Matt Hands, Business Director, Insurance
As one of Canada’s largest provinces, the Alberta life insurance industry is highly developed. This is great for Albertans, as it gives you more types of life insurance to choose from. Here are a few facts about life insurance in Alberta - with a small warning. While your province can make a difference to your premiums, the biggest factor is you. The best thing you can do to get a great policy is to compare multiple life insurance quotes and decide which is best for you. You can also visit our pages on Calgary life insurance and Edmonton life insurance for more city-specific life insurance details.
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Alberta life insurance is part of the province’s health and life insurance industry, which is just above average size compared to other Canadian provinces. All data is from 2019.
- People with coverage: 3.2 million (national average: 2.9 million)
- Industry employees: 17,300 (national average: 15,740)
- Weekly benefits paid: $202 million (national average: $199.1 million)
- Provincial tax contributions: $286 million (national average: $559.5 million)
Alberta hosts 73 active health and life insurance companies (including non-profit health benefit providers and fraternal benefit societies), just ahead of the national average of 67. However, just 5 of these total insurance companies have their headquarters in Alberta. The lion’s share of life insurance company head offices are found in Toronto, Ontario.
Despite the relatively few life insurance companies headquartered Alberta, life insurance is still a major industry across the province. All data is from 2019.
- People with life insurance: 2.2 million
- Average coverage per person: $314,000
- Average coverage per household: $545,000
- Average size of new policies: $413,000
- Overall coverage in force: ~$697 billion (group and individual policies)
Here’s an interesting fact about Alberta life insurance - of the people that have life insurance coverage, Alberta has the highest average coverage level of all the provinces, with an average of $314,000!
While living in Alberta can make a small difference to your premiums, the biggest factor is you. Compare multiple quotes today to get the best rates.compare quotes today
The insurance premiums tax is one of the biggest ways life insurance differs between provinces. The provincial tax is paid by life insurance companies on all insurance premiums. While you generally won’t see it on your statement, you’re still paying it! So, the higher your province’s insurance tax, the higher your life insurance premiums will be.
The Alberta life insurance premium tax is 3%, as of November 2019. Here’s the full list of insurance premium taxes in Alberta:
Against expectations, Alberta has a high insurance tax compared to other provinces. The rate was increased by the short-lived NDP government in its 2015-2016 budget. For comparison, Ontario life insurance and BC life insurance is taxed at just 2%. Alberta life insurance taxes aren’t the highest in the country though, with Quebec life insurance taking 3.48% for individual policies. Your life insurance tax is based on where you live, not where your life insurer is based. More information on Alberta insurance taxes can be found on the province’s website.
Remember, where you live only has a small bearing on how much you'll pay for life insurance. Much more important are your personal circumstances, like your age, health, and smoking status, as well as your occupation and hobbies. What you pay can also vary based on the life insurance product you buy, and who you buy it from. Get started in minutes by comparing life insurance quotes from over 20 providers.
Ratehub.ca is not affiliated or otherwise associated with Hub International Canada.
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Matt started his professional career at CARPROOF where he honed his marketing and analytical skills for over 3 years. Matt then took his wealth of experience to Ratehub.ca’s Toronto offices, working with insurance providers, agents, and brokers to grow and expand the Insurance business unit. He is a thought leader in the community and a valuable insurance resource to respected publications like the Globe & Mail, Toronto Star, Huffington Post, Yahoo News, and 680 news radio in Toronto.read linkedin bio
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