National Bank Life Insurance Review 2025

Securing life insurance is one of the most important financial decisions you can make to protect your family. With so many options from life insurance companies in Canada, it can be hard to know where to start.

In this review, we’ll be taking an 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.

We’ll be covering everything you need to know:

• Overview of the Company
• Term Life Insurance Offerings
• Features and Benefits
• Advantages and Potential Drawbacks to Consider
• Who National Bank Life Insurance Works Best For
• Alternatives to Consider
• Final Recommendation

Let’s start by getting familiar with National Bank and their approach to life insurance in Canada.

Who is National Bank Insurance?

Founded in 1979, the National Bank of Canada is the 6th largest commercial bank in the country, 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. They sell their policies through both advisors and directly to consumers online.

Five quick facts about National Bank Insurance:

• Specialize in term life insurance
• Headquarters in Montreal, Quebec
• Part of the National Bank of Canada’s offerings
• Can apply online or through an advisor
• 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, such as 10, 15, 20, or 30 years.

Here are the details of National Bank’s term life insurance offerings:

Policy Terms:

• 10 year term
• 20 year term

Coverage Amounts:

• Minimum: $25,000
• Maximum: $1 million

Purchasing term life insurance from National Bank entitles you to three key benefits:

1. Death Benefit – This provides your named beneficiary with a lump sum payout if you pass away during the term of the policy.
2. Critical Illness Benefit – You will receive an additional payment of 10% of the policy amount, up to $30,000 maximum, if diagnosed with a covered critical illness.
3. Accidental Death Benefit – Your payout will be doubled if death occurs due to a covered accident.

Now, let’s explore the key features and benefits of their term life insurance offering.

What Are the Key Features and Benefits 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 up to $1 million. This maximum coverage amount is higher than some competitors.

Having higher coverage gives you the flexibility to adequately protect your family and any debts you may have.

Guaranteed Renewability

Your National Bank term life insurance policy is guaranteed renewable up until 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 their 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.

What Are the Potential 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. This means if whole life insurance or universal life insurance better matches your needs, National Bank would not be an option.

These permanent policies provide lifetime protection and can also accumulate cash value.

Maximum Term Length of 20 Years

The longest term length that they offers 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.

Policy Conversion Not Available

Since National Bank only sells term insurance, there is no ability to convert to a permanent life insurance policy down the road.

Some term life insurers allow converting to whole or universal life with no medical exam required. This ensures you can get permanent coverage later if desired.

Maximum $30,000 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.

Now that we’ve weighed the pros and cons, let’s discuss the ideal buyer.

Who Is National Bank Life Insurance Best For?

Here are the five characteristics of clients who tend to benefit most from National Bank term life insurance:

Seeking coverage Under $1 Million

Given the $1 million maximum coverage limit, 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, other insurers may be a better fit.

Want Critical Illness Included

The built-in critical illness benefit is a major 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.

Prefer Easy Online Process

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.

Comfortable With a Maximum 20 Year Term

Given the longest term offered is 20 years, National Bank best suits those who are fine with this term length. The premiums and coverage conditions will reset after each 20 year term.

If you want to lock in longer to avoid renewal, another provider may be preferable.

Health Within Preferred Underwriting Class

To qualify for National Bank’s Preferred class as a non-smoker, you’ll need relatively good health with no major conditions. This ensures you get 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.

Now, let’s compare some alternatives to keep in mind.

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:

Sun Life

• 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

• 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

• RBC Insurance has competitive pricing and a strong reputation
• Additional riders and customizations available
• Access to a large advisor network across Canada

Manulife

• 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

In the end, here is our final take on National Bank Life Insurance:

They offer 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.

National Bank Life Insurance works best for you if:

• You want term life insurance under $1 million
• Having critical illness included is appealing
• You don’t anticipate needing permanent insurance later
• You’re comfortable applying and managing your policy digitally

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.

The security of your family deserves the right policy for the long run. Do your due diligence so you can have confidence in choosing life insurance coverage from a provider like National Bank Life Insurance that aligns with your budget and protection requirements.

Frequently Asked Questions