Matt Hands, Business Director, Insurance
As Canada’s most populous province, there are more people covered by life insurance in Ontario than in any other province - no surprises there! Below is everything you’ve ever wanted to know about life insurance in Ontario. But remember, where you live is only a small part of your life insurance premium - the most important factor is you! To get a great policy, it’s best to get multiple life insurance quotes and pick the one that suits you best.
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Ontario life insurance is part of the larger health and life insurance industry, which is one of the largest and most important industries in Canada. All data is from 2019.
- Ontarians with coverage: 11 million (national average: 2.9 million)
- Industry employees: 72,700 (national average: 15,740)
- Weekly benefits paid: $900 million (national average: $199.1 million)
- Provincial tax contributions: $2.8 billion (national average: $559.5 million)
Ontario is home to 88 active health and life insurance companies (including non-profit health benefit providers and fraternal benefit societies), compared to a national average of 67, giving Ontarians plenty of choice. Ontario’s professional industry also benefits more than other provinces, with the head offices of 67 total insurers located in Ontario. Most of these are found in the capital, Toronto. With Canada’s largest life insurance industry, the scale of Ontario life insurance policies is impressive - here are some indicative figures. All data is from 2019.
- People with life insurance: 8.4 million
- Average coverage per person: $234,000
- Average coverage per household: $451,000
- Average size of new policies: $432,000
- Overall coverage in force: ~$2 trillion (group and individual policies)
While living in Ontartio 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 premium tax’ is a provincial tax on all premiums - it’s one of the main ways in which life insurance varies between provinces. The Ontario insurance premium tax is paid by insurance companies and generally invisibility to you, unless you hold universal life insurance. Either way, the higher the tax, the higher your premiums. The Ontario life insurance premium tax is 2%, as of November 2019. Below is the full schedule of insurance premium taxes for Ontario:
- Life: 2%
- Accident: 2%
- Sickness: 2%
- Property: 3.5%
- Other: 3%
Ontario is one of the few provinces that charges retail tax on group policies (like those paid by employers). In Ontario, this adds an additional 8% to the cost of group policy premiums - it doesn’t affect the cost of individual premiums. The Ontario tax rates on life insurance premiums are on the low side, matching the 2% charged on BC life insurance, while beating the more expensive 3% of Alberta life insurance, and the 3.48% charged on Quebec life insurance. It’s important to remember that your insurance tax is based on where you live, not where your insurer is based. More information on Ontario 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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