Matt Hands, Business Director, Insurance
As Canada’s second largest city, Montreal is a huge market for life insurance. It’s also home to more life insurance company headquarters than any Canadian city other than Toronto.
Keep in mind, your city has only a small effect on life insurance premiums. Your personal circumstances, like your gender, age, and health, are far more significant in determining which policies you can access, and how much they’ll cost you. To get the best life insurance policy for yourself, you can compare several life insurance quotes. However, read on if you’re keen to learn more about life insurance in Montreal.
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Montreal is the financial capital of French Canada, so, unsurprisingly they host the head offices most Quebecois life insurance companies (including BMO life insurance and the corporate offices of Desjardins life group). While none of Canada’s ‘big three’ life insurance companies are based in Montreal, all three - Manulife, Sun Life, and Great West Life - still service Quebec residents.
There are 80 companies actively selling life insurance in Quebec (including non-profit health benefit providers and fraternal benefit societies), so Montreal residents have plenty of choices when it comes to types of life insurance.
Interestingly, Quebec has more of its population covered by life insurance than any other province, but residents are generally covered by smaller policies than average. Quebec’s average individual life insurance coverage is just $158,000, while the national average is around $222,000.
How much coverage you might need varies by city, partly because it’s based on your debt and asset profile. More assets might mean a higher tax bill on death, while extra debt will obviously mean more coverage is needed.
Other factors, like how much you want to support your dependants, are not so variable by city. Learn more about those in our article ‘How much life insurance do I need?’.
Here are some figures on the median debts and assets of Montreal residents, based on 2019 data from Statistics Canada:
- Total Assets: $337,100. The median total individual assets is $477,000.
- Mortgage: $176,500. The median Canadian mortgage size is $190,000.
- Student Loans: $9,000. The median student loan debt in Canada is $12,000.
- Total net worth: $220,200. The national median net worth is 329,900.
Montreal residents have lower median debt and lower overall assets than people from other Canadian cities, which could explain why Quebec has less overall life insurance coverage than other provinces. Take these numbers and insights with a grain of salt, however. Debt and assets are only two elements that affect how much life insurance someone needs, and different debt structures may require different coverage.
Montreal life insurance premiums are taxed by the Province of Quebec at 3.48%, which is one of the highest insurance premium tax rates in Canada. While you don’t see this on your statement, it does affect the price of your premiums. Group life insurance policies in Montreal are also subject to Quebec’s 9% retail tax. This doesn’t affect individual policies.
Ratehub.ca is not affiliated or otherwise associated with Hub International Canada.
While your city can affect your policy, your circumstances are crucial! Comparing quotes is the best way to find the right coverage for you.compare quotes today
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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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