Matt Hands, Sr. Business Unit Director
As one of Canada’s biggest cities, and home to some of the nation’s most important industries, Calgary is a big market for life insurance coverage. While it may not be home to as many life insurance companies as Toronto or Montreal, Calgarians still have plenty of choices when shopping around for life insurance.
That said, whether you live in Calgary or Conklin only has a small effect on your life insurance premiums. Your health, gender, age, and occupation all have a bigger effect on your coverage than where you live.
To get the right life insurance policy for you and your family, compare life insurance quotes with Ratehub and find the one that suits you. Until you’re ready for that, read on for more information about life insurance in Calgary.
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Edmonton might be the capital of Alberta, but Calgary is comfortably the biggest city in the province. That means there are more people with life insurance, and more life insurance companies offering coverage within the city limits.
There are 63 active life insurers offering life insurance in Alberta, including the big three Canadian life insurance companies, Manulife, Sun Life, and Great West Life. More providers generally means more products, so Calgary residents have plenty of choice with regard to different types of life insurance.
Alberta has the highest average of individual life insurance coverage among all Canadian provinces. As of 2019, the average coverage of an Albertan with a policy is around $314,000, whereas the national average is $222,000. Perhaps it's why the percentage of Alberta’s population with life insurance coverage comes in at 50%. It's a little lower than the nation’s provincial average of 59%, and well below sales of life insurance in Quebec whose residents own the highest amount of life products at 77%.
While your city can affect your policy, your circumstances are far more important. Comparing quotes is the best way to find the right coverage for you.compare quotes today
How much life insurance coverage you need is partly explained by where you live, as it’s somewhat based on your debt and asset profile. Additional assets could result in a higher tax bill on your estate when you die, while extra debt requires additional coverage.
However, there are big factors to your coverage that aren’t influenced by city, like how much you want to leave for your family. Learn more about those in our article ‘How much life insurance do I need?’.
Here is some basic data on the median debts and assets of residents of Calgary, based on 2019 data from Statistics Canada:
- Total Assets: $592,800. The median total individual assets is $477,000.
- Mortgage: $280,000. The median Canadian mortgage size is $190,000.
- Student Loans: $13,000. The median student loan debt in Canada is $12,000.
- Total net worth: $336,100. The national median net worth is 329,900.
Calgary trails only Toronto and Vancouver as Canada’s highest net-worth city. The higher assets in those cities are likely due to a higher concentration of big business and high-paying jobs.
However, high assets typically come with higher debt, as seen in both the above-average student and mortgage debt of Calgarians (a trend we also see in Toronto and Vancouver). Again, higher assets and debt generally result in the need for more substantial life insurance coverage.
A word of warning, however: these numbers should be taken with a grain of salt. Debt and assets are two important elements affecting how much life insurance you need, but there are many other factors that make clean analysis difficult.
Calgary life insurance premiums are taxed by the Province of Alberta at 3%, which is on the high side, though not as high as Quebec’s 3.48% insurance tax! While you don’t see this on your statement, it does affect the price of your premiums. The tax was raised by the short-lived NDP government back in 2016.
Here’s another note on this for those particularly interested in provincial tax law - Alberta is one of the provinces that does not charge retail tax on group policies. That’s good news for employers offering their staff a life insurance plan.
Ratehub.ca is not affiliated or otherwise associated with Hub International Canada.
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Matt Hands, Business Director of Insurance
With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read more
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