your needs.
Highest Risk Class Offered is Preferred
For individuals in top health who qualify for the lowest insurance rates, National Bank’s highest risk class is Preferred. Some insurers offer Super Preferred or Elite Preferred for the healthiest applicants.
So those who lead a very healthy lifestyle may secure slightly better pricing elsewhere. However, for most people, the preferred class still offers competitive rates.
Who Is National Bank Life Insurance Best For?
Given the $1 million maximum coverage limit and the longest term length of 20 years, the company works best for those seeking a policy with a lower face value. Their simplified underwriting is also suited for smaller face amounts. For high-net-worth individuals needing coverage beyond $1 million, or who want to lock in longer to avoid higher premiums at renewal, other insurers may be a better fit.
The built-in critical illness benefit is another perk of their offering. If you like having this extra protection included with term life, their policy can provide good value. Just keep in mind the $30,000 maximum benefit may require supplementing with additional critical illness coverage.
If you prefer an easy online process, the National Bank service is a good choice. National Bank makes getting a quote and applying for coverage seamless through their online portal. This digital-friendly process appeals to tech-savvy consumers who value speed and convenience. If you still prefer face-to-face service when purchasing insurance, an offline provider may suit you better.
National Bank insurance products also work for people with good health within the Preferred Underwriting Class. This ensures access to their competitive pricing. Those with significant health issues who need higher risk classes may secure better rates with an insurer that offers more underwriting distinctions.
How Does National Bank Life Insurance Compare to Alternatives?
Here are four other top insurers in Canada to consider for term life insurance besides National Bank:
| Company | Features |
|---|---|
| Sun Life Insurance | – Has more underwriting classes for optimal risk assessment – Offers up to $50 million in coverage – Offers term lengths up to 35 years |
| Canada Life Insurance | – Also includes living benefits for critical illness – Offers child and family coverage options – Can convert a term policy to permanent insurance |
| RBC Insurance | Has competitive pricing and a strong reputation Additional riders and customizations are available Access to a large advisor network across Canada |
| Manulife Life Insurance | Offers maximum coverage of $50 million Provides a range of term lengths from 10 to 40 years Proven 96% claims payment reputation |
While National Bank Life Insurance has some clear advantages, it’s wise to shop around and compare quotes from many top insurers in Canada. In addition to the above list, we recommend you visit iA Financial, Equitable Life, Foresters Financial, Walnut Insurance, BCAA Life Insurance, CIBC Life Insurance, Blue Cross Life Insurance, and more. This ensures you secure the optimal rate and protection tailored to your family’s needs and budget.
Summary
Overall, National Bank offers a competitive term life insurance product focused on affordability and ease of purchase for younger Canadians. Having the critical illness benefit included provides peace of mind.
Just be aware that the lower maximum coverage amount and lack of conversion options or permanent insurance make it less suitable for certain buyers. For families who value straightforward term life insurance at lower face amounts, it certainly deserves consideration.
For maximum protection, it never hurts to consult an independent life insurance advisor. They can provide quotes from National Bank and many other top Canadian life insurers tailored to your unique needs. This ensures you find the optimal balance of price and coverage.
Frequently Asked Questions
What is the claims process like with National Bank Life Insurance?
Claims can be submitted directly on National Bank's website. Their claims team aims to process payouts within 5-10 business days after receiving all documentation.
Can I manage my National Bank policy online?
Yes, National Bank allows you to manage your policy digitally, including updating information, making payments, downloading documents, and more.
Can I adjust the amount of my National Bank life insurance coverage?
Yes, you can apply to increase or decrease your coverage after your policy is issued. New underwriting may be required to approve adjustments.
Is National Bank life insurance renewable?
Yes, their term life policies are guaranteed renewable until age 75. As long as you pay premiums, you maintain coverage without new medical exams.
Can I convert my National Bank term life policy to permanent insurance?
No, National Bank does not offer any conversion options since they only sell term insurance. You would need to apply for a new permanent policy elsewhere.
How do I cancel my National Bank life insurance policy?
Contact National Bank to initiate cancellation. As long as monthly premiums are paid, the coverage will remain active until the cancellation is processed.
Can I get an accidental death rider with National Bank?
You don't need to add this rider since an accidental death benefit is included automatically with their term life insurance.
What critical illnesses are covered under National Bank's policy?
The critical illness benefit only covers heart attack, stroke, and life-threatening cancer. Other illnesses are not included.
What if I am diagnosed with a critical illness after my term expires?
The critical illness coverage ends when your term life policy expires. It only pays during the active 10 or 20 year term period.
Does National Bank sell mortgage life insurance?
No, they do not currently offer mortgage life insurance policies. Their term life plans can provide mortgage coverage but are not directly linked to a mortgage.
Can I insure my spouse or family with National Bank?
Yes, you can purchase individual policies for family members. National Bank also offers child term riders on the primary policy for added family protection.
What is the claims payout process like with National Bank?
Claims are typically paid out within 5-10 business days after submitting documentation. The death benefit is paid in a lump sum to your designated beneficiaries.
