Independent Life Insurance Reviews

Canada Life Life Insurance Reviews

(4 reviews)
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Category: Switching, Cancellation
(1.5 out of 5 stars)
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Term Policy SCAM

(1.0 out of 5 stars)
by Ann May 12, 2020
...In 2010 I was offered what seemed like a great deal on an insurance policy with Canada Life, through Canadian Tire. It is a Canadian Tire Financial Services Term Life Insurance policy for $150,000. I purchased the policy on March 8, 2010, because I wanted to leave a substantial gift to my nephew. The term of the policy is 5 years and the premium increases every 5 years accordingly. Thus far, I have paid in to the policy an approximate amount of $5324.00. My premiums will increase as follows: April 2020 - March 2025 annual premium for the 5 year period of $4020 April 2025 - March 2030 annual premium for the 5 year period of $6909 April 2030 - March 2035 annual premium for the 5 year period of $11526.60 April 2035 - November 2038 (75th birthday) annual premium for the 68 month period $16,368.28 1. The plan has a provision called the Benefit Reductions at Older Ages. The provision states the following: On the Insured's 71st birth date the coverage shall reduce by 20% of the Amount of insurable show on this certificate and shall further reduce another 20% of the original Amount of Insurance shown on this certificate each birth date thereafter. Each amount of insurance with the value of $50,000 for an individual who has attained the age of 71 shall reduce by $10,000.00 on the individual's 71st birth date and shall further reduce by another 20% of the original Amount of Insurance on each birth date thereafter until age 75. That means my $150,000.00 policy will be worth $30,000 if I should live to the age of 75 and one day. However, I will have paid approximately $44,147 for the policy if I should live to age 75 and one day. This cannot be right. I am effectively paying 50% more than the policy will be worth should I reach the age of 75; the policy is worthless. 2.In 2010 the average life expectancy for a female in Canada was 81.25 years. Today the average life expectancy for a female in Canada is 85.5 years. The projected life expectancy for a female in Canada by the time I am 75, in 2038 will be 86.6. If the average life expectancy is far greater than the age of 75, the plan will only payout to those who die prior to that age. According to the Canadian Institute of Health Information, life expectancy in Canada in 1961 was 71 years old. 3. Premiums will continue to be paid from the date of my 71st birth date until the age of 75. However, the the amount of Insurance is reduced greatly. In my case, the total amount of insurance will reduce from $150,000 to $30,000 over the course of the 4 years between the ages of 71 and 75. The total amount of annual premiums for the 68 month period between my 71st birthday and the age of 75 will be $16,386 The total amount I will have paid to Canada Life as of November 2038 will be approximately, $44, 147 for a plan that will only be worth $30,000 as of the same date. During my call today to Canada Life I asked the agent about converting my plan to a permanent plan and taking the amount I have invested in to the plan to a better plan. He initially told me that I couldn't do it because the plan is not a convertible plan. I said there was nothing advising me of this in any of my documents. He then relented and said, "off the record, you can convert the plan but you have to call in and threaten to cancel and then we can offer you conversion." When I asked what my new premiums would be he said he, "couldn't tell me because he can only access that information once the request to cancel and convert has been submitted." Also, once the conversion request is submitted my current term plan would be cancelled and it cannot be reactivated. I could effectively be without any insurance plan whatsoever, despite the fact that I have already paid over $5000 to Canada Life, thus far. I simply want to be able to convert to a plan that does not excessively increase the rate of my premiums, transfer the amount invested into the current plan into a more reasonable insurance plant, and to have a life insurance plan that is equitable. The plan they have sold me is a farce. It has no cash value, it cannot be easily or transparently converted, and it will eventually cost me 50% more than the policy will be worth should I live out the life of the policy. This is a disappointment as well as a deception on the part of Canada Life...
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Canada Life is a scam, period.

(1.0 out of 5 stars)
by oploc Nov 20, 2018
...I've recently helped my parents dispose of a life insurance policy and the disposition date was in late May. The insurer wanted after the disposition date was cleared and sent to CRA, that they will withhold money until the insurance holder can prove whether he is a resident or non-resident. That they waited until the form can be processed for three months before surrendering money in September is one problem, that they still collected for those three months for the policy that was already disposed of in May is another, more dastardly move. They just swindled the policy owner who dutifully paid the premiums for more than a decade out of half a thousand dollars. I will tell everyone that this company is a scam and a fraudulent business...
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SCAM stay away!

(1.0 out of 5 stars)
by angry1234 Apr 03, 2017
...Total scam! They will sign you up for insurance protection on your Walmart MasterCard without letting the customer know and charge you ridiculous amount every month. When you call them to cancel the plan and ask for a refund, they won't give you a refund! Instead, they threaten you to be careful of the way you talk to them because everything is recorded!!! They don't value their customers and they only want to run away with your money!!! Stay away! This is a SCAM!!!...
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Did you know that mortgage insurance is the same as life insurance but more expensive and offers less protection? By cancelling it and getting life insurance , you would typically save around 30%-40% for the same coverage.

Canada Life will not pay

(1.0 out of 5 stars)
by Disappointed Jun 28, 2015
...I purchased life and disability insurance through RBC home protector and their provider is Canada Life. Last November I had a back injury and I have been of work for almost 7 months now. I applied for the disability insurance I was paying for and thought I had. Once I sent all my medical info regarding my injury to Canada Life, they wanted more info from my family doctor going back 2years from date I purchased the insurance. They found a medication prescribed to me in that 2year period . The medication was for something other than anything they indicated on the application form questions I answered when I applied for the insurance. They declined me coverage for my back injury and cancelled my coverage for disability. I appealed there decision with a letter from my doctor explaining the medication treatment and they still declined me a second time. I took it to a lawyer last week. He said Canada Life is treating me unfairly and that I stand a great chance of settling this in my favor. Problem is he said I could end up paying him more than the coverage I would get back from Canada Life. At least he was honest. More than I can say for this insurance company...
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